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1、Business Negotiation EnglishObjectives1. Introduce the students to the main principles of business negotiation.2. The students get familiar with the types of negotiation.3. A detailed study of one negotiation method-principled negotiation.4.Case Study5.Simulated negotiations Chapter 1Principles of B
2、usiness Negotiation:What is negotiation?-the process we use to satisfy our needs when someone else controls what we want. (Robert Maddux)-Whenever people exchange ideas with the intention of changing relationships, whenever they confer for agreement, then they are negotiating. (Gerard I. Nierenberg)
3、Definitions:-the ability to deal with business affairs,-to arrange by discussion the settlement of the terms,-to reach agreements through treaties and compromise,-to travel through challenging territory.Consultation,bargaining, mediation, arbitration, and litigation2. When do people negotiate?-where
4、 to go for dinner-which movie to watch-how to split household chores, etc-whether to buy a computer-who to have the first applePractice: Please check off the following situations that represent negotiations.Purchasing a computer at a department store.Deciding with the family where to go for the week
5、end.Bidding for a second-handed car.Deciding how the house will be cleaned up.Borrowing a musical instrument from a friend.Selecting a contractor to build a new kitchen.Deciding whether to stay late at work to finish up a project.8. Getting an extension on your unfinished assignments.9. Making up, o
6、r rebuilding a relationship with someone you love.10.Deciding on a date for the next meeting with your customer.11.Getting a child to go to bed.12.Picking a successor for the CEO of a company where you are on the board.3. Types of negotiation:Competitive styleAccommodative styleAvoidance styleCompro
7、mising styleCollaborative styleVengeful styleSelf-inflicting styleVengeful and self-inflicting styleTypes of negotiation:Competitive style: To try to gain all there is to gain.Accommodative style: To be willing to yield all there is to yield.Avoidance style: To try to stay out of negotiation.Types o
8、f negotiation:4. Compromising style: To try to split the difference or find an intermediate point according to some principle.5. Collaborative style: To try to find the maximum possible gain for both parties-by careful exploration of the interests of all parties-and often by enlarging the pie.Types
9、of negotiation:6.Vengeful style : To try to harm the other.7. Self-inflicting style: To act so as to harm oneself.8. Vengeful and self-inflicting style: To try to harm the other and also oneself.4. Principle of Collaborative negotiationProblem-solving negotiationConsensus-building negotiationInteres
10、t-based negotiationWin-win negotiationMutual gains negotiation, etc.The assumptions :The negotiation parties have both diverse and common interestsThe common interests are valued and sought.The negotiation processes can result in both parties gaining something.The negotiating arena is controlled by
11、enlightened self-interest.Interdependence is recognized and enhanced.Limited resources do exist, but they can usually be expanded through cooperation and creativity.The goal is a mutually agreeable solution that is fair to all parties and effective for the community / group.Disadvantages :Pressure a
12、n individual to compromise and accommodate in ways not in his interest.Avoid confrontational strategies, which can be helpful at times.Increase vulnerability to deception and manipulation by a competitive opponent.Make it hard to establish definite aspiration levels and bottom lines.Require substant
13、ial skill and knowledge of the process.Require strong confidence in one s perceptions regarding the interests and needs of the other side.5. Principled negotiationPIOC:People: Separate the people from the problem.Interests: Focus on interests, not positions (interests always underlie positions)Optio
14、ns: Invent options for mutual gains.Criteria: Insist on using objective criteria.*Separate the people from the problem. Techniques:-Establish an accurate perception.-Cultivate appropriate emotions.-Strive better communication.*Focus on interests, not positions Methods:-identify the self-interests-di
15、scuss interests with the other party*Invent options for mutual gainsBrainstorming4 obstacles: Premature judgmentSearching for the single answerThe assumption of a fixed pieThinking that “solving their problem is their problem”.Steps for overcoming the obstacles Separating the act of inventing option
16、s from the act of judging them.Run a brainstorming session:Before brainstorming:-Define your purpose: what you would like to achieve at the meeting.-Choose a few participants: 5-8 people.-Change the environment: distinguishing the session from regular discussion.-Design an informal atmosphere: a dri
17、nk, at a vacation lodge etc.-Choose a facilitator: to keep the meeting on track. During brainstorming: -Seat the participants side by side facing the problem; -Clarify the ground rules, including the no-criticism rule; -Brainstorm; - Record the ideas in full view. After brainstorming:-Check the most
18、 promising ideas;-Explore improvements for promising ideas;-Set up a time to evaluate ideas and make a decision.Consider brainstorming with the other side; it can be very valuable.Steps for overcoming the obstaclesB. Develop as many options as possible before choosing one.Adopt the four types of thi
19、nking: Identifying a problem; Analyzing the problem; Considering what to be done; Coming up with some specific and workable suggestions for action.Look at the problem through the eyes of different experts.Develop different versions of agreement.Change the scope of a proposed agreement.Steps for over
20、coming the obstaclesC. Search for mutual gains Identify shared interests;Dovetail differing interests.D. Find ways to help make the other partys decision easy.* Insist on using objective criteria1) Guidelines for objective criteria:Independent of wills of all parties.Legitimate and practical.Accepta
21、ble to all parties.2) A fair procedural standard3)Discuss them with the other party.Three basic points:A. Frame each issue as a joint search for objective criteria.B. Reason and be open to reason as to which standards are most appropriate and how they should be applied.C. Never yield to pressure, on
22、ly to principle.Case StudyIn one negotiation in the early 1980s, a Chinese manufacturer was locked in a dispute with an American importer over how many models of the bicycles his company would produce. The American importer wanted four different models to give its customers greater selection. The Ch
23、inese company wanted to produce only two models, to keep manufacturing costs down. Case StudyThe position of the Chinese company was that it would produce only two models, while the underlying interest was to keep manufacturing costs down. The position of the American importer was that it wanted fou
24、r models, while its underlying interest was to increase its profits by selling more bicycles. As long as the negotiators focused on these positions, the dispute could be resolved only through concessions by one or both sides.Solution:But an interest-oriented examination of the dispute leads to the q
25、uestion: How can the higher cost of manufacturing four models be allocated between the American importer and the Chinese manufacturer? In this example, the parties were able to devise a formula that increased the unit cost of different models to reflect the Chinese manufacturers increased manufactur
26、ing cost. Solution:The interests of the Chinese manufacturer were achieved by the solutionprofit per unit remained constant. The interests of the American importer were also metit sold more units at higher prices, which more than offset the increased manufacturing cost.Questions:What type of negotiation approach was applied to the negotiation?What principle was used to solve the conflict between the Chinese manufacturer and the American importer?Simulated negotiation 1Directions
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