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●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