This article presents an approach to Trading, seeks to provide specific information on techniques and strategies of trading, in addition to providing content of the steps that make up the process of trading based on concepts, so that it can understand the importance of Trading for the organizations.
The subject of trading has become increasingly important in the business world. At all times, the media are referring to mergers, incorporations, joint ventures, and strategic alliances as the needs of a modern, dynamic, and competitive economy. The tradings are present not only when the agreements are signed, but also in their implementation.
trading is present in everyday life, even without realizing it, people trade all the time. In this way, the professional who masters and has this skill ends up achieving advantages and positive results. In other words, trading is an essential skill for professional development.
In the business world, trading presents itself as a strong tool to obtain better results and is a highly valued competence. It is important to note that the principles of trading apply to all organizations, regardless of segment, size, or profit.
trading And Decision-making Process
trading is a relationship. Saber will trade one of the most demanded skills of the purchasing/supply team. trading is not a competition in which one party wins and the other loses. According to Alto, et. al (2009), trading is the dynamic process by which two parties seek a mutually satisfactory agreement, in which each party seeks to obtain an optimal degree of satisfaction. tradings are based on assertive relationships, where people meet and speak frankly about their interests, expectations, advantages, benefits, fears, doubts, apprehensions, unclear points, mistrust, etc. It is at this point that trust begins to consolidate.
Thus, it is concluded that trading is the process of seeking an agreement and any agreement is a consequence of decisions between the parties. The big question is the quality of the decision; whether it serves the interests of the parties involved or if only those of one of them. Moreover, whether these interests are served creatively or not with the finding of new solutions, not initially planned and of superior quality.
Often, people trade unconsciously, even though they don’t realize they do. However, few people achieve the desired result in a trading.
In a trading process, there are important elements that are related to the strategies, tactics, and techniques used, such as information, time, and power, according to Alto, et. al (2009). That is, whatever the purpose of the trading, its importance, and opportunity, there will be three basic variables that condition this process, they are information, time, and power.
The “information” variable consists of knowing as much as possible about the other. Information is the act or effect of being informed about someone or something. The need for information in a trading is rarely anticipated in advance. Information is closely related to the power to know the needs of others. The key point in trading is the search for the needs of those involved.
“Time” is essential for the success of a trading, and can even influence the relationship, in addition to favoring both sides depending on the circumstances, and usually, the parties involved define a deadline.
The variable “power”, on the other hand, refers to the ability to make the other person do something different from what they would do without this influence, that is, the ability to exercise control over people and influence them in thoughts and behaviors. trading uses this positive form of power, exercising self-confidence, defending interests, and making satisfactory agreements for all parties. Powers can be subdivided into personal powers (morality, attitude, persistence, and persuasive ability); and circumstantial powers (specialist, hierarchical position, precedent, know the needs and bargain).
The elements mentioned above are linked to the decision-making process. This process is considered as a set of principles, rules, and procedures that allow selecting, in certain types of problems, the most convincing lines of action, exit, or alternative. That is, decision making and trading are, therefore, choices between alternative actions to achieve a goal and the desired result.
The decision process can be considered a risk in a situation where you are not 100% sure and the possible events are more than one. This also happens with the trading, the lack of mastery of the elements means that the trading is not concluded successfully, thus harming the organizations, and all involved.
When knowing the fundamental factors that involve the trading process, the procurement professional must understand what are the stages of the trading and what are the negotiating styles.