Negotiations in business.docx
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Negotiations in business.docx
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Negotiationsinbusiness
Negotiationsinbusiness
Negotiationsinbusiness
sometheoreticalaspects
materialsforIBstudents
prof.UGdrhab.DorotaSimpson
simpson@ug.edu.pl
Literature-basic
RogerFisher,WilliamUry,GettingtoYes:
NegotiatinganAgreementWithoutGivingIn,RandomHouse2003
RichardR.Gesteland,Cross-CultureBusinessBehaviour,HandelshojskolensForlag,Copenhagen1997
RogerFisher,DanielShapiro,BuildingAgreement:
UsingEmotionsasYouNegotiate,RandomHouse2007
Supplementaryliterature
G.RichardShell,BargainingforAdvantage:
NegotiationStrategiesforReasonablePeople,2ndEd.Penguin2006
JimThomas,NegotiatetoWin:
The21RulesforSuccessfulNegotiating,HarperBusiness,2005
G.RichardShell,TheMoralityofBargaining:
IdentityversusInterestsinNegotiationswithEvil,NegotiationsJournal,Vol.26,No4,p.453-481
RobertM.March,Su-HuaWu:
TheChineseNegotiator:
HowtoSucceedintheWorld’sLargestMarket,KodanshaInternationalLtd.,2007
Program
1.Introduction–theessenceofnegotiations
Definitions
Theessenceofnegotiations
Reasonsfornegotiations
Program
2.Phasesofnegotiations
Preparations-acquisitionofinformation,selectingmembersofthenegotiatingteam,choiceofthevenue,BATNA
Openingofnegotiations
Proposals
Concessionsandbids
Conclusionsofthenegotiationsandsigningthecontract
Program
3.Characteristicsofthenegotiationteam
Selectionofteammembers
Rolesinthenegotiationteam:
Leader
Minutessecretary
Listener
Critic
Controller
Program
4.Differentstylesofnegotiations-rivalryorcooperation
Win-win
Lose–lose
Win-lose
Program
5.Difficultsituationsinnegotiations
Difficultpartner
Tricksandmanipulations
Psychologicalandpositionalwar
Machiavellianism
Program
6.Conflictsinnegotiations
Determinantsofconflict
Courseofconflicts
Conflictresolution
Program
7.Negotiationsininternationalbusiness-students’homework
Culturaldifferencesandtheirimpactonthenegotiationprocess
Gesteland’sandHofstede’smodels
1.Introduction–theessenceofnegotiations
Definitions
Reasonsfornegotiations
Negotiationscanbedescribedasatwo-waycommunicationprocesswhichaimstoreachagreementwhenoneofthepartiesdisagreewiththeopinionorsolutionproposedbytheotherparty.
Definitions
Negotiationsareaboutcooperativeproblemsolvingratherthanconfrontationbetweenadversaries
Definitions
Negotiationisawayofmutualcommunicationinordertosolvetheproblem/conflictandcometoanagreementbytheparties
Definitions
Itistheprocessofsubmittingbids(offers)and/orconcessionsbythepartiesconcernedtoworkoutacommonpositioninasituationofdivergentinterests
Definitions
Negotiationsareawayofagreement,containingelementsofcooperationandcompetition
Definitions
Negotiationsaretheprocessofexchangingoffersuntiltheagreementwillbereached–thepurposeistosetacommonpointof6><#00aa00'>viewandadjustactivitytoit
Bothpartieshavetobeactivelyinvolvedtoreachtheagreement
Definitions
Negotiationsareaboutmutualsearchingthesolutionsatisfyinginvolvedparties
Theessenceofnegotiations
Althoughbothpartieshavecommonintereststheystartnegotiationsfromdifferentpositions
Theessenceofnegotiations
Partieshavedifferentviewsongoalsandmethodsfortheirimplementation
itisthemainbarriertogetanagreementbynegotiatingparties
Theessenceofnegotiations
Usuallythepurposeofbusinessnegotiationsistoexchangeresources
Everypartyshouldbereadytoacceptcompromisesolutions
Everypartyshouldhaveacertainmarginofindependenceinrelationtothenegotiationpartner
Reasonsfornegotiations
gainingbenefitsbybothparties
Unilateralbenefitsmeanviolence,blackmail,persuasionratherthannegotiations
Thenegotiationsprocess
Preparations
Opening
Consessions
Closing
Processofnegotiationsconsistsofphases,eventsandactivities
Itisnotface-tofaceconversations
Itrequiresacertainamountofhardwork
2.Phasesofnegotiations
Preparation–collectinginformation
Openingofnegotiations
Proposal-concessionsandoffers
Closing-Conclusionsofthenegotiationsandsigningthecontract
Preparation
acquisitionofinformation,selectingmembersofthenegotiatingteam,choiceofthevenue
identifyingissuesandfieldsofnegotiations
collectinginformation
Preparation
needsanalysisbothusandourpartners
identifyinggoalsofpartiesinvolvedinthenegotiationprocess
detrminingZOPA–ZoneofPossibleAgreement
determiningBATNA–BestAlternativetoaNegotiatedAgreement
Preparation
Preparationistheheartofnegotiations
thesituationisdynamic
weandourbusinesspartnersarechanging–needs,wantsandinterests
preparationmustalwaysbetakenanddonewithaspecialcare
ZOPA
ZoneofPossibleAgreement
Itistherangeinwhichtheagreementsatisfiesbothparties
ItisimpossibletodetermineZOPAaccuratelyifwedonotknowotherparty’sZOPA
Thebasicthingistounderstendtheyhaveitandpredictitslevel
ZOPA
?
?
BlueSkyandBottomLine”
?
?
BlueSky”–youridealsituation
youaskandyougetit
Blueskyshouldberealistic
IfitistoohighourbusinesspartnerscanfindamorerealisticpartyBATNA
ifitistoolowwecanloose
ZOPA
?
?
BottomLine”–yourpartycannotgobelowit
theleastamountpossiblefortheproposalofourbusinesspartners
BATNA
BestAlternativetoaNegotiatedAgreement
Itisthealternativeactionwhenthefinalproposalofourpartnersisnotacceptable–belowourbottomline
Searchingnewbusinesspartner
Lookingforsubstituteproducts
Exercise1:
determineZOPA
Yourcompanywantstobuyahouseforitsrepresentative
YourBlueSkyis550000PLN
YourBottomLineis600000PLN
Seller’sBlueSkyis620000PLN
Seller’sBottomLine570000PLN
FindZOPA
Five?
?
Ws”ofpreparation
What
Who
Why
Where
When
Whatisthesituation?
Assessmentthesituation
Assessenthowmuchresearchhastobeundertaken
Thegreaterriskthemoreresearchhastobeundertaken
Youhavetofindoutyourbusinesspartner’sculture,decision-makingprocessetc.
Whoisinvolved?
Whoareyourbusinesspartnersdirectlyinvolvedinthenetotiationprocess
Theircommunicationandsocialstyle
Thedecision-makingstyleoftheindividualsandtheteam
Whoisthecoredecison-maker
Whoinformallyinfluencesindividualsor/andgroup
Whyareyounegotiating?
Whatareyougoingtoachieveforyourcompany?
Whatareyougoingachieveforyourdepartmentandyourmanager?
Whatareyougoingtoachieveonbothbusinessandpersonallevel?
Wheretonegotiate?
Youcannegotiatevirtuallywebconferences),onthetelephoneorface-to-face
Locationandthemeansofcommunicationarekeyelementstobeconsideredduringtheprocessofpreparation
Whentonegotiate?
Itdependsonwhetheryouarethecoredecision-makerorateamparticipant
Trytoavoidimprovisednegotiations
Impropmtunegotiationcanbeatacticalplaytoforceaquickandearlydecisionwithoutenoughinformation
Internationalnegotiationsdemandcheckingreligiousandnationalholidays
Who-recruitinganegotiationteam
Negotiators’profile:
negotiatingabilitiesandskills
personalitytraits
knowledgeofnegatiatingissues–law,commercial,technological,etc.
abilitytoworkinateam–innerbalance,trust,flexibility
Rolesinthenegotiatingteam
Leader
Recorder
Listener
Critic
Controller
Characteristicsofaleader
Canmakedecisions
Competentintermsof:
negotiatingissues
intellectual(precisethinkinginstressfulsituations,selectionofoptimalsolutions,etc.)
emotional(calmness,tact,trust,understanding)
Recorder
Recordingallfindingsduringnegotiations
Recordingdatapresentedbybothparties
Cooperationwiththeleaderonthemainissuesanddataarisinginthecourseofnegotiations,etc.
Listener
He/shedoesnotparticipateactivelyinthenegotiations
He/sheobservesnegotiatorsbehaiours,inparticulartheotherparty
Registrationthemostimportantandsignificantstatementsandopinions
Registrationsmethodsofexpression
Critic
Observingtheprogressofnegotiations
Observationofindividualteammembersintermsofcarryingouttheir
Reviewingthevariousstagesofnegotiation
Assistanceinimprovingtheassignedtasks
Controller
Apersonofahighstandingandahighposition
Evaluatetheactivitiesandprogressofthenegotiatingteam
Sometimesdeliberatelyintroducetensiontothenegotiatingteam
Exercise2
Buyingthehousefortherep.ofthecompanyinPolandconsiderthe5?
?
Ws”:
Whatisthesituation?
Whoisinvlved?
Whyareyoubuyingit?
Wherewillthenegotiationstakeplace?
Whenwillthenegotiationstakeplace?
Openingofnegotiations
Establishingcontacts:
Viatraditionalmail
Viae-mail
Viatelephone
Directmeeting
Collectinginformation
Duringthepreparationprocess
Duringindirectanddirectcontacts
Non-verbalcommunication–gestures,behaviour,wayofmoving,facialexpression,appearance(clothing,hearstyle)
Thefirstimpression
Kindness,smile
Collectinginformation
Presentationoftheteammembers
Communicationprocess
Senderofthemessagemessageandthewayofcommunicationrecipient
Collectinginformation
Identificationofthecompetencesoftheoppositeteam
Identificationofthemostimportantpersonintheopositeteam
Askingquestions–openandclosedquestions
Activelistening
Paraphrase
Proposals,concessionsandoffers
Openingpositions
Negotiationsstrategies-avoidance,concessions,rivalry,cooperation,compromise
Arguments
Copingwithdifficultsituations
Negotiationsstyles
Propos
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