Types of Business Negotiation
so far as the types of business negotiation are concemed,we focus
on four areas to prepareyou for the fundamentals:sale of
goods/services,investment,technology transfers as well asbusiness
contract.
1.Sales of goods/services
Sales negotiation is an increasingly important part of the sales
process.Negotiation startsWhen a buyer and a seller are
conditionally committed to the sale.Negotiation generally resultsin
a Compromise between seller and buyer on price,i.e.'the seller
reduces and the buyerincreases the price from their starting
positions.
Due tO the status differences of the two parties,generally the
negotiator shall discuss theeXDOrt business on
the basis of analyzing the relation
between supply and demand ininternational
market,making proper strategic objective to achieve the desired
results.No matterin what Situation,the goal of the negotiators is
to provide/get the fight product in the right placeat the right
time at the right price.For the exporter,he must make sure that he
gets paid for theDroduct,and for the importer,he must be assured
that what he'11 get is exactly what he orders.
Tb aChieVe desirable results in a sales negotiation,one must
consider a variety of
factors:product,quality,quantity,packing,price,shipping,quotation,offer
and counter offer,insurance,payment,claim and arbitration,etc
2.Investment negotiation
The creation of ioint venture is probably the most widespread and
complex investmentnegotiations that exist nowadays.Here,we just
quote the negotiation of joint ventures as anexample of investment
negotiation.
Literally,setting up a ioint venture is a long and complicated
process that involves fourStageS:preliminary
investigation,pre—negotiation,negotiation and
implementation.TheDreliminary investigation covers the initial
approach to the market.This exploratory stage ISmainly a phase for
collecting information before acting.The pre.negotiation phase
includesmaking the first contacts with the company that could be a
partner,assessing the compatibilityof the two
parties'objectives,ascertaining if they have common views on market
strategy,C0nducting the feasibility study,and signing a letter of
intent.When the feasibility study hasbeen approved by the
authorities,the full negotiation call take place.At this stage the
partiesCOnCerned discuss everything necessary to set up and operate
the future joint venture,such asthe hghts and obligations of each
party,as well as the respective contribution of capital.
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