1、 Chapter 3Phases of InternationalBusiness NegotiationChapter 03Phases of International Business Negotiation Its a well-known proposition that you know whos going to win a negotiation:its he who pauses the longest.Robert HolmesContents Background Information2 Section A Text Study 4 Humor5 Situational
2、 Dialogue 7 Words and Expressions1Section B Text Study6 Lead-in3 Exercises8Section A A Typical Negotiation on Sale with Chinese Chapter 03Phases of International Business Negotiation Words and Expressions1.subsidiary:adj.(of a business company)owned or controlled by another larger company 附属的，隶属的；n.
3、a business that is owned or controlled by another larger company 附属公司，子公司Shes working for an overseas subsidiary of the company.她为这家公司的一个海外子公司工作。2.conglomerate:n.a group of diverse companies under common ownership and run as a single organization 企业集团The company is a broadly based conglomerate,with
4、16,000 employees in China.该公司是一家分布广泛的综合企业集团，在中国雇有员工16,000人。backbackWords and Expressions3.tariff:n.a list of fixed prices that are charged by a hotel or restaurant for rooms,meals,etc.,or by a company for a particular service（旅馆、饭店或服务公司的）价目表，收费表The tariff at the hotel ranges from 20 to 50 dollars a
5、day for a single room.旅馆的单人房间的价钱从 20 到 50 美元每天不等。4.ambiance:n.the qualities and character of a particular place and the way these make you feel 气氛，情调，环境Such lighting can make the ambiance in your room romantic and more intimate.这样的灯光能能使你房间的气氛浪漫，充满诱惑性。5.haggling:n.an instance of intense argument(as i
6、n bargaining)讨价还价；争论After months of haggling,they recovered only three-quarters of what they had lent.经过数月的讨价还价，他们仅收回了借出的3/4。backbackWords and Expressions6.intuitively:adv.in an intuitive manner,(of ideas)obtained by using your feeling rather than by considering the facts 直观地，直觉地This can intuitively
7、 reflect the relationship between various physical data.这能够直观地反应出不同物理量之间的关系。7.pivotal:adj.being of crucial importance 关键的Love plays a pivotal role on our life.爱在生活之外扮演了一个关键的角色。8.interrogate:v.transmit(a signal)for setting off an appropriate response,as in telecommunication pose a series of questions
8、 to质问；讯问；审问I decide to interrogate the abductors.我决定去质问那帮绑架犯。backbackWords and Expressions9.paraphrasing:n.rewording for the purpose of clarification 释义；解述；改写The teacher amplified the sense by a paraphrasing.老师用转述释义的方法详述了它的意义。10.brainstorm:v.to solve a problem or to create good ideas by making a gro
9、up of people all think about sth.at the same time 集思广益We should get together and try to brainstorm a better idea.我们应该集思广益，试着想出更好的办法。11.implement:v.to make sth.that has been officially decided start to happen or be used 使生效，贯彻，执行，实施The committees decisions will be implemented immediately.委员会的决定将立即执行。
10、backbackWords and Expressions12.judicial:adj.connected with a court of law,a judge or legal judgment 法庭的，法官的，审 判的，司法的He applied for judicial review to quash the order.他申请司法检查废止该命令。13.circumnavigate:v.to sail all the way around sth.,especially all the way around the world 环绕航行Magellan was the first p
11、erson to circumnavigate the globe.麦哲伦是第一个环球航行的人。backbackBackground Information1.General procedures of negotiationBefore the negotiation begins Prepare a list of your alternatives to the deal on the table.If you are meeting for a final job interview,for example,go in with two other job offers.With yo
12、ur next-best options clearly in mind,you can be more objective.List your interests.Do not be trapped by your rigid positions.You may be pleasantly surprised that your interests can be met in a way you had not anticipated.backbackBackground Information1.General procedures of negotiationBefore the neg
13、otiation begins Analyze the personality types of the others who will be negotiating,if possible.If these are your teammates or someone else you know,you may be able to anticipate their key interests and how they will approach the negotiation.Gather support documentation,including audiovisual materia
14、ls,which will help communicate your points.backbackBackground Information1.General procedures of negotiationEstablish the agenda and ground rules Besides setting a businesslike tone for the discussion,the preliminaries may provide some clues about the attitudes and approaches of the other party.Dont
15、 rush to make the first demand you may forget to listen to the other partys interests.Listen to what is and what is not said while you explore the interests and concerns of the other party.Ask questions to confirm or update your assumptions and understandings.backbackBackground Information1.General
16、procedures of negotiationEarly in the negotiation Clarify the key interests of each party.Seek to understand their needs,not just their positions.Determine the authority of each party.Specifically,find out who makes the decisions.Define presumptions and expectations.For example:“Is there a deadline
17、or budget to be met?”Gather details about competing alternatives.Specify what alternatives will satisfy each party,if you cannot reach an agreement.backbackBackground Information1.General procedures of negotiationAs the negotiation proceeds Brainstorm creative options that satisfy each partys intere
18、sts.Consider new ways to meet needs,including ways to expand or extend opportunities.Do not judge or dismiss the new options that are generated;they may spur additional creative thinking.Highlight objective facts to bolster your case while questioning the shortcomings or significance of the other pa
19、rtys data.For example:“Is my product really the most expensive,considering the value of the superior warranty,higher resale value and lower frequency of repair?”Let the other party know you have alternatives.backbackBackground Information1.General procedures of negotiationAt the end of the negotiati
20、on Have a win-win solution.If you have been successful,your interests have been satisfied well and the other partys interests have been satisfied at least in an acceptable way.Devise a“compliance-prone”agreement.This means everyone has an incentive to implement the agreement.There also should be neg
21、ative consequences for noncompliance.Clarify everyones responsibilities.Document the agreements and obtain sign-offs by decision-makers.backbackBackground Information1.General procedures of negotiationAt the end of the negotiation Stay in touch with the other party while the agreement is implemented
22、.In general,try to counterbalance everyones desire to get what they want by creating additional opportunities.This way,perhaps all parties will get their most important needs met.When youre negotiating with difficult people,avoid responding to provocations.Instead,ask them how their solutions will s
23、olve the problem.And,finally,dont take anything personally!backbackBackground Information2.Gathering of information Obtaining information is very important in the stage of negotiation preparation.Formal sources of information are reliable such as embassy,trade association or bankers.On the other han
24、d,informal sources should also be consulted sometimes.Other companies that have dealt with your counterpart might be valuable sources of information.The information should be gathered before negotiation as follows:The political system:the extent of state control over business enterprises and its org
25、anization,social stability,the extent of political interest in the project.backbackBackground Information2.Gathering of information The legal system:the legal and judicial systems,their influences on business;the relevant laws on the establishment of a local company and on employment,etc.The busines
26、s system:business conduction,significance given to contracts,negotiating proceedings.The financial system:the countrys foreign exchange reserves,the currency freely exchangeable within the territory and its restrictions,procedures for obtaining payments in foreign currencies,etc.Infrastructure and l
27、ogistics system:the availability of labor and materials for construction in the territory,the availability of finding competent and financially sound sub-contractors,etc.backbackBackground Information3.What every negotiator must know before he/she negotiates Beginning a negotiation in a state of sub
28、lime ignorance or leaping into a negotiation without preparation,we often find ourselves blindly attempting to circumnavigate and struggle our way through our meetings.Its too late to learn as you go along because that ship has already sailed.The pregame process for a negotiation is no less differen
29、t.backbackBackground Information3.What every negotiator must know before he/she negotiates Four steps to eliminate ignorance and leaping blindly into a negotiation We need to access the strengths and weaknesses of our side before a negotiation.It is equally vital to do the same for our counterparts
30、in the negotiation process.So,to help us prepare in advance,here are 4 preliminary steps we need to take before we tackle a negotiation.backbackBackground Information3.What every negotiator must know before he/she negotiates Beginning a negotiation in a state of sublime ignorance or leaping into a n
31、egotiation without preparation,we often find ourselves blindly attempting to circumnavigate and struggle our way through our meetings.Its too late to learn as you go along because that ship has already sailed.The pregame process for a negotiation is no less different.Know the consequences Whats the
32、other team going to do?What are the real issues on the table?Understand the prioritiesbackbackBackground Information4.Negotiation agendaNegotiation agenda is a formal agreed-upon list of goals to be achieved or items to be discussed in a particular order during a meeting or negotiation.Agendas can b
33、e formal and obvious,or informal and subtle in negotiations.A negotiation agenda can be used to control the negotiation meeting.It includes the following parts:Define the negotiating objective in terms of the major issues to be discussed such as the minimum acceptable level for each of the major ite
34、ms.The measures or tactics that may be possibly adopted should also be decided beforehand.backbackBackground Information4.Negotiation agenda State the time period within which the negotiation should be concluded.Decide on the location for the negotiations,which perhaps is the most important situatio
35、nal factor for several reasons,both practical and psychological.backbackBackground Information5.Negotiators check listThe check list will help you prepare a successful negotiation strategy for any potential conflict and attain the best possible agreement.Assess the situationEach negotiation is going
36、 to be different,no matter how often weve addressed similar situations.We will always be negotiating with people who have different styles,goals and objectives,and who are coming from different circumstances and have different standards.So,always take stock and gauge each negotiation as something un
37、ique.backbackBackground Information5.Negotiators check listWhat kind of negotiation?There are basically three circumstances to consider:Is it a one-time negotiation,where we will unlikely interact with the person or company again?Is it a negotiation that we are going to be repeating again?Is it a ne
38、gotiation where we are going to form some kind of long-term relationship?Most of our business negotiations are likely to go to fall into the last two categories.We will be handling a lot of repeated negotiations,where we negotiate with regular suppliers,or engage in labor negotiations with the same
39、union reps for example.Or,we will be seeking a long-term negotiated agreement such as a joint venture,where we will be mutually entwined over a long period of time.backbackBackground Information5.Negotiators check listWhat does this negotiation mean to us?There are only two reasons why we enter into
40、 a negotiation:The first reason occurs when out of necessity,we have to.This could be due to either some immediate need,such as urgency to find a particular supplier,or it could be that we face severe cutbacks in personnel,if we cant increase our business.The second reason occurs when we are seeking
41、 out an opportunity.This situation may arise simply because an opportunity has sprung up,where we can increase our overall business at an opportune time.The reason for entering into a negotiation will affect both our approach and strategy,and also our relative negotiating power in comparison to our
42、counterpart.backbackBackground Information5.Negotiators check listThe ripple effectWe also need to ask ourselves whether the results of the negotiation we are conducting will affect other negotiations or agreements later.Many companies today have international interests.An agreement with a company i
43、n one country may affect how talks will impact or be influenced with negotiations that will transpire later with other countries.Its vital that we,as negotiators,consider the impact or consequences of an agreement in developing our strategy.backbackBackground Information5.Negotiators check listDo we
44、 need to make an agreement?We either enter into negotiations because we have to,or because we want to.Part of our strategy will involve a careful analysis of our BATNA(Best Alternative to a Negotiated Agreement).If an agreement is absolutely essential,and we have few alternative options,in the event
45、 of talks collapsing,this will affect our strategy.Or,if the negotiated agreement is not essential because we have a strong option,and can walk away with confidence,this also influences the approach to our strategy.backbackBackground Information5.Negotiators check listDo other parties need to formal
46、ly approve the agreement?Many agreements made during the negotiation process require formal approval,or ratification before an agreement is official.Union members may vote before they accept a tentative labor agreement,which was previously negotiated between management and the union.A Board of Direc
47、tors,CEO,stakeholders,or other outside constituents,may need to review and ratify an agreement before it comes into effect.backbackBackground Information5.Negotiators check listIs the clock ticking?Time has an impact on the course of negotiations from two perspectives.First,there are deadlines that
48、might be imposed to either make or break an agreement.Offers with expiry dates may be tendered.Second,we all know that“Time is money.”Negotiations use up time,and if a plant is shut down while the clock is ticking because of a strike,then this is costing money.Or,it could be due to some other resour
49、ce issue,such as waiting for badly needed components,in order to resume production.The point to remember is that the longer the negotiations drag out,the more negatively time will affect the bottom line.backbackBackground Information6.Where will you draw the line in negotiation?At first,lets take a
50、trip back in time to 1988,when Robert Campeau sought to purchase one of the most notable department stores in New York City,Bloomingdales.In late January,Campeau attempted a hostile takeover of Federated Department Stores Bloomingdales parent company.A bidding war erupted between Campeau and another
