国际商务谈判.pptx

Module One Basics of NegotiationInternational Business Negotiation Definition of Culture Culture is the cumulative result of experience, beliefs, values, knowledge, social organizations, perceptions of time, spatial relations, material objects and possessions, and concepts of the universe acquired or created by groups of people over the course of generations. -Samovar and Porterconceptsexperiencebeliefvalueknowledgesocial organizationsperceptions of timespatial relationsmaterial objects possessionsFrom Beyond Culture(1976) by Edward T. HallValue A value is a judgment of what is important in social interaction. A cultural value is a judgment shared by a group. National cultures differ in terms of shared valuesAn experienced business person must know how to deal with cultural differences with tolerance. Individualism vs. Collectivism Hierarchy vs. EgalitarianismCultural Variables Direct vs. Indirect High context vs. Low context Relationship-oriented vs. Task-oriented Contractual vs. Holistic 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 PreparationsLead-in Questions What 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 vary 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 sensitivityCommunicationStability 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 Picking 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 personnelTechnical 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 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 competitivenesspatentsnecessary 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 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 Analysis Explore the potential framing of issues Identify the 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 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. 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 Describe each step in these phases Identify the common mistakes made in each phase of negotiationLead-in Questions How 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 straightforward 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 tech & 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 General 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 SpeechesPsychological 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 Discussions 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, insurance, 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 analysis 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 immediate 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 Offer Make an Conditional Offer in Terms of Time Putting a time limit on an offer puts pressure on the other side to give it prompt consideration Offer 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. Strategies 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 Justifying and Getting a High Price Techniques for Overcoming Anyones Price Objections Techniques for Finessing the Offer into Negotiating Coping with a “Best and Final” Offer You Dont Want Using the Shock Value of a “Quick Hit” Offer How to Parry Counter-offers Effectively Asking for the Moon to Get What You WantMaking Concessions concession-making for different reasonsconcessions critical agreement long-term relationshipTactics Do your homework Prioritize your goals Know your walk-away and alternatives Know which person will make the decision Show that you want to negotiate Try not to be first side to make a major concession Do not wait until the deadline to offer a compromise Start with small compromisesTactics Use your concessions to your advantage Dont make unreciprocated concessions Use your offers to communicate your stand Do not push too hard Remember the split does not have to be even Seek win-win compromises Try not to close too quickly Promote the long-term benefits Stay 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 the 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, 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 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 Learning 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 questions Do you know any strategies in a negotiation? What are the advantages 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 advantageHardball 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 teamLeaderFinancial 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 thinking. 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 strategyThe 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 understand 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 Analysis The Accommodation Strategy Face-saving Identification Take the lead oar Take 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 Avoidance Strategy Negotiate money issue first Negotiate non-money issues first Refuse to combine negotiation of related disputes Walk out of negotiation Withdraw an issue Switch strategies Module Five Breaking an ImpasseInternational Business Negotiation Learning Objectives After studying this session, 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 Questions What is an impasse? How do negotiators break an impasse?Causes of an ImpasseBoth parties are with widely divergent objectives.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.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 bought. 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 involving 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 SkillsInternational 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 Questions What are the communication 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 styleIdea 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 res