英语论文-International Business Negotiation Strategies and Skills

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International Business Negotiation Strategies and Skills

1. Introduction ................................................................................................................................... 2 2. Literature review ........................................................................................................................... 3

2.1 The definition of international commercial negotiation. ..................................................... 3 2.2 The basic principles of business negotiation strategies and skills. ...................................... 4 2.3 Studies on business negotiation strategies and skills .......................................................... 6 3. Negotiation strategy ................................................................................................................... 7

3.1 Make good preparation for the negotiation ......................................................................... 7 3.2 Do Research ........................................................................................................................ 9 3.3 Offensive-start strategy ..................................................................................................... 10 3.4 Create “win-win” results ................................................................................................... 11 4.Negotiation skills ......................................................................................................................... 13

4.1 Asking skill ....................................................................................................................... 13 4.2 Respect the cultural differences ........................................................................................ 15 4.3 Language skills ................................................................................................................. 16

4.3.1 Implication and euphemism ................................................................................... 16

4.3.2 Humor Skill ............................................................................................................ 17 4.4 Imply the limited time ....................................................................................................... 18 5. Conclusion .................................................................................................................................. 20 References ....................................................................................................................................... 21

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1. Introduction

International business negotiation strategies and skills are important to the development of countries and enterprises. Some articles have concluded negotiation strategies and skills even through linguistics and strategic. Therefore, nowadays it will require people to have a deep understanding of business negotiations and do research on it. Naturally, the strategies and skills have become major issues in the study of business negotiations. The study showed that negotiation strategies and skills play an irreplaceable part in negotiations.

In this paper, the strategies are about the targets and especially the methods to deal with the main and key problems that may come out in the whole negotiating process. For example, making preparation and doing research beforehand. However, the skills focus on solving some troubles or detailed matters that should be careful when discussing. For example, asking skill and the language skills. Facts have shown that the research on negotiation strategies and skills will help to make fewer mistakes in the international business negotiations, and it is a powerful weapon helping to win the negotiations.

In the 2nd part of this article, I talk about the definition of business negotiation, the basic principles of business negotiation strategies and skills and the studies on business negotiation strategies and skills. The 3rd part and the 4th part are the main chapters, through some negotiation cases and the detailed analysis, several negotiation

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strategies have been shown in the 3rd part while some important negotiation skills could be found in the 4th part. The last part is the conclusion.

2. Literature review

2.1 The definition of international commercial negotiation.

Today, commercial negotiations have become common activities in the business world with the development of the economy and the globalization. The development of international trade and the exploitation of the global investment will bring the diversification of the international business cooperation in which commercial negotiation plays an important role.

Business negotiation is not only a science but an art, and it could be found everywhere in our economic life. As a pivotal part in the international trade, to some sense, commercial negotiation is concerned with the development of the companies. Negotiation is the process of two individuals or groups reaching joint agreement about differing needs or ideas(邹建华，2000).

Business negotiation is a process in which two or more participants attempt to reach a joint decision on business of common concern in situations where they are in actual or potential disagreement or conflict. (邹建华，2000) Commercial negotiation is a social phenomenon and a special embodiment of human relations. It is a process

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of information exchange between two sides. They are counterparts of matched qualification and rather independent in material force, personality and social status, etc. Due to mutual contact, conflict and differences in viewpoints, needs, basic interests and action mode, both parties try to persuade the other party to understand or accept their viewpoints and to satisfy their own needs.

Negotiation in business is a critical aspect to getting more accomplished and generating more valuable sales. Negotiation is founded upon principles but it could be argued that it is more art than science. The best negotiators are often brilliant strategists and gifted technicians but their perhaps most unsung trait is the mastery of the true art of negotiation.

2.2 The basic principles of business negotiation strategies and skills.

1. Keep it flexible and fluid.

It needs some flexibility to keep it fluid in the process of negotiation as to how to seek the consistency of both parties to achieve the holistic objectives as long as we do not give up some important principles. Especially you have to use different kinds of negotiation strategies and tactics to deal with different negotiation opponents in different negotiating atmosphere and under different conditions. (刘园，2004)

Any negotiation is a process of constant thinking, exchanging of information and continuous concession of both parties. Apart from sticking to principles you should also master in a flexible way various negotiation techniques, assess what is in the

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other party’s mind, what their needs are and what their tactics will be. By doing this, one side will get in an active and favorable position in the process of negotiation. When assessing others’ needs, try to be realistic. The negotiators can never force theirs own standard onto others to avoid the negative effects.

To complete the negotiation, both parties can carry out their negotiation strategy and skills. The process of the negotiation is full of considering, thinking, and skills. In order to achieve its goal, both parties could use the flexible and mobile methods in the negotiation which means the strategy and the skills.

2. Sincere cooperation

Negotiation is to negotiate with the other party in order to solve problems. Negotiation in itself is a kind of cooperation. Through negotiation, both parties are seeking an alternative arrangement of a business situation so that at the end of the negotiation they feel this result is much better than that when they first started. As a matter of fact, both parties are making concessions(刘园，2004). When making concessions both sides should always keep in mind that the concessions one party gets from the other party should be more valuable than the ones he makes for the other party. The purpose of this is to seek a win-win situation instead of “one win but one lose”. That is to say both parties are winners. It is through sincere cooperation that this win-win result can be made.

The negotiators need to release all the intentions and goals. There is however no need to tell lies. Sincerity is very important for a negotiator’s style. Keep the words to obtain the opposers’ trust. Treating others as one side want to be treated can promote

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the negotiation and get successful results. A negotiator needs to be canny and even difficult to deal with. But at the same time the negotiator should be one who keeps negotiator’s words and trustworthy. Then both parties can enjoy sincere cooperation. To be sincere not only at the time around negotiation table but also later on to strictly stick to the performance of the contract.

2.3 Studies on business negotiation strategies and skills

With the changes of time and the idea on negotiations, the strategy has changed significantly(钟钢,2003). In the past the aim in negotiations is just to get victory after the negotiations, and it means that one side is upholding the position of its own side. At the beginning of the 20th century after the 1980s, people paid more and more attention to \concept of negotiations. To pursue \result in the negotiations, both sides should make efforts to solve the problems. \is to get high efficiency and to pursuit low cost basing on long-term interest.

Most of the negotiation literature focuses on two strategies, although they call them by different names. One strategy is interest-based (or integrative, or cooperative) bargaining, while the other is positional (or distributive or competitive) bargaining. In their best-selling book on negotiation, Getting to Yes, Roger Fisher and William Ury argue that there are three approaches: hard, soft, and what they call \negotiation.\Hard is essentially extremely competitive bargaining, soft extremely integrative bargaining (so integrative that one gives up one's own interests in the

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hopes of meeting the other person's interests) and principled negotiation is supposed to be somewhere in between, but closer to soft, certainly, than hard. All of these topics are discussed in this section.

Today, there are increasing numbers of people who have a basic understanding on business negotiation strategy and skills. Some strategies researches have been done according to different national and regional cultural differences. 陆丽娟, in her article, \that international business negotiation skills are very important from the viewpoint of cultural differences. 肖剑, in his \and Skills\

3. Negotiation strategy

3.1 Make good preparation for the negotiation

Negotiations plan should include goal setting, and the contingency measures. Setting the goal is not to make the immobile target, but there should be a certain level of the target. At the same time, negotiators should plan for the main problems, rather than an unchangeable plan. Drawing out the goal of the negotiations, and making clear the purpose in the preparatory stage are important parts which you should set the concession limits (Jeffrey, 2000: 60). What is frequently encountered in business negotiations is the issue of price, and in fact it is conflict of interest issue. In the

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negotiations, both sides should set a bottom line beyond which all the negotiators could accept.

Good preparation should be made before the negotiations, and it will often bring unexpected results. Before the negotiations, it is better to make a full investigation about the situation of the other side, such as analyzing the advantages of other party, considering which problem can be discussed, thinking of what is not negotiable. At the same time, an analysis of the advantages and disadvantages should be considered. Supposing that we would discuss with a purchasing manager from a large company, and first of all we should ask ourselves the following questions:

—What are the main issues to talk about?

—What are the sensitive issues that are not to be touched? —What should be talked about first?

—What information have we got about the other side at present?

—Since the last trade, what changes have been taken place in the other side? —What are the predominance of the other enterprises competing with us? —Can we improve our relations?

—What will the other side oppose? Which area should we make concessions? —what work does we hope other side to do? —What are the needs of the other side ?

—what are the negotiation goals and negotiating strategy?

To answer these questions, the negotiators can set out a questionnaire, and the questions must be discussed beforehand. Otherwise, the negotiations would end with

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a worse effect.

3.2 Do Research

Preparation involves information gathering - knowing the state of the market, being aware of the supply and demand status, being aware of any current or imminent discounts and special offers (Net.1). People often make assumptions about value which are based on little more than anecdotal evidence about the state of the market. Conversely you may have developed a significant market intelligence and then fail to capitalize on this hard won information - by assuming that the other side has the same knowledge, when this may not be the case. As with so many areas in modern business life, information is the key to success. Therefore, one side should ensure that the information is at least as good, if not better than the other sides.

For example, in June 1987, in Los Angeles the director of the First Machine Tool Plant of Jinan City carried out negotiations with the Kalman Company of United States to sell the machine. The two sides were on the status of the stalemate for the price. This was our side’s research: Kalman Company had signed contract with Taiwan businessmen, but it could not be achieved. Because the United States had raised the tariff policy to Japan, Korea, Taiwan, it made Taiwan businessmen refuse to shipping. Kalman Company had signed a supply contract with its customer who was very urgent shipment to the other side, and Kalman Company fell into a passive position. According to this information, we in the next negotiations gave the calm response, then the Kalman Company had to sign contract with purchasing 150 China Machine Tools.

In the negotiations, one side must not only focus on their strategies, but also

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attach importance to the information about opponents. It is better for the negotiators to analyze both side’s advantages and disadvantages before discussing.

3.3 Offensive-start strategy

Offensive-start strategy is to express the negotiators' own aim and preponderance through language or behavior to gain the necessary respect from other side and to create psychological advantage with making negotiations go smoothly in the next stage(邹建伟,2006). Taking offensive-start strategy must be careful, because showing preponderance and target in the beginning stage of negotiations may cause that the negotiations would start in a tense statement, and then it is not good for the further development of the negotiations. Offensive-start strategy is usually used only in such circumstances: that negotiations opponent deliberately creates a bad atmosphere at the very beginning, which is very unfavorable to negotiators' bargaining. If the negotiators could not control this circumstance, it may damage one party's interests immediately.

Japan has a well-known automobile company in the United States. When it fist entered into the market in US, they needed to find an American agent to sell their products in order to make up imperfections that they do not understand the US market. Before a Japanese company with an American company went for negotiations, the Japanese negotiators arrived late because of traffic jam. The United States negotiator seize this matter closely link, as a means to obtain more preferential conditions. The representative of Japan found that they were driven from pillar to post, then he stood up and said: \

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