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1、 Module One Basics of NegotiationInternational Business Negotiation Module Two Planning the NegotiationInternational Business Negotiation Learning Objectives After studying this session, you will be able to Form Negotiating Team Create Information Base Draft the Negotiating Plan Make Physical Prepar
2、ationsLead-in QuestionsWhat is negotiation?What is International Business Negotiation?What, do you think, should negotiators prepare before a negotiation starts?Size of a Team Companies are represented by several individuals with different expertise needed to negotiate a specific contract. Teams var
3、y in terms of size, composition, and authority. Parties expect to work with counterparts of more-or-less equivalent position, status, and authority. Size of the team can often be construed as overpowering the other side.Personal qualities of team memberAdaptabilityFlexibilityIntuitive sensitivityCom
4、municationStability HumorPatience Understand and work effectively with the decision-making processes peculiar to the countries theyre dealing with.Handle delicate issuesBe able to empathizeBe able to handle stressCommunicate and relateBe able to “break the ice” Work under pressureCriteria for Pickin
5、g Negotiation Team Members The particular skills you seek. The personality of potential team members. Any organizational considerations that affect selections. Your overall negotiation strategy. Any agreements you have on team size. Make-up of the teamLeaderFinancial personnel Legal personnelTechnic
6、al personnelGeneral corporate managementInterpreter Creating Information Base Obtaining general information Obtaining Market Information Obtaining Laws and Regulation Information Obtaining Cultural Information General Information The Qualification and Credit Status of the Partner Company Negotiation
7、 Representatives Profiles Existing Contract Files Counterpart Relationship History Other Companies Other External Sources Market Informationtechnological specificationsusespurchasing costsquantity availablefreight chargesdomestic market pricesinternational market pricesProducts life cycle and compet
8、itivenesspatentsnecessary accessoriesafter-servicesthe like of the negotiating item Drafting the Negotiation Plan Perform a Context Analysis Complete an Issue, Interest, and Power Analysis Complete a Process Design Context AnalysisIdentify and understand the people and parties who will be involved i
9、n negotiations. Understand the situation in which negotiations will occur and the general purpose of the negotiationsIdentify positive preconditions for negotiations and develop strategies to mitigate negative onesIssue, Interest, and Power Analysis Explore the potential framing of issues Identify t
10、he potential interests Assess the emotional charge of the negotiations, and develop strategies Evaluate the parties willingness to talk and reach agreements and develop strategies Assess the parties means of influence and powerProcess Design Participant Organization Communication Agreement Physical
11、Preparation Plotting the LocationHome court negotiatingGuest court negotiating Third place negotiating Design the Physical SurroundingsDcorBusiness and Personal AmenitiesTemperature and LightingSeating Fighting the Fatigue Factor Planning Travel Schedules Following the Negotiators Diet Eat lightly.
12、Avoid rich food. Avoid alcohol. Dominating the Psychological Environment Resolving to Alter the Environment Module Three Executing the NegotiationInternational Business Negotiation Learning Objectives After studying this session, you will be able to Define the opening, bargaining and closing phases
13、Describe each step in these phases Identify the common mistakes made in each phase of negotiationLead-in QuestionsHow many stages are there in a negotiation?What does a negotiator do when a negotiation begins, proceeds and closes?Building the ClimatePositive and friendly atmosphereBrief and straight
14、forward atmosphereTense and Contradictory atmosphereSedate and Reserved Atmosphere Building the ClimateLocation Will you meet at your place or theirs? Seating Will members sit across table or at each end? Refreshment Will there be any? If so, what kind?People Who is there and who is not?Access to te
15、ch & Is there a phone, fax, computer, Internet, orcommunication calculator? Will there be team seating? Time Frame How much time is allocated for this meeting?AgendaAd hoc discussionsGroup discussionsAlternating Choices of ItemsCreating a Simple AgendaRanking according to ImportanceWorking from Gene
16、ral Agreements to DetailsPlacing Less Difficult Items FirstAddressing the Boulder in the RoadGrouping Trade-Offs or PackagingIncremental or Alternating Discussion and Agreement Assigning Smaller Issues to SubgroupsAgenda Activities for first meetingsWelcoming Comments, Greetings, or SpeechesPsycholo
17、gical and relationship welcomesProcedurally focused welcomes or greetingsSubstantive welcomes or greetings Activities for first meetingsWelcoming Comments, Greetings, or SpeechesIntroduction of Individuals, Team Members, or Other ParticipantsBuilding Working Relationships and TrustInitiating Discuss
18、ions on Substantive, Procedural, or Relationship IssuesOpening StatementsOffer Offer means offering price and terms, which includes not only products inquire, but includes a variety of conditions of the entire transaction including the quantity of goods, quality, packaging, price, shipping, insuranc
19、e, payment, inspection, claims, arbitration, etc.Counter-offerA proportional counter offer refers to a proposal in which one party asks the counterpart to adjust the quotation proportionally; to lower the total price by a certain percent.A cost-based counter offer is made on the basis of cost analys
20、is of the items under negotiation, proposing an appropriate price for the counterparts quotation.Making an offer It gives lots of information to the other side. The other party can adjust his own opening offer to be more or less extreme than planned. Having the other party to offerIt gives you an im
21、mediate idea of how far apart the respective positions are.You may receive a better offer than what you would be willing to settle for.Ways to Encourage Acceptance of an OfferMake an Conditional Offer in Terms of Time Putting a time limit on an offer puts pressure on the other side to give it prompt
22、 considerationOffer Incentives for Prompt Acceptance If we can close this deal today, well absorb the shipping charges over the course of the contract.Establish an Imperative Deadline The President has given us until Wednesday to finalize this, or the money is going for another research project.Stra
23、tegies for Your Opening Offer : Clear Decisive Specific Bargaining Standard Counter-offer In general practice, when an offeree has received an offer, he usually would not accept it immediately, instead he would try to amend or alter some terms of the offer.How to make a counter-offer?Techniques for
24、Justifying and Getting a High PriceTechniques for Overcoming Anyones Price ObjectionsTechniques for Finessing the Offer into NegotiatingCoping with a “Best and Final” Offer You Dont WantUsing the Shock Value of a “Quick Hit” OfferHow to Parry Counter-offers EffectivelyAsking for the Moon to Get What
25、 You WantMaking Concessions concession-making for different reasonsconcessions critical agreement long-term relationshipTactics Do your homeworkPrioritize your goalsKnow your walk-away and alternativesKnow which person will make the decisionShow that you want to negotiateTry not to be first side to
26、make a major concession Do not wait until the deadline to offer a compromise Start with small compromisesTactics Use your concessions to your advantageDont make unreciprocated concessionsUse your offers to communicate your standDo not push too hardRemember the split does not have to be evenSeek win-
27、win compromisesTry not to close too quicklyPromote the long-term benefitsStay focused on the issues Closing PhaseKey actions Putting a Potential Deal Together Make an agreementCommon problems in the closing phase“We dont understand the agreement (or what we are agreeing to).”“We do not understand th
28、e wording /interpretation / translation.”“We need more time.” or “We will have word from our superiors within the next week/ month/ year.”Common Problems in the Closing Phase“What you did/ said earlier offended us. We expect an apology/ a new offer/a concession from you to make it right”“By the way,
29、 we have one more issue. We need one additional thing from you in order for us to close the deal.”“Well, we are not getting anywhere. I am leaving.”Common problems in the closing phase“Isnt there just a little bit more?”“A sweetener for me/ my boss/ the organization would help get this approved in a
30、 timely manner.”“Dont you trust us?”“I want my lawyer (or legal team) to review our agreement.”“This would be very difficult.” Or “No, it is not possible!” Common Problems in the Closing PhaseCommon problems in the closing phase Module Four Strategies and TacticsInternational Business Negotiation Le
31、arning Objectives After studying this session, you will be able to Describe standard negotiation strategies. Use strategies countering negative negotiation tactics. Apply the methods to develop your negotiation strategies.Lead-in questionsDo you know any strategies in a negotiation?What are the adva
32、ntages and disadvantages of these strategies?Strategies Standard Negotiation StrategiesCountering Negative TacticsDeveloping Your Own StrategiesStandard Negotiation StrategiesWin-win strategyStonewalling The Good Samaritan approachThe Good Cop/Bad Cop CaperSurprise as a toolA weak position as an adv
33、antageHardball tactics Stonewalling Stability HumorPatience Understand and work effectively with the decision-making processes peculiar to the countries theyre dealing with.Criteria for Picking Negotiation Team Members The particular skills you seek.Flexibility Stonewalling Make-up of the teamLeader
34、Financial personnel Your overall negotiation strategy. Using Surprise as a Negotiation ToolIntroduce a completely new element into the negotiation. Adding competition. To undermine the other sides position. Bringing in an expert to contradict the other sides position. To signal a shift in your think
35、ing. To escalate the level of negotiations. To create a sense of urgency. Bullying tacticsIntimidating behaviorThreatsLiesNo authority NibblingStressful environmentUnreasonable demands and offersCountering Negative Negotiation Tactics How to deal withDeveloping your own strategiesThe competitive str
36、ategyThe accommodation strategyThe compromising strategyThe collaborative strategyThe avoidance strategy The Competitive StrategyAlternative to settlementAnything but that.Bluffing Bringing in the mediaCreating deadlockDiversion/distraction Done dealIrrational behavior Context AnalysisIdentify and u
37、nderstand the people and parties who will be involved in negotiations. Understand the situation in which negotiations will occur and the general purpose of the negotiationsIdentify positive preconditions for negotiations and develop strategies to mitigate negative onesIssue, Interest, and Power Anal
38、ysis The Accommodation StrategyFace-savingIdentificationTake the lead oarTake reasonable actions The Compromising StrategyBit-by-bitConditional proposals“Log-rolling”“Splitting the baby”Tit-for-tat The Collaborative StrategyBe flexibleFocus on processIdentify with others in similar circumstancesThe
39、Avoidance Strategy Negotiate money issue firstNegotiate non-money issues firstRefuse to combine negotiation of related disputesWalk out of negotiationWithdraw an issueSwitch strategies Module Five Breaking an ImpasseInternational Business Negotiation Learning Objectives After studying this session,
40、you will be able to Identify the causes of an impasse in negotiation Understand the strategies of breaking an impasse Apply the strategies in negotiation simulationLead-in QuestionsWhat is an impasse?How do negotiators break an impasse?Causes of an ImpasseBoth parties are with widely divergent objec
41、tives.One party mistakes firmness for rigidity and will not make concession.One party uses impasse as a deliberate tactic during a negotiation to force the other party to reconsider itss position and make concessions.Invent options when you dont have any.Make last minute concessions to get agreement
42、.Shift gears to reach final agreement.Overcome the last-minute offer withdrawal.Take adjournment.Strategies of Breaking an ImpasseInvent options when you dont have any.Stretching out delivery dates. Relaxing product and/or packaging specifications. Increasing or decreasing the quantity of items boug
43、ht. The inclusion of an option provision for additional quantities. The inclusion of performance, cost, and/or delivery incentives. More favorable payment terms.Six approaches for getting through the decision makerSuggest to move to a higher level for resolution.Find a justifiable reason for involvi
44、ng superiors.Bring your own boss into the negotiation meetings.Have your boss contact the superiors on the other side.Force the issue to the highest level on the other side.Go over the other negotiators head yourself.EstablishDeadlinesto move a deal along Module Five Communication SkillsInternationa
45、l Business Negotiation Learning Objectives After studying this session, you will be able to Identify the four styles of communication. Develop your communication style. Master non-verbal communication skills. Know cultural differences in style preferences. Lead-in QuestionsWhat are the communication
46、 principles that you know and apply in your life?Are there any special communication principles for IBN?Four Styles of CommunicationDirect CommunicationMeasured and Systematic CommunicationOpen CommunicationEmotional CommunicationDevelop your communication styleAction styleProcess stylePeople styleI
47、dea style Figure 6.1 The Four Communication Styles(Source: Negotiations: How To Achieve Win-win Outcome, by Geof Cox, FT Publications, 2012)PEOPLELess directive; more responsiveIDEASMore directive; more responsivePROCESSLess directive;Less responsiveACTIONMore directive; Less responsiveAction StyleD
48、escription People talk about:People areAction-oriented mind-set is fundamentally geared to changing things, improving existing situations, translating ideas into actions, being effective, getting things down, moving ahead and achieving good results. Preferred type of Agreement: deal. Preferred style
49、 of Discourse: bargaining.Results Objectives Performance Deals Challenges Moving ahead Responsibility Achievements Change DecisionsPragmatic DirectImpatient Decisive Quick Energetic Challenging Process StyleDescription People talk about:People areThe process-oriented mindset is characterized by the
50、need to know, be factual, understand, organize, structure, set up strategies, tactics, establish rules, regulations , systems and manage.Preferred type of agreement: logical solution.Preferred style of discourse: debate.Facts Details ObservationsProcedures Planning Proof Organizing Controlling Testi
51、ng AnalysisSystematicLogical FactualVerbose Unemotional Cautious PatientPeople StyleDescription People talk about:People areThe people-oriented mindset is characterized by men and women who care about people, have a strong drive towards peoples needs, rights, communication, understanding each other,
52、 team work, ethics, synergy, feelings and emotions. Preferred type of agreement: empathy.Preferred style of discourse: understanding.PeopleNeeds Self-development Sensitivity Relationships Motivations Beliefs Values AwarenessCooperationCommunications FeelingsTeam spirit UnderstandingSpontaneous Empat
53、hetic Warm Emotional Perceptive SubjectiveSensitiveIdea StyleDescription People talk about People areIdeas-oriented people handle the world in terms of concepts, abstractions, theories and models. They value imagination, innovation and creativity very much. They are future oriented. Preferred type o
54、f agreement: shared vision. Preferred style of discourse: inspire. Concepts InnovationCreativityPotential Opportunities Possibilities Grand designs Improving Interdependence Whats new in the field Alternatives New methodsImaginative CharismaticDifficult to understandEgo centeredUnrealisticCreativeFu
55、ll of ideasProvocativeFacial behaviorEye behaviorTouch behaviorHand and other body movementsSpace management Office layoutLies Non-verbal Communication The faceSmiles Squelched expressionsAsymmetrical or crooked facial expressionHow long the facial expression lastsSignals in relation to body movemen
56、ts, voice changes and flow of speechMovement of the eyes Body movementsEmblemsIllustrators ManipulatorsGuidelines to increase your sensitivity to body languageSelf-understandingObservant of detailsFrom ones cultural perspectiveWithin the situational contextCultural biasesCultural Differences in Styl
57、e PreferencesA preference for action-oriented communicationA preference for process-oriented communicationA preference for people-oriented communicationA preference for idea-oriented communication Module SevenStyles of International Business NegotiationInternational Business Negotiation Learning Obj
58、ectives After studying this session, you will be able to Identify the priorities of business negotiation in different countries and regions Describe the characteristics of business negotiation in different countries and regions Exemplify influences of cultural differences in international business n
59、egotiation Analyze how the cultural factors decide the negotiationLead-in QuestionsWhat is culture?What are the cultural differences?Can you explain one case from Chapter one to illustrate the influences of cultural differences on IBN?Key Cultural Factors that Influence IBNUncertainty AvoidanceLong-
60、term vs. Short-term Orientationthe extent to which the members of a culture feel threatened by uncertain or unknown situations.A long-term versus short-term orientation in life;Two poles of values:Oriented towards the future vs. towards the past and the present Key Cultural Factors that Influence IB
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