国际商务英语Chapter2BusinessNegotiation.ppt

Chapter 2,Business Negotiation,Overview of Negotiation,What is negotiation? A negotiation is a process of communication between parties to manage conflicts in order for them to come to an agreement, solve a problem or make arrangements.,The Preparation of Negotiation,Negotiation preparation begins when people related with negotiation have to make decision on the following issues: Objectives and targets to be achieved Macro and micro information to be researched Negotiation team members to be involved Locations where negotiations to be conducted.,Usually, a negotiating team should include members in each of the following areas: Commercial: responsible for the negotiation on price, delivery terms, and commercial policy of risk taking; Technical: responsible for the area concerning specification, program and methods of works; Financial: responsible for terms of payment, credit insurance, bonds and financial guarantees; Legal: responsible for contract documents, terms and conditions of contract, insurance, legal interpretation.,Negotiating brief and Negotiating Plan,The negotiation brief consists of the instructions given to the team leader by the management, while the negotiating plan is developed by the negotiating team and represents the manner they propose to implement the instructions stated in the negotiating brief.,The negotiation brief should: Define the negotiating objective in terms if the major issues to be discussed; State the minimum acceptance level for each of the major items; Establish the time period within which the negotiations should be concluded; Identify the team leader and other members of the negotiating team; Set up the lines of communication and the reporting system.,When we draft the negotiating plan, we should: Define the initial strategy; Develop the supporting arguments; Decide on the location for the negotiations; Ensure that the appropriate administrative arrangements have been made.,The Principles of Business Negotiation,Win-Win Concept Collaborative Principled Negotiation Law of Trust Law of Two Level Games,General Procedure in Business Negotiation,Generally, the business negotiation will usually go through five steps, namely, enquiry, offer, counter-offer, acceptance and conclusion of a contract.,Enquiry,Inquiry upon the terms of trade Can be made by either the seller or the buyer Not binding upon either party Can be made to more than one client A sales opportunity to foster a potential long-term relationship,An enquiry includes the commoditys name, quality, mode, the desired quantity and delivery date etc. e.g.: One of our clients in Odense is in the market for a parcel of 50 metric tons Bitter Apricot Kernels of 2002 crop and we, therefore, would ask you to make us your best possible firm offer on CIFC2% Odense basis, stating terms of payment and the earliest date of shipment.,Offer,A proposal of terms and conditions presented in a potential contract by one party called the offeror, to another party, called the offeree. Can be made by either party. Buying offer; book; order; bid Offer with engagement and offer without engagement,Offer with Engagement,The kind of offer in which the offerors intention of making a contract is definitely indicated, and under which the offeror cannot revoke or amend when he has offered during the validity of the offer. Once unconditionally accepted by the offeree within its validity, it is binding upon both parties. Also called “firm offer”, “irrevocable offer”,An offer with engagement must be clear, complete and final. It should include: A detailed description of the item Price, currency Packaging Minimum or maximum quantity Quality Shipping date, mode Terms of payment A timeframe during which the offer is available.,Offer without Engagement,An offer which is unclear, incomplete or with reservations. It is not binding upon both parities. Indicative expressions: “reference price”, “subject to our final confirmation”, “subject to being unsold”, “subject to change without notice”, etc.,Validation, Withdrawal and Revocation of an Offer,According to CISG: An offer becomes effective when it reaches the offeree. An offer, even if it is irrevocable, may be withdrawn if the withdrawal reaches the offeree before or at the same time as the offer. Until a contract is concluded an offer may be revoked if the revocation reaches the offeree before he has dispatched an acceptance. However, an offer cannot be revoked: (a) if it indicates, whether by stating a fixed time for acceptance or otherwise, that it is irrevocable; or (b) if it was reasonable for the offeree to rely on the offer as being irrevocable and the offeree has acted in reliance on the offer. An offer, even if it is irrevocable, is terminated when a rejection reaches the offeror.,Counter-offer,An offer made by an offeree to an offeror, accepting some terms and changing other terms. Can be made verbally or in writing Virtually a rejection of the offer and a new offer,A reply to an offer which purports to be an acceptance but contains additions, limitations or other modifications is a rejection of the offer and constitutes a counter-offer. Additional or different terms relating, among other things, to the price, payment, quality and quantity of the goods, place and time of delivery, extent of one partys liability to the other or the settlement of disputes are considered to alter the terms of the offer materially.,Acceptance,The assent to the terms of an offer, required before a contract can be valid. Must be absolute and unconditional Can only be