商务英语presentation

商务英语presentation

Chapter6 closing the negotiation谈判的终局阶段

Introduction:

After the preparation, bidding and bargaining comes the closing period of negotiation. To reach an agreement the parties have to experience the two phases of making the deal and formally signing the contract. Through the bargaining process, both parties are gradually agreeing on some points and they are trying to make the deal from their own perspective. Once the agreement is settled, the contracts have to be written out and the economic contract should be signed in a formal way. This chapter discusses some points of closing the negotiation, introduces some tactics towards agreement, gives some tips on contract signing and negotiation summary. In this chapter you’ll learn:

Who makes the decision to close;

When it is time to close;

Tactics towards agreement;

Tips on contract signing;

Summary of the negotiation.

6.1 closing the deal 结束谈判

6.1.1 who makes the decision 谁来作决定

The difference between a successful and an unsuccessful negotiator is the ability to close a deal when it has reached its maximum level of distributing “enough”among all participants. The deal is best closed when the agenda has been exhausted.

Buyers usually have the say as to when a deal will be closed, but they can be encouraged to do so by savvy sellers. This is why every sales force in the world has its “closing specialist”whose job is to convince the buyer that “enough”has been had and it’s time to transact the deal. International negotiations differ only in the fact that the buyer/investor is usually much better informed than a standard customer. Both buyer and seller have an equal chance to close the deal, and the more proactive the decision maker is, the greater chance of controlling the process he’ll have.

6.1.2 when is it time to close 什么时候结束To determine if it’s time for closure, here are some questions to ask either directly or indirectly:

1)Have all points of the agenda been discussed?

2)Have the technical aspects of the deal been reviewed?

3)Have the local and international laws applicable to the

deal been researched?

4)Are all active parties to the deal logistically capable of

performing their functions?

5)Is the time line set for the deal realistic?

6)Do all parties recognize the short and long-term

consequences of the deal?

7)Are all parties in agreement as to the language and terms

of the deal?

8)Do all the parties to the deal trust each other?

9)Do all potential signatories have the requisite authority to

act on their company’s behalf?

Sometimes the appropriate response to an offer laid on the negotiating table is “no”. Declining a deal, and doing so in the proper manner, is sometimes the Silver Medal of international business, not ideal, but respectable. Declining the deal must be done with the greatest diplomacy because this potential for future dealings is very important. You may have no intentions of ever dealing with these particular counterparts in the future, but maintaining your reputation within the international business community for levelheaded dealings is important.

6.2 tactics towards agreement 达成协议的策略

6.2.1 recessing 休会

By recessing we mean taking a short break during which each party moves out of the negotiation forum to reconsider the progress of the negotiation, and to reconsider its own position; or breaking off until a later session. Recessing is such an important device that the method of using it deserves to be examined. When do we use it? How do we arrange it? How do we restart?

At what rime should we use our recess?

1.At the end of a phase in the negotiations. That is:

●when exploration is completed, before the start of the

bidding;

●after bids have been tables, before getting down to

bargaining and

●If possible at the time when shape of settlement

becomes clear.

2.Before issue identification. It is strongly advocated to

open negotiations in a manner designed to breed co-operation to mutual advantage. But this strategy needs to be checked before becoming too deeply embroiled. If in doubt, take a recess.

3.When nearing an impasse. As long as we aim towards

agreements, such a recess can be used to look for means

together to tackle the problem that is facing the parties in their negotiation.

Under these conditions, great advantages can be gained from using the recess not for the parties to separate but for the parties to mix. Sub-groups of technical people, commercial people and financial people from either side are aiming to obtain some constructive move for the negotiations as a whole.

4、team maintenance needs. When the members of the party

need to review their effectiveness as a team.

5. Breaking a trough. When concentration has lapsed and

needs regenerating.

What is the recommended procedure to get a recess?

1.State the need for a recess. “I think it would help our

joint progress if we took a short recess now.”

2.Summarize and look forward. “we’re seeking to find

ways to agree on the price/discount issues, and I suggest that we both look to see if we can see new ways to cope with the issue.”

3.Agree on the duration of the recess. “…Would fifteen

minutes be agreeable?”

4.Avoid fresh issues. If others want to insert anything

further, ask them to wait until after the recess.

During the recess, the main items for consideration by a party will be obvious discussions about how to handle the next stage, calculations on matters that have been discussed, reviews of the team’s performance, or fresh plans for the rest of the negotiation.

After the recess, the meeting is re-opened with a miniature version of the steps that are taken to open a negotiation.

1.A few moments of ice-breaking, as we again attune our

wavelengths.

2.re-state the progress made on agreed plan

3.Confirm rest of agreed plan or suggest/agree changes to

it.

4.Re-opening statements, defining positions and interests as

they are now perceived and paving the way to further creative development.

Recessing is potentially a very influential device. Disciplined use can make it a device that helps us towards profitable co-operation.

6.2.3 setting deadlines规定最后期限

Defining the time by which a negotiation meeting must have

finished (“I am booked on the 11; 40plane”); or the deadline for a series of negotiations (“I’m instructed to offer this to ABC Company if we cannot agree before 14 March”). These are seen as threats; they can cause resentment and counter-aggression.

However, if the deadline is agreed upon by the two parties (not simply imposed by one of them)then the atmosphere becomes more collaborative. Contrast the first quotation above and the following:

“It would be a great help to me if we were able to conclude this meeting in time to catch the11:40 plane. Would it be all right with you if we aim to move at that speed?”

There are positive implications for setting a deadline for the negotiations. The setting of a deadline helps to concentrate the mind, the energy, the effort, and the speed of achievement.

There is, however, a negative influence if either party feels a deadline has been imposed too early.

6.2.3 full disclosure / the straightforward statement 摊牌

Literally, this means complete readiness to give to the other party all one’s information. In practice, there will always ne some elements people are unwilling to disclose and some other elements they are unable to disclose. We therefore have to interpret”full disclosure” as meaning the disclosure of 90 per cent of what we perceive.

There are some negotiators whose character is strongly inclined towards openness and frankness. This pattern of behavior can be highly productive, inducing the other party to respond and to cooperate. “Full disclosure” then becomes an advantage, providing that it is used in conjunction with all the skills of negotiation towards agreement. It is, of course, a fatal disadvantage when “full disclosure” is offered to others whose sole interest lies in their own advantage. The straightforward statement that one cannot offer the full price asked, or cannot afford to wait the full delivery time, if true, is constructive. It is an element of full disclosure and it enables the parties together to concentrate on the problem and to search for solutions.

The same tactic, “all I’ve got is 60 per cent…” can of course be differently used by one party to get independent advantage.

6.2.4 Lubrication/ The Golf Club 联络感情

Lubrication is an art. It may be more or less subtle. It is not necessarily the same as bribery. There are plenty of different ways of offering inducements to negotiators. In form and extent, the pattern varies from one region to another and it needs local expertise to manage the process. In some cultures lubrication is an essential ingredient from negotiating towards agreement. It is an ingredient the skilled negotiator must provide for, even when he himself is not the right person to handle it.

The Golf Club is a tactic to be used at times when the teams are reaching stalemate and progress is interrupted. The tactic is for the team leaders to agree to meet informally in some environment that encourages mutual trust and openness.

For many people that atmosphere of mutual trust and respect is found in the Golf Club. For Englishmen, it is found in the Gentlemen’s Club. For Finns, it is in the sauna. For Japanese, it is found in the bathhouse.

This tactic has positive advantages in refreshing the cooperative spirit between the parties, in enabling them to

recognize issues in common, and in providing time and opportunity for new initiatives to develop.

One disadvantage is that the team leaders are seen to be operating independently of their respective teams. But if used sparingly, it is a productive tactic.

6.2.5 the study group 各个击破

When the negotiations between teams get bogged down, it is then helpful to set up a sub-group. For example, when matters are reaching an impasse over delivery, then the production people from the suppliers can form a sub-group with one or two members of the purchasers to find means of resolving the delivery problem to their mutual advantage.

At the same time the main parties are freed to concentrate on other aspects of the negotiations or to give time to their other duties.

6.3 tips on contract signing 签约过程应注意的问题

When both sides have reached an agreement on the main items, it should have a written form of a contract or an agreement.

A contract is a written agreement between the two trading

sides in order to itemize the right and obligations of both parties. Once signed, it has legal force. Therefore we should pay close attention to the signing of contract, discuss every item quite seriously and in a very detailed way. The following are some tips on signing a contract.

6.3.1 the draft of the contract 合同文本的起草

After the two sides reach an agreement on the main items of the trading comes the drafting of the contract period. There is the problem of who will take the task of making the draft. Generally speaking, the side that makes the draft will be in a positive position of the whole deal, so the focus should be more on the side who makes the draft. If one side cannot control making draft, they should at least be involved with the other side for this process.

6.3.2 examination of the qualification of the contract signer and its trading items, scope and process 对签约人资格及交易条款、范围和过程的审查

A disqualified contract signer is surely a problem to the negotiation. It means the contract be signed is invalid. Therefore a thorough examination should be done to the contract signer. Find out whether the other side is eligible to do this deal, see his business licence, know his business

operating range and check his capabilities of undertaking business activities.

The trading items, scope and its process should also answer for the law. To ensure the validity of the contract it must go through legitimate format and perfect procedures. All the contracts that need specific procedures or the approval of a governing body must be reported for approval and the corresponding procedures need to be carried out for the contract to get signed.

6.3.3 Contract articles must be rigid and through

合同的条款必须严密、详细

For the sake of effective implementation of the contract, it is a must to give thorough stipulation of the main articles concerning the trading process or damages are very likely to occur. The main articles are items about the product quality, quantity, time and place of delivery, method of delivery, time limit of delivery and the liabilities against the contract or agreement.

In real practice there are many such cases of the damages caused by ambiguous contract articles. For example, a

restaurant signed a contract with a vegetable company. The contract includes only a few words, specifically, “Chinese cabbages of 20000kilograms”. Finally at the time of delivery, it turned out that half of the cabbages rotted during transportation. In this case, the buyer has to suffer all the damages because there is not a single word mentioned concerning the quality of goods in the contract.

6.3.4 the contract signing ceremony 合同的缔约或签字仪式For some important negotiation, especially international business negotiation, the location of the contract signing is important. The reason is that the signing site of the contract can normally decide which country’s laws are adopted to settle the disputes. According to international convention, the courthouse or arbitration organization could make the adjudication or arbitration based on the law of the country where the contract is signed should any dispute arise.