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Steps in International Business Negotiation

The document outlines the steps in international business negotiation, including pre-negotiation where objectives and limits are set, face-to-face negotiation, and post-negotiation. Pre-negotiation involves setting objectives, seeking precedence, creating tradables, and establishing limits. The negotiation process is then described including setting objectives at different levels, developing alternative options, and establishing a bargaining zone.

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Tuyền Phạm
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306 views18 pages

Steps in International Business Negotiation

The document outlines the steps in international business negotiation, including pre-negotiation where objectives and limits are set, face-to-face negotiation, and post-negotiation. Pre-negotiation involves setting objectives, seeking precedence, creating tradables, and establishing limits. The negotiation process is then described including setting objectives at different levels, developing alternative options, and establishing a bargaining zone.

Uploaded by

Tuyền Phạm
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Chapter 4

STEPS IN INTERNATIONAL
BUSINESS NEGOTIATION
Ta Hoang Thuy Trang, MBA
Content
Chapter 1: A framework for international business
negotiation
Chapter 2: Vis-à-vis: International Business
Negotiations and cross-cultural communication
Chapter 3: Principled negotiation
Chapter 4: Steps in international business
negotiation
Chapter 5: Negotiating different types of projects
Chapter 6: Negotiation in different parts of the
world
Learning objectives
• Knowledge
– Develop an understanding of effective international
negotiation process.
– Identify negotiated solutions and compromises based
on fairness, place negotiation in the context of
managing long-term business relationships.
• Skill
– Develop, through simulation, experience with the
complexity of international business.
• Attitudes
– Hardworking and creativity in working and learning.
The Negotiation Process

Sources: Ghauri, P. and Usunier, J-C. 2003, International Business Negotiation,


The negotiation process

1. Pre-negotiation

2. Face-to-face negotiation

3. Post negotiation
Pre-negotiation
• Set your objectives (precisely what you want
to achieve)
• Seek our precedence
• Create series of tradables
• Set your limits
Set your objectives

Top objectives

Setting
Target objectives
objectives

Bottom objectives
Seek our precedence
• Coffee price
Create series of tradables
Time

Money Specification
Set your limits
Bargaining zone

Highest (most that I want)

Lowest (less I will accept)


Set up your BATNA
1. develop a list of actions;
2. improve some of the more promising ideas;
3. select, tentatively, the one option that seems
best.
What is your BATNA?

WHAT WILL YOU DO IF YOU CAN’T GET THE


MINIMUM THAT YOU WANT?

Best Alternative To a
Negotiated Agreement
What is your BATNA?
Bargaining zone

Highest (most that I want)

Lowest (less I will accept)


Bargaining zone

ZOPA

Buyer’s Seller’s lowest Buyer’s Seller’s


lowest target target highest target highest target
What if?
• Develop a series of “What if” scenarios?
Developing “what if” scenarios?
What if? Our response would be?
They want the services for $30?

They will compare our price to our


competitor
Post negotiation
Review questions
1. Describe briefly a negotiation process.
2. Which stage is the most important in a
negotiation process?

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