Business Negotiation
Narendra Kumar Singh
0952523
Turnitin Id: 6760657
BUSINESS NEGOTIATION
‘‘Negotiation is a process of interaction by which two or more parties who consider they need to be jointly involved in an outcome, but who initially have different objectives, seek by the use of argument and persuasion to resolve their differences in order to achieve a mutually acceptable solution’’. (Fowler, 1999)
Any negotiation process has various stages. The example explained below covers every of this stages within the negotiation process. It also shows the Preparation stage and Implementation stage which are very important to get a contract.
Stages during negotiation
1) Defining or exploration the issue, 2) debate or Argument, 3) proposal, 4) bargaining and 5) Agreement or settling the deal. (Fowler, 1999) The particular negotiation example also shows why understanding cultural differences are crucial and how keeping patient while dealing with Chinese people will land you to an important contract.
The Chinese brewery Guangdong which was owned by Dr.Pasteur Lai invited Australian chemical engineering consultant Peter Benjamin for a business proposal. Lai who was the son of formal Chinese health minister knew that Benjamin was the leader brewery designer and builder in Australia.
Benjamin was very serious about his work so he started doing initial preparation. He asked few questions from Chinese party regarding brewery capacity, specification, budget and business plan. After getting the response he felt it as potential deal to build Guangdong region’s biggest brewery a $20 million project, so he headed to china to discuss further.
After the initial preparation he came to know that no one can compete with china against cheap & local rivals. So, if they called him that means they are not getting the required technology they are looking for. He also learned that Chinese party were new in this business so they didn’t had much knowledge and experience in designing
0952523
Turnitin Id: 6760657
BUSINESS NEGOTIATION
‘‘Negotiation is a process of interaction by which two or more parties who consider they need to be jointly involved in an outcome, but who initially have different objectives, seek by the use of argument and persuasion to resolve their differences in order to achieve a mutually acceptable solution’’. (Fowler, 1999)
Any negotiation process has various stages. The example explained below covers every of this stages within the negotiation process. It also shows the Preparation stage and Implementation stage which are very important to get a contract.
Stages during negotiation
1) Defining or exploration the issue, 2) debate or Argument, 3) proposal, 4) bargaining and 5) Agreement or settling the deal. (Fowler, 1999) The particular negotiation example also shows why understanding cultural differences are crucial and how keeping patient while dealing with Chinese people will land you to an important contract.
The Chinese brewery Guangdong which was owned by Dr.Pasteur Lai invited Australian chemical engineering consultant Peter Benjamin for a business proposal. Lai who was the son of formal Chinese health minister knew that Benjamin was the leader brewery designer and builder in Australia.
Benjamin was very serious about his work so he started doing initial preparation. He asked few questions from Chinese party regarding brewery capacity, specification, budget and business plan. After getting the response he felt it as potential deal to build Guangdong region’s biggest brewery a $20 million project, so he headed to china to discuss further.
After the initial preparation he came to know that no one can compete with china against cheap & local rivals. So, if they called him that means they are not getting the required technology they are looking for. He also learned that Chinese party were new in this business so they didn’t had much knowledge and experience in designing