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1、 The critical elements因素 in preparation before business negotiation. Face to face meeting会晤 before negotiation Signals Identification indicates the time to close the agreement in a given situation. Steps sequence involves in successfully planning outcomes in negotiation.I. Brainstorming Work in pair

2、s or in groups to discuss the given questions. 1. What do you think the negotiation procedure would be?2. Should assessment and preparation be included in the pre-negotiation step?3. Is it necessary to have the pre-negotiation step?4. Is it likely that the parties will be able to agree on the substa

3、nce issues of the negotiation if they cannot agree on process issues?5. Is it important for the parties to meet face to face before the negotiation step? Why or why not?II. TextPassage OneBusiness Negotiation PhasesBushiness negotiation (or bargaining) is a sequence of actions in which two or more p

4、arties address demands and proposals to each other for the ostensible purposes of reaching an agreement and changing the behavior of at least one actor. It is the link between planning and implementation and the emphasis is on win-win business. The ability to negotiate successfully may very well dep

5、end on the efforts being put into preparatory activities. And the cultural difference between the concerned parties always poses significant challenge to successful international business negotiations. In order to gain the successful process of international business negotiation, we should know its

6、three major phases: pre-negotiation, negotiation and post-negotiation. Pre-negotiationThe phase of Pre-negotiation is the most important stage to determine whether they want to negotiate at all and, if so, what they will talk about, and how, when, and where they will do it. Without a proper pre-nego

7、tiation phase, one may not get to that negotiation table, let alone explore any dispute resolution mechanisms. Pre-negotiation phase can be characterized by information-gathering efforts to evaluate the parties interests and comprises of a process entailing rational choice to pursue negotiation or n

8、ot. It is concerned with setting up the framework within which issues can subsequently be discussed, not with the issues themselves. In some cases, persuading parties to commit to the process of negotiation is even more difficult than reaching agreement once negotiations have begun. So the importanc

9、e of pre-negotiation phase cannot be overstated. In practical terms, good procedural pre-negotiation facilitates good substantive negotiation. Two major activities assessment and preparation are involved in the pre-negotiation phase. Assessment refers to evaluating and determining whether the condit

10、ions are ripe for negotiations. It is also known as the feasibility study. This is necessary because it provides technical, economic and commercial bases for decision-making. It should define and analyze the critical elements with alternative approaches. A satisfactory assessment must analyze all th

11、e basic components and implications. The key question addressed in an assessment is: “should we proceed or not?” If the answer is “Yes” then the assessment can also be used to lay the groundwork for deciding how to proceed with the collaborative process. Typically an assessment asks questions about

12、the parties to the dispute, their interests and their alternatives. An assessment will also review the history of the dispute, if any, whether each party is able to influence the outcome, and the dynamics underlying the dispute. Hence, experts often recommend that a professional be hired to perform

13、the assessment. Although this may be costly and time consuming, the experts believe that a carefully prepared assessment is the key to negotiation success and, in the long run, will save time. An assessment is not an end in itself, but only a means to arrive at a decision to do the business or not.

14、Preparation means acquiring the necessary skills, knowledge and resources to allow group to negotiate on an equal footing with each other. Even after reviewing the assessment, a decision to proceed should be considered conditional. Who else will be at the table? What are the issues to be discussed?

15、Where will the meeting be held? How will we talk to each other? Questions such as these address process issues or how things will get done. The following are the critical elements of preparation before business negotiation.1. Forming the Negotiating TeamBusiness negotiation is a team sport. It requi

16、res the specialized skills, communication ability, team spirit and gamesmanship found in any professional sporting event. Negotiating as part of a team requires very careful preparation. The biggest danger in team negotiation is that the party or parties with whom your team is negotiating will see o

17、r hear that you and your colleagues dont agree with each other. If they can find differences, they may spot opportunities to drive wedges between your team members. But if a negotiating team is structured properly and is deployed in an effective and timely manner, it can play a critical role in achi

18、eving victory at the bargaining table. The negotiating team should include members in each of the following areas: commercial, technical, financial and legal. 2. Creating the Information Base Once the negotiating team has been organized, the first and most basic step in preparing for a specific tran

19、saction is creating an information base.Negotiations are conducted under a system of law and within a particular economic, cultural and political framework. Factors related to the foreign country, its economic and physical resources, infrastructure, climate and geography will affect the way in which

20、 the work can be performed and the program of implementation. Negotiators should collect relevant information through both the domestic and overseas channels. In collecting and assessing the data, it is important to bear in mind any bias that may exist in the person from whom the data is obtained an

21、d in the data itself. So the negotiators should collect a number of separate facts and fit them together to form a composite picture, which is likely to resemble reality. The emphasis here is on the facts being separate.3. Creditability Study Creditability study of the counterpart is done before the

22、 negotiation. It enables the negotiators to have an overall picture of the opponent, e.g. the capital held, the business scope, the annual sales volume, his credit status, and whether the opponent has a confirming bank and etc.The report may be submitted by a reputed bank or by a consultancy service

23、 company. The report can be a very simple one (e.g. in export business), or a lengthy one (e.g. creditability study for investment).4. A Negotiation PlanFailing to plan is the same as planning to fail. Any business activity needs a sound business plan to succeed, so does the negotiation. A negotiati

24、on plan indicates the roadmap made by the negotiators according to the negotiation brief. The negotiation plan functions as the guideline for the negotiators, thus whether it is complete can be critical to a teams success. A negotiation plan should be simple, clear, specific and with some leeway. It

25、 generally consists of the aim, agenda, time and location of the negotiation, etc. 5. Strategy AppliedIts also critical to do a walk-through of the bargaining session before it occurs. Think nabbie through our bargaining position in detail, and try to anticipate the clients teams responses and objec

26、tions. This exercise in visualization of the actual session forces us to build a set of expectations about the team members roles in the session and to put ourselves in the clients place and see his or her point of view. Make sure all presenters are prepared and all supporting documents are printed

27、and ready to distribute. If the discussion may take a technical turn, ensure that the supporting technical material and expertise is available.6. Face to Face MeetingInformal meetings start as the two sides examine each others position. Some suggest that the parties meet face to face to decide how t

28、he negotiation will proceed before making a final commitment to negotiate. In fact this may be the first opportunity for all parties to meet face to face. If the parties cannot agree on process issues, it is unlikely that they will be able to agree on the substance issues of the negotiation. Discove

29、ring this before making a form commitment to negotiate can prevent a serious mistake. Now, think of this case. Whether you are buying or selling, if you cant walk away because you need the deal so badly or because the other side is the only game in town, then you are at a serious disadvantage. It is

30、 the same in negotiation. If the other side believes you are the only game in town then you have the advantage. The more you need to secure the deal, the weaker your position is, so avoid negotiating when you need the business badly. The same will apply to your customer, which is why buyers almost a

31、lways give you the impression that they can go somewhere else - even if they cant or dont want to. This also means that before negotiation you must create an impression that there is no alternative comparable business. You have to create the impression that your product or service is unique, and tha

32、t the other person has nowhere else to go. The way you sell yourself and your product must convince the other person that he has nowhere else to go, and that he cannot afford to walk away. The assessment and preparation are for this uniqueness. This positioning of uniqueness is very important, and it must come into play before you start to negotiate. NegotiationNegotiation isnt just about price and discount. Its about everything that forms

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