The difference culture of Business Negotiation bet

By Frances Arnold,2014-04-29 13:45
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The difference culture of Business Negotiation bet

The difference culture of Business Negotiation between

    Chinese and American

    About Business Negotiation Definition of Business Negotiation

     What is international business negotiation all about? Generally

    speaking, Negotiation means discussions through which relevant parties

    can reach agreement to satisfy their needs and coordinate relations. The

    word negotiate derives from the Latin infinitive negotiari meaning “to

    trade or do business.” This verb itself was derived from another, negare,

    meaning “to deny” and a noun, otium, meaning “leisure.” Thus, the

    ancient Roman business person would “deny leisure” until the deal had

    been settled. Negotiation is at the heart of every transaction and, for the

    most part, it comes down to the interaction between two sides with a

    common goal (profits) but divergent methods. The details of the contract

    must be negotiated to the satisfaction of both parties. As we will see, it

    can be a very trying process that’s rife with confrontation and concession.

    Whether it’s trade or investment, one side will always arrive at the

    negotiation table in a position of greater power. That power (e.g., the

    potential for profit) may derive from the extent of the “demand” or from

    the ability to “supply.” The purpose of negotiation is to redistribute that

potential. There's no such thing as “take it or leave it” in international

    business. Everything is negotiable. It all depends on the expertise of the

    negotiators. And even someone says negotiation means skills as well as


     Therefore international business negotiation involves negotiators

    representing at least two parties, one or more than one translators or

    interpreters when necessary, settings referring to office or meeting-room

    for negotiations, invisible cultural background of the participants, and at

    least one round discussions oriented to achieve certain interest goals.

    When one negotiation finished, the ideal result should be: All the parties

    concerned are pleased at the happy “win-win” end from which their anticipated interest goals are achieved and the friendly and harmonious

    relationship among companies the negotiators represented are established

    and continued. And from the above, we can find that international

    business negotiation means cross-cultural communication in the special

    field of international business, it involves relevant information collection

    and utilization, and requires good command of language (And as to

    English used in international business, we often call it Business English

    which is one branch of English for Specific Purposes, or in short ESP).

    Nature of Business Negotiation

     1. negotiation is a dynamic giving-and-getting process.

     2. negotiation means cooperation and competition as well.

     3. negotiation means reciprocity, but not equality. Criteria for Successful Business Negotiation

    1. the degree of achievement of negotiation objectives.

     2. high efficiency of negotiation, that is, benefits from negation are

    higher than negotiation costs.

     3. maintenance of reciprocal and cooperative relations Classifications of Business Negotiation

     1. political negotiation, economic negotiation, military negotiation

    and private affairs negotiation according to the nature of negotiation;

     2. buyer’s negotiation, seller’s negotiation, agent’s negotiation and cooperator’s negotiation according to the negotiating parties concerned;

     3. governmental negotiation, semi-governmental negotiation and

    non-governmental negotiation according to the department negotiation

    belongs to;

     4. host country negotiation, home country negotiation the third

    country negotiation according to the location of negotiation;

     5. solo negotiator negotiation and negotiating team negotiation

    according to the number of negotiators;

     6. bilateral negotiation and multilateral negotiation according to the

    negotiating parties involved;

     7. oral negotiation and written negotiation according to the form of

    contact of negotiating party.

    Principles for Business Negotiations Characteristics of Business Negotiation

     1. negotiation is dynamic, transitory and directive,

     2. trying to persuade your counterpart to understand or accept your


     3. there must be interrelations and conflicts in opinions, interests

    and even behavior patterns,

     4. conveying and exchanging information through logical thinking

    and relevant suitable expressions,

     5. negotiation is a process of adjusting needs and finally reaching


     6. there must be the bottom line of interest for each party

     7. interests you get from negotiation determined by the strength of

    your company, your negotiating strategy and relevant environmental


     8. negotiation is science as well as art. Principles of Business Negotiation

     1. try to expand your general interests during the whole process of


     2. skillful at creating open, fair and just competitive situation,

     3. make objectives clear and compromise at suitable time while


     4. the principle of equality and reciprocity,

     5. stress your interests, not standing point,

     6. stick to objective criteria independent from personal emotions,

     7. separate personal affairs form business,

     8. try to put forward proposals beneficial to both parties,

     9. pay attention to not all the cases need negotiation. Planning Business Negotiation

    Preparation Before Business Negotiation

     1. get to know what you want and what your counterpart wants

    from the negotiation,

    2. considering your standingpoint,

     3. overestimate your counterpart at the beginning,

     4. let your counterpart know something about your strength,

     5. be calm

    Planning Business Negotiation

     1. determine negotiation theme and objectives,

     2. determine the lowest acceptable bottom line of each terms,

     3. confirm the negotiation place, time, and period,

     4. choosing your team and dividing the work

     5. confirm the negotiation agenda

     6. determine the negotiation style

     7. ensure the good logistics, such as accommodation,

    communication, arrangement of negotiating room, relevant information

    and files,

     8. imitate the real negotiation and make the final check on your


    Process of Business Negotiation

    The Opening of Business Negotiation and its Strategies

    Work should be done at this stage:

     1. establish good negotiating atmosphere,

     2. confirm the negotiating agenda accepted by both parties.

    Strategies at this stage:

    1. Attitude: open, friendly and confident,

    2. Behavior: natural, brisk, polite, not always in a hurry,

     3. Expressions: natural, to be an educated person, may have some

    small talks, such as travel experiences, sports, weather, common

    experiences, etc.,

     4. Clothes: business suit

     5. Body language: natural, utilize positive body language and avoid

    negative body language,

     6. Communication: exchange information and ideas positively and

    effectively with your counterpart.

     7. Agenda: fix the agenda in written form but never limited by it,

    attention: any agenda can be negotiated once more.

    The Middle Part of Business Negotiation and its Strategies

    Work should be done at this stage:

     1. exchange overtures

     2. bargain

    Strategies at this stage:

     1. Opening statement: outline your points in your own statement,

    listen to your counterpart’s statement carefully, keep notes when necessary, analyze and summarize the major points in your counterpart’s


     2. Sequently: put forward useful proposals to lead the negotiation

    to the right track through which both parties can pursue their common


     3. As to the quotation: use the oral form or written form,

     4. As to the inquiry: respect your counterpart while inquiring, times

    of inquiry determined by the real price analysis and price concessions

    made by seller,

     5. As to bargain: respect your counterpart while bargaining; polite;

    avoid personal attack; business is business, business should not be

    influenced by personal emotions; methods of bargaining---bargain item

    by item, bargain over the price as a whole, bargain according to different

price groups; stages of bargaining---hot discussion, making concession to

     break the ice, stepping to the final agreement,

     6. Concession: Your concession is made only when you received

    pressure from your counterpart, and make sure your concession is little; If

    the concession is unavoidable, ask yourself: 1). Should I make concession

    now? 2). How much should I make concession? 3).What can I get from

    this concession?

     7. Stalemate: make concession to break stalemate, use the third

    party to mediate, be humorous.

    The Conclusion of Business Negotiation and its Strategies Work should be done at this stage:

     1. arrive at the agreement,

     2. sign the contract

     3. summarize the negotiation.

    Strategies at this stage:

     1. send out signals of concluding negotiation to your counterpart,

     2. make quotation for the last time,

     3. make summary about the previous discussions,

     4. file the negotiation minutes,

     5. sign the written contract,

     6. summarize the negotiation, draw lessons from it. Information Factor in Business Negotiation

Functions of Background Information Relating to Business


     1. Background information is the foundation on which negotiation

    strategies are made,

     2. Background information is an effective tool to control and direct

    the negotiation process,

     3. Background information is the medium of communication for

    negotiating parties,

    Classifications of Background Information Relating to Business


     Negotiation information can be classified into three groups:

    background information for negotiation, live information during

    negotiation process, interfering information to negotiation. And the

    background information for negotiation can be classified into another

    three groups: the first group includes: 1). Political situation, 2). Religious

    belief, 3). Legal system, 4). Business practice, 5). Social customs, 6).

    Financial situation, 7). Infrastructure and logistic system, 8). Climate; the

    second group involves information about the business fields you and your

    counterpart specialize in, including the business type, the market situation,

    competitive situation, supply and demand situation and so on. And the

    last group includes: subjective qualification of your counterpart,

    financing standing of your counterpart’s company, operation situation of

your counterpart’s company, credit worthiness of your counterpart’s

    company, your counterpart’s negotiation objectives and agenda,

    information about the opposite negotiator, interpersonal relations, the

    strengths and weakness of your counterpart, the negotiating styles of your

     counterpart and so on.

     Collections and management of Business Negotiation


     How to collect the information needed in business negotiation?

    There are two methods: vertical direction method and cross direction


     How to manage the business negotiation information? Generally

    speaking, There are four steps:

    1). evaluating the information,

    2). sorting out the information,

    3). classifying the information into different groups according to

    relevant categories,

    4). filing and preserving the information for later use.

    Personnel Factor in Business Negotiation Qualities of Competent Business Negotiator

    1). Put himself or herself into other’s place, 2). Respect others as well as himself or herself, 3). To be honest, 4). To be impartial, 5). To

    be persevering, 6). To be responsible, 7). To be flexible in personality, 8).

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