1、L/O/G/O1International Business Negotiation2 Chapter7 Closing the Negotiation and its tactics3Teaching Objectives After studying this module,you should be able to After studying this module,you should be able to know:know:In this chapter you will learn 1.who makes the decision to close；2.when it is t
2、ime to close；3.tactics towards agreement；4.tips on contract signing；5.summary of the negotiation.4 Closing the deal Summary of the negotiationTips on contract signing 4123Contents bargaining tactics 5 After the preparation,bidding and bargaining comes the closing period of negotiation.How to determi
3、ne if it is time for closure is a key point in this phaseIf the negotiation is closed too soon，issues concerned will not be thoroughly discussed，leaving endless trouble for the future；if the best chance to close the negotiation is missed，things will change in the prolonge negotiationresulting in the
4、 loss of the deal 8 By recessing we mean taking a short break during which each party moves out of the negotiation forum to reconsider the progress of the negotiation，and to reconsider its own position；or breaking off until a later sessionRecessing is such an important device that the method of usin
5、g it deserves to be examinedWhen do we use it?How do we arrange it?How do we restart?7.2 Tactics towards agreement7.2.1 Recessing9 By recessing we mean taking a short break during which each party moves out of the negotiation forum to reconsider the progress of the negotiation，and to reconsider its
6、own position；or breaking off until a later sessionRecessing is such an important device that the method of using it deserves to be examinedWhen do we use it?How do we arrange it?How do we restart?7.2 Tactics towards agreement7.2.1 Recessing10 By recessing we mean taking a short break during which ea
7、ch party moves out of the negotiation forum to reconsider the progress of the negotiation，and to reconsider its own position；or breaking off until a later sessionRecessing is such an important device that the method of using it deserves to be examinedWhen do we use it?How do we arrange it?How do we
8、restart?7.2 Tactics towards agreement7.2.1 Recessing11 There are positive implications for setting a deadline for the negotiationsThe setting of a deadline helps to concentrate the mind，the energy，the effort，and the speed of achievement There is，however，a negative influence if either party feels a d
9、eadline has been imposed too early.7.2 Tactics towards agreement7.2.2 Setting deadlines12 Literally，this means complete readiness to give to the other party all ones informationIn practice，there will always be some elements people ale unwilling to disclose and some other elements they are unable to
10、discloseWe therefore have to interpret“full disclosure”as meaning the disclosure of 90 percent of what we perceive7.2 Tactics towards agreement7.2.3 Full disclosureThe straightforward statement13 7.2.4 Lubrication/The Golf Club The Golf Club is a tactic to be used at times when the teams are reachin
11、g stalemate and progress is interruptedThe tactic is for the team leaders to agree to meet informally in some environment that encourages mutual trust and openness14 7.2.5 The study group When the negotiations between teams get bogged down,it is then helpful to set up a sub-group.For example,when ma
12、tters are reaching an impasse over delivery,then the production people from the suppliers can form a sub-group with one or two members of the purchasers to find means of resolving the delivery problem to their mutual advantage 157.3 Summary of the negotiation731 Content of business negotiation Summa
13、ry (1)Aspects that have direct relation with negotiating process preparation work；illustration of gains and losses based on our objective realization，negotiating efficiency and results；16731 Content of business negotiation Summary evaluation of the advantages and disadvantages of the negotiating pro
14、cedure，time and place；the summary of the main experiences of the success of the negotiation and to analyze the great lapsus17 (2)Aspects concerning the opponent Evaluate the opponent including the impression，the working style，efficiency and the things that are liked or dislikedTo those who ale impor
15、tant or have long-term cooperative relations，establish files to put the negotiation experiences，style，tactics，skills as well as the disadvantages into written form to learn the merits and avoid the shortcomings for future negotiations18732 Steps of business negotiating summary Business negotiating s
16、ummary is generally composed of the following steps：Review the negotiating process and go over the minute.Analyze and evaluate the negotiating.Give suggestions of improvement.Write the summary report.197.4 Tips on contract signing 7.4.1 The draft of the contract Once the seller and the buyer reach a
17、n agreement,it is time to draw up the contract.There is the problem of who will take the task of making the draft.Generally speaking,the side that makes the draft will be in a positive position of the whole deal,so the focus should be more on the side who makes the draft.If one side cant control mak
18、ing draft,they should at least be involved with the other side for this process.20 7.4.2 Examination of the qualification of the contract signer and its trading items,scope and process 7.4.3 Characteristics of an international business contract (1)It is all agreement between parties from different c
19、ountries or regions.(2)The laws of all the parties involved are binding (3)Contract articles must be rigid and thorough (4)It is affected by international political relationships217.4.4 Types of international business contracts (1)Classified by the contract signatories(2)By the trading items(3)By th
20、e forms of the contract(4)By the relationship between the contracting parties227.4.5 Modification and termination of the contract (1)Modification of the contract (2)Termination of the contract 7.4.6 Circumstances that allow altering and rescinding a contract(1)A contract may be altered or terminated
21、 if all the parties to the contract agree (2)It is impossible to perform the contract because of a force majeure237.4.7Means of dispute handling (1)Mediating (2)Arbitration (3)Litigation 247.4.8 The contract signing ceremony The procedure of signing ceremony:(1)Participants from both parties enter t
22、he signing hall at the same time.(2)The signers take their seats and others stand behind their signer.(3)The signers sign their own copy first.257.4.8 The contract signing ceremony (4)The assistants of both sides pass on the signed copy to the signer of the other party for signature.(5)After signing it,the signers exchange the signed copy and shake hand.(6)Champagne is served to celebrate the signing of the agreement.26Thanks!
