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BUSINESS NEGOTIATION Mr CHÂU THẾ HỮU – MBA International Business Administration Department 0907 414 021 chauthehuu@gmail.com CHAPTER OVERVIEW OF NEGOTIATION In this chapter Overview on Negotiation Types of negotiation Principled negotiation Overview of Negotiation  Definitions  Features  Negotiation in international business 1.1 Definitions  Negotiate (v) to try to reach an agreement by formal discussion (Oxford Advanced Learners)  Negotiation is a basic means of getting what you want from others It is back-and-forth communication designed to reach an agreement when you and the other side have some interests that are shared and others that are opposed (Roger Fisher & William Ury) Prerequisites of negotiation A conversation is considered as “negotiation” when there are:  Interdependence between parties  Beneficial conflicts  Power equivalence  Target which is agreement 1.2 Features  Maximize Common benefits and minimize conflicting private ones  Negotiation aims at Agreement, not Winning position  Negotiation is affected by status and power of both parties  Negotiation: an art and science!!! 1.3 Negotiation in international business  Definition: Negotiation relating to business transactions between parties with different nationalities  International business negotiation is affected by:  Economics laws  Politic and democratic relations  Fluctuation in the world market and economy  Legal framework  Cultures Types of negotiation  Based on forms  Based on strategy 2.1 Forms of Negotiation  Face-to-face  Negotiation via phone  Negotiation via mails / faxes  Negotiation via e-commerce applications (emails, social media )  Advantages and Disadvantages Diagnosis  Premature judgment  Searching for the single answer  The assumption of a fixed pie  Thinking that "solving their problem is their problem“ -> good / not good? Prescription  Separate inventing from deciding  Brainstorming (Before; During; After)  Consider brainstorming with the other side  Broaden your options  Look for mutual gain  Make their decision easy Before Brainstorming Define your purpose Choose a few participants Change the environment Design an informal atmosphere Choose a facilitator During Brainstorming  Seat the participants side by facing the problem  Clarify the ground rules, including the no-criticism rule  Brainstorm  Record the ideas in full view After brainstorming  Star the most promising ideas  Invent improvements for promising ideas  Set up a time to evaluate ideas and decide Broaden your options  Multiply options by shuttling between the specific and the general: The Circle Chart  Look through the eyesof different experts  Invent agreements of different strengths  Change the scope of a proposed agreement Look for mutual gain  Identify shared interests  Dovetail differing interests  Ask for their preferences Make their decision easy  Whose shoes?  What decision?  Making threats is not enough 3.2.4 Insist on Using objective criteria  Deciding on the basis of will is costly  The case for using objective criteria  Developing objective criteria  Negotiating with objective criteria  “It’s company policy” Developing objective criteria  Fair standards  Fair procedures Negotiating with objective criteria  Frame each issue as a joint search for objective criteria  Reason and be opent to reason  Never yield to pressure Q&A ANY QUESTIONS? THANK YOU FOR LISTENING .. .CHAPTER OVERVIEW OF NEGOTIATION In this chapter Overview on Negotiation Types of negotiation Principled negotiation Overview of Negotiation  Definitions  Features  Negotiation. .. framework  Cultures Types of negotiation  Based on forms  Based on strategy 2 .1 Forms of Negotiation  Face-to-face  Negotiation via phone  Negotiation via mails / faxes  Negotiation via e-commerce... conflicting private ones  Negotiation aims at Agreement, not Winning position  Negotiation is affected by status and power of both parties  Negotiation: an art and science!!! 1. 3 Negotiation in international