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1、Business Negotiation EnglishObjectives1.Introduce the students to the main principles of business negotiation.2.The students get familiar with the types of negotiation.3.A detailed study of one negotiation method-principled negotiation.4.Case Study5.Simulated negotiations Chapter 1Principles of Busi
2、ness Negotiation:Principles of Business Negotiation:1.What is negotiation?What is negotiation?2.-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 we want.(Robert Maddux)(Robert Maddux)3.-Whenever pe
3、ople-Whenever people exchange ideas with exchange ideas with the intention of changing relationshipsthe intention of changing relationships,whenever they whenever they confer for agreementconfer for agreement,then,then they are negotiating.(Gerard I.Nierenberg)they are negotiating.(Gerard I.Nierenbe
4、rg)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.Consultation,bargaining,mediation,arbitration,and litigation2.When do people negotiate?-where
5、to go for dinner-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.Purchasing a co
6、mputer at a department store.Purchasing a computer at a department store.2.Deciding with the family where to go for the Deciding with the family where to go for the weekend.weekend.3.Bidding for a second-handed car.Bidding for a second-handed car.4.Deciding how the house will be cleaned up.Deciding
7、how the house will be cleaned up.5.Borrowing a musical instrument from a friend.Borrowing a musical instrument from a friend.6.Selecting a contractor to build a new kitchen.Selecting a contractor to build a new kitchen.7.Deciding whether to stay late at work to finish Deciding whether to stay late a
8、t work to finish up a project.up a project.8.Getting an extension on your unfinished assignments.9.Making up,or rebuilding a relationship with someone you love.10.Deciding on a date for the next meeting with your customer.11.Getting a child to go to bed.12.Picking a successor for the CEO of a compan
9、y where you are 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-infl
10、icting style8.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
11、.Compromising 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.Ve
12、ngeful style: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
13、 negotiationMutual 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 re
14、sult in both 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 i
15、s recognized 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 agr
16、eeable solution 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 i
17、nterest.Avoid 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
18、hard to establish 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 str
19、ong confidence 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.Interests:Focus on interests,not positions(interests always underlie positions)Options:
20、Invent options for mutual gains.Criteria:Insist on using objective criteria.*Separate the people from the problem.Techniques:-Establish an accurate perception.-Cultivate appropriate emotions.-Strive better communication.*Focus on interests,not positions Methods:-identify the self-interests-discuss i
21、nterests 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 optio
22、ns from the act of judging them.Run a brainstorming session: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:5-8 people.-Choose a few participants:5-8 people.-Change th
23、e 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 etc.vacation lodge etc.-Choose a facilitator:to keep the me
24、eting on-Choose a facilitator:to keep the meeting on track.track.During 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.After brainstorming:-Check the most promising ideas;-Explo
25、re improvements for promising ideas;-Set up a time to evaluate ideas and make a decision.Consider brainstorming with the other side;it can be very valuable.Steps for overcoming the obstaclesB.Develop as many options as possible before choosing B.Develop as many options as possible before choosing on
26、e.one.Adopt 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
27、suggestions 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
28、of a proposed 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 partie
29、s.Legitimate 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
30、.C.Never 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
31、 over how 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 com
32、pany wanted to produce only The Chinese company wanted to produce only two models,to keep manufacturing costs down.two models,to keep manufacturing costs down.Case StudyThe position of the Chinese company was that it The position of the Chinese company was that it would produce only two models,while
33、 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 four models,while importer was that it wanted four mode
34、ls,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 negotiators focused on these positions,the negotiators focused on these positions,the dispute could be reso
35、lved 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 the But an interest-oriented examination of the dispute leads to the question:How can the dispute leads to the question:How can
36、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 Chinese manufacturer?In this example,the parties were able to devise a form
37、ula that the 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 manufacturing cost.manufacturing cost.Solution:The interests o
38、f the Chinese manufacturer were achieved by the solutionprofit per unit remained constant.The interests of the American importer were also metit sold more units at higher prices,which more than offset the increased manufacturing cost.Questions:1)What type of negotiation approach was applied to the n
39、egotiation?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 short passage below.Do you think the conflict between the manager and you think the conflict bet
40、ween 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 the workers/manager.would negotiate with the workers/manager.How would you prepare your proposal
41、 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 to role-play the negotiation.negotiation.Simulated negotiation 1The management of a major tele
42、vision 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.