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BusinessNegotiationEnglish

BusinessNegotiationEnglish

1Objectives1.Introducethestudentstothemainprinciplesofbusinessnegotiation.2.Thestudentsgetfamiliarwiththetypesofnegotiation.3.Adetailedstudyofonenegotiationmethod---principlednegotiation.4.CaseStudy5.SimulatednegotiationsObjectives1.Introducethestu2Chapter1PrinciplesofBusinessNegotiation:Whatisnegotiation?----theprocessweusetosatisfyourneedswhensomeoneelsecontrolswhatwewant.(RobertMaddux)----Wheneverpeopleexchangeideaswiththeintentionofchangingrelationships,whenevertheyconferforagreement,thentheyarenegotiating.(GerardI.Nierenberg)Chapter1PrinciplesofBusines3Definitions:----theabilitytodealwithbusinessaffairs,----toarrangebydiscussionthesettlementoftheterms,----toreachagreementsthroughtreatiesandcompromise,----totravelthroughchallengingterritory.Consultation,bargaining,mediation,arbitration,andlitigationDefinitions:----theabilityto42.Whendopeoplenegotiate?---wheretogofordinner---whichmovietowatch---howtosplithouseholdchores,etc---whethertobuyacomputer---whotohavethefirstapple2.Whendopeoplenegotiate?--5Practice:Pleasecheckoffthefollowingsituationsthatrepresentnegotiations.Purchasingacomputeratadepartmentstore.Decidingwiththefamilywheretogofortheweekend.Biddingforasecond-handedcar.Decidinghowthehousewillbecleanedup.Borrowingamusicalinstrumentfromafriend.Selectingacontractortobuildanewkitchen.Decidingwhethertostaylateatworktofinishupaproject.Practice:Pleasecheckoffthe68.Gettinganextensiononyourunfinishedassignments.9.Makingup,orrebuildingarelationshipwithsomeoneyoulove.10.Decidingonadateforthenextmeetingwithyourcustomer.11.Gettingachildtogotobed.12.PickingasuccessorfortheCEOofacompanywhereyouareontheboard.8.Gettinganextensiononyou73.Typesofnegotiation:CompetitivestyleAccommodativestyleAvoidancestyleCompromisingstyleCollaborativestyleVengefulstyleSelf-inflictingstyleVengefulandself-inflictingstyle3.Typesofnegotiation:Compet8Typesofnegotiation:Competitivestyle:Totrytogainallthereistogain.Accommodativestyle:Tobewillingtoyieldallthereistoyield.Avoidancestyle:Totrytostayoutofnegotiation.Typesofnegotiation:Competiti9Typesofnegotiation:4.Compromisingstyle:Totrytosplitthedifferenceorfindanintermediatepointaccordingtosomeprinciple.5.Collaborativestyle:Totrytofindthemaximumpossiblegainforbothparties-----bycarefulexplorationoftheinterestsofallparties-----andoftenbyenlargingthepie.Typesofnegotiation:4.Compro10Typesofnegotiation:6.Vengefulstyle:Totrytoharmtheother.7.Self-inflictingstyle:Toactsoastoharmoneself.8.Vengefulandself-inflictingstyle:Totrytoharmtheotherandalsooneself.Typesofnegotiation:6.Vengefu114.PrincipleofCollaborativenegotiationProblem-solvingnegotiationConsensus-buildingnegotiationInterest-basednegotiationWin-winnegotiationMutualgainsnegotiation,etc.4.PrincipleofCollaborative12Theassumptions:ThenegotiationpartieshavebothdiverseandcommoninterestsThecommoninterestsarevaluedandsought.Thenegotiationprocessescanresultinbothpartiesgainingsomething.Thenegotiatingarenaiscontrolledbyenlightenedself-interest.Interdependenceisrecognizedandenhanced.Limitedresourcesdoexist,buttheycanusuallybeexpandedthroughcooperationandcreativity.Thegoalisamutuallyagreeablesolutionthatisfairtoallpartiesandeffectiveforthecommunity/group.Theassumptions:Thenegotiati13Disadvantages:Pressureanindividualtocompromiseandaccommodateinwaysnotinhisinterest.Avoidconfrontationalstrategies,whichcanbehelpfulattimes.Increasevulnerabilitytodeceptionandmanipulationbyacompetitiveopponent.Makeithardtoestablishdefiniteaspirationlevelsandbottomlines.Requiresubstantialskillandknowledgeoftheprocess.Requirestrongconfidenceinone‘sperceptionsregardingtheinterestsandneedsoftheotherside.Disadvantages:Pressureanind145.PrinciplednegotiationPIOC:People:Separatethepeoplefromtheproblem.Interests:Focusoninterests,notpositions(interestsalwaysunderliepositions)Options:Inventoptionsformutualgains.Criteria:Insistonusingobjectivecriteria.5.PrinciplednegotiationPIOC:15*Separatethepeoplefromtheproblem.

Techniques:---Establishanaccurateperception.---Cultivateappropriateemotions.---Strivebettercommunication.*Separatethepeoplefromthe16*Focusoninterests,notpositionsMethods:---identifytheself-interests---discussinterestswiththeotherparty*Focusoninterests,notposit17*InventoptionsformutualgainsBrainstorming4obstacles:PrematurejudgmentSearchingforthesingleanswerTheassumptionofafixedpieThinkingthat“solvingtheirproblemistheirproblem”.*Inventoptionsformutualgai18StepsforovercomingtheobstaclesSeparatingtheactofinventingoptionsfromtheactofjudgingthem.Runabrainstormingsession:Stepsforovercomingtheobsta19Beforebrainstorming:---Defineyourpurpose:whatyouwouldliketoachieveatthemeeting.---Chooseafewparticipants:5-8people.---Changetheenvironment:distinguishingthesessionfromregulardiscussion.---Designaninformalatmosphere:adrink,atavacationlodgeetc.---Chooseafacilitator:tokeepthemeetingontrack.

Beforebrainstorming:---Define20Duringbrainstorming:---Seattheparticipantssidebysidefacingtheproblem;---Clarifythegroundrules,includingtheno-criticismrule;---Brainstorm;---Recordtheideasinfullview.

Duringbrainstorming:---Sea21Afterbrainstorming:---Checkthemostpromisingideas;---Exploreimprovementsforpromisingideas;---Setupatimetoevaluateideasandmakeadecision.Considerbrainstormingwiththeotherside;itcanbeveryvaluable.Afterbrainstorming:---Checkt22StepsforovercomingtheobstaclesB.Developasmanyoptionsaspossiblebeforechoosingone.Adoptthefourtypesofthinking:

Identifyingaproblem;Analyzingtheproblem;Consideringwhattobedone;Comingupwithsomespecificandworkable

suggestionsforaction.Lookattheproblemthroughtheeyesofdifferentexperts.Developdifferentversionsofagreement.Changethescopeofaproposedagreement.Stepsforovercomingtheobsta23StepsforovercomingtheobstaclesC.SearchformutualgainsIdentifysharedinterests;Dovetaildifferinginterests.D.Findwaystohelpmaketheotherparty’sdecisioneasy.Stepsforovercomingtheobsta24*Insistonusingobjectivecriteria1)Guidelinesforobjectivecriteria:Independentofwillsofallparties.Legitimateandpractical.Acceptabletoallparties.2)Afairproceduralstandard3)Discussthemwiththeotherparty.*Insistonusingobjectivecr25Threebasicpoints:A.Frameeachissueasajointsearchforobjectivecriteria.B.Reasonandbeopentoreasonastowhichstandardsaremostappropriateandhowtheyshouldbeapplied.C.Neveryieldtopressure,onlytoprinciple.Threebasicpoints:A.Framee26CaseStudyInonenegotiationintheearly1980s,aChinesemanufacturerwaslockedinadisputewithanAmericanimporteroverhowmanymodelsofthebicycleshiscompanywouldproduce.TheAmericanimporterwantedfourdifferentmodelstogiveitscustomersgreaterselection.TheChinesecompanywantedtoproduceonlytwomodels,tokeepmanufacturingcostsdown.CaseStudyInonenegotiationi27CaseStudyThepositionoftheChinesecompanywasthatitwouldproduceonlytwomodels,whiletheunderlyinginterestwastokeepmanufacturingcostsdown.ThepositionoftheAmericanimporterwasthatitwantedfourmodels,whileitsunderlyinginterestwastoincreaseitsprofitsbysellingmorebicycles.Aslongasthenegotiatorsfocusedonthesepositions,thedisputecouldberesolvedonlythroughconcessionsbyoneorbothsides.CaseStudyThepositionofthe28Solution:Butaninterest-orientedexaminationofthedisputeleadstothequestion:HowcanthehighercostofmanufacturingfourmodelsbeallocatedbetweentheAmericanimporterandtheChinesemanufacturer?Inthisexample,thepartieswereabletodeviseaformulathatincreasedtheunitcostofdifferentmodelstoreflecttheChinesemanufacturer’sincreasedmanufacturingcost.Solution:Butaninterest-orien29Solution:TheinterestsoftheChinesemanufacturerwereachievedbythesolution—profitperunitremainedconstant.TheinterestsoftheAmericanimporterwerealsomet—itsoldmoreunitsathigherprices,whichmorethanoffsettheincreasedmanufacturingcost.Solution:Theinterestsofthe30Questions:Whattypeofnegotiationapproachwasappliedtothenegotiation?WhatprinciplewasusedtosolvetheconflictbetweentheChinesemanufacturerandtheAmericanimporter?Questions:Whattypeofnegotia31Simulatednegotiation1Directions:Readtheshortpassagebelow.Doyouthinktheconflictbetweenthemanagerandtheworkerscanbesolved?Imagineyouarethemanager/workers’representativewhowouldnegotiatewiththeworkers/manager.Howwouldyouprepareyourproposalthatmayleadtoawin-winsolution?Writedownyourplanandfindapartnertorole-playthenegotiation.Simulatednegotiation1Directi32Simulatednegotiation1Themanagementofamajortelevisionmanufacturer’swarehousehasadisputewithemployeesaboutovertimescheduling.Workersdonotwanttobelockedintoaspur-of-the-momentovertimeassignment,yetmanagementneedstobesurethatthewarehousewillbefullystaffed.Pleasehelpbothsidesworkoutasolutionthatsatisfiesthemall.Simulatednegotiation1Theman33Simulatednegotiation2Directions:Trytonegotiatewithsomeoneaboutaproblemthatdividesyoutwo.Usesomeoftheprinciplestodealwiththedifficultyarisingbetweenyou.Simulatednegotiation2Directi34BusinessNegotiationEnglish

BusinessNegotiationEnglish

35Objectives1.Introducethestudentstothemainprinciplesofbusinessnegotiation.2.Thestudentsgetfamiliarwiththetypesofnegotiation.3.Adetailedstudyofonenegotiationmethod---principlednegotiation.4.CaseStudy5.SimulatednegotiationsObjectives1.Introducethestu36Chapter1PrinciplesofBusinessNegotiation:Whatisnegotiation?----theprocessweusetosatisfyourneedswhensomeoneelsecontrolswhatwewant.(RobertMaddux)----Wheneverpeopleexchangeideaswiththeintentionofchangingrelationships,whenevertheyconferforagreement,thentheyarenegotiating.(GerardI.Nierenberg)Chapter1PrinciplesofBusines37Definitions:----theabilitytodealwithbusinessaffairs,----toarrangebydiscussionthesettlementoftheterms,----toreachagreementsthroughtreatiesandcompromise,----totravelthroughchallengingterritory.Consultation,bargaining,mediation,arbitration,andlitigationDefinitions:----theabilityto382.Whendopeoplenegotiate?---wheretogofordinner---whichmovietowatch---howtosplithouseholdchores,etc---whethertobuyacomputer---whotohavethefirstapple2.Whendopeoplenegotiate?--39Practice:Pleasecheckoffthefollowingsituationsthatrepresentnegotiations.Purchasingacomputeratadepartmentstore.Decidingwiththefamilywheretogofortheweekend.Biddingforasecond-handedcar.Decidinghowthehousewillbecleanedup.Borrowingamusicalinstrumentfromafriend.Selectingacontractortobuildanewkitchen.Decidingwhethertostaylateatworktofinishupaproject.Practice:Pleasecheckoffthe408.Gettinganextensiononyourunfinishedassignments.9.Makingup,orrebuildingarelationshipwithsomeoneyoulove.10.Decidingonadateforthenextmeetingwithyourcustomer.11.Gettingachildtogotobed.12.PickingasuccessorfortheCEOofacompanywhereyouareontheboard.8.Gettinganextensiononyou413.Typesofnegotiation:CompetitivestyleAccommodativestyleAvoidancestyleCompromisingstyleCollaborativestyleVengefulstyleSelf-inflictingstyleVengefulandself-inflictingstyle3.Typesofnegotiation:Compet42Typesofnegotiation:Competitivestyle:Totrytogainallthereistogain.Accommodativestyle:Tobewillingtoyieldallthereistoyield.Avoidancestyle:Totrytostayoutofnegotiation.Typesofnegotiation:Competiti43Typesofnegotiation:4.Compromisingstyle:Totrytosplitthedifferenceorfindanintermediatepointaccordingtosomeprinciple.5.Collaborativestyle:Totrytofindthemaximumpossiblegainforbothparties-----bycarefulexplorationoftheinterestsofallparties-----andoftenbyenlargingthepie.Typesofnegotiation:4.Compro44Typesofnegotiation:6.Vengefulstyle:Totrytoharmtheother.7.Self-inflictingstyle:Toactsoastoharmoneself.8.Vengefulandself-inflictingstyle:Totrytoharmtheotherandalsooneself.Typesofnegotiation:6.Vengefu454.PrincipleofCollaborativenegotiationProblem-solvingnegotiationConsensus-buildingnegotiationInterest-basednegotiationWin-winnegotiationMutualgainsnegotiation,etc.4.PrincipleofCollaborative46Theassumptions:ThenegotiationpartieshavebothdiverseandcommoninterestsThecommoninterestsarevaluedandsought.Thenegotiationprocessescanresultinbothpartiesgainingsomething.Thenegotiatingarenaiscontrolledbyenlightenedself-interest.Interdependenceisrecognizedandenhanced.Limitedresourcesdoexist,buttheycanusuallybeexpandedthroughcooperationandcreativity.Thegoalisamutuallyagreeablesolutionthatisfairtoallpartiesandeffectiveforthecommunity/group.Theassumptions:Thenegotiati47Disadvantages:Pressureanindividualtocompromiseandaccommodateinwaysnotinhisinterest.Avoidconfrontationalstrategies,whichcanbehelpfulattimes.Increasevulnerabilitytodeceptionandmanipulationbyacompetitiveopponent.Makeithardtoestablishdefiniteaspirationlevelsandbottomlines.Requiresubstantialskillandknowledgeoftheprocess.Requirestrongconfidenceinone‘sperceptionsregardingtheinterestsandneedsoftheotherside.Disadvantages:Pressureanind485.PrinciplednegotiationPIOC:People:Separatethepeoplefromtheproblem.Interests:Focusoninterests,notpositions(interestsalwaysunderliepositions)Options:Inventoptionsformutualgains.Criteria:Insistonusingobjectivecriteria.5.PrinciplednegotiationPIOC:49*Separatethepeoplefromtheproblem.

Techniques:---Establishanaccurateperception.---Cultivateappropriateemotions.---Strivebettercommunication.*Separatethepeoplefromthe50*Focusoninterests,notpositionsMethods:---identifytheself-interests---discussinterestswiththeotherparty*Focusoninterests,notposit51*InventoptionsformutualgainsBrainstorming4obstacles:PrematurejudgmentSearchingforthesingleanswerTheassumptionofafixedpieThinkingthat“solvingtheirproblemistheirproblem”.*Inventoptionsformutualgai52StepsforovercomingtheobstaclesSeparatingtheactofinventingoptionsfromtheactofjudgingthem.Runabrainstormingsession:Stepsforovercomingtheobsta53Beforebrainstorming:---Defineyourpurpose:whatyouwouldliketoachieveatthemeeting.---Chooseafewparticipants:5-8people.---Changetheenvironment:distinguishingthesessionfromregulardiscussion.---Designaninformalatmosphere:adrink,atavacationlodgeetc.---Chooseafacilitator:tokeepthemeetingontrack.

Beforebrainstorming:---Define54Duringbrainstorming:---Seattheparticipantssidebysidefacingtheproblem;---Clarifythegroundrules,includingtheno-criticismrule;---Brainstorm;---Recordtheideasinfullview.

Duringbrainstorming:---Sea55Afterbrainstorming:---Checkthemostpromisingideas;---Exploreimprovementsforpromisingideas;---Setupatimetoevaluateideasandmakeadecision.Considerbrainstormingwiththeotherside;itcanbeveryvaluable.Afterbrainstorming:---Checkt56StepsforovercomingtheobstaclesB.Developasmanyoptionsaspossiblebeforechoosingone.Adoptthefourtypesofthinking:

Identifyingaproblem;Analyzingtheproblem;Consideringwhattobedone;Comingupwithsomespecificandworkable

suggestionsforaction.Lookattheproblemthroughtheeyesofdifferentexperts.Developdifferentversionsofagreement.Changethescopeofaproposedagreement.Stepsforovercomingtheobsta57StepsforovercomingtheobstaclesC.SearchformutualgainsIdentifysharedinterests;Dovetaildifferinginterests.D.Findwaystohelpmaketheotherparty’sdecisioneasy.Stepsforovercomingtheobsta58*Insistonusingobjectivecriteria1)Guidelinesforobjectivecriteria:Independentofwillsofallparties.Legitimateandpractical.Acceptabletoallparties.2)Afairproceduralstandard3)Discussthemwiththeotherparty.*Insistonusingobjectivecr59Threebasicpoints:A.Frameeachissueasajointsearchforobjectivecriteria.B.Reasonandbeopentoreasonastowhichstandardsaremostappropriateandhowtheyshouldbeapplied.C.Neveryieldtopressure,onlytoprinciple.Threebasicpoints:A.Framee60CaseStudyInonenegotiationintheearly1980s,aChinesemanufacturerwaslockedinadisputewithanAmericanimporteroverhowmanymodelsofthebicycleshiscompanywouldproduce.TheAmericanimporterwantedfourdifferentmodelstogiveitscustomersgreaterselection.TheChinesecompanywantedtoproduceonlytwomodels,tokeepmanufacturingcostsdown.CaseStudyInonenegotiationi61CaseStudyThepositionoftheChinesecompanywasthatitwouldproduceonlytwomodels,whiletheunderlyinginterestwastokeepmanufacturingcostsdown.ThepositionoftheAmericanimporterwasthatitwantedfourmodels,whileitsunderlyinginterestwastoincreaseitsprofitsbysellingmorebicycles.Aslongasthenegotiatorsfocusedonthesepositions,thedispu

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