商务英语谈判5-1.pptx

单击此处编辑母版标题样式,单击此处编辑母版文本样式,第二级,第三级,第四级,第五级,*,Chapter Four-one,Bargaining Process,Focus,Tactics and strategies for making quotations,Indicators for the end of a bargain,Tactics and skills for making counter-quotations,Principles and strategies for making compromises,1/151,Case 1:,Time:,Parts:,a large group of Chinese purchasers,major American Corporations including Boeing,Microsoft and GM,Background:,In,in order to reduce the trade,deficit,（赤字）,between the US and China,a large group of Chinese purchasers were dispatched to negotiate with major American corporations including Boeing,Microsoft and GM for the importation of products worth over 10 billion dollars.,2/151,Pleased to hear the news,Boeing wondered how many Boeing airliners China would purchases this time.,Chinese representatives proposed that the purchase of Boeing airliners should include the newly-developed Boeing 787.,Problem:,However,the representatives from Boeing said there would be no problem about the purchase of Boeing 737s,747s,767s,and 777s,but the Boeing 787 was a new product that had not yet rolled off the line,and it would be sold at an extremely high price.,3/151,The Chinese representatives responded that there must be a price no matter how high it was,so how much was a Boeing 787 jetliner?,After consulting together,the American representatives came up with a“ceiling price.,The Chinese representatives thought it was unreasonably high.,Large airline companies in China are regular clients of Boeing.,You should not make it a“once-for-all”deal.,4/151,To enable us to continue our purchase of your airplanes,please consider whether you can give us a preferential price by reducing your offer by xx%.,The American representatives replied:”We considered these factors before we quoted our preferential price.,Therefore,we are not in a position to allow you X%discount,let alone xx%.,You know that Boeing 787 jetliners boast a high safety coefficient and a fuel-efficient feature.”,5/151,Then the Chinese representatives responded:”If we purchase a large quantity,will you give a more favorable price?”,The American said they would think about it.,Initial Result:,In the following rounds of negotiation,the Chinese side increased the number of the airplanes they ordered,step by step,and the Americans made several appropriate price concessions.,6/151,It was not until the Chinese side agreed to buy 42 Boeing 787 jetliners that the American representatives were delighted,and felt that things were better than they had expected.,And the Chinese side was also satisfied with the settlement of a price xx%lower than the initial offer.,Another Problem:,However,when the representatives from both sides were about to sign the contract,the American side went back on their word because,7/151,some American congressmen pointed out that the,gyroscope,（回转仪，陀螺仪）,installed in the Boeing 787 was a state-of-the-art sophisticated precision instrument.,If airplanes with this kind of gyroscope were exported to China,they believed it would have an adverse impact on U.S.national security.,Final result:,Therefore,the American representatives came up with a new proposal:they would sell Boeing 787s without gyroscope or with old-generation gyroscopes to China,with a corresponding reduction in price.,8/151,The Chinese side strongly disagreed:”We wont buy a beautiful but blockheaded and dumb giant bird.,The Boeing 787 must be furnished the advanced gyroscopes,or it will be impossible to know clearly how high it flies and what direction it goes.”,Although the American representatives had raised a new issue under the pressure from their Congressmen,the Chinese side maintained their position.,In the end,Boeing signed the agreement with the Chinese Aviation Administration of China.,9/151,The bargain phase,in international business negotiation,-covers broad period of time from the end of the opening phase to the beginning of the closing phase.,-is called“the step of overcoming barriers to agreement”,-constitutes the central and most difficult stage in the whole negotiation process.,10/151,In the bargaining phase,each negotiating party,-measures its own strength,intelligence and strategies against those of its counterpart.,-adjusts its own negotiation strategies,-modifies its original negotiation objectives or targets,and then,-establishes a basic framework for the negotiation agreement.,Bargaining involves,three key aspects:,11/151,-quoting a price,-bargaining over the price,-making compromises,Quotation,Case 2:,Parts:,the Macau,Jockey,（赛马）,Club in China,an Australian jockey club,Background:,The Macau Jockey,Club in China was commissioned to negotiate with an Australian jockey club about introducing ten horses of fine breeding.,12/151,The seller,the Australian jockey club,would sell the horses as long as the price was above 1 million Australian dollars per horse on the average;,Macau Jockey Club,aimed to pay no more than 1.5 million Australian dollars per horse.,The two sides did not know one anothers bottom price(quoted above),but both of them would benefit if they could close a deal including 10 horses at a total price of 10-15 million Australian dollars.,13/151,Step 1:,The buyer requested the seller to quote a price first.,The information the seller had gathered,included the following:,-as the horse racing season was approaching in Macau,a number of local race horses had to retire because they were ill or overage.,-but pure-bred European horses were over a million or even several million Euros each,so,it would not pay for a small jockey club like Macau Jockey Club to buy them for their racing season.,14/151,-In contrast,Australian race horses,also thoroughbreds originating from Europe,were practically priced,and were the logical first choice for the Macau Club.,Therefore,the seller estimated that the Macau Jockey Club would pay at least 12.5 million Australian dollars for these 10 horses,and may be they would pay as high as 17.5 million Australian dollars.,Nevertheless,the Australian side had not planned to quote a price too high for fear that the buyer would perceive them as lacking sincerity,and would abandon the bargaining too soon and turn to New Zealand for the purchase.,15/151,Thus,the Australian jockey club made an initial bid for a total price of 17 million Australian dollars for the 10 horses.,Step 2:,Though the Macau club had anticipated the sellers bottom line,this quotation was higher than they had expected.,Anyway,the sellers first quoted price was 2 million Australian dollars higher than Macaus highest acceptable price(resistant point).,16/151,However,judging from the quotation,the buyer estimated that the sellers expected price would be above 15 million Australian dollars.,If this were the case,it would be difficult to reach an agreement.,Hence,the buyer made a probing,（刺探性）,counter-bid at a total price of 12 million Australian dollars.,Step 3:,Because there was a big gap between the opening prices that the two sides quoted,their representatives had to haggle over them.,17/151,The sellers counter-bid was a total of 15.5 Australian dollars and the buyer countered again with a bid of 13.5 million Australian dollars.,Result:,Finally,the seller suggested that meet halfway and agree on a price at 14.5 million Australian dollars.,The Macau club accepted that price,feeling pleased without showing it:they had saved 0.5 million Australian dollars for their club!,They did not know that the seller got 4.5 million Australian dollars more than their original bottom line.,18/151,The,definition,of quotation:,Narrowly defined,a quotation,is,-a way to indicate a particular price at which one party will buy or sell the specified commodity.,Broadly defined,it involves,-all that one party proposes to the other concerning mutual interests in a business negotiation,including the following terms and conditions for a deal:,-the name of commodity,-quality,-quantity,19/151,-price,-packaging,-shipping,-insurance,-payment term,-inspections,-claims,-arbitration,etc.,For large projects,it may include:,-forms of cooperation,-ratio of capital distribution,-profit and loss distribution,etc.,20/151,Forms of quotation,Two forms:,Oral or written,Oral:,in international business negotiation,Written:,in international business correspondence,telex,telegrams and e-mails as well as in a bid or tender submitted in an international project.,Oral quotation,It is characterized as convenient,prompt,and flexible.,21/151,Advantages:,Negotiating face-to-face or through International Dialing(IDD)may,-help to eliminate barriers of time,space and language,-enable negotiators to quote and directly justify the price,the amount of their investment,the ratio of capital distribution and the like at which their party expects to close the deal.,The biggest advantage,of the oral quotation is:,22/151,-negotiators can take advantage of their communication skills to build a favorable atmosphere and use emotional factors to facilitate the acceptance of their quotation.,Disadvantages:,If negotiators,-lack the ability to act quickly in response to any unexpected contingency or emergency,or,-do not have good communication skills and experience in dealing with people from different cultural backgrounds,23/151,-First,they may find themselves in a weak position,unable to quote the price at the right time.,-Second,they may not know their counterparts well and may not realize when to quote,what price to quote,and how to quote the price.,-Third,vulnerable to an adverse impact because of accent and nervous tension,negotiators may tend to make a slip of the tongue and,engender,（引发）,misunderstanding.,24/151,-Fourth,the quotation may be refused immediately on the spot.,-Fifth,the two parties may haggle over unimportant details and slow down the negotiation.,-Sixth,some complex and sophisticated technical specifications may require charts and diagrams,and would be difficult to express clearly in oral quotation.,2)Written quotation,It refers to putting a proposal for a business transaction in the form of writing,including,-relatively detailed data;,25/151,-using specific words,diagrams,and the like to express clearly to the other party the whole range of terms and conditions and other related items one party would be willing to accept.,Advantages:,-more explicit and formal than the oral one,-may eliminate the possibility of misunderstandings arising from an accent or misstatements due to nervousness.,-can help to cut the cost of time and effort because the companies involved do not need to make opening statements.,26/151,(e.g.at the International Consumer Electronics Show(CES)held in Las Vegas,Nevada,U.S.A,the representative of a French TV manufacturer inquired of the representative of an LCD monitor company in Suzhou,China about the price of their Liquid Crystal Display(LCD)monitors.,The representative from Suzhou presented a printed quotation to him,which included a list of the prices of various LCD monitors with their technical specifications,such as size and,resolution,（分辨能力）.,),27/151,Disadvantages:,-may commit itself to a rather narrow range of options,leaving very little room for alternatives to be presented as subsequent quotations.,-the atmosphere is less intimate than that which surrounds an oral quotation,-and the communication between the parties is less personal as well.,-may appear rather rigid and stiff.,-when the quotation is translated into other languages,careless mistakes,omissions,oversights,（疏忽）,or misinterpretations are quite likely to occur,which can prove to be very embarrassing.,28/151,3)Combination oral and written quotation,The interchangeable or supplementary use of oral and written quotations,with one of them playing the major role in turn during different phases of the negotiation,is usually called the combination oral and written quotation.,It may eliminate the disadvantages or deficiencies encountered when using oral or written quotations alone.,29/151,2.Guidelines for making a quotation,The principle:,-”to sell dear”(at a high price)or“to buy cheap(at a low price).,That means:,-the seller should try to present his quotation at the highest price acceptable to the buyer;,-the buyer should bid the lowest price the seller can bear.,In other words:,if it is possible,each seller and each buyer attempts to maximize his own potential profit.,30/151,It is ideal,-for the seller to start with the“highest defensible quote;and,-for the buyer,the corresponding guideline is of course the“lowest defensible offer”.,Case 3:,background:,A foreign developer built six 5-star luxury apartment buildings,called the“Tomson Riviera Dedicated to the Elites”,（汤臣一品），,in the center of commerce and finance,the Lujiazui area,Pudong,Shanghai.,31/151,Each and every unit in this department complex has a riverfront view of Huangpu River,and allows the residents to view the busy Bund at a glance.,And whats more,all the material for building and decorating were imported.,For example,the exterior walls are made of all imported natural stone,and coated with high tech equipments for safety and fire control.,32/151,The security and automation control system is top-of-the-line,including such items as,embossed,（浮雕）,Noblesse,（贵族）,anti-theft sound-proof all-copper doors,which ensure the safety of the collection of luxury and prestige home appliances inside.,What a perfect complement between the arts and technology!,The apartment buildings were completed in,and then sold globally,weighing in at a price as high as RMB 130,000 per square meterabout ten times higher of the average price of properties in downtown Shanghai at that time,and 3 to 4 times higher than the apartment buildings adjacent to them.,33/151,Result:,As a result,a year after they were put on the market,not a single apartment had been sold in the citys most expensive new housing project.,What did actually happen?,The problem can be traced to its source:,The quotation was a one-sided wish,heedless of the market situation;,and the price was unreasonable,quite beyond what was acceptable to any prospective buyers;,thus it was a violation of the first principle for making quotation.,34/151,The basic quotation principle,is that,-when negotiators are making a quotation,they should consider not only the profit they can get if they close the deal at the desired or quoted price,but also the demand and supply of the related factors.,3.Quotation decisions,1).Set the range of quotation,To select a reasonable range of prices for quotation,the negotiators should,-assess the situation(i.e.demand and supply)in the national and international markets,35/151,-learn the price level and offers of their competitors as references,and,-make sure they will cover the cost of the transaction and earn a reasonable profit,-consider their companys operation objectives or goals,(e.g.A state-owned pharmaceutical manufacturer in Thailand,produced anti-HIV aids drugs,modeled on the patents of American company,Pfizer Pharmaceuticals Limited.,36/