国际商务谈判英文版课件PPT

1、International Business Negotiation1Part An Overview of International Business NegotiationChapter 1: Introduction to International Business Negotiation 2Key pointsCharacteristics and contents of international business negotiationNegotiation principles3Concept of Business negotiationThe word “Negotiat

2、ion” derives from the Latin word “Negotiari”, which means “to do business”Business negotiation is a process of conferring in which the participants of business activities communicate, discuss and adjust their views, settle differences and finally reach a mutually acceptable agreement in order to clo

3、se a deal or achieve a proposed financial goal.4Characteristics of Business Negotiation(1) The objective of business negotiation is to obtain financial interest(2) The core of business negotiation is price(3) Its principle is equality and mutual benefit(4) Items of contract should keep strictly accu

4、rate and rigorous5Definition of international business negotiationInternational business negotiation refers to the business negotiation that takes place between the interest groups from different countries or regions. It is an important activity frequently involved in foreign trade and other economi

5、c exchange, serving a critical approach and method for these interest groups or individuals to confer together to reach an agreement or settle the issues of their interest conflicts.6Characteristics of international business negotiation(1) Language barrier(2) Cultural differences(3) International la

6、ws and domestic laws are both in force(4) International political factors must be taken into account(5) The difficulty and the cost are greater than that of domestic business negotiations7Types of Business Negotiation(1)Sales of Goods/Services(2)Investment Negotiation(3)Technology Transfer(4)Busines

7、s Contract Negotiation8Principles of Business NegotiationCollaborative negotiation The core of the principle is to reach a solution beneficial to both parties by way of stressing interests and value not by way of bargaining. Consists of 4 basic components:Peopleseparate the people from the problem.I

8、nterestsfocus on interests not positions.Gaininginvent options for mutual gain.Criteriaintroduce objective criteria.9Principle of Interest Distribution10The purpose of negotiation is to reach agreements between parties with different interests. Any negotiations occurred at home involve 2 levels of i

9、nterests: (1)Personal Interests VS Organizational Interests(2)Personal Interests VS Organizational & National InterestsPrinciple of Trust in Negotiation11Trust between group leader and group members as well as trust between two negotiating parties is a decisive element of shaping relationship of all

10、 sides. There are basically 3 types of trust in professional relationships:(1) Deterrence-based trust(2) Knowledge-based trust(3) Identification-based trustPrinciple of Distributive & Complex Negotiation12(1)Distributive negotiationDistributive negotiation, also called positional bargaining, claimin

11、g value bargaining, zero-sum bargaining, or win-lose bargaining, is a competitive approach that is used when there is a fixed pie, a finite limit to a resource and negotiators have to decide who gets how much of it. Principle of Distributive & Complex Negotiation13(2)Complex Negotiation5 Principles

12、for Complex Negotiationa)To think carefully about the distribution rule to be used in allocating resources among the parties;b)To avoid majority rule in group negotiations whenever possible;c)To avoid strict issue-by-issue agendas whenever possible;d)To focus on the differing interests and preferenc

13、es of group members to facilitate creative integrative agreements;e)To recognize that coalitions are inherently unstable, often leading to agreements that are not in the best interest of the organization.Win-Win Principle14In this approach, parties collaborate to look for a solution that maximizes j

14、oint gain and allows everyone to walk away feeling like they have won something. Win-win approach is a collaborative process and the parties usually end up helping each other. International Business Negotiation15Part An Overview of International Business NegotiationChapter 2: Preparation for Negotia

15、tion16Key pointsInformation gathering in international business negotiationRequirements for forming a negotiation teamPlanning work before entering into negotiation17 Information GatheringReason for gathering information:During the actual negotiation, it is likely that your counterparts will conceal

16、 their true interests, needs and motivations. Your chance of getting this information during the negotiation is relatively small. Therefore, the earlier you start, the easier it is to obtain information. People are more willing to give out information before any formal interaction begins. 18 Informa

17、tion GatheringQualification and Credit StatusNegotiation RepresentativesMarket QuotationsLaws and Cultures19Qualification and Credit StatusThe qualification and credit status consist of the history and status quo, economic and political power, and corporate reputation (its liabilities), capital quan

18、tity, operating capability, bank credit and such of the partner company.20Qualification and Credit Status(1) The history and status quo of the partner company refers to the establishing time, registered office address, main business scope and the number of the employees, etc.(2) Economic and politic

19、al power refers to the annual turnover, financial or fiscal conditions, market share and position in its industry at home or abroad, of the partner company or organization; whether it has any political influences or what its political tendency is like.(3) Corporate reputation refers to its status of

20、 assets and liabilities, brand popularity and word-of-mouth in the market.21Qualification and Credit Status(4) Capital quantity refers to total assets, fixed assets, current assets, cash flow, etc.(5) Operating capability refers to status of operating profit and loss, contribution ratios of major pr

21、oducts, the ability to develop new products, etc.(6) Bank credit includes the names and numbers of contacting banks, credit it enjoys and whether it has bad accounts in banks, etc.22Negotiation RepresentativesInformation about the negotiating representatives from the other side mainly includes:(1)th

22、e number of the negotiating representatives,(2)the composition of the negotiating team(3)limits of their authority(4)their identity and status. 23Market QuotationsNegotiators should make synthesis comparisons concerning the technological specifications, uses, purchasing costs, quantity available, fr

23、eight charges, domestic market prices, international market prices, products life cycle and competitiveness, patents, necessary accessories and after-services and the like of the negotiating item.24Laws and Cultures25Before the negotiations, we need to know whether the transacted items will be regul

24、ated or restricted by the laws and regulations of our own country or our partners country, or by international lawswhether the politics, cultures, religious customs, economic development levels, infrastructures, natural resources, climates and geographythe relationship between other countries and ou

25、r own country or our partners country will affect the trade transactions or not.Forming the negotiation team26Size of the Negotiation TeamThe Staffing of the Negotiation TeamCollaboration and Support from the Outside MembersSize of the Negotiation Team27The following factors should be taken into con

26、sideration when we decide the size of a negotiation team:(1) The number of the negotiation team members of your counterpart(2) The complexity of the negotiation(3) The need for technical experts(4) The number of the associates in the projectThe Staffing of the Negotiation Team28The composition of th

27、e negotiation team refers to the consideration about :the professional backgrounds or credentialsexpertise and the status of the team membersthe role they play in the negotiationPrinciples for team building29When building a negotiation team, make sure the members are complementary in knowledge and c

28、haracters and define their roles, responsibilities and tasks clearly.(1) Complementary knowledge.(2) Complementary character.(3) Clearly-defined roles.Organizational structure of the team30A relatively “standard” negotiation team should contain the following members:(1) Leading personnel(2) Business

29、/Commercial personnel(3) Professional and technical personnel(4) Financial personnel(5) Legal personnel(6) Interpreters(7) SecretariesCollaboration and Support from the Outside Members31Besides the negotiation personnel, some full-time or part-time personnel should be arranged to provide support and

30、 services for the negotiation activities.These kinds of people include the following:(1) Related personnel in other functional departments(2) Administrative personnelThe basic principle of organizing a negotiation team for an international business negotiation is to keep the team as small and effici

31、ent as possible. Small: a principle that can demonstrate the high efficiency and authority of one part. Efficient: a principle that can show the high quality of the negotiation personnel and the power and management concept of a company. 32The basic principle of organizing a negotiation team Negotia

32、tion Planning 33Identifying TargetsBATNA - Best AlternativeSetting an AgendaIdentifying Targets34 Targets of an international business negotiation can be generally divided into three categories:(1) The highest target, or the maximum expectation or target(2) Acceptable target, or expected target(3) T

33、he lowest target, or limited target, basic target or must-be-realized targetBATNA - Best Alternative35You need to have your BATNA - Best Alternative to a Negotiated Agreement. Determining Your BATNASome of the most crucial factors which should be considered include;The costFeasibilityImpactConsequen

34、cesBATNA - Best Alternative36Positive Thinkinginstead of just focusing on one aspect of the negotiation ，you need to think positively by defining realistic，optimistic，and pessimistic outcomes. Setting an Agenda37Scheduling of the negotiationNegotiation siteNegotiation issuesOpen agenda and restricte

35、d agendaSetting an Agenda38Key points that need attention when making the agenda for ones own side(1) Make good use of the factors of climate, favorable geographical conditions and the support from other people under the prerequisite of not baffling the partner.(2) Design negotiation strategies to g

36、o along with the process of the negotiation. (3) Avoid showing all the cards in ones hand.Negotiators Check List39(1) What Kind of Negotiation?(2) What Type of Conflict Will We Face?(3) What Does This Negotiation Mean to Us?(4) The Ripple Effect(5) Do We Need to Make an Agreement?(6) Do Other Partie

37、s Need to Formally Approve the Agreement?(7) Is the Clock Ticking?Negotiators Check List40(8) Your Place or Mine?(9) Will we be Under the Public Microscope?(10) Will We Need a Third Party?(11) Who is Going to Blink First?(12) Who Are the Decision Makers?(13) How Far Will We Push It?(14) Are We Stron

38、g or Weak?International Business Negotiation41Part An Overview of International Business NegotiationChapter 3: The Negotiation Process42The Negotiation ProcessThe period covered by the negotiation will be divided into three stages: opening & its review;bidding & bargaining; settling & ratifying.43 O

39、pening & its ReviewGetting to Know Each OtherThe OpeningThe Review of the Opening44Getting to Know Each OtherMany relationships in international global transactions begin first with the formation of personal relationships between the players. This interaction gives both parties the opportunity to ga

40、in valuable insight and deepen understanding of each other.This is particularly true when we are dealing with people from certain cultural backgrounds, where trust based on relationships is essential. 45The OpeningThe opening phase is influential because energy and concentration are naturally at a h

41、igh point at the start of any activity. The parties attitudes are being formed at this time. 46The Review of the OpeningBefore proceeding further with the negotiations, the party should review the results achieved from the opening phase.And then decide whether the negotiations can be placed on a bar

42、gain acceptable to both sides which can be identified immediately, or a bargain acceptable to both sides is foreseeable which will need further negotiations to achieve, or no bargain is foreseen acceptable to both sides.47Bidding & BargainingThis stage covers a broad period of bargaining in which co

43、ncessions are made and advantage are gained, so that the gap between the two sides is narrowed to a point. generally through an ordered set of steps:1. Design and Offer Options2. Introduce Criteria to Evaluate Options3. Estimate Reservation Points4. Explore Alternatives to Agreement5. Making Concess

44、ion or Compromising481. Design and Offer OptionsOnce both sides interests are designated, it is time for negotiators to set forth suggestions and options for how to address the issues. Options reflect negotiators consideration, suggestions and conditions for a solution. Negotiation options may inclu

45、de the objectives of negotiation, terms and schedules. 492. Introduce Criteria to Evaluate Options Every negotiator has their own criterion for evaluating the options based on their own value system. The disparity of the criterion by the two parties is due to the fact that both parties wish to maxim

46、ize their own interests; therefore it is on this stage that conflicts of interests of two sides will confront and clash with each other, which will surely incite argument and contradiction.503. Estimate Reservation PointsWhat negotiating parties do next is to gauge how big the gap is between their d

47、emand and the counter partys demand. The reservation point means the target that negotiators have to achieve for assurance of their basic interests. The reservation point only sets out ones own basic interests, and to maximize ones interests is the final target of all negotiators.514. Explore Altern

48、atives to AgreementWhen the disparity between the two negotiating parties seems too large to be mentioned, however, some negotiators do not want to give up easily. A capable negotiator can always exhibit great initiatives and high ability by coming up with new options and constructive suggestions wh

49、ich show the concern to the interests of both parties. 525. Making Concession or CompromisingAs a result of the bargaining between the two sides, it is probable that each side will modify its original objective, reassess the potential outcomes and the time taken to achieve each of these.These will e

50、nable each side to determine the conditional value for each outcome and to estimate the probability of success. And then negotiating strategy will be selected to maximize the expected value.53Settling & RatifyingThe final stage of business negotiations involves reaching an agreement.Make sure you ha

51、ve an agreement that gives everyone an incentive to comply with its terms. A final agreement will be reached if any suggestion may effectively bridge the gap of the discrepancy so that the negotiation can be concluded successfully.54Settling & RatifyingHere are some points the negotiators should pay

52、 attention to:PriceCompletionClaims settlementLast but not the least, the record of negotiation should be made in written form and initialed by the two sides before they depart.55Negotiation Closing56The difference between a successful and an unsuccessful negotiator is the ability to close a deal wh

53、en it has reached its maximum level of distributing enough among all participants. The deal is best closed when the agenda has been exhausted.Drawing up a Written Contract57Normally speaking, the contract for international business includes three parts: Opening: includes the name of contract, contra

54、ct number, signing date and address, names and addresses of the parties, and so on.Body: includes basic clause (quality, packing, price, shipment, etc) and general clause (insurance, inspection, claim, force majeure, etc)。Ending: states the legal effect of contract, the enclosures and signatures of

55、both parties.Contract Signing58Before signing the contract, the negotiator shall check if the contents of the contract are the same; if it is in agreement with the negotiation terms; if the documents are complete; if the contents of the contract are in conformity with the ones in the documents.Once

56、it is signed, the contract is binding upon both parties. Neither of the party could modify the contracted terms nor be in breach of the contract. SummaryWrapping upGiving Feedback after a Negotiation59Wrapping up60Content of negotiation summaryAspects that have direct relation with negotiating proce

57、ssAspects concerning the opponentSteps of business negotiating summaryReview the negotiating process and go over the minute.Analyze and evaluate the negotiating, find out what is well done.Give suggestions of improvement.Write the summary report.Giving Feedback after a Negotiation61There are three a

58、reas that need to be reviewed after most negotiations 1st, the behaviors during the negotiation2nd, the outcome of the negotiation3rd, the processes, tool sets, strategies and tactics employedFollow-up62 We cannot toss the contract into our files and forget about it. It seldom ends there as problems

59、 always arise. Any aspect of any contract may need to be re-negotiated, or the details altered to counter a broad variety of changing circumstances. International Business Negotiation63Part An Overview of International Business NegotiationChapter 4: Closing Negotiation and Relevant Contract 64Key po

60、intsIdentification and means of business negotiation；Conclusion and guarantee of a contract65Identification and means of negotiation closingIdentifying closing signals and selecting closing approachesThree approaches to concluding the negotiation66Identifying closing signals and selecting closing ap