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Thesis

VIEWS: 38 PAGES: 91

									Lecture 3
Presentation and
negotiation skills
Contents


 1   Types of presentations
1
2    Plan your presentation
3    Deliver your presentation
 4   The negotiation process
 5   Negotiation styles
 6   Negotiation tactics
   1. Types of presentations

  The proposals you deliver in the morning
   calls for a different approach from the
  toast you give at a banquet that evening.

informative presentations: to tell

persuasive presentations: to sell

ceremonial presentations: to entertain
 1.1 Informative presentations


            informative presentations




briefings      reports      training    explanations
   1.1.1 Briefings

-- short talks that give an already interested and
   knowledgeable audience members the specific information
   they need to do their jobs
e.g.
 nurses and police officers attend briefings before each
   shift to learn what has happened since their last watch
 the executive chef of a restaurant briefs waiters about the
   details of the day’s menu specials
 the advertising account manager briefs the agency’s team
   about a client’s interests and quirks before an important
   meeting
 representatives attend briefings before they staff the
   company’s exhibit booth at a trade show
   Features of briefings:


aim to get the attendees ready to do the job at
 hand
usually don’t make complex arguments
conversational and factual, not dramatic
no more than 2-5 minutes
organized in a simple way, usually topically or
 chronologically
rarely contain presentational aids
    1.1.2 Reports

-- give your audience an account of what you or someone you
    represent has learned or done, or plan to do

classification by audience:
 internal reports: given to superiors or colleagues
 external reports: given to clients, agencies or the general public

classification by purpose:
 status/progress reports: e.g. contractor or architect’s report to
   client, quarterly financial report to board of directors, monthly
   marketing report to marketing manager, annual report to public
 final reports: e.g. Was a customer’s complaint justified? Why
   has our overhead increased 15% in the last quarter? Is there any
   gender bias in our hiring and promotions?
 feasibility reports: e.g. Will staying open 24/7 profitable? Can
   we afford to offer health insurance to part-time staff?
  Usual format of status reports:

introduce the report (include your name and your
 role)
review the project’s purpose
state the current status, include the people
 involved and give credit for their contributions
identify any obstacles you have encountered, and
 attempts you have made to overcome those
 obstacles
describe your next milestone
forecast the future of the project, and focus on
 your ability to finish the job by the scheduled
 completion date
  Usual format of final reports:


introduce the report (include your name and your
 role)
provide necessary background of the undertaking
describe what happened at the level of interest
 appropriate for your audience (e.g. the
 challenges and actions, others’ contributions)
describe the results
tell listeners how to get further information
  Usual format of feasibility reports:


introduce the report (include your name and your
 role)
define the problem and explain its significance
 and consequences
outline your criteria to evaluate possible solutions
describe your methodology/approach in detail
possible solutions
evaluation of the solutions
recommendation and conclusion
(see “Feasibility Report Outline” on Page 34)
   1.1.3 Training

-- teaches listeners how to do something: e.g. operate a
   piece of equipment or use software, relate effectively
   with the public, avoid or deal with sexual harassment
 investment of time: McDonald’s, IBM
 investment of money: IBM
 can be done by experts: firms or freelancers, on a
   fee-for-service basis
 can be conducted by full-blown institutes, e.g. Disney,
   Anheuser-Busch, Dell, Harley-Davidson, General
   Electric
 can be very brief and informal: 75%
     Guidelines on designing and delivering
     training:

planning a training program:
 define the training goal: the more specific, the better
 develop a schedule and list of resources: time, steps, staffing, delivering
   equipments, training materials
 choose the best training approach: lecturing, exhibits, diagrams, posters,
   live demonstrations, videos, site visit, coaching
 organize your presentation

delivering the training:
 link the topic to the audience: make them know that the information will
   benefit them personally, e.g. show the payoffs that comes from listening
 start with an overall picture: sketch the highlights to make them less
   confused by your information trees
 emphasize the organization of your material: use number items,
   signposts, interjections, repetition, add internal summaries and previews
 cover only necessary information: they will ask for it if they need more
   1.1.4 Explanations

-- inform the listeners how a new program/measure will
   affect them, esp. when a firm faces a major change in
   its business, e.g. how the company’s new tax-
   reduction plan will increase their real income

Guidelines on delivering explanations:
 avoid jargon: don’t be a techno-snob; tell people what
  they need to know in language they will understand
 link the familiar to the unfamiliar: people have the best
  change of understanding new things when they bear
  some relationship to something they already know
   Compare the two versions below:


More confusing:
Money-market funds are mutual funds that buy
 corporate and government short-term investments.

More familiar:
Money-market funds are like a collection of IOUs held by
 a middleman. The funds take cash from investors and
 lend it to corporations and the government, usually for
 between 30 and 90 days. These borrowers pay the fund
 interest on the loan, and that interest is passed along to
 the investors.
 1.2 Persuasive presentations




proposals
-- you advocate your audience
to take specific actions
                                 persuasive
sales                           presentations
presentations
-- you persuade your audience
to buy your products/services
   1.2.1 Proposals

external:
e.g. to lobby the municipal government to loosen the building
   height restriction

internal:
e.g.
 to persuade management to reimburse employees for
   personal career training costs
 to convince your boss to give your department more
   staffing support
 to request a raise in pay
      Suggested organization of proposals: the
      problem-solution approach

I.    Introduce the problem
a.     Demonstrate nature of problem in terms the audience
       will understand
b.     Show undesirable consequences of the problem
c.     Highlight that the current situation is WRONG
d.     Provide causal analysis of the problem
II.    Provide a solution (with supporting evidence)
a.     Describe the positive results of your proposal
b.     Show how your proposal will avoid bad consequences
c.     Highlight why it’s the RIGHT thing to do
d.     Address the feasibility of your proposal by indicating
       cost, time, procedures
     Communication practice: Proposing a
     wellness program
    You are the HR manager of the DC company. The
    management of the company is now haunted by
    employees’ health problems.
   On the one hand, the health-related costs are increasing
    dramatically, especially insurance premiums and out-of-
    pocket expenses for employees in case of emergency.
   On the other hand, you have noticed that productivity of
    DC is declining due to growing absenteeism, lower work
    efficiency of workers who stay on the job, and higher
    turnover caused by employees suffering from serious
    illnesses.
    Now you’re supposed to propose a wellness program to
    the CEO of DC to address the health issue. Draft an
    outline in the problem-solution organization plan.
  A sample proposal outline:
I. Health-related problems are hurting our company. [problem]
a. Health costs are increasing.
     1. Insurance premiums are increasing.
     2. Out-of-pocket expenses for employees are growing.
b. Productivity is declining.
     1. Absenteeism is rising.
     2. Workers who stay on the job are less productive.
     3. Some employees are leaving us due to health problems.
II. A wellness program could reduce the impact of these problems. [solution]
a. Elements of the program
     1. Nutrition education
     2. Exercise education
     3. Substance-abuse counseling
b. Benefits
     1. Healthier and happier employees
     2. More productive employees
     3. Lower heath costs (insurance and out-of-pocket)
     1.2.2 Sales presentations

formal: platform speeches in front of large audiences
Informal: sit-down talks with small groups of decision-makers

Guidelines on making sales presentations:
 establish client relationships before your presentation: the six
  steps of personal selling? try to talk informally with your clients to
  make you more knowledgeable about your audience and their
  needs, and make your audience more comfortable with you
 put your clients’ needs first: your clients don’t care about you
  and your product; they care about how to solve their problems;
  “True selling means being passionate about your company’s
  product or service and compassionate with the wants, dreams,
  needs of your fellow human beings.” (business educator Robert
  Kiyosaki)
 listen to your clients: questions and concerns are not
  interruptions, but a chance to learn more exactly what the
  client wants; “The great salespeople ask questions and
  have great listening skills. Poor salespeople get locked into
  script mode.” (business trainer Kevin Hogan)
 emphasize benefits, not features: it really isn’t features that
  will impress clients and motivate them to buy – it’s the
  benefits that will flow from those features
 close effectively: summarize the main benefits and call for
  action; think long term; “I’ve never been a believer in
  closing because my objective is not to close the sale but to
  open a relationship.” (business consultant Hans Stennek)

for a sample sales presentation see Page 35-41
  1.3 Ceremonial presentations

welcoming a guest or group
introducing another speaker
honoring a person or institution
giving a toast
presenting an award

accepting an award
  2. Plan your presentation


                                             choose
               analyze
define the                     develop       an
               the
objectives                     the thesis    organizational
               situation
                                             pattern




 identify                                      add
                plan the        plan the
 main ideas                                    supporting
                introduction    conclusion
 in the body                                   details &
                                               visual aids
    2.1 Define the objectives

 review Lecture 1, 2.1 Sender strategy (general → action →
  communication)
 be as specific as possible
Communication practice:
Reword the following vague goal statements into more specific
  ones:
 I want to collect some      I want to collect at least RMB100 Yuan
  donations at this dinner.    from each person at this dinner.
 I want to get my            I want my manager to give me one day per
  manager’s support for my     week and the help of a secretary to
  program.                     develop my program.
 I want the audience has  I want at least five people in the audience
  positive attitudes towards   to ask me for my business card after my
  me and my company’s          talk, and at least one person to schedule
  services.                    an appointment with me to discuss my
                               company’s services.
   2.2 Analyze the situation

 analyze the audience: review Lecture 1, 2.2 Receiver
  strategy
 analyze yourself as the speaker: review Lecture 1, 2.1
  Sender strategy
 analyze the occasion:
      room arrangement or seating (see “Room arrangement options”
       on Page 42)
      lighting
      background noises
      staffing
      the hour of the day: 10 a.m. or 5:30 p.m.
      the length of time you are allowed to speak
 analyze the culture: review Lecture 1, 2.5 Culture strategy
  2.3 Develop the thesis

-- also called “key idea”, a single sentence that summarizes
   your message, and that every other part of your talk
   should support
e.g. “We’re behind schedule for reasons beyond our control,
   but we can catch up and finish the job on time.”

Methods for formulating a thesis statement:
 imagine that you met a member of your audience at the
  elevator and had only a few seconds to explain your idea
  before the doors closed
 imagine that you had to send a one-/two-sentence text
  message that communicated your main idea
 suppose that a friend asked one of your listeners what
  you were getting at today: what would you want the
  audience remember to say?
     Don’t confuse the thesis with the goal:

            goal                               thesis
 I want Krakos Grocery to         Switching to Sun Valley Bread
  order Sun Valley Bread.           will increase your sales.
 Parents will be confident        Our preschool curriculum may
  that their children are being     look like nothing but play, but it
  prepared for later schooling.     is based on sound educational
 Audience members will be          theory and research.
  able to respond to sexual        You don’t have to accept
  harassment instead of             sexual harassment.
  accepting it.                    Recent advances have
 I want to acquire new             changed my field dramatically
  customers seeking state-of-       in the past few years.
  the-art technology.
2.4 Choose an organizational pattern

 First, tell them what you’re going to tell them;
 Then, tell them;
 Finally, tell them what you have told them.

The standard format (the safest in the business field)
Introduction:
a. Attention getter
b. Thesis
Body:
a. …
b. …
c. … (no more than five main points)
Conclusion:
a. Review
b. Closing statement
  Organize the body:

Inexperienced speakers make the mistake of starting to
   plan a talk by beginning at the beginning. This is like
  trying to landscape a piece of property before you’ve
                     put up a building.
choose the best organizational pattern for
  your body:
informative: chronological, spatial, topical, cause-
 effect
persuasive: problem-solution, criteria satisfaction,
 comparative advantages, motivated sequence
 (attention – need – satisfaction – visualization –
 action)
 for detailed description of the above patterns,
 see Page 43-51
       2.5 Identify main ideas in the body

 A presentation should contain no more than five main points: people
  have difficulty recalling more than five pieces of information when it is
  presented orally.
 All points should develop the thesis.
 Each main points should contain only one idea. e.g. Business
  discrimination on the basis of age and sex.
 Main points should be stated as claims (vs. simple three- or four-
  word phrases). e.g.
   • choosing a physician →It’s essential to choose a health care
      provider from the list of approved doctors.
   • sexual and ethnic discrimination → Allowing sexual or ethnic
      considerations to intrude into our hiring decisions isn’t just bad
      judgment; it’s illegal.
   • demographic changes in the market → Due to demographic
      changes, we can expect our market to shrink in the next 10 years.
 Main points should be parallel in structure whenever possible.
  2.6 Plan the introduction


Functions of the introduction:
capture the listeners’ attention: esp. when they
 are ordered to attend, or their minds are
 somewhere else
give your audience a reason to listen
set the proper tone for the topic and setting: put
 them in a good mood, prepare them to think
 seriously, or to establish rapport
establish your credibility, if necessary
introduce your thesis and preview your
 presentation
     Case study: An insurance agent’s start

 An insurance agent introduced a 30-minute talk to a group of
20 prospects. Do you think his introduction fulfills the five
functions mentioned above?
  Being an insurance agent gives me a lot of sympathy for tax collectors
and dog catchers. None of us has an especially popular job. After all, it
seems that with life insurance you lose either way: If the policy pays off,
you won’t be around to enjoy the money. On the other hand, if you don’t
need the policy, you’ve spent your hard-earned savings for nothing.
Besides, insurance isn’t cheap. I’m sure you have plenty of other things you
could use your money for: catching up on bills, fixing up your house, buying
a new car, or even taking a vacation.
  With all those negatives, why should you care about insurance? For that
matter, why am I devoting my career to it? For me, the answer is easy:
Over the year, I’ve seen literally hundreds of people – people just like you
and me – learn what a difference the right kind of insurance coverage can
make. And I’ve seen hundreds more suffer from learning too late that
insurance is necessary.
   Well, tonight I want to give you some good news. I’ll show you that you
can win by buying insurance. You can win by gaining peace of mind, and
you can eve win by buying insurance that works like an investment, paying
dividends that you can use hear and now.
Types of opening statements:

 ask a question: e.g. “Is it just me, or does anybody here feel
  we’ve spent too much time filling in forms?”
 tell a story
 use humor: e.g. “Some people say that problems are not
  problems; but rather, they are opportunities. If that’s the case, then
  given the present situation, we are faced with a hell of al lot of
  opportunities.”
 present a quotation: use a source with high credibility to back up
  your message
 make a startling statement: an excellent way to get listeners’
  attention is to surprise them; don’t offend them
 refer to the audience: mention your listeners’ needs, concerns or
  interests; e.g. “I know you are all worried by rumors of cutbacks in
  staff. I called you here today to explain just what the budget cuts
  will mean to this department.”
 refer to the occasion: e.g. “We’re here today to recognize some
  very important people.”
   2.7 Plan the conclusion

the conclusion should contain:
 the review: a restatement of your thesis and main points to
  reinforce your idea
 the closing statement: to create a favorable impression, and
  give your remarks a sense of completion; “You shouldn’t leave
  your audience wondering whether you’ve finished.”
A closing statement can be:
     any of the techniques used in the introduction

     the ending of the story you told in the introduction

     rewording of your opening statement/thesis

     an appeal (asks for action)

     a challenge (demands action)

    see “A Complete Presentation Outline” on Page 52
    2.8 Add supporting details and visual
    aids
2.8.1 Transitions
  Listeners do not stay oriented as easily as readers;
    they may not even remember what you are talking
             about unless you use transitions.
 use strong transitions:
      ineffective: Secondly
      effective: “The second recommendation is …”, “Let’s move on
       to the second recommendation.”
 Use repetitive transitions:
      between each major section and subsection , use a backward
       look/forward look transition
      e.g. “Now that we have looked at the three elements of the
       marketing plan, let’s turn to the financial implications of the
       plan.”
   2.8.2 Facts


do research and collect as many facts as you can
choose only those facts that will get your thesis
 across
remember the “KISS” rule: Keep It Short and
 Simple
bring along extra facts for answering questions or
 involving in the subsequent discussion
prepare handouts for complicated facts
  2.8.3 Visual aids


Functions of visual aids:

add interest, variety, and impact
remain in the memory longer than just words
reach 40% of your audience who are likely to be
 visual, rather than auditory, learners

for a thorough guide on PowerPoint slide design,
  see “PowerPoint: The Rules of Design”
       How to provide visual aids:

 translate your outline into draft slides
 tie your slides together with connectors:
      same numbering system in the agenda and in the slide heading
      same phrasing in the agenda and in the slide heading
      repeated agenda slide
 design or choose your Slide Master (幻灯片模版):
      virtually all of the PowerPoint templates are inappropriate for
       business presentations: too much visual distractions
      at least choose a plain one: less is more
      avoid the “fruit salad effect”: use four distinct colors as the maximum
      choose a visible color combination: background and text colors
       should contrast sharply
      select a sans serif font (非衬线体), e.g. Arial, Verdana, Calibri
      make sure your letters are large enough: 28-32 point for headings,
       18-24 point for text, and 14 point for labels
      avoid using ALL CAPITAL LETTERS or Title Case: slow down the
       reader and impair readability
      use bold and italics sparingly: for emphasis only
 design and edit individual slides:
     use message titles, not topic titles, as headings: e.g.
      “Company rankings” vs. “Company B ranks second.
     design tables and graphical charts to show “how much”, and
      concept diagrams to show “how”
     design text slides to show “why” and “how”
     avoid overload: not as word-for-word scripts/documents, but
      with key ideas only; the “six by two” guideline (six bullet points
      per slide, two lines of text per bullet)
     use telegram language: “ABC has continued the push for
      globalization of purchasing.” → “ABC pushes for globalized
      purchasing.”
     do not use bullets unless you have at least TWO bullets to list
     use animation to focus audience attention and to highlight:
      avoid excessive animation and use the simplest “Appear” effect
      as the norm
     check for errors: grammar and spelling errors are “credibility
      killers”                                                     next
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                                  back
   3. Deliver your presentation
3.1 How to get over stage fright
   Fear of public speaking ranks as American
      NO.1 fear – ahead of both death and
                    loneliness.
 Practice is the golden rule:
    a well planned speech does not guarantee an
     equally good speech, if there is no practice
    practice makes confidence
    rehearse your presentation 3-6 times: on your feet,
     before an audience, in the real setting if possible
    always check your slides on the big screen (not just
     on the computer monitor) in your rehearsal
Notes is the security blanket:
  use short phrases for each point
  tie your notes to your slides: print out slides,
   and then add your notes around the slide
   copies
  include about 5-mins’ worth of info on each
   note card: no need to constantly change
   cards
  use large enough lettering: can be read at
   arm’s length
  add reminders to yourself: e.g. “Stand
   upright!”, “Eye contact!”, ”Pause!”
  Last-minute physical relaxation techniques:


take a hot shower
breathe deeply
exercise specific body parts: neck and throat,
 shoulders, arms, hands, face
avoid drinking milk
drink warm liquids, e.g. herbal tea, water with
 lemon
try chewing gum
  Last-minute mental relaxation techniques:

 think positively:
    you don’t have to be perfect, because nobody is
    your audience are friendly people; image you are
     speaking to a friend, not to a group
    repeat positive words or labels, e.g. “I’m excited”
     rather than ”I’m scared”
    remember that you probably look/sound much
     better than you think you do
 meet, greet and talk with the audience before you
  start
 do not think while you are speaking: turn off your
  internal self-analysis, and focus on your objectives
  and ideas
    3.2 Nonverbal delivery skills

 posture: stand in a relaxed, professional manner –
  comfortably upright, squarely facing your audience, with
  your feet aligned under your shoulders (neither too close
  nor too far apart), without rocking, swaying or bouncing
 gesture: avoid nervous-looking gestures, e.g. hands on
  hips, hands clasped in back; avoid “authority killers”, e.g.
  flipping your hair, waving your arms randomly
 facial expression: relaxed, interested and animated;
  avoid a stony, deadpan expression; vary according to the
  subject; avoid smiling when talking about something
  sad/negative
 eye contact: start by looking at the friendly faces, and
  then connect with others in the room; avoid looking
  continually at your notes, the screen, the ceiling, the floor,
  or a single listener; avoid fake eye contact, e.g. “eye dart”
  or “lighthouse scan”
 volume: speak loud enough to be heard by the
  people in the back row of the room; vary your
  volume to add interest
 seating: horseshoe, round table, or classroom?
 height: speak on the platform, or sit in front of or
  around your audience?
 dress: dress appropriately for the audience, the
  occasion, the organization, and the culture; the
  safest choice: traditional business suit

see “Common Interpretations of Speaker’s Body
  Language” on Page 53
  3.3 The Q & A session

3.3.1 When to take questions
 inform your audience at the beginning of the
  presentation:
“Please feel free to ask questions whenever they
  come up. ”
“Please hold all your questions until the end of the
  presentation.”
“Feel free to interrupt with questions of
  understanding or clarification, but since we only
  have an hour together, please hold questions of
  debate or discussion until the end.”
     3.3.2 How to take questions

 prepare in advance:
    anticipate possible questions, e.g. value (“What will
     happen if we do this?”), cost (“Can we do it for less?”),
     action (“How can we do it?”), details (“What is your
     source?”)
    ask a colleague to play the devil’s advocate during your
     rehearsal
    bring along extra information

 treat questioners with respect:
    listen carefully to make sure you understand the question

    paraphrase complicated questions to make sure you are
     on the right track
    while listening, maintain eye contact, nod and do not
     interrupt
 stick to your objective and organization:
    esp. when answering questions during the
     presentation
    if possible, divert the question back to your main ideas

 keep everyone involved:
    call on people from various locations

    avoid a one-to-one conversation with a single listener

    while answering, maintain eye contact with the entire
     audience
    avoid ending your answer by looking right at the
     questioner
      3.3.3 What to say if you don’t know the
      answer
 if you don’t know:
     say “Sorry I don’t know/I don’t have the exact figure.”
     suggest where the questioner might find the answer
     offer to get the answer yourself: “I don’t know the market share
      in that country, but I’ll look it up and email it to you by tomorrow
      morning.”
     never HAZARD A GUESS!

 if you need some time to think:
     repeat: “So you’re wondering how to deal with this situation.”
     turn the question around: “How would you deal with this
      situation?”
     turn the question outward: “How would the rest of you deal
      with this situation?”
     reflect: “Good question. Let’s think about that for a moment.”
     write: write down the main points of the question if there is a
      whiteboard
   3.3.4 How to answer challenging questions

 confusing questions: long, multi-faceted, or overly
  broad
     paraphrase the question, and refocus to make it appropriate for
      your objective
     if the questioner repeats it: “I wish we had more time so we
      could discuss this in detail.” “Let me explore that in more detail
      during the tea break/after the presentation.”
 controlling questions: statements or comments
     do not say “So what exactly is your question?”
     thank the questioner for the interest and the comments,
      paraphrase the ideas and then go on with your due course
 hostile questions:
     take a deep breath, identify the hostility (“I understand you feel
      upset about this.”), and answer the question nonemotional and
      nonpersonally
     try to find a common ground: “We’re both trying to do what we
      feel is in the customer’s best interest.”
    Some final tips:


 arrive earlier than the scheduled time: allow yourself
  10-15 minutes to get familiar with the place, talk to
  some listeners, and check the equipment
 check all equipments YOURSELF
 do not distribute detailed printed materials before
  you speak: it will become a public reading, rather than
  public speaking
 put the note cards in front of you on the lectern;
  begin the talk without looking at the notes
 keep water nearby, in case you have dry mouth
 ask someone (not your cell phone) to watch the time
  for you, if not arranged
 keep eye contact throughout the speech
 if you wish to point on-screen, stand to the left so that
  you can point at the beginning of each line; do not use
  the laser pointer, because the dot is too tiny and shaky
  to be seen
 state your transition before displaying the new slide
 learn to pause: “The right word may be effective, but
  no word was ever as effective as a rightly timed pause.”
  (Mark Twain); inexperienced speakers are often too
  nervous to pause, which only makes their listeners
  tired
 do not emphasize mistakes: simply go on, and adjust
  your remarks to make the error less noticeable
 be comfortable with fillers: e.g. “uh”, “well”, “you know”;
  occasional, but not habitual, distracting
 if you run out of time, don’t try to rush through every
  slide; instead, elaborate your main points and skip
  others
 end the Q & A with a second closing statement
 keep the closing slide visible at the end of your
  presentation and during Q & A
 do not pack up early: a nonverbal signal that you are in
  a hurry

see “Tell/sell Presentation Checklist” on Page 54
   4. The negotiation process
Negotiation:
-- process in which two or more people or organizations
   with common or conflicting interests work towards a way
   of resolving an issue or agreeing on how they will
   cooperate
Business people are negotiating all the time:
 formal negotiation: sit down at the table, talk about the
  unit price, the conditions for a timely delivery, the clauses
  for compensation and force majeure, etc.
 informal negotiation:
    talk to your boss about the pay raise
    contact your debtor about the overdue payment
    call your supplier to claim compensation for a wrong
      dispatch of merchandise
    ask your subordinates to finish the work according to
      the scheduled timetable
   4.1 Before the negotiation
1. Identify the team leader: able to select team members,
   prepare the negotiation plan, make the bargain, make
   decisions on concessions and the final terms, generate
   high morale and maximum contribution from each
   member

2. Form the negotiating team:
    size: 2-5; never reduce the negotiating team to one,
      no matter how qualified the negotiator is; don’t exceed
      five to avoid lack of control
    coverage: include members in commercial (price,
      market, delivery terms), technical (specification,
      delivery program), financial (terms of payment,
      insurance, financial guarantees) and legal (terms and
      conditions of contract) areas, as well as an assistant
      to the main negotiator (make notes, do calculations,
      remind him of any missing points)
3.   Collect and assess data from various sources: MOC (商务部),
     CCPIT (中国贸促会), Chinese Embassy, Chinese local companies,
     foreign trade corporations, banks, agents

4.    Develop the negotiation plan: a framework within which to
      negotiate; formulated by all the team members and finally approved
      by the team leader and the top management; the plan should:
         identify the team leader and other members of the negotiating
          team
         set up the lines of communication and reporting system
         define the negotiating objective in terms of the major issues to be
          discussed
         develop counter-proposals in case objections are raised on any
          of the points you proposed
         sate the minimum acceptable level for each of the major items:
          e.g. price concession of 5%, remittance (汇付) or collection (托收)
          as terms of payment, FOBST as terms of delivery, 1-year extra
          warranty
         establish the time period within which the negotiation should be
          concluded
     4.2 During the negotiation

1.  Opening: exchange greetings and aims to set the “climate” for
    the later communication, establish some common ground
    before moving into areas of difference, esp. Japanese (slow
    start, value trust more than agreement), e.g.
       I’ve been long hearing of you and your company, and I’m
        very pleased to know you in person.
       We’re very glad to have the chance to visit your factory. I
        do hope I can make a substantial deal with you today.
       Hi Mr. Binley, how are you getting along with your business?
       Nice to meet you again. How are sales in Sweden?
       We’ve seen your catalogue and exhibits in the showroom.
        We’re interested in the latest model of drills in particular.
2. Identifying: specify in detail the issues to be resolved, e.g.
       To come straight to the point, what is the CIF New York
        price for your dishwashers?
       We need to talk about the terms of delivery.
       Let’s return to the topic of commission, shall we?
3. Bargaining: negotiate the identified issues, propose your
   position, initiate the other party’s stance, make
   concessions and compromise, e.g.
    The quality of the last batch is far from being acceptable.
    To tell you the truth, $200 can hardly cover our
      production cost.
    For friendship’s sake, we may exceptionally consider
      reducing our price a little, but never to that extent.
    Honestly, the rate of commission you propose is far too
      small.
    Then how big a step are you prepared to take?
    Could we make a compromise? How about a 5%
      discount?
    We have made a reduction on the price. So it would be
      your turn to make some concessions on the terms of
      payment.
    It’s our final position. Now it’s up to you.
4. Concluding: summarize the points and confirm
   agreement, e.g.
    Ok, let’s call it a deal!
    I’m glad that you add your order.
    Fine. Let’s get the contract finalized.
    You’ve driven a hard bargain, but we’ll accept it,
      since we have been doing business for so long.
    So you will arrange for the L/C to be opened in our
      favor as soon as you get back, and we will effect
      shipment within two weeks on receipt of your L/C.
    That sounds reasonable, but it’s subject to the final
      confirmation of the head office. I will have you a
      definite answer tomorrow.
    That’s a deal. We look forward to a long-term
      relationship with you.
  Case study: Price negotiation

The seller: Mr. Wang, the Export Manager of a Zhejiang-
   based company producing plastic products
The buyer: Mr. Welsh, the Import Manager of a large chain
   store company in the U.S.
The setting: After a factory tour, Mr. Welsh picks up
   several products and starts to negotiate prices with Mr.
   Wang

Your tasks:
1. What are the major issues identified and bargained in
   this negotiation?
2. What nonverbal signals sent by both parties are most
   impressive to you? In what way do they help both
   parties to achieve their aims?
  5. Negotiation styles

Possible negotiation outcomes:
     Win-win
     Win-lose
     Lose-win
     Lose-lose


The aim of win-win negotiation is to find a
 solution that is acceptable to both parties, and
 leaves all involved feeling that they've won – in
 some way – once the negotiation has finished.
Five negotiation styles
6. Negotiation tactics




        Questionnaire

     for negotiating skills
 the yes-but technique: to affirm first to establish the
  image as cooperative and appreciative of the viewpoint
  of the other party, and then to identify the differences
  and reject what the other party would like you to do; cf.
  the “no-although” way

 the side-stepping technique: to side-step an issue you
  don’t want to answer directly, e.g.
  Can you guarantee delivery by Jan 1st?
  – Here, have a look at the program to see how we’ve
  been doing in the past three years, and you can know
  how reliable we are.
 offer more options: to make the other party’s job easier,
  and to discover the maximum common ground, e.g.
  possible options for a request of price reduction include:
    quantity/repeat order discounts
    improved packaging and labeling (for the same price)
    more prompt delivery or better payment terms
    free promotional materials in the language of the import
     market
    free training of maintenance staff and after-sales
     consulting service
    supply of free parts to replace those damaged from
     normal wear and tear
    market exclusivity
    higher commission rate
 make the other party seem unreasonable: to challenge the
  validity of a proposition, e.g.
   Your company, as the seller, is responsible for any delay to the
      contract.
   – Normally yes, but you know, the seller cannot be responsible
      for events over which he has no control, such as war or riots.

 be personal and emotional: be dramatic and sometimes
  sentimental, as everybody can be charmed and touched, e.g.
    If we were not friends, I will have no way to quote you such a
     rock-bottom price.
    Oh, you are really tempting me!
    Oh believe me, you drive me to a tight corner. We don’t have
     any profit margin in that case.
    This is our latest design. I have to say you have incredible
     taste.
After-class assignments
  1. Communication practice

The following presentations all have some problems
   in the body. Identify the problems and correct
   them.
Presentation 1:
Thesis: Allowing employees more latitude in
   choosing their work hours is good for the
   company and for the workers.
a. Flexible scheduling is a relatively new idea.
b. Flexible scheduling improves morale.
c. Flexible scheduling reduces absenteeism.
Presentation 2:
Thesis: We can reduce operating costs in various ways.
a. Reduce wattage in lighting fixtures.
b. Hire outside data processing firm to handle seasonal
   billing rather than expand permanent in-house staff.
c. Sell surplus equipment.
d. Reduce non-business use of copying machines.
e. Reduce temperature in less-used parts of the building.
f. pay overtime rather than add new employees.
g. Retrofit old equipment instead of buying new
   machinery.
Presentation 3:
Thesis: Many local businesses continue to
   discriminate against some job applicants.
a. Business discrimination on the basis of ethnic
   background.
b. Business discrimination on the basis of
   disability.
c. Business discrimination on the basis of age
   and sex.
Presentation 4:
Thesis: Many local businesses continue to
   discriminate against some job applicants.
a. Discrimination against minorities.
b. Disability is another reason for discriminating
   against some job applicant.
c. Some businesses even refuse to hire
   employees who are over 65.
d. Women often have extra trouble finding a job.
   2. Case study: Negotiation tactics
The seller: Mr. Fang, the Manager of an import & export
   company which produces gifts and decorations for
   Christmas, Easter and other traditional holidays
The buyer: Mr. Leeser, the General Manager of a German
   wholesaler
The setting: In a trade fair in Guangzhou, Mr. Leeser walks
   into the booth of Mr. Fang’s company, and is attracted
   by the exhibited products.

Your task: Based on the negotiation styles and tactics
   we’ve discussed, evaluate the performance of both
   parties in the negotiation.
  3. Communication Practice: Lisa’s late
  arrival


Read Lisa’s case on Page 55.

Work with your partner to role-play Lisa and
 her boss Marion. The ideal outcome of the
 negotiation is to reach an agreement on Lisa’s
 working hours that meets both side’s needs.

								
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