Negotiation is one of the most important elements of the economic activity and the management's ability of being good negotiators is a key element for a business' successful outcome. The process of negotiation is generally regarded as a means of resolving disputes between two or more parties, each of them trying to gain as much as possible from the dispute.
             "The essential quality of negotiation is the existence of two parties who share an important objective but have some significant differences. The purpose of the negotiating conference is that of seeking to compromise the differences. As pointed out, the "outcome of the negotiating conference may be a compromise satisfactory to both sides, a standoff (failure to reach a satisfactory compromise) or a standoff with an agreement to try again at a later time."1
             Directly linked to negotiation, the ability of making the right decisions is yet another key element of the economic activity. In the process of making the correct and efficient decisions for the company, the management needs to take into consideration all internal and external factors that affect the company.
             In order to better understand the two concepts, one ought to closely analyze a concrete situation, for instance the case of a footwear shop and its shoe supplier. In this situation, the problem is that the footwear shop is a relatively small business, for which the supplier has set a rather high minimum quantity of shoes to purchase. In other words, the contract between the retail business and the supplier states the provider's condition that the shop purchases a large amount of shoes.
             However, this particular condition raises numerous negative effects upon the small business, as the manager of the shop would have preferred a more flexile agreement which would allow him to buy in stages, rather than the entire large quantity at once. Moreover, acquiring the large quantity of shoes...