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Business communication

Business communication. Chapter 7 Business negotiation. Contents. How to prepare a negotiation How to negotiate. Business negotiation.

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Business communication

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  1. Business communication Chapter 7 Business negotiation

  2. Contents • How to prepare a negotiation • How to negotiate Business communication. Swust. Shirley Miao

  3. Business negotiation A negotiation is a process of communication between parties to manage conflicts in order for them to come to an agreement, solve a problem or make arrangements. Conflict is the reason why a negotiation is possible to develop. A conflict is a dispute(争论）, disagreement or argument between two or more interdependent parties who have different and common interest. Business communication. Swust. Shirley Miao

  4. Business negotiation is a process of talking, negotiating on business terms and coming to an agreement at the end between different business parties in pursuit of their respective economic benefits. Business communication. Swust. Shirley Miao

  5. Business is negotiation! You will negotiate to buy, to sell, to conclude contracts with suppliers, to fix the staff salaries and so on. What is more, you have to negotiate with regulators, Banks, Insurances. It means that the business life is a permanent negotiation with others people who are defending their own interests. Business communication. Swust. Shirley Miao

  6. International business negotiation is a process of information exchanging, talking and discussing, aiming at coming to an agreement in order to satisfy certain demand(s) of participants’ from different nations or regions in international business. Business communication. Swust. Shirley Miao

  7. A. How to prepare a negotiation Preparation is a must! Negotiating file are often complex and in specific matter, you have better to call a consultant. What to Prepare? Business communication. Swust. Shirley Miao

  8. Background • Attitude • Who is your negotiator opponent? • What do they want? • What do I want? Set goals in terms of acceptable limits and that you have a realistic chance of achieving. Business communication. Swust. Shirley Miao

  9. What can I trade? • Identify your supporting arguments that justify your goals and the arguments that the other party may use against them. • What strengths and weaknesses do you take to the negotiating table? • What are the strengths and weaknesses of the other party? Business communication. Swust. Shirley Miao

  10. What will be your opening gambit and how will you present it? • Timescale – how much time is there to negotiate how imperative are deadlines? • What will be your opening position, your fall back position and your final fall back position? Business communication. Swust. Shirley Miao

  11. Define your goals • Strategic planning determines the goals and the moves to reach them. • A limited result could coincide(符合） with a common interest. It's that people call the win-win principle. You must position on your plan the win-win result and you must define it in a written sentence. Business communication. Swust. Shirley Miao

  12. You can just get the minimum issue: It's your bottom line! Business communication. Swust. Shirley Miao

  13. Balance of powers • Any strategy begins by a clear apprehension of the balance of powers and consequently of the possible movements. • Do not confuse this balance with the quality of your case. May be, your files are not good but if your opponent has a big loss to expect in case of failure, the balance of power weights strongly in your favor, despite the weakness of your files. Business communication. Swust. Shirley Miao

  14. Case One of our suppliers complained that we did not respect his contract and that he could sue us. In order to avoid a trial, he proposed a negotiation and asked for indemnities（赔偿）. Business communication. Swust. Shirley Miao

  15. I examined the files and I got to the conclusion that our case was bad. On the other hand, I examined his financial statements. I realized that we were his main customer and that he had not too much cash. Clearly, he could win a trial but afterwards he could also close his business. Despite a bad case, the balance of power was in our favor. Then I defined a strategy. Business communication. Swust. Shirley Miao

  16. B. How to negotiate The negotiation is mainly described as a conversation between polite persons. The two parties explore their common interests and try to reach the win-win option. Business communication. Swust. Shirley Miao

  17. Be Polite Business etiquette • Personal etiquette (Image, expression,behavior) • Meeting etiquette (Introduction ,greeting) • Conversation etiquette (Listening,speaking) Business communication. Swust. Shirley Miao

  18. Where to sit? Business communication. Swust. Shirley Miao

  19. 1 3 2 4 5 6 Door

  20. 4 1 5 2 6 3 Door

  21. 1.Opening • As in chess game, the opening is very important in any negotiation. • Start with your upper position but try to explain it as fairly as you can. Insist on the idea that your goal is to find a common agreement with a high value placed on the constant relationship between you and your opponent. Play the good Guy. Be courteous（谦虚的） but nevertheless be firm to deter the aggressiveness of the other party. Business communication. Swust. Shirley Miao

  22. 2. Middle course Usually, during the middle course, each party tries to concentrate on the core of common interests. Negotiation then comprises common thought and not confrontation（对质）. Try as much as possible to change from being an opponent to advisor analyzing with him his own options. Use some technique. Business communication. Swust. Shirley Miao

  23. A good tip is to have a colleague that plays the inverse role of you. You are the naughty and he is the good. When you have just attacked, he comes to appease. The goal is to destabilize the opponent with a constant mixture of hot and cold! Business communication. Swust. Shirley Miao

  24. Go to the win-win position and try to defend it. Always say that you are seeking for solving a problem and not to gain a benefit. Explore and take in account the problem of the other party. Your fellow should now be the naughty. Let's him complaint and try to place you above the fight just as if you were a mediator between two parties! Business communication. Swust. Shirley Miao

  25. 3. Ending Be very careful about the final minutes of the negotiation. Thanks if you have survived. If the result is too bad, you always can ask for a delay. Anyway, when you have given your agreement, you have to respect it. Business communication. Swust. Shirley Miao

  26. Reference • http://negotiations.org/ • http://www.negotiations.com/case/ • 国际商务谈判 刘向丽 机械工业出版社 • 双赢谈判 黎滔 中国纺织出版社 Business communication. Swust. Shirley Miao

  27. Thank You !

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