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Topic3:

DistributionandWin-WininNegotiationsInternationalBusinessNegotiationByZeningSongLearningObjectivesUponcompletionofthischapter,youwillbeabletounderstandtheconceptsofdistributiveandintegrativenegotiationslearnthecommonstrategiesofdistributiveandintegrativenegotiations2LessonPlanPart1DistributiveandIntegrativeNegotiationsPart2CaseStudy:NegotiationBetweenChinaNationalChemicalGroupandUAE’sOilCompany1.1DefinitionandFeaturesofDistributiveNegotiationAtypeofnegotiationinwhichbothpartiesnegotiateaboutasingleissueorfixedsumofinterests,anddeterminethewayofitsdistribution.Contrarytointegrativenegotiation,distributivenegotiationismoreconcernedwiththedistributionoffixedpie(i.e.,howtogetagoodshareofthepie),insteadofconsideringhowtomakethepiebigger.Distributivenegotiationisalsotheultimatedestinationofintegrativenegotiation,becauseevenifthepieisenlarged,itstillneedstobedistributed.51.2StrategiesforDistributiveNegotiationStrategy1:SetYourBATNAandRPSettingyourBATNAwillgiveyoumoreconfidenceinnegotiations,retainmoreopportunitiesandoptions,andmakeyoufeelmoreassertiveaboutyourRP.Strategy2:IdentifytheOtherParty’sBATNAandRPInnegotiations,weshouldmakegooduseoftheavailableinformationandnegotiationdetailstospeculatetheotherparty’sBATNAandRP.Knowledgeoftheotherparty’salternativescanprovideyoumorebargainingpower.51.2StrategiesforDistributiveNegotiationStrategy3:SetHighButFeasibleTargets(设定可行的高目标点)Settingahightargetwillgivenegotiatorsahigherreferencepointandmoreroomforadjustmentthansettingalowerone.Strategy4:MaketheFirstOffer(首先开价,先发制人)Makingthefirstoffercansetastronganchorandpulltheotherpartyintoyourpricerange.61.2StrategiesforDistributiveNegotiationStrategy5:Re-anchorwithaCounter-offer(重新锚定,紧跟其上)Makingacounter-offercan,ontheonehand,expressyourwillingnesstonegotiateandcooperate,andontheotherhand,reducetheanchoringeffectoftheotherparty’soffer.71.2StrategiesforDistributiveNegotiationStrategy6:UseConcessionsProperly(让步技巧)Threeprinciplesinmakingconcessions:(1)Makeeffectiveandmoderateconcessions.(2)Makebilateralinsteadofunilateralconcessions.(3)Avoidfastconcessionsandnoconcession.Waystomakeconcessions:(1)Thelast-minuteconcession(2)Balancedconcessions(3)Incrementalconcessions(4)Decreasingconcessions(5)One-timeconcession81.2StrategiesforDistributiveNegotiationStrategy7:JustifytheOfferwithFacts(用事实增强报价依据)Negotiatorsneedtojustifytheiroffersandprovethattheyarenotaskingforanunreasonableprice.91.3FairnessinNegotiationsThreemajorprinciplesoffairness:Theprincipleofequality(平等原则)Theprincipleofequity(公平原则)Theneed-basedrule(基于需求的公平原则)52.1DefinitionsandFunctionsofIntegrativeNegotiationAlsocalled“interest-basednegotiation”or“win-winnegotiation”Bothpartiesapplyaproblem-solvingapproachandtrytoachieveawin-winoutcomebycollaboratingandrealizingmutualgains.Theessenceofawin-winnegotiationistomaximizethebargainingpiebyusingcreativeoptionstoaddresstheinterestsofbothparties.62.2StrategiesforDistributiveNegotiationStrategy1:AvoidFixed-PiePerceptions(避免固定蛋糕认知)Strategy2:FocusonInterests(聚焦利益)Strategy3:BringinMoreIssues(引入更多谈判事项)Strategy4:UseDifferencestoMakeTrade-offs(利用差异来创造价值)Strategy5:BuildTrusttoEnsureBilateralInformationExchange(建立信任来确保双边信息交流)122.2StrategiesforDistributiveNegotiationStrategy1:AvoidFixed-PiePerceptions(避免固定蛋糕认知)AnexamplefromGettingtoYes:Twostudentswerequarrelinginalibrary.Onestudentwantsthewindowopen,whiletheotherwantsitclosed.Shalltheykeepthewindowslightlyopen,halfopen,orwideopen?132.2StrategiesforDistributiveNegotiationStrategy2:FocusonInterests(聚焦利益)Trytounderstandtheunderlyingconcernsoftheotherpartybygatheringinformation;asktheotherpartyquestionsabouttheirinterestsandpriorities.Maintainsomedegreeofhonestyaboutyourparty’sownneedsandconcernsMakemultipleoffersofequivalentvaluesimultaneouslyandobservetheotherparty’sreaction.142.2StrategiesforDistributiveNegotiationStrategy3:BringinMoreIssues(引入更多谈判事项)Ifthereisonlyonebargainingissueinthenegotiation,wearelikelytoendupinapie-sharingmode.Weareliabletoreachanagreementwhenweofferapackageratherthanasingle-issueoffer.152.2StrategiesforDistributiveNegotiationStrategy4:UseDifferencestoMakeTrade-offs(利用差异来创造价值)Youcanconcedeonanissuethatisrelativelyunimportanttoyoubutmoreimportanttoyourcounterpartinexchangeforonethatismoreimportanttoyoubutlessimportanttoyourcounterpart.162.2StrategiesforDistributiveNegotiationStrategy5:BuildTrusttoEnsureBilateralInformationExchange(建立信任来确保双边信息交流)Integrativenegotiationsrequireinformationsharing,butthisapproachmaybevulnerabletotacticsofclaimingthevalue.Toreducetherisksofunilateralinformationexchange,negotiatorswanttobuildtrustbeforesharinginformation.17LessonPlanPart1DistributiveandIntegrativeNegotiationsPart2CaseStudy:NegotiationBetweenChinaNationalChemicalGroupandUAE’sOilCompanyCaseStudyNext,wewillstudyaprofit-sharingnegotiationbetweenChinaNationalChemicalGroupandUAE’sOilCompanyandseehowtheChineseenterpriseachievedawin-winoutcomebyfocusingontheinterestsofbothpartiesandbringinginmorenegotiationissues.19ChinaNationalChemicalGroup)UAEMerdeOilCompanyCaseStudyPleasereadthecasebackground,anddiscuss:Accordingtothenegotiationbackground,doyouthinkitisonlyadistributivenegotiationontheprofit-sharingratio?Ordoesithavethepotentialtobeanintegrativenegotiation(e.g.,arethereothernegotiatingissuesthatmightbeincludedinthisnegotiationinadditiontoprofit-sharing)?WhatarethestrengthsandweaknessesoftheChinesesideinthisnegotiation?Howwillthesestrengthsandweaknessesaffectthenegotiationprocess?20CaseStudyPleaseread“processands

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