国际商务谈判 Chapter 6 Closing the Negotiation.ppt

1、Chapter 6 Closing the Negotiation,After the preparation, bidding and bargaining comes the closing period of negotiating. To reach an agreement the parties have to experience the two phases of making the deal and formally signing the contract. Through the bargaining process, both parties are graduall

2、y agreeing on some points and they are trying to make the deal from their own perspective. Once the agreement is settled, the contracts have to be written out and the economic contract should be signed in a formal way.,This chapter discusses some points of closing the negotiation, introduces some ta

3、ctics towards agreement, gives some tips on contract signing and negotiating summary. In this chapter youll learn:, who makes the decision to close when it is time to close tactics towards agreement tips on contract signing summary of the negotiating,6.1 Closing the deal,6.1.1 Who makes the decision

4、? The difference between a successful and an unsuccessful negotiator is the ability to close a deal when it has reached its maximum level of distributing “enough” among all participants. The deal is best closed when the agenda has been exhausted.,Buyers usually have the say as to when a deal will be

5、 closed, but they can be encouraged to do so by savvy sellers. This is why every sales force in the world has its “closing specialist” whose job is to convince the buyer that “enough” has been had and its time to transact the deal. Both buyer and seller have an equal chance to close the deal, and th

6、e more proactive the decision maker is, hell have a greater chance of controlling the process.,6.1.2 When is it time to close? To determine if its time for closure, here are some questions to ask either directly or indirectly: Have all points of the agenda been discussed? Have the technical aspects

7、of the deal been reviewed? Have the local and international laws applicable to the deal been researched? Are all active parties to the deal logistically capable of performing their functions? Is the time line set for the deal realistic? Do all parties recognize the short and long-term consequences o

8、f the deal? Are all parties in agreement as to the language and terms of the deal? Do all the parties to the deal trust each other? Do all potential signatories have the requisite authority to act on their companys behalf?,Sometimes the appropriate response to an offer laid on the negotiating table

9、is “no”. Declining a deal, and doing so in the proper manner, is sometimes the Silver Medal of international business, not ideal, but respectable. Declining the deal must be done with the greatest diplomacy because this potential for future dealings is very important.,6.2 Tactics towards agreement,6

10、.2.1 Recessing By recessing we mean taking a short break during which each party moves out of the negotiating forum to reconsider the progress of the negotiation, and to reconsider its own position; or breaking off until a later session. Recessing is such an important device that the method of using

11、 it deserves to be examined. When do we use it? How do we arrange it? How do we re-start?,At what times should we use our recess?,At the end of a phase in the negotiations. Before issue identification. When nearing an impasse. Team maintenance needs. Breaking a trough.,What is the recommended proced

12、ure to get a recess?,State the need for a recess. Summarize and look forward. Agree on the duration of the recess. Avoid fresh issues. If others want to insert anything further, ask them to wait until after the recess.,After the recess, the meeting is re-opened with a miniature version of the steps

13、that are taken to open a negotiation. Recessing is potentially a very influential device. Disciplined use can make it a device that helps us towards profitable co-operation.,6.2.2 Setting deadlines Defining the time by which a negotiation meeting must have finished (“I am booked on the 11:40 plane”)

14、; or the deadline for a series of negotiations (“Im instructed to offer this to ABC Company if we cannot agree before 14 March”). These are seen as threats. They can cause resentment and counter-aggression.,However, if the deadline is agreed upon by the two parties (not simply imposed by one of them

15、) then the atmosphere becomes more collaborative. Contrast the first quotation above and the following: “It would be a great help to me if we were able to conclude this meeting in time to catch the 11:40 plane. Would it be all right with you if we aim to move at that speed?”,There are positive impli

16、cations for setting a deadline for the negotiations. The setting of a deadline helps to concentrate the mind, the energy, the effort, and the speed of achievement. There is however a negative influence if either party feels too early a deadline has been imposed.,6.2.3 Full disclosure / The straightf

17、orward statement Literally, this means complete readiness to give to the other party all ones information. In practice, there will always be some elements people are unwilling to disclose and some other elements they are unable to disclose. We therefore have to interpret “full disclosure” as meaning

18、 the disclosure of 90 per cent of what we perceive.,There are some negotiators whose character is strongly inclined towards openness and frankness. This pattern of behavior can be highly productive, inducing the other party to respond and to co-operate. “Full disclosure” then becomes an advantage, p

19、roviding that it is used in conjunction with all the skills of negotiating towards agreement. It is, of course, a fatal disadvantage when “full disclosure” is offered to others whose sole interest lies in their own advantage.,6.2.4 Lubrication / The Golf Club Lubrication is an art. It may be more or

20、 less subtle. It is not necessarily the same as bribery. There are plenty of different ways of offering inducements to negotiators. In form and extent, the pattern varies from one region to another and it needs local expertise to manage the process. In some cultures lubrication is an essential ingre

21、dient from negotiating towards agreement. It is an ingredient the skilled negotiator must provide for, even when he himself is not the right person to handle it.,The Golf Club is a tactic to be used at times when the teams are reaching stalemate and progress is interrupted. The tactic is for the tea

22、m leaders to agree to meet informally in some environment that encourages mutual trust and openness. For many people that atmosphere of mutual trust and respect is found in the Golf Club. For Englishmen, it is found in the Gentlemens Club. For Finns, it is in the sauna. For Japanese, it is found in

23、the bathhouse.,6.2.5 The study group When the negotiations between teams get bogged down, it is then helpful to set up a sub-group. For example, when matters are reaching an impasse over delivery, then the production people from the suppliers can form a sub-group with one or two members of the purch

24、asers to find means of resolving the delivery problem to their mutual advantage. At the same time the main parties are freed to concentrate on other aspects of the negotiations or to give time to their other duties.,6.3 Tips on contract signing,When both sides have reached an agreement on the main i

25、tems, it should have a written form of a contract or an agreement. A contract is a written agreement between the two trading sides in order to itemize the right and obligations of both parties. Once signed, it has legal force. Therefore we should pay close attention to the signing of contract, discu

26、ss every item quite seriously and in a very detailed way. The following are some tips on signing a contract.,6.3.1 The draft of the contract Generally speaking, the side that makes the draft will be in a positive position of the whole deal, so the focus should be more on who makes the draft. If one

27、side cannot control making draft, they should at least be involved with the other side for this process.,6.3.2 Examination of the qualification of the contract signer and its trading items, scope and process A disqualified contract signer is surely a problem to the negotiating. It means the contract

28、 he signed is invalid. Therefore a thorough examination should be done to the contract signer.,The trading items, scope and its process should be within the law and the allowance of the government policy. The signing of the contract should also answer for the law.,6.3.3 Contract articles must be rig

29、id and thorough In real practice there are many such cases of the damages caused by ambiguous contract articles. For example, a restaurant signed a contract with a vegetable company. The contract includes only a few words, specifically, “Chinese cabbages of 20,000 kilograms”. Finally at the time of

30、delivery, it turned out that half of the cabbages rotted during transportation. In this case, the buyer has to suffer all the damages because there is not a single word mentioned concerning the quality of goods in the contract.,6.3.4 The contract signing ceremony For some important negotiating, espe

31、cially international business negotiating, the location of the contract signing is important. The reason is that the signing site of the contract can normally decide which countrys laws are adopted to settle the disputes. According to international convention, the courthouse or arbitration organizat

32、ion could make the adjudication or arbitration based on the law of the country where the contract is signed should any dispute arise.,6.4 Summary of the negotiating,6.4.1 Value evaluation standard of business negotiating To sum up, a successful negotiation must be one in which both sides needs are m

33、et. This satisfying result is obtained with high efficiency and at the same time the friendly cooperative relationship of the two sides is built or further developed.,Realization degree of the business negotiating objectives Negotiating efficiency The personal relationship after negotiating,6.4.2 Co

34、ntent of business negotiating summary 1) Aspects that have direct relation with negotiating process 2) Aspects concerning the opponent,6.4.3 Steps of business negotiating summary Business negotiating summary is generally composed of the following steps:,1) Review the negotiating process and go over

35、the minute. 2) Analyze and evaluate the negotiating. 3) Give suggestions of improvement. 4) Write the summary report.,III. Practical Sentences,Making conclusion Let me just run over the main points. It remains for me to say how much we appreciate your contribution. Does that accurately reflect what

36、we agreed during the meeting? I suggest we meet later in the week. Would that suit you? As far as payment is concerned, there are still some outstanding issues to resolve. Im afraid we didnt get as far as we hoped. That was a really productive meeting. I think we covered the most important points. I

37、n terms of our objectives, I think we did a good job. So, we have agreed an initial one-year contract on the basis of full support and minimal project work.,8 Fill in the blanks The difference between a successful and an unsuccessful negotiator is the ability to close a deal when it has reached its

38、maximum level of distributing “enough” among all participants. The deal is best closed when the agenda has been exhausted.,9. Put the following sentences into English 我认为大部分的主要内容议题今天都已经讨论过了。 今天可以做的事情都已经做到了。 我们可以下次再来解决细节问题。 我们已经进展了不少。 让我们轻松娱乐一下。 如果还有什么问题没有答案的话，我乐意提供协助。 我认为我们应该再度会面。 过一个星期再会面会太早吗？ 请别客气

39、，尽管打电话给我。 对于本合同有问题吗？,Answer: 1)I think we have discussed most of the key issues today. 2) That takes care of business for today. 3) We can work out the detail next time. 4) We have done a lot. 5) Its party time. 6) If there are still unanswered questions, I will be happy to help. 7) I think we shoul

40、d meet again. 8) Is a week too early to meet again? 9) Feel free to call me. 10) Do you have a problem with the contract?,10. True or false 1) Recessing is a profitable device for both parties. 2) Setting deadlines could help briskness and the concentration of energy. 3) It is not necessary that the

41、 parties be in agreement as to the language and terms of the deal before its closure. 4) Whether we like it or not, there are places where lubrication is practical. 5) The implications for the negotiation of having a deadline are negative. 6) The Golf Club and the study group are useful in team negotiations. 7) Only one side has the chance to close the deal and the more proactive the decision maker is, the greater the chance of controlling the process hell get. 8) Declining the deal must be done with the greatest diplomacy because the pot