2InternationalBusinessnegotiation.pptx

Unit 2 Negotiation Procedure&StructureI.Negotiation procedure(external)1.Negotiation Teams team leaders knowledgeable,capable,personality responsibility&decision-making professionals convincing opinions and ready answers to their counterparts questions assistance to the team leader with their professional knowledge and judgement interpretersIt would be preferable for the team members of two sides to match each other in number and in ranks.Unit 2 Negotiation Procedure&Structure2.Negotiation venues host venue advantages:familiar surroundings pressure to its counterpart guest venue disadvantages:strange surroundings inconvenience pressure from the host side third partys venue reasons:hostile parties impasse of the negotiation dispute on the host venueUnit 2 Negotiation Procedure&Structure3.Introduction of team members seating place:guest:facing the door host:back to the door position:main negotiator:in the middleNames;official&professional titles;specialties;major responsibility Unit 2 Negotiation Procedure&Structure4.Discussion of agenda agenda:an arrangement of activities that parties will participate in in the following negotiating days,which reflects strategic consideration of negotiators.two ways:key issues first trivial issues firstUnit 2 Negotiation Procedure&Structure5.Negotiation6.Wrapping up(indispensable):reviewing the result of talks on each issue,leaving no ambiguity,bringing up the points ignored or overlapped,considering follow-up workUnit 2 Negotiation Procedure&StructureII.General structure(internal)1.Determining interests&issues2.Designing&offering options3.Introducing criteria to evaluate options4.Estimating reservation points5.Exploring alternatives to agreement6.Reaching an agreementUnit 2 Negotiation Procedure&StructureIII.Negotiation Strategies1.Gather information about your own interests&issues(4 steps)The specific issue(s)you wish to negotiate.e.g.price,time,quality,quantity,benefits,future transaction,location,duration The value range for each issue,ranging from the least acceptable outcome to the most desirable outcome(realistically)for that issue.Unit 2 Negotiation Procedure&StructureThe issue weight for each issue,meaning the relative value or importance of each issue compared to all other issues.Information about your best alternative offer,meaning if you dont reach a successful agreement with the other side in this negotiation,what can you get somewhere else.Unit 2 Negotiation Procedure&Structure2.Gather information about the other sides interests and issues(4 steps)Determine the other sides issues-which they feel strongly about and whyIdentify their interests-ask questions using why and why notUnit 2 Negotiation Procedure&StructureDetermine their most/least important issues and flexibility on those issuesTake time to consider other sides offer-dont make a final decision at the negotiating table unless youve gotten you want.Unit 2 Negotiation Procedure&Structure3.Know how to overcome the myth of the Fixed Pie The pie is the amount of resources that the two sides divide up.The Fixed Pie idea assumes the pie size is not changeable.The goal is to expand the pie.Expanding the pie is about finding ways to increase the value that can be divided between the two sides.Diagnosis fixed-sum:Either I get what is in dispute or you do,so no options can be invented.Unit 2 Negotiation Procedure&StructureLook for mutual gainIdentify shared interests Shared interests lie latent in every negotiation Shared interests are opportunities,not godsends.Stressing your shared interests can make the negotiation smoother and more amicable.Dovetail differing interests Differences may lie in priorities,values placed on time,forecasts,attitudes toward risk,so you can invent several options all equally acceptable to you and ask the other side which one they prefer.Unit 2 Negotiation Procedure&StructureIV.Case study Sino-us negotiation on intellectual property rightUnit 2 Negotiation Procedure&StructureHomework team work(in groups)a case to show the negotiators strategy in the arrangement of negotiating activities