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bjectives could the negotiation be in a positive position. Key elements of negotiation objectives are: Who can contribute to this negotiation, who will be affected by this negotiation, what are the maximum and minimum targets to seek. Minimum targets means the targets or benefits we would never give up, in other words there is no room for bargaining. Maximum targets are the targets or benefits we could think of giving up under critical conditions.Slide 8 Key elements of negotiation objectives (cont.) When would we like to conclude the negotiation, where is the best place for the negotiation, why has the other party chosen us to negotiate with, what concessions are we willing to make and what concessions will the other party be likely to make.Making the objective of a negotiation rigid might cause the negotiation to breakdown. An alternative method of formulating objectives might be to keep them fluid so that the expectations can change with the circumstances of the negotiation.Slide 9 Issues and positions. Any information upon which there is disagreement can be organised into the negotiation issues. Issues are the things on which one side takes an affirmative position and the other side takes a negative position. Issues should be realistic. It is important that we should try to negotiate problems rather than our demands. Our demands are only a onesolution approach to the problems. There may be other solutions. It is said that your bargaining position should conceal (hide) as well as reveal (show), and as negotiations continue, concessions alternate from each side.Slide 10 Meeting places. Should you conduct the negotiation in your office, or should you go to the other party’s home ground? The general rule is that you perform better on your own home ground. A negotiator on home ground is more assertive and more confident. In contrast a negotiator that is a guest on the other party’s home ground may feel subordinate.The fairest for both parties is to meet on neutral territory where no one will have the psychological edge.Slide 11 Opening the meeting. Good negotiating atmosphere is better to be formed at the very beginning of the negotiations. Therefore, both parties should seize the occasion of the first meeting when doing selfintroduction or being introduced. Try to behave gracefully and speak clearly to make the impression of being kind, natural and honest. Exercises from bookBusiness Negotiation – Lesson 9 Chapter 5Slide 1 Title Page – Chapter 5Slide 2 The Bargaining Process. The pattern of bidding and bargaining is seen by many people to be the core of the negotiation process. Almost all the negotiations have something to do with bidding and bargaining. The bargaining process is normally very intense. Both sides are trying to move to their own advantage. Or if it is not possible to cut the cake so that both parties get what they want, then they bargain in such a way that the dissatisfaction will be equally shared between them.Slide 3 Bidding. The opening bid (price) needs to be ‘the highest’ because: our first bid influences others in their valuation of our offer, a high bid gives room for manoeuvre during the later bargaining stages, the opening bid has a real influence on the final settlement level. The more we ask, the more we will achieve.Slide 4 Bidding (cont.). You must be able to justify your original bid, you should not only seek to gain as much as possible but you also take the other party into consideration. Putting forward a bid that unrealistic and cannot be defended will damage the negotiation process. If we cannot defend our bid when challenged we will lose face and credibility.Slide 5 The Highest Realistic Bid. The highest defensible bid is not set in concrete. It is a figure that is relevant to the particular circumstances. If the opposing party is pushing for their advantage, then for our advantage we must push for the highest price. If we have a lot of petition, we must tailor our opening bid to the level at which it at least enables us to be invited to continue negotiations.Slide 6 Content of Bid. The content of the bid usually needs to cover a range of issues: the price, how badly the product is needed, the amount of product needed, product credibility, credit terms (payment of goods), petition in the market. The parts of the opening bid in a mercial negotiation will not only be price, but a bination of : price, delivery, payment terms, quality specification etc.Slide 7 Presentation Tactics. In the bidding presentation of the negotiation process, there are three guidelines to the way in which a bid should be presented: firmly, clearly and without ment. The bid should be put firmly, seriously and without hesitations. It needs to be understood clearly so that the other party recognises precisely what is being asked. In the process of negotiation, it’s better to have the quotation typed on paper, to ensure the clarity of the bid and to show the other party a sense of seriousness and legitimation.Slide 8 Responding Tactics. Both sides at this time are trying to move the negotiation to a more favourable direction to their own side. It’s quite necessary to do some homework, researching the other side before responding to the bid.The petent negotiator should make sure they understand what the other party is bidding, should have an idea how to satisfy the other party and at the same time try and figure out what the other party’s expectations are. The petent negotiator should summarise his/her understanding of the bid as a check on the effectiveness of munication between the two parties.Slide 9 Bargaining. In this stage of the negotiation it is very important not to give the other party too much too soon. Bargaining should be to your advantage, however you must also make a fair deal in which both parties are equally satisfied or equally dissatisfied.