1、L/O/G/O1International Business Negotiation2 Chapter6 Counter-offer and its strategy3Teaching 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.What are counter-offers?2.Tactics and skills for making
2、 counter-offers 3.How to make concessions 4.Tactics and skills for making concessions 5.How to deal with the deadlock in international business negotiation?4 Introduction of counter-offer How to make concessions dealing with negotiation deadlock4123Contents bargaining tactics 56.1 Introduction of co
3、unter-offer In general practice,when an offeree has received an offer,he usually would not accept it immediately,instead he would try to amend or alter some terms of the offer.In doing so,he would make a counter-offer.Counter-offer is a reply to an offer that adds to,limits,or modifies materially th
4、e terms of the offer.It is a new offer made by the offeree.86.2.3 How to make a counter-offer?(1)Dont set a firm minimum counter offer at the starting point.(2)Try to get a sense of the buyer(3)What if youre close together in price?(4)What if youre far apart?(5)Is There a Time to Walk Away?96.2.4 Ta
5、ctics during the counter-offer stage (1)Patience and silence(2)Arguing unexpectedly(3)Threats and warnings(4)Pay attention to interests rather than positions(5)Know their current non-settlement alternatives.(6)Focus on the concession patterns106.3.1 Preparation for making concessions (1)Cause&effect
6、 of making concessions(2)Lets Be Fair6.3.2 general principle for makin concessions(1)Do not make a senseless concession.(2)Do not make concessions blindly.(3)Seize the big“fish”and release the small one.(4)Choose the right time.11 (5)Keep the bottom line a secret.(6)Do not automatically accept a bid
7、 to match concessions by an equal margin.(7)Look before you leap.(8)Do not make it too easy for the other party to gain what he wants.(9)Take back an improper and ill-conceived concession.(10)Let the other party do it first and then follow suit.6.3.2 general principle for makin concessions 12 (11)Fi
8、rmly control the times and margin of your concession (12)Dare to say“no”(13)Quantify a concession (14)Have the overall situation in mind (15)There is no need for giving a plum in return for a peach (16)Withdraw to get the second best6.3.2 general principle for makin concessions 13 (1)Keeping up unti
9、l last concession【0-0-0-60】(2)Concessions by equal margin【15-15-15-15】(3)Progressive increase in concessions【5-10-15-30】(4)Progressive decrease of concessions with a minor range【20-16-14-10】6.3.3 Eight patterns of making a concession in a negotiation 14 (5)Progressive decrease with a middle range【30
10、-18-10-2】(6)Progressive decrease with a large range【40-10-7-3】(7)Decreasing progressively and increasing at the end【13-8-17-22】(8)Showing ones hand at the beginning【60-0-0-0】6.3.3 Eight patterns of making a concession in a negotiation 15 (1)Excessively demanding (2)Emotional outburst(3)Tag-team tact
11、ic(4)Divide and conquer (5)Involving competition 6.3.4 Typical hardball tactics used to force the other party to make16 (6)Red face and white face routine(Good guy and bad guy routine)(7)Reaching for a yard after getting an inch(8)Feint to the east and attack in the west (9)Taking advantage of anoth
12、ers faults (10)The ultimatum6.3.4 Typical hardball tactics used to force the other party to make17 6.3.5 Strategies used to prevent the counterparts attack(1)Limited authority (2)No precedents(3)Fatiguing tactics(4)Adjournment(5)Seeking commiseration(6)Showing ones hand18 6.4 dealing with negotiation deadlock(1)Change the setting(2)Change the negotiator(s)(3)Change levels in the organization(4)Provide additional information(5)Go“off the record”(6)Say“Lets shift into the both win mode”(7)Take a break19Thanks!
