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1、Business Negotiation EnglishChapter 1Principles of Business Negotiation:Principles of Business Negotiation:1.What is negotiation?What is negotiation?-the process we use-the process we use toto satisfy our needs satisfy our needs when someone else controls what we want.when someone else controls what
2、 we want.(Robert(Robert MadduxMaddux)-Whenever people-Whenever people exchange ideas with the exchange ideas with the intention of changing relationshipsintention of changing relationships,whenever they whenever they confer for agreementconfer for agreement,then,then they are negotiating.(Gerard I.N
3、ierenberg)they are negotiating.(Gerard I.Nierenberg)Definitions:-the ability to deal with business affairs,-to arrange by discussion the settlement of the terms,-to reach agreements through treaties and compromise,-to travel through challenging territory.2.When do people negotiate?-where to go for d
4、inner-which movie to watch-how to split household chores,etc-whether to buy a computer-who to have the first applePractice:Please check off the following Practice:Please check off the following situations that represent negotiations.situations that represent negotiations.1.1.Purchasing a computer at
5、 a department store.Purchasing a computer at a department store.2.2.Deciding with the family where to go for the weekend.Deciding with the family where to go for the weekend.3.3.Bidding for a second-handed car.Bidding for a second-handed car.4.4.Deciding how the house will be cleaned up.Deciding how
6、 the house will be cleaned up.5.5.Borrowing a musical instrument from a friend.Borrowing a musical instrument from a friend.6.6.Selecting a contractor to build a new kitchen.Selecting a contractor to build a new kitchen.7.7.Deciding whether to stay late at work to finish up a project.Deciding whethe
7、r to stay late at work to finish up a project.8.8.Getting an extension on your unfinished assignments.Getting an extension on your unfinished assignments.9.9.Making up,or rebuilding a relationship with someone you love.Making up,or rebuilding a relationship with someone you love.10.10.Deciding on a
8、date for the next meeting with your customer.Deciding on a date for the next meeting with your customer.11.11.Getting a child to go to bed.Getting a child to go to bed.12.12.Picking a successor for the CEO of a company where you are Picking a successor for the CEO of a company where you are on the b
9、oard.on the board.3.Types of negotiation:1.Competitive styleCompetitive style2.Accommodative styleAccommodative style3.Avoidance styleAvoidance style4.Compromising styleCompromising style5.Collaborative styleCollaborative style6.Vengeful styleVengeful style7.Self-inflicting styleSelf-inflicting styl
10、e8.Vengeful and self-inflicting styleVengeful and self-inflicting styleTypes of negotiation:1.Competitive style:To try to gain all there is to gain.2.Accommodative style:To be willing to yield all there is to yield.3.Avoidance style:To try to stay out of negotiation.Types of negotiation:4.Compromisi
11、ng style:To try to split the difference or find an intermediate point according to some principle.5.Collaborative style:To try to find the maximum possible gain for both parties-by careful exploration of the interests of all parties-and often by enlarging the pie.Types of negotiation:6.Vengeful styl
12、e:To try to harm the other.7.Self-inflicting style:To act so as to harm oneself.8.Vengeful and self-inflicting style:To try to harm the other and also oneself.4.Principle of Collaborative negotiationProblem-solving negotiationConsensus-building negotiationInterest-based negotiationWin-win negotiatio
13、nMutual gains negotiation,etc.The assumptions:The negotiation parties have both diverse and common The negotiation parties have both diverse and common interestsinterests The common interests are valued and sought.The common interests are valued and sought.The negotiation processes can result in bot
14、h parties The negotiation processes can result in both parties gaining something.gaining something.The negotiating arena is controlled by enlightened self-The negotiating arena is controlled by enlightened self-interest.interest.Interdependence is recognized and enhanced.Interdependence is recognize
15、d and enhanced.Limited resources do exist,but they can usually be Limited resources do exist,but they can usually be expanded through cooperation and creativity.expanded through cooperation and creativity.The goal is a mutually agreeable solution that is fair to The goal is a mutually agreeable solu
16、tion that is fair to all parties and effective for the community/group.all parties and effective for the community/group.Disadvantages:Pressure an individual to compromise and Pressure an individual to compromise and accommodate in ways not in his interest.accommodate in ways not in his interest.Avo
17、id confrontational strategies,which can be helpful Avoid confrontational strategies,which can be helpful at times.at times.Increase vulnerability to deception and manipulation by Increase vulnerability to deception and manipulation by a competitive opponent.a competitive opponent.Make it hard to est
18、ablish definite aspiration levels and Make it hard to establish definite aspiration levels and bottom lines.bottom lines.Require substantial skill and knowledge of the process.Require substantial skill and knowledge of the process.Require strong confidence in one s perceptions Require strong confide
19、nce in one s perceptions regarding the interests and needs of the other side.regarding the interests and needs of the other side.5.Principled negotiationPIOC:People:Separate the people from the problem.Interest:Focus on interests,not positions(interests always underlie positions)Options:Invent optio
20、ns for mutual gains.Criteria:Insist on using objective criteria.*Separate the people from the problem.Techniques:-Establish an accurate perception.-Cultivate appropriate emotion.-Strive appropriate communication.*Focus on interests,not positions Methods:-identify the self-interests-discuss interests
21、 with the other party*Invent options for mutual gainsBrainstorming4 obstacles:1)Premature judgment2)Searching for the single answer3)The assumption of a fixed pie4)Thinking that“solving their problem is their problem”.Steps for overcoming the obstacles A.Separating the act of inventing options from
22、the act of judging them.Run a brainstorming session:Consider brainstorming with the other side;it can be very valuable.Before brainstorming:-Define your purpose:what you would like to-Define your purpose:what you would like to achieve at the meeting.achieve at the meeting.-Choose a few participants:
23、5-8 people.-Choose a few participants:5-8 people.-Change the environment:distinguishing the-Change the environment:distinguishing the session from regular discussion.session from regular discussion.-Design an informal atmosphere:a drink,at a-Design an informal atmosphere:a drink,at a vacation lodge
24、etc.vacation lodge etc.-Choose a facilitator:to keep the meeting on-Choose a facilitator:to keep the meeting on track.track.Before brainstorming:-Seat the participants side by side facing the problem;-Clarify the ground rules,including the no-criticism rule;-Brainstorm;-Record the ideas in full view
25、.After brainstorming:-Check the most promising ideas;-Explore improvements for promising ideas;-Set up a time to evaluate ideas and make a decision.Steps for overcoming the obstaclesB.Develop as many options as possible before choosing B.Develop as many options as possible before choosing one.one.Ad
26、opt the four types of thinking:Adopt the four types of thinking:Identifying a problem;Identifying a problem;Analyzing the problem;Analyzing the problem;Considering what to be done;Considering what to be done;Coming up with some specific and workable Coming up with some specific and workable suggesti
27、ons for action.suggestions for action.Look at the problem through the eyes of different Look at the problem through the eyes of different experts.experts.Develop different versions of agreement.Develop different versions of agreement.Change the scope of a proposed agreement.Change the scope of a pro
28、posed agreement.Steps for overcoming the obstaclesC.Search for mutual gains Identify shared interests;Dovetail differing interests.D.Find ways to help make the other partys decision easy.*Insist on using objective criteria1)Guidelines for objective criteria:Independent of wills of all parties.Legiti
29、mate and practical.Acceptable to all parties.2)A fair procedural standard3)Discuss them with the other party.Three basic points:A.Frame each issue as a joint search for objective criteria.B.Reason and be open to reason as to which standards are most appropriate and how they should be applied.C.Never
30、 yield to pressure,only to principle.Case StudyIn one negotiation in the early 1980s,a Chinese In one negotiation in the early 1980s,a Chinese manufacturer was locked in a dispute with an manufacturer was locked in a dispute with an American importer over how many models of American importer over ho
31、w many models of the bicycles his company would produce.The the bicycles his company would produce.The American importer wanted four different American importer wanted four different models to give its customers greater selection.models to give its customers greater selection.The Chinese company wan
32、ted to produce only The Chinese company wanted to produce only two models,to keep tooling,inventory,and two models,to keep tooling,inventory,and andand other manufacturing costs down.other manufacturing costs down.Case StudyThe position of the Chinese company was that it The position of the Chinese
33、company was that it would produce only two models,while the would produce only two models,while the underlying interest was to keep manufacturing underlying interest was to keep manufacturing costs down.The position of the American costs down.The position of the American importer was that it wanted
34、four models,while importer was that it wanted four models,while its underlying interest was to increase its profits its underlying interest was to increase its profits by selling more bicycles.As long as the by selling more bicycles.As long as the negotiator focused on these positions,the negotiator
35、 focused on these positions,the dispute could be resolved only through dispute could be resolved only through concessions by one or both sides.concessions by one or both sides.Solution:But an interest-oriented examination of thr But an interest-oriented examination of thr dispute leads to the questi
36、on:How can the dispute leads to the question:How can the higher cost of manufacturing four models be higher cost of manufacturing four models be allocated between the American importer and allocated between the American importer and the Chinese manufacturer?In this example,the the Chinese manufactur
37、er?In this example,the parties were able to devise a formula that parties were able to devise a formula that increased the unit cost of different models to increased the unit cost of different models to reflect the Chinese manufacturers increased reflect the Chinese manufacturers increased manufactu
38、ring cost.manufacturing cost.Questions:1)What type of negotiation approach was applied to the negotiation?2)What principle was used to solve the conflict between the Chinese manufacturer and the American importer?Simulated negotiation 1Directions:Read the short passage below.Do Directions:Read the s
39、hort passage below.Do you think the conflict between the manager and you think the conflict between the manager and the workers can be solved?Imagine you are the workers can be solved?Imagine you are the manager/workers representative who the manager/workers representative who would negotiate with t
40、he workers/manager.would negotiate with the workers/manager.How would you prepare your proposal that may How would you prepare your proposal that may lead to a win-win solution?Write down your lead to a win-win solution?Write down your plan and find a partner to role-play the plan and find a partner
41、 to role-play the negotiation.negotiation.Simulated negotiation 1The management of a major television manufacturers warehouse has a dispute with employees about overtime scheduling.Workers do not want to be locked into a spur-of-the-moment overtime assignment,yet management needs to be sure that the warehouse will be fully staffed.Please help both sides work out a solution that satisfies them all.Simulated negotiation 2Directions:try to negotiate with someone about a problem that divides you two.Use some of the principles to deal with the difficulty arising between you.