How to conduct business negotiations?

With the rapid development of China's economy, especially after China's entry into wto, China enterprises and units are facing more and more international business negotiations. In business negotiations, because both sides want to maximize their interests, they often face conflicts of interest. This paper holds that understanding the characteristics of negotiations between businessmen in various countries and making full preparations for negotiations can prevent the intensification of these conflicts to a certain extent, and appropriate use of negotiation strategies can also avoid conflicts to a certain extent. When there is a conflict, we should distinguish people's problems from substantive interests, create a win-win solution, and solve the conflict of interests in negotiations with the help of objective standards.

Key words: preventing and resolving conflicts of interest in business negotiations. International business communication is an important part of international relations and the main theme of international communication in peacetime. With the promotion of China's market economy and the further expansion of its opening to the outside world, international business negotiations, as a prelude to business wars, appear more and more frequently in the economy. The so-called consultation, its general meaning refers to people's consultation in social life to meet their own needs and safeguard their own interests, and both sides can properly solve a certain problem. Someone once said: "Life itself is a series of endless negotiations", which is not unreasonable. Business negotiation refers to the negotiation of various trading conditions between the two parties in order to realize the transaction of a certain commodity or service. With the development of commodity economy, the extension of commodity concept is also expanding, including not only all labor products, but also capital, technology, information and services. Therefore, business negotiation refers to all forms of commodity transaction negotiation, such as commodity supply and demand negotiation, technology introduction and transfer negotiation, investment negotiation, etc. With the rapid development of China's economy, especially after China's entry into wto, China enterprises and units are facing more and more international business negotiations. Negotiation is a process of communication back and forth, with the purpose of reaching a common agreement on different requirements or ideas. Negotiation is a collection of situations, including communication, sales, marketing, psychology, sociology, self-confidence and conflict resolution. The ultimate goal of business negotiation is for both parties to reach an agreement and make the transaction successful. How to effectively avoid the deadlock in the negotiations and make the negotiations successful? When conflicts and contradictions arise, how to solve them? This article will discuss this. 1. Understanding the characteristics of businessmen from different countries is necessary common sense in international business negotiations. Negotiators in international business negotiations come from different countries or regions. Due to the different political and economic systems in different countries around the world, the historical and cultural traditions of various ethnic groups are very different, and the cultural background and values of businessmen in various countries are also obviously different. Therefore, their styles in business negotiation are also different. In international business negotiation, if you don't understand these different negotiation styles, you may joke and misunderstand, which is rude to others and may lose many chances of successful negotiation. If you want to live up to your mission and win in business negotiations, you must be familiar with the different negotiation styles of businessmen in various countries and adopt flexible negotiation methods. Below, we will only explain a few common businesses in international business negotiations. 1. Americans The United States is an important trading partner of China, and Americans are our common rivals in international business negotiations. They are cheerful, confident and decisive, do things simply and neatly, pay attention to reality and utility, and judge people by success or failure in everything, so they are straightforward in negotiation, pay attention to efficiency and pursue practical interests. Americans are used to discussing one by one according to the terms of the contract, solving one, advancing one, and shortening the negotiation time as much as possible. They are very good at bargaining and win with wisdom and strategy. They will make reasonable statements, from the domestic market to the international market trends, and even the mentality of end users, to persuade the other party to accept their price requirements. When negotiating a project, Americans not only discuss the quality specifications, price, packaging, quantity, delivery date and payment terms of the project, but also include the project from design to development, production technology, sales, after-sales service and what they can do for better cooperation between the two sides, thus reaching a package deal. When negotiating with Americans, we should avoid indirect expression. We must be clear about right and wrong. If in doubt, ask clearly, otherwise it will easily lead to conflicts of interest between the two sides and even lead to a deadlock in the negotiations. 2. Japanese people are deeply influenced by China's traditional culture, and the Confucian moral consciousness has been deeply deposited in the hearts of Japanese people, which is reflected everywhere in their behavior. Japan is an island country with scarce resources, dense population and a sense of national crisis. This makes the Japanese develop an enterprising, hard-working character, and always consider the long-term impact. On the stage of international business negotiation, they are cautious, polite, patient and confident. They pay attention to etiquette, bargain politely, pay attention to the establishment of harmonious interpersonal relationships and attach importance to the quality of goods. Therefore, it is necessary to meet the guests at the airport when they arrive, have dinner with them and make friends after the negotiation, which can avoid conflicts to some extent. 3. Koreans In the past ten years, the trade between China and South Korea has grown rapidly. South Korea is based on "trade", and Korean businessmen have accumulated rich experience in long-term trade practice, often gaining the upper hand in trade negotiations that are not conducive to themselves, and are called "strong negotiators" by western countries. Before the negotiation, they always make full consultation and preparation. In the process of negotiation, they pay attention to etiquette, create a good negotiation atmosphere, and are good at using negotiation skills skillfully. When dealing with Koreans, we must send experienced negotiators, make full preparations and be flexible to ensure the success of the negotiations. Overseas Chinese businessmen overseas Chinese are distributed in many countries in the world. They have a strong local concept, work hard, attach importance to faith and cherish friendship. Because of their different experiences and environments, their negotiation habits are different from those of locals and Chinese mainland people. They are decisive, resolute and good at bargaining, and most of them are negotiated by the boss himself. Even if the agent or employee comes forward at the beginning of the negotiation, the boss will make the final decision. So it is very important to know the boss's personal situation and impress him with true feelings. What has been described above is only the main negotiation styles of major trading countries or regions in the world. It is important that we should learn from them. Of course, with the rapid development of economic integration and communication in today's world, businessmen from various countries have frequent contacts, mutual influence and complement each other, and some businessmen's national styles are not very obvious. Therefore, we should not only be familiar with the differences of negotiation styles between businessmen in different countries and regions, but also adjust our negotiation methods according to the temporary situation in actual business negotiations in order to achieve the expected purpose and achieve the success of business negotiations. Second, making good preparations before negotiations is an effective means to prevent conflicts from intensifying. The situation at the negotiating table is changing. If negotiators want to affect the development of negotiations in complex situations, they must be fully prepared. Only by making full preparations can we be flexible in the negotiations and avoid the intensification of conflicts of interest in the negotiations. Due to the wide range of international business negotiations, there is a lot of work to be prepared, which generally includes the analysis of the negotiators themselves and their opponents, the composition of the negotiating team, the careful formulation of the negotiating objectives and strategies, and the simulated negotiations in advance if necessary. 1. Know yourself, don't fight unprepared. In the process of negotiation preparation, negotiators should fully understand the opponent's situation while making a comprehensive analysis of their own situation. Self-analysis mainly refers to the feasibility study of the project. The understanding of the opponent's situation mainly includes the opponent's strength (such as credit standing), the policies and regulations of the country (region) where the opponent is located, business customs, local conditions and customs, negotiators of the negotiating opponent, etc. At present, there are many cooperation misunderstandings and investment loopholes in Sino-foreign joint venture projects, and even a few fraudulent acts by foreign businessmen are largely caused by Chinese personnel's insufficient understanding of negotiating partners. We have explained this point in detail before, so I won't repeat it here. 2. Choosing high-quality negotiators International business negotiation is a strength contest between negotiators of both sides to some extent. The effectiveness of negotiation often depends on the knowledge and psychological quality of negotiators. Because the factors involved in international business negotiation are extensive and complicated, it is very important to be familiar with relevant knowledge. Usually, in addition to the necessary professional knowledge of international trade, international finance, international marketing, international commercial law, negotiators should also dabble in psychology, economics, management, financial knowledge, foreign languages, business customs and habits of relevant countries, and engineering technology related to negotiation projects. A more comprehensive knowledge structure helps to build the confidence and successful background of negotiators. In addition, as an international business negotiator, he should also have a psychological state full of self-confidence, determination and adventurous spirit. Only in this way can he not bow his head in the face of difficulties, not look back in the face of risks, and face up to setbacks and failures and embrace success and victory. Because international business negotiation is often a confrontation between groups, relying on the rich knowledge and skilled skills of the negotiators themselves may not be able to reach a happy ending, so it is necessary to choose the right people to form a negotiation team to negotiate with their opponents. The knowledge structure of negotiating team members should be complementary, so as to solve all kinds of professional problems with ease, help improve negotiation efficiency and reduce the pressure of the main negotiator to some extent. 3. Draw up the negotiation goal and define the final goal of the negotiation. An important part of preparation is to set the limits of your concession. The problem often encountered in business negotiations is the price problem, which is also the focus of interest conflict in negotiations. If you are an exporter, you should set the lowest price; if you are an importer, you should set the highest price. Before the negotiation, both sides should set a bottom line, beyond which the negotiation is impossible. The determination of this bottom line must be reasonable and scientific, and should be based on investigation and study and actual situation. If the exporter sets the target too high or the importer sets the price too low, there will be fierce conflicts in the negotiations, which will eventually lead to the failure of the negotiations. As an exporter, your quotation should be between the lowest price you can accept and the highest price you think the other party can accept. It is important that your quotation be realistic, credible and reasonable, and urge the other party to respond. A very favorable quotation is not necessarily the most suitable, it may send a negative message to the other party, making it difficult for him to trust you and adopt a more aggressive strategy. When you determine the price, you should consider each other's cultural background, market situation and enterprise management. In some cases, you can make some concessions quickly after making an offer, but many times this style seems to be not serious enough to establish a good business relationship. Therefore, the price must be cautious, leaving enough room for choice. 4. Develop negotiation strategies. Every negotiation has its own characteristics, which requires specific strategies and corresponding tactics. In some cases, the negotiator who gives in first may be considered to be in a weak position, which leads to the other side exerting pressure to get more concessions; However, in another environment, the same action may be seen as a signal of cooperation that needs to be reported. In international trade, adopting cooperative strategy can make the two sides establish harmonious business relations in the transaction, make the negotiation successful and benefit all parties. But pure cooperation is also unrealistic. When the other side seeks the best interests, it will adopt some competitive strategies. Therefore, the strategy of combining cooperation and competition in the negotiation will promote the smooth conclusion of the negotiation. This requires us to make all kinds of strategic plans before the negotiations, so as to improvise. You need to plan ahead and make concessions when necessary. Calculate the cost and determine how and when to make concessions. It is important to consider several alternative competitive strategies before negotiation. In case the other party thinks that your desire for cooperation is weak, or the other party is unreasonable and aggressive, you can make additional concessions by changing your negotiation strategy. Third, the proper use of negotiation strategies can also avoid conflicts to some extent. The direct purpose of negotiation is to obtain an agreement or contract satisfactory to all parties. We call those who negotiate with us negotiating opponents. There is indeed a confrontational relationship between the two sides to maximize their own interests, but more importantly, there is a cooperative relationship, which is a temporary confrontation for cooperation. Therefore, in the negotiation, we should use some negotiation skills appropriately to avoid strong conflicts as much as possible. The deadlock in the negotiations is a failure for both sides. 1. In the negotiation process, both rigidity and softness should be combined, and the negotiators' attitude should be neither too tough nor too weak. The former is easy to stab each other and lead to the breakdown of the relationship between the two sides, while the latter is easy to be controlled by others. The strategy of combining rigidity with softness is more effective. In the negotiation, some people play the role of "red face" and take a tough stance, while others play the role of "white face" and take a moderate attitude. The "red face" is the lion's big mouth. He dares to stab the sensitive parts of the other side without mercy, and will not give in if he turns red. The "white face" has a kind attitude and gentle language, leaving room everywhere. Once there is a deadlock, it is easy to mediate. 2. Procrastination In trade negotiations, sometimes you will meet a tough and aggressive opponent who will show his superiority in various ways. For such negotiators, it is often very effective to adopt the strategy of delaying the engagement and pretending to play the game, that is, through several rounds of tug-of-war, the arrogant negotiators feel tired and bored, and gradually lose their motivation, while changing their negotiating position from passive to offensive, and then waiting for their opponents to be exhausted. 3. Leave room for negotiation. If you make a request to the other party, even if you can satisfy it all, you don't have to tell the whole thing at once. On the contrary, you should agree to most of its requirements first, leaving room for bargaining. 4. Let the other party speak first and explain all the requirements. After listening patiently, we will seize its flaw and then launch an attack to force it to submit. Sometimes you can make concessions on local issues first in exchange for concessions on major issues. 5. According to the situation of the negotiating opponent, seduce him with interests, give him a small favor, and urge him to make concessions or finally reach an agreement. Inviting guests to dinner, sightseeing and giving gifts are common in social life, but they are actually sending friendly signals to each other and are a subtle lubricant. 6. Be considerate of each other. In the negotiation, it is forbidden to make too many demands, ask exorbitant prices or bargain at will, which makes the negotiation full of gunpowder and hostility. Both sides of the negotiation should be considerate and considerate, so that the negotiation can proceed smoothly and achieve a happy result. IV. Resolution of Conflicts of Interest in International Business Negotiations Because both sides want to maximize their own interests in the negotiations, although we can avoid the deadlock and eventual breakdown of the negotiations to a certain extent, sometimes conflicts of interest are inevitable. At this time, only by taking effective measures to solve it can the negotiations be successfully completed and realized. 1. The basic principle of dealing with conflicts of interest-to distinguish between people's problems and substantive interests. Conflicts of interest in negotiations often lie not in objective facts, but in people's different ideas. In business negotiations, when both sides hold their own opinions, both sides often consider problems according to their own mentality, which is the deadlock in negotiations. In the negotiation, if the two sides disagree, we can try to solve the problem in the following ways: (1) We might as well consider the problem from the other side's standpoint. (2) Don't take yourself as the center to infer each other's intentions. (3) Discuss each other's views and opinions. (4) Find some action opportunities that surprise the other party to resolve conflicts. 5] Be sure to make the other party feel that they are involved in the whole process of reaching an agreement through negotiation, and the agreement is a reflection of the ideas of both parties. When an agreement is reached, we must save face and respect each other's personality. Considering the problem from another angle is probably one of the most important skills in the negotiation after the conflict of interest occurs. Different people look at problems from different angles. People tend to look at facts with established views, and often reject views that are contrary to themselves. Exchanging different views and opinions and thinking from each other's standpoint does not mean that one party can solve the problem along the other's way of thinking, but this way of thinking can help you find the crux of the problem and finally solve it. 2. The key to deal with the conflict of interests between the negotiators is to create a win-win solution. Many people have done such an intelligence test when they were young: If you have a biscuit, how do you share it with your sister fairly? The answer is that I divide it into two parts first, and the standard of division is that I think there is nothing to lose by getting either one, and then let my sister choose. This is a typical win-win situation. Just like the answer to this puzzle, the key to solving the conflict of interest lies in finding a win-win solution. The result of negotiation is not "you win and I lose" or "you lose and I win". The two sides of the negotiation must first establish a win-win concept. The result of a negotiation should make both sides feel "winning". What kind of negotiation means, methods and principles are adopted to achieve the negotiation results beneficial to all parties, which is the essential pursuit of business negotiation. Therefore, in the face of the conflict of interests between the two sides, negotiators should pay attention to and try to find out the real interests of both sides, and on this basis, use some methods recognized by both sides to seek the realization of the greatest interests. A win-win situation should exist in most negotiations. Creative solutions can meet the needs of both parties. This requires that both sides of the negotiation should be able to identify the interests of both sides. Every negotiator should bear in mind that every negotiation has potential benefits; * * * Common interests mean business opportunities; Emphasizing the consistency of interests can make the negotiations smoother. In addition, negotiators should also pay attention to whether there are compatible interests between the two sides. In order to effectively find a win-win solution, we can start from the following aspects: (1) separate the creation of the solution from the judgment of the solution. Negotiators should make a plan first, then make a decision, and don't jump to conclusions about the solution. A more effective method is to use the so-called "brainstorming" group discussion, that is, the members of the negotiating team stimulate each other's ideals and generate various ideas and attention, instead of considering whether these ideas are good or bad and whether they can be realized. Then gradually evaluate the creativity and ideas, and finally decide the specific plan for negotiation. In the case that the two negotiating parties are long-term partners, the two sides can also hold such group discussions together. (2) Give full play to the imagination and expand the range of choices. In the above group discussion, the most common mistake made by participants is that they feel that everyone is looking for the best solution. In fact, when the stage of stimulating imagination is not to find the best solution, what we need to do is to maximize the negotiation options. At this stage, negotiators should analyze the same issue from different angles. You can even reach different agreements on some issues and contract terms. If a permanent agreement cannot be reached, a temporary agreement can be reached; Can't reach an unconditional agreement, can reach a conditional and so on. (3) Think of each other and make it easy for them to make decisions. If you can make the other party feel that the solution is both legal and fair, and fair to both parties, then it will be easy for the other party to make a decision and your solution will be successful. 3. With the help of objective criteria, finally resolve the conflict of interest in the negotiation. During the negotiation, after understanding each other's interests, the two sides racked their brains to find various mutually beneficial solutions for both sides, and also attached great importance to developing relations with each other. But the thorny conflict of interest is still not so easy to solve. In this case, the two sides are deadlocked on a certain interest issue and do not give in to each other, even if they emphasize "win-win", it will not help. At this time, the application of objective standards plays a very important role in business negotiations. For example, when the two sides cannot reach an agreement, they can refer to some objective standards, such as market value, replacement cost, depreciation is book value and so on. This method is very effective in the actual negotiation, and can reach the negotiation result quickly without hurting the harmony. The conflict of interest on the price issue can be solved in this way, and other issues can also be solved by objective standards. But one thing must be grasped in the negotiations, that is, the basic principles should be fair and effective, scientific and have precedents. In negotiations, negotiators should also pay attention to the following issues when applying objective standards: (1) Establishing fair standards. In business negotiations, we should follow general objective standards: market value, scientific calculation, industry standards, cost, effectiveness, reciprocity principle, etc. The choice of objective standards should be independent of the wishes of both parties, fair and legal, and feasible in theory and practice. ⑵ Establish a fair interest division method. For example, commodity trade is priced by the futures market and traded on a basis; In an investment enterprise with two shareholders holding equal shares, the appointment of the general manager adopts the term rotation system. (3) Limit the division of negotiation interests to finding objective basis. During the negotiation, ask the other party: What is the theoretical basis of your proposal? Why is this price? How did you work out this price? (4) be good at explaining your own reasons and accept the objective basis of the other party's reasonableness and fairness. Be sure to convince your opponent with strict logical reasoning. The other party thinks that the standard of fairness must be fairness to you. Limit each other's wild speculations with the standards you agree with, and even two different standards can seek compromise. Don't give in to pressure from the other side. Severity from the negotiating opponent can be varied: for example, bribery, ultimatum, using trust as an excuse to make you yield, throwing uncompromising fixed prices, etc. But in either case, let the other party state the reasons and explain the objective standards to be followed.