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ThenatureofnegotiationPeoplenegotiateintheirpersonallivesaswellasintheirbusinesscareers.Thescopeofnegotiationrangesfromone-on-onetohighlycomplexmultipartyandmultinationaldeals.
1.Negotiationisakindofcommunicationbetweenindividuals.Wheneverpeopleexchangeideastoreachagreements,theyarenegotiating.Theymaybargainwiththeirfamilymembers,teachers,neighbors,etc.intheirpersonallives;theymaynegotiatewiththeirworkmates,supervisors,orbusinesspartnersintheirbusinesscareers.
2.Negotiationtakesplacetosatisfytheinterestsofbothparties.Aparty’sbasicneeds,wants,andmotivationsarecommonlyreferredtoasitsinterests.Interestsarethefundamentaldrivingforceofnegotiation.
2.Negotiationtakesplacetosatisfytheinterestsofbothparties.Thenotionofinterestsencompassesawiderangeofpossibilities,fromsubstantivegoalssuchasmoney,deadlines,orguaranteestoemotionaldesiressuchasrespect,recognition,orthefeelingofbeingfairlytreated.(1)(3)(5)(7)(8)(2)(4)(6)
2.Negotiationtakesplacetosatisfytheinterestsofbothparties.sharedinterestsConflictinginterests
BeingfirmabouttheirprimaryinterestsBeingflexibleabouthowtomeettheseinterests
3.Negotiationworksoutwhenbothpartiesfeelbeingfairlytreated.Fairnessisoneofthemostpowerfulhumanmotivations.Sometimesnegotiationfailsnotbecausetheoptiononthetableisunacceptable,butbecauseitdoesnotsoundfairtooneorbothparties.
3.Negotiationworksoutwhenbothpartiesfeelbeingfairlytreated.Oftentheinterestinlegitimacyorfairnessisthemaindrivingforce
inadispute.
AircraftcompanyoutsourceasmuchworkaspossibleSuppliersreducethepriceTFT
ThenatureofnegotiationNegotiationcanbedefinedasback-and-forthcommunicationdesignedtoreachanagreementbetweentwoormorepartieswithsomeintereststhataresharedandothersthatmayconflictordiffer.InterculturalbusinessnegotiationBusinessnegotiationisaprocessofconferringinwhichtheparticipantsofbusinessactivitiescommunicate,discuss,andadjusttheirviews,settledifferences,andfinallyreachamutuallyacceptableagreementinordertocloseadealorachieveaproposedfinancialgoal.InterculturalbusinessnegotiationInterculturalbusinessnegotiationreferstothebusinessnegotiationthattakesplacebetweentheinterestgroupsfromdifferentcountriesorregions.InterculturalbusinessnegotiationItiscomplexandchallengingbecauseoflanguageandculturaldifferences.Manynegotiatorsmaymakethemistakeoffocusingononlyasingleissuewhennegotiating.Usually,thisissueismoney(e.g.salesprice,salary,etc.).Itisagravemistaketofocusonasingleissueinnegotiationbecause,inreality,moreissuesareatstakeinmostnegotiationsituations.Byidentifyingotherissues,negotiatorscanaddvaluetonegotiations.Activity1:Understandingtheconcepts
Reference:IwilldevelopapreferablepackageandaBATNA(BestAlternativetoaNegotiatedAgreement)toincreasemychancesinjobhunting.MymostdesirableconditionsincludeasalaryofXXXyuan,asigningbonusofXXXyuanperyear,alongwithXXXvacationdays.Asabackupplan,alowersalaryofXXXyuanorareducedbonusofXXXyuanperyearwouldbeacceptable,providedthatnolessthanXXXvacationdaysareoffered.
Preparationworkhowtoorganizeateamwheretonegotiatehowtomakelogisticsarrangement
1.OrganizinganegotiationteamIngeneral,anegotiationteammayconsistofthechiefnegotiator,technicalpersonnel,businesspersonnel,legalpersonnel,personneltotakeminutes,etc.
1.OrganizinganegotiationteamChiefnegotiator:organizingthemembersintoaunifiedteammakingdecisionsdealingwithpressures
1.OrganizinganegotiationteamThetechnicalpersonnel,liketechniciansorengineers,areresponsiblefornegotiatingthetechnicalterms.Thebusinesspersonnel,likefactorydirectorsormanagers,areinchargeofnegotiatingprice,quantity,delivery,payment,warranty,andsoon.Thelegalpersonnelareinchargeofthetermsandconditionsinthecontract.
2.SettinganegotiationplaceAtoneparty’sownplaceAttheotherparty’splaceAtathirdparty’splace
2.SettinganegotiationplaceNegotiationatoneparty’sownplaceAdvantages:supportcanbeobtainedeasilyandtherearemorechancesofusingaggressivetactics.
2.SettinganegotiationplaceTheissueonHongKong’sSovereignty
2.SettinganegotiationplaceNegotiationattheotherparty’splaceAdvantages:knowingmoreaboutthecounterpart;usingtacticsforpostponingthetalk
2.SettinganegotiationplaceNegotiationatathirdparty’splaceBeingfairtobothparties
LogisticsFlightsandgroundtransportationJetlagHolidaysofbothparties
3.Makinglogisticarrangement
3.MakinglogisticarrangementComfortableflightmeansbeingsmartatthenegotiationtable.Groundtransportationreflectsacompany’simageandstanding.
Aninternationaltravellastingmorethantenhourscouldbedevastatingtothethoughtprocessandeventhephysicalhealth.
3.Makinglogisticarrangement
Soitisunwisetohavemeetingsimmediatelyuponarrivalorearlythefollowingday.
3.Makinglogisticarrangement
Givingcarefulconsiderationtotraditionalholidaysofbothparties
3.Makinglogisticarrangement
DiscussionsduringChristmasinLondonorduringCarnivalinRiodeJaneirocanhardlybeproductive.
3.MakinglogisticarrangementFT
Negotiationisamatterofgive-and-take.
LabelingconcessionsDemandinganddefiningreciprocityMakingconditionalconcessionsBreakingdownconcessions
1.LabelingconcessionsThefirststrategyistolabelourconcessions.Innegotiations,weshouldn’tassumethatouractionswillspeakforthemselves.Toavoidtheobligationtoreciprocate,ourcounterpartcouldbemotivatedtooverlookordownplayourconcessions.Therefore,itisourresponsibilitytomakeourconcessionscleartotheotherparty.Weneedtotellourcounterpartthatwhatwehavegivenupiscostlytous.
2.DemandinganddefiningreciprocityLabelingourconcessionshelpstriggeranobligationtoreciprocate,butsometimesourcounterpartwouldbeslowtoactonthatobligation.Toincreasethepossibilitythatwegetsomethinginreturnforeachofourconcessions,wecouldtrytoexplicitly—butdiplomatically—demandanddefinereciprocity.
3.MakingconditionalconcessionsBothpartiesareexpectedtomaintainasimilarpacewhenmakingconcessions.Ingeneral,ifwegivealittle,thenweshouldgivenomoreuntiltheotherpartygivesalittleinreturn.Ifwegivemore,thentheotherpartymayreasonthatweareinaweakpositionandthiswillhelpthemgainmoreconfidenceinthemselvesandexpectmoreconcessionsfromus.4.Breakingdownconcessions$900
$300
$300
$300
$0
$0
$400
$300
$200
4.BreakingdownconcessionsMakingmultiple,smallconcessionsworksNegotiationstakeaback-and-forthcommunicationseveraltimes.
Negotiatorsbehavedifferentlyininterculturalbusinessnegotiation.
Itisimportanttorespectnegotiatorsfromothercultures.TheAmericannegotiationstyleopen-mindedconfident
TheAmericannegotiationstylevalueefficiencylikegettingthebusinessdonequickly
TheAmericannegotiationstyleToomuchsocialcontactisnotpreferred.Goodbusinessrelationshipsbringaboutgoodpersonalrelationships.
TheAmericannegotiationstyleAggressivetactics
TheAmericannegotiationstyleCOSCOVS.MassachusettsPortAuthority
TheAmericannegotiationstyleIngeneral,Americannegotiatorstendtoopenlyexpressdisagreementanduseaggressivetactics.Theyalsotendtomakeconcessionsthroughoutthenegotiation,settlingoneissue,thenproceedingtothenext.Thus,thefinalagreementisasequenceofseveralsmallerconcessions.
TheGermannegotiationstylemakethoroughpreparationstakeajust-the-factapproach
TheGermannegotiati
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