Practical Solutions To Global Business Negotiations

Practical Solutions
To Global Business
Negotiations
克劳德•赛利奇(Claude Cellich) 著
苏比哈什•C •贾殷(Subhash C. Jain)
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GLOBAL BUSINESS NEGOTIATIONS
PART 5 Miscellaneous Topics
CHAPTER 12
Negotiating on the Internet
PART 5
CHAPTER 13 Overcoming the
Gender Divide in Global Negotiation
CHAPTER 14 Strategies for Small
Enterprises Negotiating With
Large Firms
GLOBAL BUSINESS NEGOTIATIONS
CHAPTER 12 Negotiating on the Internet
E- launch business activities often
have to be carried out in an order
that may seem totally illogical.
— Bill Gates
GLOBAL BUSINESS NEGOTIATIONS
CHAPTER 12 Negotiating on the Internet
 Merits of Negotiations Over the
Internet
 Pitfalls of Internet Negotiations
 Strategies for Negotiations on the
Internet
 Situations Suitable for E- Negotiations
 Proper Planning for E- Negotiations
 Pros and Cons of E- Negotiations
GLOBAL BUSINESS NEGOTIATIONS
Merits of Negotiations Over the Internet
 Eliminates Time Zones and Distances
 Reduces the Role of Status
 Erases Gender Biases
 Increases Personal Power
 Allows Simultaneous Multinegotiations
 Expands One’s Audience Through New
Technologies
GLOBAL BUSINESS NEGOTIATIONS
Pitfalls of Internet Negotiations
 Conflict Generation
Frequently, because of the absence of interface with the
other party, e- negotiations can turn to “take it or leave it”
offers, hardly the type of business strategies and tactics
suitable for negotiating long- term agreements.
 Greater Emphasis on Price
E-negotiations often reflect a lack of cooperation coupled
with more competitive moves centered on a single issue,
namely, price
GLOBAL BUSINESS NEGOTIATIONS
Strategies for Negotiations
on the Internet
 After several rounds of exchanges, negotiators
tend to become obsessed with winning at all
costs and begin to take greater risks while
relying on more conflictual tactics.
 By getting involved in this game, negotiators
often fail to consider the context in which the
transaction is taking place, do not consult others
for advice, and forget the long-term
consequences or benefits of their actions.
GLOBAL BUSINESS NEGOTIATIONS
Situations Suitable for E- Negotiations
 The four Ps of negotiations:

Preparation

Patience

Persuasion

problem solving
The Internet is also expedient when negotiating
a repeat order or a small transaction that does
not justify an investment in time, personnel, and
financial resources.
GLOBAL BUSINESS NEGOTIATIONS
Proper Planning for E- Negotiations
 Combine E- Negotiations With Face-to- Face
Discussions
 Cooperative Versus Competitive Approach in
E- Negotiations
E-negotiators must encourage sharing
information in the early rounds, allowing both
parties to reach the closing phase through the
exploration of joint solutions.
GLOBAL BUSINESS NEGOTIATIONS
Pros and Cons of E- Negotiations

The direct linkage between buyers and suppliers is likely to result in
a restructuring of commercial distribution channels, with less
reliance on intermediaries.

As buyers’ requirements will be accessible to anyone connected to
the Internet, greater competition among suppliers can be expected,
resulting in lower prices and reduced profit margins.

E- negotiators will need to be well prepared to face the competition
and must emphasize their technical capacities, delivery capacities,
reputation, and long- term commitment.

Finally, despite the benefits of negotiating on the Internet,
negotiators should continue to travel to their markets to maintain
personal contact with customers and to assess the local business
environment.
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GLOBAL BUSINESS NEGOTIATIONS
CHAPTER 13 Overcoming the Gender
Divide in Global Negotiation
A woman with a voice is by definition a strong woman.
— Melinda Gates
GLOBAL BUSINESS NEGOTIATIONS
CHAPTER 13 Overcoming the Gender
Divide in Global Negotiation
 The Gender Divide
 The Cultural Divide
 The Corporate Culture
 Managing the Gender Divide
 Getting Ready to Negotiate
Across the Gender Divide
GLOBAL BUSINESS NEGOTIATIONS
The Gender Divide
Major differences between men and women negotiators.
GLOBAL BUSINESS NEGOTIATIONS
The Cultural Divide
 Masculinity pertains to societies in which men are
supposed to be assertive and expected to seek
material success.
 On the other hand, femininity refers to cultures
where both men and women are supposed to be
more modest and concerned with the quality of life.
 Negotiators from masculinity cultures are best
suited for competitive strategies and adversarial
tactics, leading to win- lose or lose- lose solutions.
 On the contrary, femininity cultures value
cooperation, relationships, patience, and showing
concern for the other party’s welfare, thereby favoring collaborative strategies of the win- win type.
GLOBAL BUSINESS NEGOTIATIONS
The Corporate Culture
As each negotiation is rather unique,
it is critical to select team members who
are both qualified technically and
sensitive to cultural diversity, including
gender differences.
GLOBAL BUSINESS NEGOTIATIONS
Managing the Gender Divide
Women negotiators dealing with men
executives should
 Start discussing business issues early on
 Project an image of self-confidence
 Show that they are knowledgeable about the issues
to be discussed
 Let the other party know that they have the power
to get the deal done
 Avoid being too emotional
 Stay away from competitive tactics that can be
interpreted as threats
GLOBAL BUSINESS NEGOTIATIONS
Managing the Gender Divide
Questions to ask when preparing for cross-g
ender negotiations
GLOBAL BUSINESS NEGOTIATIONS
Getting Ready to Negotiate Across the
Gender Divide
Dealing with cross-g ender negotiations in an
international context requires much more
preparation than traditional negotiations.
The key to success is to take the time to obtain
the maximum information on the other party and
to prepare accordingly.
In addition, negotiators need to know the
national and corporate cultures of the other party,
company’s policy toward women’s equality, past
negotiation behavioral style, composition of the
team, and the overall context in which the
negotiation will take place.
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GLOBAL BUSINESS NEGOTIATIONS
CHAPTER 14 Strategies for Small
Enterprises Negotiating With Large Firms
Being BIG is no good if your
foundation is weak.
—Peter J. Patsula
GLOBAL BUSINESS NEGOTIATIONS
CHAPTER 14 Strategies for Small
Enterprises Negotiating With Large Firms
 Success Strategies for Smaller
Enterprises
 Readiness to Negotiate Successfully
 Evaluation of Bids
 Example: The Highest Bid Is Selected
 Useful Tips When Bidding
GLOBAL BUSINESS NEGOTIATIONS
Testing your readiness to negotiate
with larger fi rms
Readiness to Negotiate Successfully
GLOBAL BUSINESS NEGOTIATIONS
Evaluation of Bids
Generally, firms are screened according to
the following criteria:
Relevance of the firm’s core activities
Reputation
Previous experience
Financial stability
References
Capacity
Management’s commitment to social
responsibility
 Compliance with national/international quality
assurance





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
GLOBAL BUSINESS NEGOTIATIONS
Example: The Highest Bid Is Selected
A specialized agency involved in trade development received funds
to develop an innovative method to assist small and medium
enterprises (SMEs) with becoming active players in global markets.
The aim was to produce a technical manual for national trade
promotion organizations. Technical details for bidding were
developed by the procurement unit in consultation with the staff
responsible for managing the project. Only companies registered
with the agency were invited to submit bids. Because of the specific
nature of the project, few companies had the expertise to meet the
specific technical requirements.
Upon receipt of the bids, the procurement evaluation panel
retained three bids while putting aside several other bids that failed
to meet the basic requirements. In addition to the three bids, the
panel received e-m ails from several other interested fi rms, but
because of other commitments, they could not undertake such a
project at this time.
GLOBAL BUSINESS NEGOTIATIONS
Example: The Highest Bid Is Selected
One bidder referred to as B-O NE was a well-known consultancy
located in the United Kingdom with previous experience in carrying out
similar projects for government agencies. The second bidder (B-T WO)
was an Asian consultancy firm with limited experience and technical
expertise. The third bidder (B- THREE) was a start- up based in
Singapore with excellent technical expertise but no previous
experience in carrying projects of this nature. The three bids were
opened and evaluated according to five key criteria and corresponding
weights. To carry the project successfully, each bid was evaluated on
the basis of know- how and capacity, reputation, meeting technical
specifications, financial stability and price. Figure : summarizes the
overall score obtained by each bidder.
GLOBAL BUSINESS NEGOTIATIONS
Example: The Highest Bid Is Selected
B- One
Criteria
B- Two
Weights Rating Score
Rating
B- Three
Score
Rating
Score
Know- how/
capacity
5
5
25
5
25
4
20
Reputation
4
5
20
3
12
3
12
Technical
specifications
5
5
25
5
25
5
25
Experience
5
5
25
3
15
1
5
Financial
stability
3
5
15
3
15
1
5
Price
3
1
3
4
12
5
15
Total Score
113
104
82
scored the lowest as a result of its inexperience, financial instability, and lack of an
established reputation.
On the basis of this analysis, the evaluation panel selected B-ONE despite its being the
most expensive yet within the allocated budget. At the end, the panel members prepared a
report to the executive committee explaining in detail why B- ONE was selected.
This example highlights situations in which low-p rice bidders may not be retained
because of other key considerations.
GLOBAL BUSINESS NEGOTIATIONS
Useful Tips When Bidding
Need to Do

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





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Follow procedures.
Possess and display patience.
Control you emotions.
Stress public benefits, such as creating jobs/transfer of know- how.
Build relationship with the decision makers.
Do not criticize the organization’s rules and personalities.
Avoid relying on aggressive/unethical behavior.
Select the right persons to be part of your negotiating team.
Develop support/alliances to support your bid.
Be open and flexible in your discussions.
Be ready to renegotiate contract terms when requested by the
procurement unit.
Refer to past successes, including testimonials, to support your
bid.
GLOBAL BUSINESS NEGOTIATIONS
Useful Tips When Bidding
Need to Know
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The culture and past history of the organization
The official in charge of procurement
The personal interests of your counterpart
Who has authority to negotiate
Procedures, regulations, and protocols
The structure of the organization
The fiscal year, sources of funding, and budgetary constraints
The potential impediments, restrictions, or problems to the specific
bid
The weights given to each item to be used in the selection/
evaluation when submitting bids
In advance, the bid requirements, timing, and other key issues to
influence the standards and criteria for evaluation
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GLOBAL BUSINESS NEGOTIATIONS
CASES
 CASE A Chinese Negotiations
 CASE B European Negotiations
 CASE C Latin American Negotiations
 CASE D Middle Eastern Negotiations
 CASE E Asian Negotiations
 CASE F The Renault-Nissan Alliance
Negotiations
 CASE G Factory Closure Negotiations