Chapter2 Negotiation procedure and structure谈判程序与结构 I. Negotiation procedure谈判程序 II. General structure of negotiations一般结构 III Structure of business negotiations 商务谈判结构 NEGOTIATION PROCEDURE 谈判程序 Negotiations, no matter formal or informal, follow a certain format, which is Introduction of team members Discussion of agend Formal negotiation Wrapping up 1 Introduction of team members Before formal introduction of team members, all people will be seated first . ccording to international practice, team is usually seated facing the gate while the party sits with the backs toward the door. The chief negotiator is placed in the with the interpreter sitting to his or her The introduction starts from the key/chief negotiator of the side and other members and finishes with the team Such information may be included in the introduction titles, specialties and major responsibility in the team Introduction is an indispensable part of negotiation, because frequently, negotiations between experts of particular fields from both team members who have expertise ano ews especially complex negotiations require direct exchange of information, and views in certain issues. They often hold separate discussions on those particular In such situations, they know whom to for sufficient information and necessary consultation 2.D The agenda of a negotiation is often the subject discussed, espec ially when it is n important and complicated negotiation. following negotiating days. In angement of activities that parties will participate in the An agenda is not simply an arra real ity, how to arrange issues to be talked reflects
1 Chapter 2 Negotiation procedure and structure 谈判程序与结构 I. Negotiation procedure 谈判程序 II. General structure of negotiations 一般结构 III. Structure of business negotiations 商务谈判结构 ———————————————————————————————————— NEGOTIATION PROCEDURE 谈判程序 Negotiations, no matter formal or informal, follow a certain format, which is Introduction of team members ↓ Discussion of agenda ↓ Formal negotiation ↓ Wrapping up 1. Introduction of team members Before formal introduction of team members, all people will be seated first. According to international practice, ____team is usually seated facing the gate while the ____party sits with the backs toward the door. The chief negotiator is placed in the ____ with the interpreter sitting to his or her ____. The introduction starts from the key/chief negotiator of the ____side and other members and finishes with the ____team. Such information may be included in the introduction as ____, _________ and __________titles, specialties and major responsibility in the team. Introduction is an indispensable part of negotiation, because frequently, negotiations especially complex negotiations require direct exchange of information, and views between experts of particular fields from both team members who have expertise and ___ in certain issues. They often hold separate discussions on those particular _____. In such situations, they know whom to ____ for sufficient information and necessary consultation. 2. Discussion of agenda The agenda of a negotiation is often the ______subject discussed, especially when it is an important and complicated negotiation. An agenda is not simply an arrangement of activities that parties will participate in the following negotiating days. In reality, how to arrange issues to be talked reflects
cration of negotiat Not every item to be discussed weighs the same in the minds of negotiators. Each time there will have to be some bones to be dealt with Some negotiators prefer to go into key issues immed iately after the negotiation starts To let the first Secondly, and efforts can be gathered and focused on those Issues Finally, initial tensions of relations built up when discussing difficult issues will in relaxation of tension and satisfaction of easy Other negotiators prefer to place key issues last or after discussion and settlement of trivial ones Such arrangement creates the effects of relaxation of relations and ease in the initial stage, which may lead negotiators to their way over tough and difficult issues naturally Arrangement of trivial issues first and important issues second caters to common discrepancy appears large and no party will make ea part icularly when foreseeing of mentality of having tough issues the later the bet until the last moment of dead line comes 3. Formal negotiation When to start formal negotiation? Introduction of team members The agreement of schedule/agenda Formal negotiation Wrapping- up process can be as short as a couple of or as long as a few if time permits To review and confirm the agreement and result of talks on each issue so that no of understand ing exists Some seemingly reached agreements and resolved problems may induce further arguments and debates when they are confirmed as agreements In addition, some points ignored or overlapped in the course of negotiation may be brought up for discussion again Sometimes wrapping up may also include arrangements for follow-up work to be onsidered for the negotiating parties in future GENERAL STRUCTURE OF NEGOTIATIONS一般结构
2 _______consideration of negotiators. Not every item to be discussed weighs the same in the minds of negotiators. Each time there will have to be some ____ bones to be dealt with. Some negotiators prefer to go into key issues immediately after the negotiation starts. To let the ______ go first is one reason for such preference. Secondly, ______ and efforts can be gathered and focused on those _____ issues. Finally, initial tensions of relations built up when discussing difficult issues will ____ in relaxation of tension and satisfaction of easy ____ of benefits. Other negotiators prefer to place key issues last or after discussion and settlement of trivial ones. Such arrangement creates the effects of relaxation of relations and ease in the initial stage, which may lead negotiators to _____ their way over tough and difficult issues naturally. Arrangement of trivial issues first and important issues second caters to common mentality of having tough issues the later the better, particularly when foreseeing of discrepancy appears large and no party will make easy _______ until the last moment of deadline comes. 3. Formal negotiation When to start formal negotiation? Introduction of team members ↓ The agreement of schedule/agenda ↓ Formal negotiation Wrapping-up process can be as short as a couple of _____ or as long as a few _____ if time permits. To review and confirm the agreement and result of talks on each issue so that no ___________ of understanding exists. Some seemingly reached agreements and resolved problems may induce further arguments and debates when they are confirmed as _______ agreements. In addition, some points ignored or overlapped in the course of negotiation may be brought up for discussion again. Sometimes wrapping up may also include arrangements for follow-up work to be considered for the negotiating parties in future. GENERAL STRUCTURE OF NEGOTIATIONS 一般结构
The negotiation procedure describes negotiations from perspective of the outlook while the general structure will lay open all negotiations from the of negotiations As it is explained previously conflicts of interests give rise to negotiations, which true to whatever kinds of negotiations, big or small, simple or complicated, private or national or international. Therefore a process of negotiation is a process of managing Based on this common nature of negotiations it is not difficult to find out the general steps that almost all negotiations will go through. They are Determine interests and issues Design and offer options . Introduce criteria to evaluate options .Estimate reservation points . Explore alternatives to agreement; and . Reach an agreement 1. Determine interests and issues Parties at negotiating table come with their own interests embodied in actual issues Interests explicitly articulated are easy to be determined whereas potential interests will demand a lot of efforts to be disclosed since people sometimes hide their purposes. So it is essential that negotiators identify their own interests and the other side's interests and find out what issues are involved. Because only after both sides understand each other 's interests and interests, can they proceed to the next step 2.D and offer options Once both sides'interests and issues are identified, it is time for negotiators to set forth suggestions and options for how to address the issues. Those provided usually express basically each side s own views and understanding of the issues 3. Introduce criteria to evaluate options Suggested options will be examined and evaluated by different criterion by each sid The disparity of the criterion by the two parties is due to the fact that both parties wish to their own interests, therefore it is on this stage that of interests of two sides will confront and clash with each other, which will surely incite argument and contradiction 4 Estimate reservation Its/bottom line What negotiating parties do next is to gauge how big the is between their own demands and the counter party's demands. When the gap of discrepancy can not be at all, or in other word, if the bottom line of request can not be satisfied, then It is time to away and leave negotiation table and announce negotiation 5. Explore alternatives to agreement
3 The negotiation procedure describes negotiations from perspective of the __________outlook while the general structure will lay open all negotiations from the ___________of negotiations. As it is explained previously conflicts of interests give rise to negotiations, which is true to whatever kinds of negotiations, big or small, simple or complicated, private or national or international. Therefore a process of negotiation is a process of managing _________. Based on this common nature of negotiations, it is not difficult to find out the general steps that almost all negotiations will go through. They are: •Determine interests and issues; •Design and offer options; •Introduce criteria to evaluate options; •Estimate reservation points; •Explore alternatives to agreement; and •Reach an agreement. • 1. Determine interests and issues Parties at negotiating table come with their own interests embodied in actual issues. Interests explicitly articulated are easy to be determined whereas potential interests will demand a lot of efforts to be disclosed since people sometimes hide their ______ purposes. So it is essential that negotiators identify their own interests and the other side’s interests and find out what issues are involved. Because only after both sides understand each other’s interests and _____ interests, can they proceed to the next step. 2. Design and offer options Once both sides’ interests and issues are identified, it is time for negotiators to set forth suggestions and options for how to address the issues. Those ______ provided usually express basically each side’s own views and understanding of the issues. 3.Introduce criteria to evaluate options Suggested options will be examined and evaluated by different criterion by each side. The disparity of the criterion by the two parties is due to the fact that both parties wish to ______their own interests, therefore it is on this stage that ______ of interests of two sides will confront and clash with each other, which will surely incite argument and contradiction. 4. Estimate reservation points/bottom line What negotiating parties do next is to gauge how big the____ is between their own demands and the counter party’s demands. When the gap of discrepancy can not be _________ at all, or in other word, if the bottom line of request can not be satisfied, then it is time to ______ away and leave negotiation table and announce _____ of the negotiation. 5. Explore alternatives to agreement
There can be another way out: negotiating parties make efforts and explore alternatives to the options put forward before. A capable negotiator can always exhibit great initiatives and high ability by coming up with constructive suggestions which should both parties concern and interests 6. Reach an agreen oi s final agreement will be reached if any suggestions may effectively bridge the gap the discrepancy so that the negotiation can be STRUCTURE OF BUSINESS NEGOTIATIONS商务谈判结构 The structure of business negotiations follows the same pattern as all other negotiations with one difference in that every phase of a business negotiation is expressed in business jargons: inquiry, offer, counter offer and acceptance By making inquiry and offer, the of two sides are explicitly expressed and meanwhile and By counter offer and acceptance to options are explored and discrepancy is bridged so that agreement is reached In spite of similarity in structure, each step of business negotiations has strict legal Interpretation lInguiry Eithe can make inquiry about terms of a business deal The inquiry usually includes such information as price, terms of inspection, arbitration and so on An inquiry is done for the purpose of doing survey and find ing out if there of doing the business. thus it have any binding effect on the two ides 2. Offer o explicitly expresses his willingness to do the business accord ing to the terms offered The offer may be either or implied by understanding The party giving the offer is called the The other party that accepts the terms is called The terms of the offer must be and and must be communicated to the by the agent. The offeree must communicate with the offe The agreement will be written in the be signed. which is enforceable by law. However, if the offeree does not accept the terms, he will give his
4 There can be another way out: negotiating parties make efforts and explore alternatives to the options put forward before. A capable negotiator can always exhibit great initiatives and high ability by coming up with constructive suggestions which should ________ both parties’ concern and interests. 6. Reach an agreement A final agreement will be reached if any suggestions may effectively bridge the gap of the discrepancy so that the negotiation can be _______ successfully. STRUCTURE OF BUSINESS NEGOTIATIONS 商务谈判结构 The structure of business negotiations follows the same pattern as all other negotiations with one difference in that every phase of a business negotiation is expressed in business jargons: inquiry, offer, counter offer and acceptance. By making inquiry and offer, the ______ and _______ of two sides are explicitly expressed and meanwhile _______ and _________ are introduced. By counter offer and acceptance, __________ to options are explored and discrepancy is bridged so that ______ agreement is reached. In spite of similarity in structure, each step of business negotiations has strict legal interpretation. 1. Inquiry Either ______ or ______ can make inquiry about terms of a business deal. The inquiry usually includes such information as price, ______, _______, _______, _______, ____, terms of _______, inspection, arbitration and so on. An inquiry is done for the purpose of doing _______ survey and finding out if there is the ______ of doing the business, thus it ________ have any binding effect on the two sides. 2. Offer The ______ or the _______ explicitly expresses his willingness to do the business according to the terms offered. The offer may be either _____ or ______, or implied by ________ understanding. The party giving the offer is called the _________. The other party that accepts the terms is called ______. The terms of the offer must be _____ and ____ and must be communicated to the _____ by the ________ or his agent. The offeree must communicate with the offeror ________. The agreement will be written in the _______ to be signed, which is enforceable by law. However, if the offeree does not accept the terms, he will give his _____ ____
3. Counter offe Counter offer is an expression of or of the terms given by the offerer a of an offer may result when an offeree attempts to vary the terms of the offer Counter offer may go back and forth times, a period called bargaining stage also the most difficult phase of a negotiation Once the counter offer is given, the offerer means to honor the terms he puts forward which will have effect on the offerer 4. Acceptance An acceptance indicates the of the offeree to accept the terms of the offer Acceptance may be made by the signing and delivery of a written document, or by a communicated to the offerer. Silence on the part of the offeree is an acceptance he acceptance must be unequivocal and the terms of the offer must be The final will be the contract, the legal document 2. Setting the agenda VCD The people Andrew Carter is Export Sales Manager for Okus IT. He is ready to make his opening presentation Karen Black is a Project Manager at Okus IT. She is expecting Francoise to he agenda for the meeting Francoise Quantin is the current IT Manger at Levien. She is very anxious about protecting the jobs of her It team Sean Morrissey is from Lev ien's Chicago office. He wants to establish a clear and strong position for levien The negotiation Andrew and Karen are expecting Francoise, who is chairing the negotiation, to fix the genda and procedure for the day Script 1
5 3. Counter offer Counter offer is an expression of ______ or __________ of the terms given by the offerer. A _______ of an offer may result when an offeree attempts to vary the terms of the offer. Counter offer may go back and forth ______ times, a period called bargaining stage, also the most difficult phase of a negotiation. Once the counter offer is given, the offerer means to honor the terms he puts forward, which will have ______ effect on the offerer. 4. Acceptance An acceptance indicates the ______ of the offeree to accept the terms of the offer. Acceptance may be made by the signing and delivery of a written document, or by a ______ communicated to the offerer. Silence on the part of the offeree is ______ an acceptance. The acceptance must be unequivocal and ___ the terms of the offer must be accepted. The final ______ will be the contract, the legal document. 2. Setting the agenda VCD The people Andrew Carter is Export Sales Manager for Okus IT. He is ready to make his opening presentation. Karen Black is a Project Manager at Okus IT. She is expecting Francoise to set out the agenda for the meeting. Francoise Quantin is the current IT Manger at Levien. She is very anxious about protecting the jobs of her IT team. Sean Morrissey is from Levien’s Chicago office. He wants to establish a clear and strong position for Levien. The negotiation Andrew and Karen are expecting Francoise, who is chairing the negotiation, to fix the agenda and procedure for the day. Script 1
your proposal and, generally it seems to fit with our needs Bu ut i am worried abor K: Perhaps Andrew could present our proposal and then you'll see F:[m i ha de in it of course, but they are A: Can I suggest we for you if you choose Okus, then perhaps we can identify S: We do need some assurances her are going to from the Works Council F: We must before we continue K: I see. Have you got the documents about As Im sure you ll understand, staffing is for us and the prices are based on the staff ing proposal we've made Now, if you can agree to the prices before we go on S: No, we can talk prices later. We want to resolve the staffing issues first. They're two separate problems A: But what Karen is say ing is that the two are dependent S: Not for us they're not the staffing issue first. yours you know cript F: Id like to start by saying a few words about the meeting today and what we expe to achieve I'd like to clarify from the start is that we see Okus as a strong candidate, but, of course, not the only one. What we hope to do today is to find enough common ground. Is that clear? F: Ive drawn up an agenda. First we'd like you to present your proposal. We have read it, but we'd like you to go over Andrew. i understand A: It should take about ten, fifteen minutes. Please feel free to ask any questions F: Good. That will help us to identify issues which need more discussion. After that I suggest we try and resolve any outstanding differences and then, finally, assuming that we can agree, an action plan for the next few months S: I just want to add that you can use the room next door anytime if you need lt Thanks F: What about the end of the day? Are you flying back this evening? K: Yes, well, we could get rooms at one of the airport hotels S: Im sure Hopefully, you wont need a hotel
6 F: We have _____ your proposal _____ and, generally it seems to fit with our needs. But I am _____ worried about _____. K: Perhaps Andrew could present our proposal and then you’ll see… F: I’m sure you can understand my concern. I have a team of four people in IT. They are _____, of course, but they are _____. A: Can I suggest we _____ for you if you choose Okus, then perhaps we can identify your areas of… S: We do need some assurances here. _____ are going to _____ from the Works Council. F: We must _____ before we continue. K: I see. Have you got the documents about _____? As I’m sure you’ll understand, staffing is _____ for us and the prices are based on the staffing proposal we’ve made. Now, if you can agree to the prices before we go on… S: No, we can talk prices later. We want to resolve the staffing issues first. They’re two separate problems. A: But what Karen is saying is that the two are dependent. S: Not for us they’re not. _____ the staffing issue first. Yours _____you know. Script 2 F: I’d like to start by saying a few words about the meeting today and what we expect to achieve. _____ I’d like to clarify from the start is that we see Okus as a strong candidate, but, of course, not the only one. What we hope to do today is to find enough common ground. Is that clear? K: Fine. F: I’ve drawn up an agenda. First we’d like you to present your proposal. We have read it, but we’d like you to go over_____. Andrew, I understand _____? A: It should take about ten, fifteen minutes. Please feel free to ask any questions _____. F: Good. That will help us to identify issues which need more discussion. After that I suggest we try and resolve any outstanding differences and then, finally, assuming that we can agree, _____ an action plan for the next few months. S: I just want to add that you can use the room next door anytime. _____ if you need it. K: Thanks. F: What about the end of the day? Are you flying back this evening? K: Yes, well, we could get rooms at one of the airport hotels. S: I’m sure _____. F: Hopefully, you won’t need a hotel