Negotiation in international business

criteria of negotiating in international business

1. NEGOTIATION IN INTERNATIONAL BUSINESS PRESENTED BY LAKSHITA ASAWA

2. INTRODUCTION Negotiating with international customers , regulators and partner often require a lot of meticulious prepration . Successful negotiation requires analysis and evaluation of the commercial and there impressive presenntation and proper understanding and appreciation of cultural nuances of the negotiation a party and skillfully navigating the negotiation process accordingly.

3. Negotiation is a process to manage relationship. It is basic human activity that exist between employers and employee ,buyer and seller and between business associates. Characteristics of a negotiation situation : There are two or more parties. There is a conflict of need and desires between two or more parties . Parties expect a “give-and-take” process

4. Key step to an ideal negotiation process Preparation . Relationship building . Information gathering. Information using. Bidding . Closing the deal. Implementing the agreement .

5. 5 strategies for negotiation international business contracts Hire a consultant . Choose your team wisely. Gauge your counterpart’s. Meet them in person. Fix the agenda and keep detailed records.

6. FACTORS AFFECTING NEGOTIATION PROCESS AUTHORITY CREDIBILITY INFORMATION TIME OF NEGOTIATION EMOTIONAL CONTROL COMMUNICATION SKILLS

7. TWO TYPES OF NEGOTIATION COMPETITIVE NEGOTIATION: ONE TIME DEAL COOPERATIVE : LONG TERM NEGOTIATION

8. 4 C’S OF NEGOTIATION Common Interest Conflicting interest Compromise Criteria

9. PREREQUISITES OF EFFECTIVE NEGOTIATION Selection of the appropriate negotiation team. Management of preliminaries , including training, preparation and manipulation of negotiating setting. Management of the process of negotiation, i.e., what happens at the negotiation table. Appropriate follow-up procedure and practices.

10. CULTURAL PROBLEM IN INTERNATIONAL NEGOTIATION Language & Non verbal behaviour . Values Thinking & Decision making process. Difference in political , legal & economic system.

11. NEGOTIATION WITH REGULATORS In many instances government is a party in International B usiness N egotiation. There are 2 view point of governmental authority: Hierarchical view Bargaining view

12. THIRD PARTY NEGOTIATION MEDIATOR : A mediator is a neutral third party who facilitates a negotiated solution by using pursuasion , reasoning & suggestion for alternative. ARBITRATOR : Third party negotiation to dictate an agreement. Conciliator : It is a trusted third party who provides an informal communication link between 2 parties. CONSULTANT : It is an important third party skilled in conflict management who attempts to facilitate by creative problem solving tactics.

13. DETERMINANTS OF BARGAINING POWER Relative importance of the project. Alternative Urgency Strengths

14. VERBAL AND NON VERBAL NEGOTIATION TACTICS PROMISE THREAT RECOMMENDATION WARNING REWARD PUNISHMENT NORMATIVE APPEAL COMMITMENT SELF DISCLOSURE COMMAND

15. INTERNATIONAL NEGOTIATOR : PERSONAL CHARACTERSTICS Tolerance of ambiguous situation. Flexibility & creativity Humor Stamina Empathy

16. Negotiation in Different Countries FRANCE : The french like to conflict in Negotiation. They Don’t pay much attention to likes & dislikes of the opposite party. Chinese : They use How & Why in Negotiation process. Whenever we fell that they are about to take decision they start negotiating again. North Americans : very impatient , they take decision on the basis of facts & logic . They want to approach more & more.

17. Arabs : They are very casual regarding deadline. There is difference in gender negotiation. Brazilians : They have a habit of saying no as much as 83 times in 1 hour. They always try to there opponent by making physical touch .

18. THANK YOU ANY QUESTION ?