1、Chapter 01Basic Theories for International Business Negotiation In business as in life,you dont get what you deserve,you get what you negotiate.Chester L.KarrasContents Background Information2 Section A Text Study 4 Humor5 Situational Dialogue 7 Words and Expressions1Section B Text Study6 Lead-in3 E
2、xercises8Section A Understanding International Business Negotiation Chapter 01Basic Theories for International Business Negotiation Words and Expressions1.intricate:adj.错综复杂的The designs got more eccentric and intricate as time went on.随着时间的推移，设计变得越来越古怪和复杂。2.trial:n.试验The new drug is undergoing clini
3、cal trials.新的药品正在进行临床试验。3.myopia:n.近视、目光短浅With their myopia,economists like to claim that the deeper of cause of everything is economic.由于目光短浅，经济学家总是一厢情愿的认为所有问题皆由经济因素而起。backbackWords and Expressions4.tactical:adj.有谋略的；手段高明的；善于谋划的He will want results and agreements,and he will not hesitate to do some
4、 tactical elbowing in the process.他需要取得成果和谈成协议，在这一过程中，他也会毫不犹豫地进行策略上的讨价还价。5.determinant:n.决定因素;决定条件The determinant is which business model your bank employed.决定因素在于你的银行采用何种业务模式。6.repugnant:adj.让人反感的;令人厌恶的Everything about the affair was repugnant to her.有关那件事的一切令她反感。7.tenets:n.(理论、信仰的)基本原则Non-violence
5、 and patience are the central tenets of their faith.非暴力和忍耐是他们信仰的基本原则。backbackWords and Expressions8.indigenous:adj.本土的；当地的Both have vast indigenous reserves of coal,the dirtiest form of electricity generation.两国拥有庞大的本土煤储备，而煤是最肮脏的发电形式。promise:n.妥协；折中；互让；和解 Compromise makes for success in negotiations
6、.妥协有助于谈判的成功。mission:n.佣金；回扣It does not conform with the international trade practice not to allow a commission.不给佣金是不符合国际贸易惯例的。11.a superiority complex:优越感，自傲心理Another important reason is these people have an ingrained superiority complex in them.还有很重要的一点，就是这些人有一种根深蒂固的优越感。backbackWords and Expressio
7、ns12.premises:n.（企业的）房屋建筑及附属场地，营业场所The company is looking for larger premises.这家公司正在寻找较大的营业场所。13.stagnating:adj.停滞的，不发展的，不进步的I feel Im stagnating in this job.我觉得干这份工作我没有长进。14.precedence:n.优先，优先权Let us deal with the questions in order of precedence.让我们按照这些问题的轻重缓急依次解决。15.assumption:n.假定，假设We need to c
8、hallenge some of the basic assumptions of western philosophy.我们有必要向西方哲学的某些基本假设提出质疑。backbackBackground Information1.Definition of business negotiation The word“negotiation”derives from the Latin word“negotiari”,which means“to do business”.In a broad sense,negotiation is a social phenomenon and a spec
9、ial embodiment of human relations.Negotiation is a process of information exchange between two sides,which are counterparts of matched qualification and rather independent in material force,personality and social status,etc.Due to mutual contact,conflicts and differences in viewpoints,needs,basic in
10、terests and action modes,both parties try to persuade the other party to understand or accept their viewpoints and to satisfy their own needs.backbackBackground Information2.Characteristics of business negotiation Business negotiation demonstrates the following characteristics:1)The objective of bus
11、iness negotiation is to obtain financial interests.2)The core of business negotiation is price.3)There are randomness and variability in business negotiation.4)Cooperation and exclusion of the business negotiating parties coexist.5)There is no absolute fairness or equality in business negotiations.b
12、ackbackBackground Information3.The basic principles of business negotiation1)Principle of PIOC(People,Interest,Options,Criteria)i)People:Separating the people from the problem People problems are usually caused by inaccurate perceptions,inappropriate emotions and poor communication.In order to deal
13、with those problems,three techniques are recommended for both parties as follows:Establish an accurate perception;Cultivate appropriate emotion;Strive for better communication.backbackBackground Information3.The basic principles of business negotiation1)Principle of PIOC(People,Interest,Options,Crit
14、eria)ii)Interests:Focus on interests,not position Positions are often pre-determined,concrete and explicit.Interests allow flexibility and define positions by determining the underlying needs,concerns and motivations of each party.The more interests that are found,the greater is the potential for de
15、veloping options for mutual gain.No conflicting interests,no need for negotiation.Methods for focusing on interests instead of positions are as follows:Identify the self-interests;Discuss interests with the other party.backbackBackground Information3.The basic principles of business negotiation1)Pri
16、nciple of PIOC(People,Interest,Options,Criteria)iii)Options:Invent options for mutual gains There are four major obstacles that prevent negotiators from creative thinking:premature judgment;searching for the single answer;the assumption of a fixed pie;thinking that“solving their problems is their pr
17、oblems.”Here are four steps of overcoming the obstacles and developing multiple solution options:Separate the act of inventing options from the act of judging them;Develop as many options as possible before choosing one;Search for mutual gains;Find ways to help make the other partys decision easy.ba
18、ckbackBackground Information3.The basic principles of business negotiation1)Principle of PIOC(People,Interest,Options,Criteria)iiii)Criteria:Insist on using objective criteriaThe next important step is to choose a fair procedural standard,the way of implementing the criterion,when an agreement is re
19、ached upon such a criterion.There are three basic points to remember:Frame each issue as a joint search for objective criteria;Reason and be open to reason as to which standards are most appropriate and how they should be applied;Never yield to pressure,only to principle yield to an argument or pres
20、entation that is based on reason and principle,not to one based on pressure.backbackBackground Information3.The basic principles of business negotiation2)Collaborative negotiation vs.Competitive negotiation Collaborative negotiation involves people with diverse interests working together to achieve
21、mutually satisfying outcomes.The collaborative negotiation focuses on interests rather than positions.Collaborators find a way to ensure their needs are met as well as those of the other parties involved.Negotiators adopting competitive style negotiate to win.They are not concerned with the other pa
22、rtys feelings or outcomes and treats the negotiation process like a game that must be won.A person or company that utilizes competitive negotiation tactics is under the assumption that there is only one fixed outcome that both parties are striving to obtain.backbackBackground Information3.The basic
23、principles of business negotiation3)Integrative negotiation vs.Distributive negotiation Integrative negotiation,similar to cooperative negotiation,is often referred as“win-win”and typically entails two or more issues to be negotiated.“Integrative”refers to the potential for the parties interest to b
24、e combined in ways that create joint value or enlarge the pie.Integrative negotiation often involves an agreement process that better integrates the aims and goals of all the involved negotiating parties through creative and collaborative problem solving.A distributive negotiation type or process th
25、at normally entails a single issue to be negotiated is also referred to as a“win-lose”,or“fixed-pie”negotiation because one party gains at the expense of another party.backbackBackground Information3.The basic principles of business negotiation4)Principle of trust in negotiationThere is a list of 15
26、 things that a negotiator can do to build trust in his or her counterpart.Demonstrate your competence;Make sure the nonverbal signals you are sending match the words you are saying;Maintain a professional appearance;Communicate your good intentions;Do what you say you are going to do;Go beyond the c
27、onventional relationship;Listen;backbackBackground Information3.The basic principles of business negotiation4)Principle of trust in negotiationThere is a list of 15 things that a negotiator can do to build trust in his or her counterpart.Over-communicate;Discuss the discussible;Provide accurate info
28、rmation,without any hidden agenda;Be honest,even when it costs you something;Be patient;Uphold fairness;Negotiate for abundance,not scarcity;Take calculated risks.backbackBackground Information4.Key terms 1)Positional negotiation With the positional style of negotiation,each party starts with an ext
29、reme(usually unjustified)position.The basis for this approach stems from the belief that the ultimate solution will be favorable only if the initial offer is extreme.It is seen as a zero-sum game.One party will win and one will lose.An extreme position increases the chances of a“win”.The more extrem
30、e the opening positions and the smaller the concessions,the more time and effort it will take to come to an agreement.backbackBackground Information4.Key terms 2)Lose-lose negotiation There has been a negotiation result where all parties to a negotiation leave resources or“gold”on the table at the c
31、onclusion of a negotiation and fail to recognize or exploit more creative options that would lead to a“win-win”negotiated outcome.The term is also used in“Game Theory”and Economics.3)Lose-win or win-lose negotiation This term refers to a distributive negotiation whereby one partys gain is another pa
32、rtys loss.Both parties are competing to get the most value from the negotiation.It is also called the“fixed-pie”scenario in that there is only a limited amount to be distributed.It is also a term used in“Game Theory”and Economics,and also known as Win-Lose Negotiation.backbackBackground Information4
33、.Key terms 4)Win-win negotiation A win-win negotiation settlement is an integrative negotiated agreement.In theory this means the negotiating parties have reached an agreement after fully taking into account each others interests,such that the agreement cannot be improved upon further by any other a
34、greement.By definition,there are no resources or“gold”left on the table and all creative options have been thoroughly exploited.“Win-Win”has its roots in“Game Theory”and Economics.backbackBackground Information4.Key terms 5)BATNA An acronym described by Roger Fisher and William Ury which means Best
35、Alternative to a Negotiated Agreement.It is the alternative action that will be taken when your proposed agreement with another party results in an unsatisfactory agreement or when an agreement fails to materialize.If the potential results of your current negotiation only offer a value that is less
36、than your BATNA,there is no point in proceeding with the negotiation,and one should use his or her best available alternative option instead.Prior to the start of negotiations,each party should have ascertained their own individual BATNA.backbackBackground Information4.Key terms 6)Principled negotia
37、tion Principled negotiation is an interest-based approach to negotiation that focuses primarily on conflict management and conflict resolution.Principled negotiation uses an integrative approach to finding a mutually shared outcome.Principled negotiation has become synonymous with the more popular p
38、hrase“win-win”originally taken from“Game Theory.”7)Fixed pie assumption It is also known as the“mythical fixed pie,”a well-documented phenomenon people believe that negotiation situations are zero-sum,even when there is potential for both parties to create value,not just claim value.backbackBackgrou
39、nd Information4.Key terms 8)Negotiation anchoring Anchoring is an attempt to establish a reference point(anchor)around which a negotiation will revolve and will often use this reference point to make negotiation adjustments.Anchoring often occurs when the first offer is presented at the beginning of
40、 a negotiation.9)Negotiation concessions Negotiation concessions are also sometimes referred to as“Trade-Offs”,where one or more parties to a negotiation engage in conceding,yielding,or compromising on issues under negotiation and do so either willingly or unwillingly.Negotiation concessions often i
41、nclude“log rolling”.backbackLead-in In September of 2013,computer software titan Microsoft made the shocking announcement that it was purchasing Finnish mobile handset maker Nokia for$7.2 billion in an effort to build its mobile and smartphone offerings.The complexity of the business negotiations un
42、dertaken by negotiators at Microsoft and Nokia underscores the challenges companies and negotiators face in integrating two different identities.Rather than engaging in the reconciliation of differences in identity,integrative bargaining negotiators may instead see the value(and value creating poten
43、tial)in letting each firm maintain its own identity.In this way,it is advantageous to negotiators to view their negotiating counterparts as individuals,highlighting the strengths of each organization and how those strengths can be combined into a successfully implemented negotiated agreement.backbac
44、kLead-in1.How do you understand the practice of integrative bargaining negotiators?2.How will it benefit the negotiation?QuestionbackbackSection A Understanding International Business NegotiationText StudyThe negotiation processNegotiation as an art and a skillDefinition and nature of negotiationsSo
45、cio-cultural determinantsEconomic and political determinantsbackbackDefinition and nature of negotiationsWithout it,there is nothing to negotiate for.Without it,there is nothing to negotiate about.CommoninterestConflicting interestbackbackSocio-cultural determinants Values systemsPersonal contacts P
46、atterns of agreementsSocio-cultural determinants Publicity vs.secrecybackbackEconomic and political determinantsNationalismEconomic benefit/cost perceptionInternal groupsCommon interestbackbackSection A Understanding International Business Negotiation Discussion Questions1.Are good negotiators born
47、or made?2.What are the economic and political determinants in international business negotiation?backbackHumor:The Sunshine to Life“Hadnt He Been Sick”Negotiations between union members and their employer were at an impasse.The union denied that their workers were flagrantly abusing their contracts
48、sick-leave provisions.One morning at the bargaining table,the companys chief negotiator held aloft the morning edition of the newspaper,“This man,”he announced,“called in sick yesterday!”There on the sports page,was a photo of the supposedly ill employee,who had just won a local golf tournament with
49、 an excellent score.The silence in the room was broken by a union negotiator.“Wow,”he said.“Just think of what kind of score he could have had if he hadnt been sick!”backbackSection B A Negotiation Aching to Find Way Out Questions for Consideration1.What do you think are the key factors in the negot
50、iation?2.What are the interests,positions,and options of either side?3.What may be the win-win solution for both sides?backbackSituational Dialogue in NegotiationWhen receiving and greeting guests/customers for business negotiation,you have those first few minutes to create a good impression that he
