1.1 Definition and characteristics of business negotiation
1) The definition of negotiation: negotiation refers to the action and the process of reaching an agreement by means of exchanging ideas with the indention of dispelling conflicts and enhancing relationship to satisfy each other’s needs.
2) The characteristics of negotiation:
A; Every negotiation involves two or more than two parties
B; The objective of a negotiation must be definite
C: Negotiation must be conducted on an equal basis
D; A consensus must be built on the basis of mutual concession
E; Negotiation involves exchange of ideas, communication, persuasion, compromise, and suchlike
3)The definition of business negotiation: 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 close a deal or achieve a proposed financial goal.
4) The characteristics of business negotiation:
A: The objective of business negotiation is to obtain financial interest
B; The core of business negotiation is price
C; Its principle is equality and mutual benefit
D; Items of contract should keep strictly accurate and rigorous
5) The definition of international business negotiation: refers to the business negotiation that takes place between the interest groups from different countries or regions.
6) The additional characteristics of international business negotiation:
A; Language barrier;
B; cultural differences;
C; international laws and domestic laws are both in force;
D; international political factors must be taken into account; E; the difficulty and the cost are greater than that of domestic business negotiations
Chapter 2
principles of business negotiation
2.1equal and voluntary participation
1) All parties , big or small ,should be equal
2) veto power embodies equality (否决权体现平等)
4) voluntary agreement embodies equality
3) respect embodies equality
2.3 mutual reciprocity and mutual benefits
2.2 credibility first
2.4 maximizing commonalities and minimizing differences
2.5 speaking on good grounds
2.6 separate the people from the problem
1.see the situation from the other side’s point of view
2.present more objective information and avoid blaming the other side
3.react tactfully(委婉地) to emotional outbursts(爆发)
4.help them save face and do not hurt them emotionally
preparation for business negotiation
3.1 collecting information
Where to collect information
1) International organizations.
3) Service organizations
2) Governments.
4) Directories and newsletters.
5)On-line service.
3.2 forming the negotiation team
Generally speaking , the size of a negotiation team depends on :
A: THE number of the negotiation team members of your counterpart
B: the complexity of the negotiation
C: THE need for technical experts
D: the number of the associates in the project
Bill Scott suggests that the number is probably four. The main reasons for this number include: ● Size of group.
● Control of team.
● Range of expertise.
● Changing membership.
3.3 planning for business negotiation
1) Gist of a negotiation plan:
Requirement toward :the key points of the negotiation
the thoughtfulness and flexibility of the plan
the predictability of the plan
the negotiation time
the negotiation atmosphere
Key points while making the negotiation agenda
Negotiation site-
Negotiation issues
Open agenda and restricted agenda
4)negotiation agenda
Negotiation agenda refers to the arrangement for the timing and site choice of the negotiation, and issues discussed.
1.Scheduling of the negotiation-
2.Negotiation site-
3.Key points while making the negotiation agenda
4.Open agenda and restricted agenda
5.Negotiation issues
3.4 physical preparations 3.5 simulated negotiations
Chapter 4
Opening of Business Negotiation
4.1.1 Different negotiation atmospheres have different impacts on the negotiation:
1) positive and friendly
2) tense and contradictory
3) Brief and straightforward
4) dilatory and protracted( 缓慢,拖拉的)
5) cold and perfunctory( 漫不经心的)
6)sedate and reserved(平静,冷淡的)
4.3 opening strategies
1) resonant opening
Conferring approach: we ask for the opinions of the other party with a kind tone to boost discussion toward our goals ,then approve of their proposals and are willing to follow their proposals to proceed with our work.
Inquiring approach: to design your answer in the form of a question to induce your counterpart to move toward the goal that you have set.
Complementing approach: encourage you to avail yourself of the opportunity to add your own opinions to that of the other party and talk them around to your way of thinking and let them speak in your voice.
2) frank opening
3) evasive opening
4) nitpicking opening
5) offensive opening
Refers to the way in which we express our firm attitude through well prepared speech or bahavior so as to gain the awe from the rival and force them to start the negotiation in accordance with or intention.
Ch5
Bargaining Process
Generally speaking ,there are four modules of business negotiation for reaching an agreement: Enquiry and reply,
Offer and counter-offer,
Acceptance, and conclusion of a contract!
5.1 Enquiry and reply
1. The form of enquiry
2. Guidelines for making enquiries
3. Guidelines for replying enquiries professionally
4. Ways of saying “no”
Chapter 6 Negotiation strategies and tactics
6.1 Developing your strategy(稍微看看)
What are the major negotiation strategies of manaing conflict?
Collaborating----”win-win” approach
Compromising----”mini-win-and mini-lose”
Accommodating----”lose-win”
Controlling----power oriented approach
Avoiding----leave or “lose-win”
Controlling is best when:
Quick, decisive action is vital
An important issue requires unpopular action
You know you are right
The other party would take advantage of co-operative behavior
Collaborating is best when:
The issues are too important to be compromised
The objective is to integrate different points of view
You need commitment to make the solution work
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