国际商务谈判 Chapter 5 The Bargaining Process.ppt

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1、Chapter 5 The Bargaining ProcessnIn this chapter youll learn:n the choice of bidn presentation of bidn responsiveness to bidn starting the bargaining processn the way to influence the dealn making concessionsn breaking an impassen towards settlement5.1 Biddingn5.1.1 Tactics of the choice of bidnIt i

2、s believed that the best guide to bidding decisions is the commercial judgment of experienced commercial people.Commercial people have a wealth of experience and an intuitive sense of the on-going market possibilities.nNegotiating to our advantage,the guideline is to start with the highest defensibl

3、e bid.(for buyers,the corresponding phrase is of course“lowest defensible offer”.)nThe opening bid needs to be“the highest”because:nThe opening bid sets a limit beyond which we cannot desire.Once made,we cannot normally put in a higher bid at a later stage.nOur first bid influences others in their v

4、aluation of our offer.nA high bid gives scope for manoeuvre during the later bargaining phases.nThe opening bid has a real influence on the final settlement level.The higher we set the more we shall achieve.nThe opening bid needs to be high.At the same time it must be defensible.nIf broken away from

5、 the highest price that is acceptable for the other side,its just a one-sided“beautiful dream”.Therefore,putting forward a bid that cannot be defended will damage the negotiating process.It is found to be offensive by the other party.nThe content of the bid of course usually needs to cover a range o

6、f issues.The price is one of them.nThe components of the opening bid in a commercial negotiation will not simply be price,but a combination of price,delivery,payment terms,quality specification and many other items.n5.1.2 Tactics of the presentation of bid n In the bidding presentation of the negoti

7、ation process,there are three guidelines to the way in which a bid should be presented:firmly,clearly and without comment.nThere is some controversy as to who should be the first to make a bid.Is it an advantage or a disadvantage to bid ahead of other party?The advantages are associated with the est

8、ablishment of influence.Most people take the first bid to be a good idea.nTo some extent first bid is more influential than responsive bid.nSome other people believe the first bid might have its disadvantages.A disadvantage is that when a party hears another partys opening bid,they can then make som

9、e final adjustment in their own thinking.A new element of information is provided about regarding a partys starting point,providing modification to their own bidding to gain fresh advantage.n Another disadvantage is that others may try to concentrate on attacking our bid,trying to drive us down and

10、down without giving us any information about their own position.This is something we must resist-we must make them bid and not allow the negotiation to degenerate into a fight on our first offer.nAs a matter of fact,its not necessarily that to bid first will either on the upper hand or in the passiv

11、e position.It is always possible for those who bid first or after to gain or lose.What really counts is the role that played by either sides economic force,negotiating capacity,knowledge scale,negotiating tactics and some comprehensive factors.n5.1.3 Tactics of responsiveness nFirst party should at

12、this stage fully aware that he has put a bid,and he has a perfect right to know what the other party is prepared to offer in return.nIn general,the other side will not respond by accepting but to react in this or that way.nThe competent negotiator first ensures that he/she knows what the other party

13、 is bidding.On this base,he/she must have an idea how to satisfy the other party in gaining their interests and at the same time has to figure out what are the interests that really belongs to them and what are the things they expect to get.It is also important to know what things are of minor impor

14、tance to the other party that are to make our side give in.n Others may well ask their question for clarifying what the bid is,but they should not be allowed to go into why the other party makes that bid,or how he has calculated it until they have given their bid in return.5.2 BargainingnIn this pro

15、cess,we must be careful not to give the other party too much icing too quickly.Bargaining should be to your advantage,however one must also be concerned with making a fair deal in which both parties are equally satisfied or equally dissatisfied.If it is not possible to cut the cake so that all get t

16、heir share,then one must bargain in such a way that any dissatisfaction is equally shared between everyone.n5.2.1 The moves we must make at the start n As we start the bargaining process we need to take two steps:nGet it clear.nAssess the situation.n5.2.2 The way to influence the dealn There are two

17、 ways a deal can be influenced.First is by influencing the negotiator;the other is by influencing the situation.nThe situation is also influenced by the use of bluff and brinkmanship.nThere is always such a risk of deadlock in the process of competitive bargaining.nThere is of course skill in using

18、the bluffing game.For example,do not concede too fast or a party could gain too great of an advantage.Also,if one concedes too quickly then the other party may not value a concession as much as if conceded more slowly.n5.2.3 Tactics of making concessionsn Making concessions is the most popular tacti

19、cs used in the bargaining process to keep the negotiation on going.nThe basic principles that govern concessions in bargaining are:nA concession by one party must be matched by a concession of the other party.nIts better for the pace of concession to be as little as possible and the frequency of con

20、cession to be slow.Whats more the pace of concession must be similar as between the two parties.If you give a little,then you must give no more until the other party has given a little in return.nA party should trade their concessions to their own advantage,doing their best to give the other party p

21、lenty of satisfaction even if concessions are small.To ensure trade concessions to a partys advantage,one might adopt the following tactics:n-Listen to the other party very carefully.n-Entertain the other party in a proper way.n-Give the other party detailed specifications.n-Often say sentences like

22、“Ill take what you say into consideration”or“Ill see what I can do”;n-Show the other party how they could also benefit from the agreement settled on the terms that are asked.nA party must help the other party to see each of their concessions as being significant.nMove at a measured pace towards the

23、projected settlement point.nReserve concessions until they are needed.n5.2.4 Breaking an impasse nIn the bargaining process,the two parties may keep their own point of view with strong attitude,and neither will intend to concede.If this occurs the negotiations fall into a dilemma.This kind of situat

24、ion is the so-called negotiation impasse.nOnce this happens,there is nothing to fear about.The two parties should try to find the cause of it and actively search for ways out.Never terminating negotiating for a sudden impasse.nHow do we cope when the two parties are a long way apart and are refusing

25、 to go in for any kind of compromise?n The first principal in coping with these conflicts is“keep it fluid”.n The second principle is to“seeking easy escape routes”.nThirdly,use time breaks either as recesses within a particular negotiation meeting or as breaks between meetings.n5.2.5 Towards settle

26、mentn When the parties become aware that a settlement is approaching.A new mood is established,creating a growth of vitality and energy of the negotiators.At this stage there is a need for each party to make a final offer.Characteristics of this final offer are:n(1)It should not be made too soon.Oth

27、erwise it will be taken as just another concession-one of many still to be hoped for.n(2)It must be big enough to symbolize closure.Rounding off a bid sufficient yet not too generous would certainly have the required impact.n(3)Negotiating to our advantage demand the last halfpenny.If you do not squ

28、eeze the final 1/4 per cent off his discount or the final two days off his delivery-he will not have the satisfaction of believing that he has taken you absolutely to the limit.n Finally,at the end of the negotiation:nSummarize.nProduce a written record.nIdentify action needs and responsibilities.Ex

29、ercisesIII.Practical SentencesnExerting Pressure and Making Conditionsn1.Look,were going round and round in circles here.What we need is some sort of concession.n2.Well,we could offer you a slight reduction in the monthly fee,on certain conditions,obviously.n3.OK,what do you have in mind?n4.Unless y

30、ou are prepared to offer some kind of incentive,I think we might as well call it a day.n5.So,what youre saying is,weve got the contract if we come to you for the money.One condition:wed need a very competitive offer on terms.n6.What would you say if we offered to be more flexible over payment?n7.Tha

31、t sounds interesting.Would there be any conditions?n8.What could you offer us if we made you our preferred supplier?nIm not sure I understand what you mean.n10.Well,we would give you the first opportunity to quote for any new business.n4.Once positions have been established in a negotiation,a proces

32、s of making and responding to proposals usually follows.Which side(the customer or supplier)should start the process?What are the advantages of going first and second?n The supplier will usually be expected to start this process the advantage is then given to the customer who doesnt have to show his

33、 hand until he first hears what the supplier is proposing.On the other hand,making a proposal first may set the parameters for discussion and it could be an advantage if you want the negotiation to go in a certain direction.n5.What can cause negotiations to fail?How important is it to maintain a pos

34、itive tone throughout the meeting?nNegotiations can fail for a variety of reasons:ncompetitors offer a better deal;nproblems seem too difficult to solve;npersonalities clash;nnegotiating styles clash.nMost negotiations will encounter difficult problems.There is a much greater chance that solutions w

35、ill be found if both parties keep sight of the main objectives and maintain a positive tone.n6.Fill in the blanksn1).At the start of the bargaining phase we need to establish what the other party really wants then to assess the situation;to assess the differences between us;to analyze the strengths

36、of their respective arguments and to prepare for the next round.n 2).The first principle in coping with these conflicts of bargaining is to keep it fluid.n The second principle is to seek easy escape routes.The third is to use time breaks either as recesses within a particular negotiation meeting or

37、 as breaks between meetings.n3).Bargaining to our advantage,the skilled negotiator will:qAt the outset ascertain the other partys needs,wants and interest.qAssess the situation and decide how to handle it.qPrepare for each successive round of bargaining.qInfluence the other negotiator-help him to ac

38、hieve satisfaction and do not try to tread him down.qInfluence the situation and the other negotiators reading of that situation.Bluff and brinkmanship have their part to play-risky though it be.qConcede at a measured pace and only in parallel with counter-balancing concessions by others.qKeep the n

39、egotiating process on a going,and pay due attention to face and fluidity.Avoid impasses.qRecognize imminent settlement;make a symbolic closing gesture,then see that the deal is written up and implemented.nAfter all this is over,the negotiator should have secured a deal which is to his advantage whil

40、st giving the other party equal satisfaction.n7.Put the following into Englishn1).我完全了解。n2).我们还是折衷一下。n3).那是个明智的决定。n4).我认为我必须得到补偿。n5).我们等得愈久，我们得出好结果的机会就愈少。n6).我等你的电话。n7).我想就从价钱方面开始谈吧！n8).我知道你们投入很高的研究经费，但是，我想要的是七五折。n9).我们要的可是继续做生意的保证，而不是随口答应就算数的哦！n10).如果你们能以书面作保证，我想我们可以再详谈下去。n1)I understand perfectly.

41、n2)Lets compromise.n3)Thats a smart decision.n4)I expect to be compensated.n5)The longer we wait,the less likely we will come up with anything.n6)Ill be expecting your call.n7)Id like to get the ball rolling by talking about prices.n8)I know your research costs are high,but what Id like is a 25%disc

42、ount.n9)Wed need a guarantee of future business,not just a promise.n10)If you can guarantee that on paper,I think we can discuss this further.n8.True or falsen1).If one team is too aggressive,it is very necessary for another team to respond in the same way.n2)Negotiations may fail for a variety of r

43、easons such as competitors offering a better deal,problems seeming too difficult to solve,personalities clashing and negotiating clashing.n3)In order to sort out the solutions,both parties should keep sight of the main objectives and maintain a negative tone.n4)Sometimes you need to keep the overall

44、 objective in mind,and make concessions to maintain a positive tone.n5)The open bids should be the highest defensible and be put firmly,clearly without apology or hesitation.n6)There are three guidelines to the way in which a bid should be presented:firmly,clearly and with comment.n7)There are two w

45、ays we can influence the deal.One is to influence the negotiator;the other is to influence the situation.n8)To some extent first bid is less influential than responsive bid.n9)A low bid gives scope for manoeuvre during the later bargaining phases.n10)Its necessary to summarize,produce a written reco

46、rd and to identify action needs and responsibilities at the end of the negotiation.n8.True or falsen1).If one team is too aggressive,it is very necessary for another team to respond in the same way.Fn2)Negotiations may fail for a variety of reasons such as competitors offering a better deal,problems

47、 seeming too difficult to solve,personalities clashing and negotiating clashing.Tn 3)In order to sort out the solutions,both parties should keep sight of the main objectives and maintain a negative tone.F(positive tone)n4)Sometimes you need to keep the overall objective in mind,and make concessions

48、to maintain a positive tone.Tn5)The open bids should be the highest defensible and be put firmly,clearly without apology or hesitation.Tn6)There are three guidelines to the way in which a bid should be presented:firmly,clearly and with comment.F(without comment)n 7)There are two ways we can influenc

49、e the deal.One is to influence the negotiator;the other is to influence the situation.Tn8)To some extent first bid is less influential than responsive bid.F(more)n 9)A low bid gives scope for manoeuvre during the later bargaining phases.nF (high)n10)Its necessary to summarize,produce a written record and to identify action needs and responsibilities at the end of the negotiation.T