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1、Chapter 3 Phases of Business Negotiation,Jerry,由NordriDesign提供 ,Contents,Introduction 3.1 The Opening Phase 3.2 The Bargaining Phase 3.3 The Closing Phase,Introduction,Business negotiations are conducted in the following four phases: the preparation phase, the opening phases, the bargaining phase, a
2、nd the closing phase. In the four phases, the negotiating parties claim values, create values and finally overcome barriers to arrangement in which the two sides try to maximize their own interests by resolving their conflicts.,3.1 The Opening Phase,3.1.1 Creating a right negotiation atmosphere Vari
3、ous factors that influence the opening of the negotiation 3.1.2 Opening Steps,Leading Question,How to create a romantic atmosphere? And what factors will affect the atmosphere?,3.1.1 Factors Influencing the Opening,(1) The behavior of the negotiators Facial expressions Temperament Grace Personal hyg
4、iene (2) Negotiation environment Choice of sites Arrangement of the seats Media and public opinions (3) Prologue and opening remarks,Appearance & manners,Speech & deportment,State of mind,Opening Steps,The opening of international business negotiations often has to undergo the following three steps:
5、 (1) offering the meeting agenda to every representative (2) exchanging ideas on the agenda and related questions (3) the chief representative from each party making statements respectively,Contents of Opening Statements,Your partys understanding of the problems that have been discussed in the openi
6、ng phase. The interest and assurance that your own party hopes to obtain in the negotiation. The parts that your party is willing to discuss with the other party The benefits your party have brought to the other party in the previous negotiation. The possible opportunities and obstacle that will ari
7、se in the future negotiation and cooperation.,3.2 The Bargaining Phase,Introduction 3.2.1 Bargaining Strength and Bargaining Range 3.2.2 Quotation 3.2.3 Bargaining 3.2.4 Compromise and Concession,Leading Question,How do you make the other, for example your girlfriend or boy friend, to make concessio
8、n when you are angry with each other?,Introduction,The stage covers a board period of bargaining in which concessions are made and advantages are gained, so that the gap between the two sides is narrowed to a point. Sometimes we call this stage “the step of coming barriers to agreement”. This proces
9、s involves adjustment and compromise.,3.2.1 Bargaining Strength and Bargaining Range,To be successful in this stage, one has to identify two concepts: bargaining strength and bargaining range.,Bargaining Strength,Bargaining strength refers to the power that one party is able to exert against another
10、. As a generalization, each party tends to credit the other with more bargaining strength than it actually has. Where does the bargaining strength lie?,NO TRICKS,Some foreign negotiation experts generalize all the factors affecting negotiation power into “NO TRICKS”, thus providing orientation for t
11、actics that can be used to increase negotiation power. N-need. The party with stronger need will be a weaker position. Vice versa. O-options. More alternative options means stronger negotiation power. T-time. Limited time will thrown negotiator into a disadvantageous state. R-relationship. If the ne
12、gotiator has already established good relationship with current customers, he will have strong power when negotiating with potential customers.,NO TRICKS,I-investment. More investment in time, expenditure and energy for the negotiation means less negotiation power. C-credibility. Competitiveness in
13、price and quality will increase the selling sides credibility, therefore enjoy more negotiation power. K-knowledge. If you get more information of the counterparts problems and needs and know how your offer will meet their needs, you will strengthen your negotiation power. S-skill. This is the most
14、important part for increasing negotiation power. But its a comprehensive subject, requiring wide knowledge, eloquent speech, and agile mind,Bargaining Range,Bargaining range refers to the degree of movement that is possible for each party with respect to individual issues on the agenda. Zone of Poss
15、ible Agreement,ZOPA,Seller,Buyer,80, 50, 55, 75,最优期望目标,最低目标,最优期望 目标,Negotiating,Deal,最低目标,3.2.2 Quotation,Narrowly defined, a quotation just is a way to indicate a particular price at which one party will buy or sell the specified commodity. Broadly defined, it involves all that one party proposes t
16、o the other concerning mutual interests in a business negotiation, including the name of commodity, quality, quantity, Price, packaging, shipping, insurance, payment terms, inspection, claims, arbitration and several other items. For large projects, it may include forms of cooperation, ratio of capital distribution, profit and loss contribution and the like.,Guidelines for Making a Quotation,The principle for making a quotation in inte
