国际贸易6.docx

国际贸易6.docx

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国际贸易6

Unit6

BusinessNegotiationProcedure步骤

Objectives:

●Theimportanceoftheinvestigativeandplanning调查和规划工作inbusinessnegotiation

●Thecriticalelements因素inpreparationbeforebusinessnegotiation.

●Facetofacemeeting会晤beforenegotiation

●SignalsIdentificationindicatesthetimetoclosetheagreementinagivensituation.

●Stepssequenceinvolvesinsuccessfullyplanningoutcomesinnegotiation.

I.Brainstorming

Workinpairsoringroupstodiscussthegivenquestions.

1.Whatdoyouthinkthenegotiationprocedurewouldbe?

2.Shouldassessmentandpreparationbeincludedinthepre-negotiationstep?

3.Isitnecessarytohavethepre-negotiationstep?

4.Isitlikelythatthepartieswillbeabletoagreeonthesubstanceissuesofthenegotiationiftheycannotagreeonprocessissues?

5.Isitimportantforthepartiestomeetfacetofacebeforethenegotiationstep?

Whyorwhynot?

II.Text

PassageOne

BusinessNegotiationPhases

Bushinessnegotiation（orbargaining）isasequenceofactionsinwhichtwoormorepartiesaddressdemandsandproposalstoeachotherfortheostensiblepurposesofreachinganagreementandchangingthebehaviorofatleastoneactor.Itisthelinkbetweenplanningandimplementationandtheemphasisisonwin-winbusiness.Theabilitytonegotiatesuccessfullymayverywelldependontheeffortsbeingputintopreparatoryactivities.Andtheculturaldifferencebetweentheconcernedpartiesalwaysposessignificantchallengetosuccessfulinternationalbusinessnegotiations.Inordertogainthesuccessfulprocessofinternationalbusinessnegotiation,weshouldknowitsthreemajorphases:

pre-negotiation,negotiationandpost-negotiation.

Pre-negotiation

ThephaseofPre-negotiationisthemostimportantstagetodeterminewhethertheywanttonegotiateatalland,ifso,whattheywilltalkabout,andhow,when,andwheretheywilldoit.Withoutaproperpre-negotiationphase,onemaynotgettothatnegotiationtable,letaloneexploreanydisputeresolutionmechanisms.Pre-negotiationphasecanbecharacterizedbyinformation-gatheringeffortstoevaluatetheparties’interestsandcomprisesofaprocessentailingrationalchoicetopursuenegotiationornot.Itisconcernedwithsettinguptheframeworkwithinwhichissuescansubsequentlybediscussed,notwiththeissuesthemselves.Insomecases,persuadingpartiestocommittotheprocessofnegotiationisevenmoredifficultthanreachingagreementoncenegotiationshavebegun.Sotheimportanceofpre-negotiationphasecannotbeoverstated.Inpracticalterms,goodproceduralpre-negotiationfacilitatesgoodsubstantivenegotiation.Twomajoractivities—assessmentandpreparation—areinvolvedinthepre-negotiationphase.①

Assessmentreferstoevaluatinganddeterminingwhethertheconditionsareripefornegotiations.Itisalsoknownasthefeasibilitystudy.Thisisnecessarybecauseitprovidestechnical,economicandcommercialbasesfordecision-making.Itshoulddefineandanalyzethecriticalelementswithalternativeapproaches.Asatisfactoryassessmentmustanalyzeallthebasiccomponentsandimplications.Thekeyquestionaddressedinanassessmentis:

“shouldweproceedornot?

”Iftheansweris“Yes”thentheassessmentcanalsobeusedtolaythegroundworkfordecidinghowtoproceedwiththecollaborativeprocess.Typicallyanassessmentasksquestionsaboutthepartiestothedispute,theirinterestsandtheiralternatives.Anassessmentwillalsoreviewthehistoryofthedispute,ifany,whethereachpartyisabletoinfluencetheoutcome,andthedynamicsunderlyingthedispute.Hence,expertsoftenrecommendthataprofessionalbehiredtoperformtheassessment.Althoughthismaybecostlyandtimeconsuming,theexpertsbelievethatacarefullypreparedassessmentisthekeytonegotiationsuccessand,inthelongrun,willsavetime.Anassessmentisnotanendinitself,butonlyameanstoarriveatadecisiontodothebusinessornot.

Preparationmeansacquiringthenecessaryskills,knowledgeandresourcestoallowgrouptonegotiateonanequalfootingwitheachother.Evenafterreviewingtheassessment,adecisiontoproceedshouldbeconsideredconditional.Whoelsewillbeatthetable?

Whataretheissuestobediscussed?

Wherewillthemeetingbeheld?

Howwillwetalktoeachother?

Questionssuchastheseaddressprocessissuesorhowthingswillgetdone.Thefollowingarethecriticalelementsofpreparationbeforebusinessnegotiation.

1.FormingtheNegotiatingTeam

Businessnegotiationisateamsport.Itrequiresthespecializedskills,communicationability,teamspiritandgamesmanshipfoundinanyprofessionalsportingevent.②Negotiatingaspartofateamrequiresverycarefulpreparation.Thebiggestdangerinteamnegotiationisthatthepartyorpartieswithwhomyourteamisnegotiatingwillseeorhearthatyouandyourcolleaguesdon'tagreewitheachother.Iftheycanfinddifferences,theymayspotopportunitiestodrivewedgesbetweenyourteammembers.Butifanegotiatingteamisstructuredproperlyandisdeployedinaneffectiveandtimelymanner,itcanplayacriticalroleinachievingvictoryatthebargainingtable.Thenegotiatingteamshouldincludemembersineachofthefollowingareas:

commercial,technical,financialandlegal.

2.CreatingtheInformationBase

Oncethenegotiatingteamhasbeenorganized,thefirstandmostbasicstepinpreparingforaspecifictransactioniscreatinganinformationbase.

Negotiationsareconductedunderasystemoflawandwithinaparticulareconomic,culturalandpoliticalframework.Factorsrelatedtotheforeigncountry,itseconomicandphysicalresources,infrastructure,climateandgeographywillaffectthewayinwhichtheworkcanbeperformedandtheprogramofimplementation.Negotiatorsshouldcollectrelevantinformationthroughboththedomesticandoverseaschannels.Incollectingandassessingthedata,itisimportanttobearinmindanybiasthatmayexistinthepersonfromwhomthedataisobtainedandinthedataitself.Sothenegotiatorsshouldcollectanumberofseparatefactsandfitthemtogethertoformacompositepicture,whichislikelytoresemblereality.Theemphasishereisonthefactsbeingseparate.

3.CreditabilityStudy

Creditabilitystudyofthecounterpartisdonebeforethenegotiation.Itenablesthenegotiatorstohaveanoverallpictureoftheopponent,e.g.thecapitalheld,thebusinessscope,theannualsalesvolume,hiscreditstatus,andwhethertheopponenthasaconfirmingbankandetc.

Thereportmaybesubmittedbyareputedbankorbyaconsultancyservicecompany.Thereportcanbeaverysimpleone（e.g.inexportbusiness）,oralengthyone（e.g.creditabilitystudyforinvestment）.

4.ANegotiationPlan

Failingtoplanisthesameasplanningtofail.Anybusinessactivityneedsasoundbusinessplantosucceed,sodoesthenegotiation.Anegotiationplanindicatestheroadmapmadebythenegotiatorsaccordingtothenegotiationbrief.Thenegotiationplanfunctionsastheguidelineforthenegotiators,thuswhetheritiscompletecanbecriticaltoateam’ssuccess.Anegotiationplanshouldbesimple,clear,specificandwithsomeleeway.Itgenerallyconsistsoftheaim,agenda,timeandlocationofthenegotiation,etc.

5.StrategyApplied

It’salsocriticaltodoawalk-throughofthebargainingsessionbeforeitoccurs.Thinknabbiethroughourbargainingpositionindetail,andtrytoanticipatetheclient'steam'sresponsesandobjections.Thisexerciseinvisualizationoftheactualsessionforcesustobuildasetofexpectationsabouttheteammembers'rolesinthesessionandtoputourselvesintheclient’splaceandseehisorherpointofview.Makesureallpresentersarepreparedandallsupportingdocumentsareprintedandreadytodistribute.Ifthediscussionmaytakeatechnicalturn,ensurethatthesupportingtechnicalmaterialandexpertiseisavailable.

6.FacetoFaceMeeting

Informalmeetingsstartasthetwosidesexamineeachother’sposition.Somesuggestthatthepartiesmeetfacetofacetodecidehowthenegotiationwillproceedbeforemakingafinalcommitmenttonegotiate.Infactthismaybethefirstopportunityforallpartiestomeetfacetoface.Ifthepartiescannotagreeonprocessissues,itisunlikelythattheywillbeabletoagreeonthesubstanceissuesofthenegotiation.Discoveringthisbeforemakingaformcommitmenttonegotiatecanpreventaseriousmistake.

Now,thinkofthiscase.Whetheryouarebuyingorselling,ifyoucan'twalkawaybecauseyouneedthedealsobadlyorbecausetheothersideistheonlygameintown,thenyouareataseriousdisadvantage.Itisthesameinnegotiation.Iftheothersidebelievesyouaretheonlygameintownthenyouhavetheadvantage.Themoreyouneedtosecurethedeal,theweakeryourpositionis,soavoidnegotiatingwhenyouneedthebusinessbadly.Thesamewillapplytoyourcustomer,whichiswhybuyersalmostalwaysgiveyoutheimpressionthattheycangosomewhereelse-eveniftheycan'tordon'twantto.Thisalsomeansthatbeforenegotiationyoumustcreateanimpressionthatthereisnoalternativecomparablebusiness.Youhavetocreatetheimpressionthatyourproductorserviceisunique,andthattheotherpersonhasnowhereelsetogo.Thewayyousellyourselfandyourproductmustconvincetheotherpersonthathehasnowhereelsetogo,andthathecannotaffordtowalkaway.Theassessmentandpreparationareforthisuniqueness.Thispositioningofuniquenessisveryimportant,anditmustcomeintoplaybeforeyoustarttonegotiate.

Negotiation

Negotiationisn'tjustaboutpriceanddiscount.It'sabouteverythingthatforms