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International Business Negotiation,国 际 商 务 谈 判,Chapter 1 Fundamentals of International Business Negotiating 第一章 国际商务谈判概述,11 Concepts and principles of negotiation 基本概念与谈判原则12 Correct understanding of negotiation 对谈判的正确理解1 3 Stages of negotiation 谈判的几个阶段14 Psychology in negotiating 谈判的心理,Introduction,Everybody negotiates all the time, at work, at home, and as a consumer. We can say that since the beginning of time, or since the development of human language, there has been negotiations made amongst humans. Negotiating as a significant social activity is a means of dealing with human relationships and resolving conflicts and has never been nonexist. On the other hand, negotiation as a product of social competition has got its different meaning and content with the development of the times.,1.1 Concepts and principles of business negotiation,What is business negotiation?“Recently two of my sons were squabbling over some apple pie, each insisting that he should have the larger slice. Neither would agree to an even split. So I suggested that one boy cut the pie any way he liked, and the other boy could choose the piece he wanted. This sounded fair to both of them, and they accepted. Each felt that he had gotten the square deal.”,“fundamental principles” of negotiation:,First, “negotiation” is an element of human behavior. Secondly, “Negotiation” takes place only over issues that are “negotiable”. Thirdly, “Negotiation” takes place only between people who have the same interest. Fourthly, “Negotiation” takes place only when negotiators are interested not only in taking but also in giving.Finally, “Negotiation” takes place only when negotiating parties trust each other to some extent.,As the stakes in some of these negotiations are not so high, people need not have to get preplans for the process and the outcome. There are other cases like international business negotiations in which the stakes are too high to be ignored, people have to be more cautious.,In negotiations, both parties should know:a. why they negotiate b. who they negotiate with c. what they negotiate aboutd. where they negotiatee. when they negotiatef. how they negotiate,Characteristics of business negotiation,Some of the characteristics of business negotiation include: Negotiation is at the heart of every transaction and, for the most part, it comes down to the interaction between two sides with a common goal (profits) but divergent methods. These methods (the details of the contract) must be negotiated to the satisfaction of both parties. It can be a very trying process with confrontation and concession., Both parties share open information. In this case, both sides sincerely disclose them and listen to the others objectives in order to find something in common. Both sides try to understand each others point of view. Both parties know that they have common and conflicting objectives, so they try to find a way to achieve common and complementary objectives acceptable to them both., Whether its trade or investment, one side will always arrive at the negotiation table in a position of greater power. That power (e.g., the potential for profit) may derive from the extent of the demand or from the ability to “supply.” The purpose of negotiation is to redistribute that potential. Theres no such thing as take it or leave it” in international business. Everything is negotiable. It all depends on the expertise of the negotiators. International business negotiation is known as the zero-sum game. One sides gains are directly the other sides losses.,To summarize: no matter what kind of negotiation it is, we can say that negotiation is a cooperative enterprise; common interests must be sought. Negotiation is a behavioral process, not a game; in a good negotiation, everybody wins something. Its important to realize that while the size of the playing field may vary from venture to venture, the overriding concept remains the same: Success isnt winning everything, its winning enough.,The basic principles of negotiation,(1) Equality principle (2) Sincere cooperation (3) Keep it flexible and fluid,1.2 Correct understanding of negotiation,1.2.1 Conflict1.2.2 Key aspects of negotiation1.2.3Tips for a successful international business negotiation mission1.2.4 About translators in international business negotiation,1.3 Stages of negotiation,Pre-negotiation Face-to-face negotiation Post-negotiation,1.4 Psychology in negotiating,The need theory One of the key theories about “People at work” is Maslows “hierarchy of human needs”. Maslow suggests that human beings take actions in order to satisfy essential needs. He classifies human needs under five main headings:,(1) Physical or survival needs(2) Security and safety needs (3) Social needs (4) Ego or esteem needs (5) Self-realization needs,Need theory and negotiating,(1) Survival needs and negotiating(2) Security needs and negotiating (3) Social needs and negotiating(4) Ego needs and negotiating(5) Self-realization needs and negotiating,Practical Sentences,Welcoming and IntroductionsOn behalf of ABC Company, I am very glad to welcome you to our head office.Well, Im delighted to welcome you all to our processing plant here in Shanghai.How was the weather when you left home?How was the flight over?Is everything OK with the hotel?Shall we just go round the table, making sure we all know each other?Mr. Smith, would you like to introduce your team?Let me introduce you to Marion Billis. She is our key Account Manager.I think wed better get started now. Weve got a very full agenda. Now, the first thing we really need to do today is coming up with some firm proposals.,Fill in the banks.,1) Negotiation is an element of _behavior.2) Negotiation takes place only over issues that are_.3) Negotiation takes place only between people who have the same_.4) Negotiation takes place only when negotiators are interested not only in taking but also in_.5) Negotiation takes place only when negotiating parties _each other to some extent.,True or false.,Negotiation depends on communication. In a good negotiation, everybody wins something. Both sides should try to understand each others point of view before making a decision. There is such case as take it or leave it” in international business. In the bidding stage each is negotiating towards the best advantage. The stages of the negotiation always follow one another in sequence. When negotiating, representatives or negotiators represent their own but often others interest. Being close or friendly with the other side may bring about the best outcome. International negotiations often require the use of translators to attain this goal. When counterparts are speaking, negotiators should look at them but not the translators.,Put the following into English.,1)你的立场有磋商的余地吗?2)我肯定还有商量的余地。3)在我们开始谈判之前,你要先出个价才行。4)我们可以把它也列入议程。5)在我们开始之前,有人想要什么饮料吗?6)看看我还能尽些什么力。7)要是我能做到的话,我一定会做。8)我知道我可以拜托你。9)这次会议的结果我们都会是赢家。10)我会尽量使你满意。,Key,Are you negotiable?Im sure there is some room for negotiation.Before we have anythingto negotiate, you have to make me anoffer.We could add it to the agenda.Would anyone like something to drink before we begin?See what I can do.I would if I could.I know I can count on you.Well come out from this meeting as winners.Ill try to make you happy.,Question,What is meant by “negotiation”? How would you define “negotiation”?,Chapter 2 Proper Behaviors in International Business Negotiations,Chapter 2 Proper Behaviors in International Business Negotiations第二章 国际商务谈判中的正确行为举止 Assumptions假定 Listening听 Talking说 Inquiring问 Observing观察,Introduction,This chapter tells you how to behave properly during negotiation. One always makes assumptions before negotiation and tries to guess others assumptions. But assumptions may be true or false, in which case they need to be verified. In order to verify the assumptions, you should gather enough information from others, so that listening, talking, inquiring, and observing become very important for a successful negotiation. The following sections discuss how to be an active listener, how to talk in effective negotiating language, how to ask and answer questions, how to find valuable information from your opponents body language and how to get rid of your inappropriate body language.,2.1 Assumptions,2.1.1 The concepts of assumptions Assumptions are a vital part of negotiations. In entering a negotiation, a man is severely handicapped unless he reviews his own assumptions-and anticipates the assumptions of the other party.The negotiator must never forget that what his or her assumptions are only a guess or a probability. It is necessary for us to reexamine our supercargo of assumptions. Some are wrong and must be discarded. Others need to be modified. Still others remain valid.,2.1.2 The types of hidden assumptions,Making three categories of hidden assumption can prove useful in negotiation: The first category includes the assumptions we make about the extensional world, the physical world which exists outside the mind of a human being. Secondly, it includes our intensional world. For example, the world which exists within the mind of each of us. Thirdly, it also involves the other persons intensional world.,Sometimes we go so far as to make assumptions about what a person is going to say before he has had a chance to say it. We interrupt, present our version of what he is about to say, and never give ourselves the opportunity of hearing what he might have said. Thus we deprive ourselves of valuable information.,2.2 Listening,Aside from asking questions and making statements, one must also recognize the needs of the opposer. One method is listening carefully to the words uttered by the opposer. Paying attention to phrasing, choice of expressions, mannerisms of speech, and tone of voice being used. All these elements give clues to the needs behind the statements an opposer makes.,The barrier of listeningStudies show that the average person remembers only about half of what he or she hears immediately after the speaker stops talking, no matter how carefully the listener has paid attention.,simple rules at the same time that will actually help you maximize the benefit you get from what the other person is saying,First of all, if you find the subject dull and would normally go off on a mental tangent, recognize that you are trapped into listening anyway and force yourself to tune in for any new knowledge that you can perhaps sift out. On the other hand, the subject may not be boring, but rather difficult and hard to comprehend, perhaps because it is too technical or detailed. Do not allow your mind to wander only because distractions are more fun than the topic under discussion. Try to develop an interest and grasp the meaning of the broad things being said.,Second, we tend to dismiss statements if they come from people we consider unimportant. Withhold judgment until your comprehension of the speakers proposal is complete. The good listener will hear out the other person before passing judgment and framing rebuttals.,Third, do not turn yourself off simply because the speakers delivery is poor or unintelligible. The speaker may still know a lot more about the subject than it appears. Make every effort to understand what is being said. If necessary, interrupt and ask the speaker to repeat something. This person will appreciate your interest in not wanting to miss anything.,One of the problems every listener has is the ability to think at the rate of about 400 words a minute-almost four times faster than the average speaker talks. Do not let your mind drift. Instead, anticipate the speakers next point and give thought to what you hear while waiting for the next idea.,When taking notes, get down the concepts and principles. If you have time, write down the facts, but do not let them overwhelm you to the degree that you are missing important points. Not only does note-taking force you to listen carefully, but it also psychologically throws the speaker off the balance when he or she sees you nodding and furiously writing away and having a record of all the facts and basically everything said. A further benefit of note taking is that you have the perfect excuse to avoid eye contact if you are afraid to reveal your reactions to someones proposals.,Active listening,In order to be a good listener, you must bear in mind that conversation or negotiation between individuals can proceed at various levels of meanings. A persons conversation or statement has several levels of meaning. For example, the opposers statement on one level is the message that he or she seems to be trying to communicate. On a second level, it may be the message that we can infer from the way he or she speaks and the words being used. On a third level, it may convey a meaning to us because it is linked with his or her manner of approach to the subject.,Listening is as much a persuasive technique as speaking. A successful listener must keep an open mind and strive to be free from bias and preconceived notions. There is no one more competitive and hostile than negotiators who feel that their best arguments were ignored, misunderstood or dismissed.,2.3 Talking,Negotiation languageNegotiations are almost always conducted on three basic levels of communication: the subconscious level, the emotional level and the level of reason and logic. Consistently high achievement in negotiation can be obtained by mastering all three levels of negotiation so that the negotiators position can be communicated in a manner that is simple, attractive, suggestive, enthusiastic, truthful, fair, logic and personal.,The most logical and sound reasoning will be of little value if it is not communicated in simple and precise terms. You should set forth only the points needed to encourage the action you desire. You should be informative with regard to supporting details only to the extent necessary to make your offer clear. Some of the most common and serious errors committed by negotiators involve their use of words and terms with broad or ambiguous meanings. Do not say something is large if you can give exact measurements. Sentences should also be simple, with the subject first, the verb next, and the object last.,Your presentation should be executed in an attractive manner that is pleasing, not offensive. It should be fair and consider the pros and cons, not suspicious. It should be cooperative and friendly, not argumentative or hostile. It should emphasize the positive, not the negative, stress the familiar, not the unknown, and be democratic, not dictatorial. Your presentation should be understated, not exaggerated; It should progress by starting with easy issues, not the frustration and stalemate promoted by hard issues. It should be complimentary and encourage agreement, not offensive or demeaning, discouraging cooperation. It should reveal reward consequences, not punishment or a threatening outcome, and should entertain and be enthusiastic, keeping the other person glued to your thoughts,How to open and close,There are a number of approaches you can use to attract immediate attention: arouse curiosity by asking a question related to your talk say something humorous start off with an interesting news item begin with a specific illustration or case, which tends to lend an air of seriousness and reality to your talk open with the impact of a profound quotation show a visual illustration of your main points, which can be either a chart, picture or item related to your talk open with a simple explanation of how your topic affects the common interests of the listeners start off with a shocking statement casually comment on something that has just happened or been said at the meeting if it ties into your presentation,Your closing statement can be the same as one with which you would end a memorandum, summarizing and briefly outlining the main points you cover. You can appeal for action. You can pay the listeners a sincere compliment by making reference to their organization, state or other aspect of common interest. Do not throw out the standard compliment that sounds shallow and insincere, such as, “Youve been a great audience.” You can also leave them laughing when appropriate.,Several aspects to beware of Listeners unconsciously judge you by how you talk. Your speaking voice is one of the first impressions people have of you, and that impression is often dominated by your voice quality.,A person may be characterized as friendly if his or her voice sounds warm and well modulated. Someone may be thought of as dull and uninteresting if the voice sounds flat and monotonous. Someone who is too loud may appear bombastic. Someone who is too soft may be tagged as timid. Speaking too fast may convey impatience or anger. Speaking too slow may cause someone to be viewed as hesitant or fearful.,2.4 Inquiring,During negotiation, there will undoubtedly be times when you need to have more information before you can intelligently evaluate views advanced by the other person. The usual way to get information is to ask a question. Questions are windows to the mind. In an appropriate situation you should often ask your opponent, “What do you want from this negotiation? What do you expect? What would you like to accomplish?” Through such straightforward probes, in addition to other information, You can succeed in finding out your opponents needs, what he is after, and then guide your future negotiation accordingly.,Questions appear to be able to be divided into five basic functions: Cause attention. Provide preparatory conditions for the operation of the others thinking. Example: “How are you?” Get information. Provide questioner with information. “How much

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