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Chapter Four,Strategies and Tactics of Business Negotiation,Strategies and Tactics,Strategies The overall plan used to gain advantage over the opponent or achieve some end. The purpose of strategic planning is to spell out what has to be done to produce a favorable final agreement. Tactics The means by which the strategic objective is achieved. Tactics refers to the game plays that may be used to gain specific advantages during the course of the negotiation.,Strategies,Offensive strategy Be used to take the initiative Defensive strategy To observe and wait Neutral strategy The seller,Neutral strategy,The correct position for the seller is to rest its case and adopt a defensive offensive posture until such time as the buyer is able to demonstrate the proposal is unreasonable. A neutral posture means that the seller can take action to counter-attack the buyer by moving to the offensive as the need arises. This particular posture forces the buyer into the position of having continuously to prove that the seller is wrong. Once the seller submits his proposal, the buyer is constrained to three options only.,Essential questions,Knowledge of the reality is essential for strategy selection. Read the questions and decide what do they entail? Defensive, offensive or neutral strategy?,Tactics,Offensive Tactics Defensive tactics,Asking questions,Probing to gain information before major attack Specific to force an admission based on the information gained Attacking Yes-or-no questions,Tit for tat,In Sino-US negotiation on intellectual property right, the US took a very aggressive stance as always. It threatened China GATT entry blockage and economic sanction. The Chinese chief negotiator took a tit for tat strategy. She pointed out the US refused to recognize Chinas unprecedented achievement in intellectual property protection, and attempted to frustrate Chinas efforts to join the organization employing the IPR issue as a lever. And the day of the US announcement of its sanction list would be the moment of Chinas declaration of its retaliation measures.,On December 31, 1994, merely one hour after the US revealed its sanction list of $2.8 billion worth of Chinese goods, China announced its retaliation list. It included 100% tariff on US-made electrical game machines, game cards, cassette tapes, laser disks, cigarettes, wine, cosmetics and other range of US goods imported into the Chinese market; suspension of the approval of US companies opening subsidiaries in China.,Tit for tat (Cont.),On January 18,1995, the US and China reopened the negotiation. On February 4, the US reduced its sanction to $1.08billion,while china remained the same. The us sanction would be implemented on February 26, on which day Chinas retaliation would also go into effect. Finally on the night of the last day of the US sanction deadline, on February 26, the US and China eventually reached an agreement on IPR protection, narrowly averting a trade war.,Tit for tat (Cont.),Make a feint to the east and attack in the west,One party will over emphasize the apparent importance to his securing a particular point when his real objective is the direct opposite. Case study,Case study,若干年前,我国台湾劳工运动方兴未艾之际,台南某地一个机械厂打算拆迁工厂投资大陆时遇到很大的麻烦。员工拒不接受厂里提出的条件,他们态度强硬的拉起白布条,围厂静坐抗议,并提出两项要求:一是加薪30%;二是改进员工福利。并扬言资方如不妥协,大家走着看。造成员工如此坚决对抗的原因是他们担心厂里将主要资金投向大陆,员工都会被辞掉。,机器是工厂的命脉,资方唯恐员工做出报复行为,因此找来一位专家,由他代表资方出面谈判。讨价还价后,劳方同意给业主一星期考虑。 资方利用这段时间,积极部署,联络货柜车,货运船期,准备扭转局势。 一个星期以后,双方再度磋商,资方暂且答应劳方开出的价码,并且为了显示其诚意,将于次日招待全体员工到我国台湾溪头旅游。,当游览车将兴高采烈的员工送走之后,大卡车便缓缓驶入,资方很快把机器转运到大陆。 四天之后,员工度假回来,工厂已空无一物,员工已失掉与资方谈判的主要筹码。而资方提出协助专业及依照劳动法遣散的做法都有理有据,一场僵持不下的劳工纠纷就这样落下帷幕。,Use of commitments,Use national laws and regulations, standard negotiating procedures of the company, instructions from a superior, previous precedents etc, to persuade the opponent of the truth of the statements. When the commitments are of different rank, the higher will normally prevail.,,,Discovering interests and “the right answer”,A. Agree that a state of deadlock exists; B. Step out of the role of negotiators; C. Study the problem objectively; D. Seek the right answer; E. Agree on the right answer; F. Return to the role of negotiators and see if the right answer offers acceptable solutions.,Contextual irregularities or discrepancies,It is a method of challenging the validity of a proposal. A contextual irregularity is some factor in the negotiation that arouses suspicion, or appears to be incorrect, given the overall context of the transaction. The term “discrepancy” specifically refers to inconsistencies associated with the prices or numbers that appear in a sellers proposal. In this way, you can make the other party appear unreasonable.,To be aggressive,Aggressive negotiators attack frontally and generally. They use the other partys belief in their own strength against them.,Other tactics,Presenting arguments The valid reason must be put into some kind of order. The best alternative tender business Promise If you can deliver the equipment by May 1st, we will make another order right away.,Defensive tactics,Minimum response and pretended misunderstanding The most effective defensive tactic in negotiation is to say just enough to compel the other side to go on talking. The more they talk, the more they reveal.,Silence,Troubling silence Used when one party is highly emotional, or their approach is threatening or extremely demanding. Sometimes silence is regarded as disapproval; but since no specific disapproval is voiced, it cannot be treated as an attack. Active Listening The listener may actually be able to get a clearer picture of the other partys ideas; the discipline of focusing on other opinions can also give the listener the chance to reflect on the process and strategy.,Side-stepping,美国商人麦克.麦高梅一直试图说服劳力士表厂的全球总裁安德瑞汉纳格赞助温布尔登网球赛一个先进的电子计分和计时系统。 但是,这位总裁却认为,赞助运动钟表是大众市场手表制造商的事。而麦克清楚,要说服这位总裁,最后的办法就是让他亲自到赛场来,领略网球赛那种古典、优美的环境,热烈的竞赛气氛和这个特殊地方的美丽迷人之处。果然,这位总裁坐在皇家包厢里,边喝茶边欣赏大赛时,一直表现出十分满意的情形,当一场比赛结束,这位总裁向麦克打了个轻缓的手势,说:“这,就是劳力士。”,The “yes-but” technique,used to avoid being offensive. The affirmative part creates cooperative and appreciative effect. The negative part identifies some reasons that prevent the negotiator from doing This makes the refusal inoffensive.,Counter-question,If the opponent uses questions as offensive tactics, the partys correct response is the counter questions. The questions are designed to compel the opponent to limit the scope of his inquiry and to reveal more of his own position.,Straw issues,Definition A straw issue is one that is of no value to one party in itself. It is raised with the intention to be lost, thus provides the opportunity for the party to secure a genuine concession from the opponent in return. The use of straw issues Including one or more straw issues in his initial demands. The party must view the problem through the eyes of his opponent in deciding what to select as a straw i

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