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单击此处编辑母版文本样式,第二级,第三级,第四级,第五级,*,*,*,单击此处编辑母版标题样式,International,Business Negotiation,1,Chapter5,Offer of international business negotiation,2,Teaching Objectives,After studying this module,you should be able to know:,1.What are inquiry and offer,；,2.Forms and basic contents of offers,3.Strategies for making offers,4.Who should make the first offer and defence for the first offer,3,Introduction,Offer,Strategies for making offers,4,1,2,3,Contents,Inquiry,4,Introduction:distributive stage-Inquiry and Introduction:distributive offer,Near the conclusion of the Information Exchange,the focus changes from the other side back to our own sides.Negotiators stop asking the other party what it wants and begin to state what they must obtain or what they are willing to give the other side.At this point they enter the Distributive Stage.,5,5.1 Inquiry,Either buyers or sellers can make inquiry about terms of a business deal.Usually,the inquiry made by the buyer is also called bid,and the inquiry made by the seller is also called selling inquiry.It is usually made by buyers to get information,such as price,quality,volume,packing,shipment,insurance,terms of payment,delivery date,inspection,arbitration and so on.,6,5.2 Offer,5.2.1 The definition of the offer,An offer or quotation is a proposal that is made to a certain individual or legal entity to enter into a contract,which is definite in its terms,and which indicates the offerors intent to be bound.,7,5.2.2 The basic conditions of an offer,(1)The offer shall be made to one or more specific persons,(2)Contents of the offer shall be sufficiently definite,(3)Time of validity or duration of offer,8,5.2.3 Forms of offer,(1)Oral offer,(2)Written offer,(3)Combination oral and written offer,9,5.3Strategies for making offers,5.3.1Getting your first offer ready,For every negotiation you plan to enter,your initial offer should stand on its own merit within the prevailing context surrounding the discussions.Entering the negotiations under false pretences or unfounded premises can prove costly or result in deadlocks.Make your first offer competitive in the eyes of the other party and be ready to defend it with valid arguments.,10,5.3.2 Dont be afraid to be aggressiveHow extreme should your first offer be?A research suggests that first offers should be quite aggressive but not absurdly so.Many negotiators fear that an aggressive first offer will scare or annoy the other side and perhaps even cause him to walk away in disgust.However,research shows that this fear is typically exaggerated.In fact,most negotiators make first offers that are not aggressive enough.,11,5.3.3 Should you make the first offer?,Yes,if you wish to take the initiative and set the tone of the discussions.In numerous studies sellers making a first offer have been found to achieve higher negotiated prices than buyers making first offers.Making the first offer anchored the negotiation in the favour of the sellers.,12,No,if you are not familiar with the market in which you are trying to do business.Making an offer without adequate information or a clear understanding of what the other side wants places you in a risky position.For example,having your first offer accepted means that you have underestimated the market.,13,5.3.4 Should you open high?,Yes,if you can justify the level of your offer.At this early phase of the discussions,any objections to your high offer should be dealt with through questions,not by making concessions.Your best approach to objections is to find out which part of your proposal is acceptable and which elements are considered objectionable.Only by acquiring this additional knowledge will you be in a position to justify your initial offer or eventually make a counterproposal.,14,5.3.5 Should you make a low offer?,Yes,in special situations.Skilled negotiators may make a low initial offer,near the bottom line not so much to get the business,but to be invited to the negotiations.In some industries and markets,your product is sold at a going price and at predetermined conditions,leaving you with little choice in setting your opening offer.When facing strong competition,your offer should be more or less in line with theirs.,15,How a first offer should be constructed,Although it is clear that first offers should be strong,negotiators should always guard against becoming so aggressive that they move outside the range of what would be acceptable to the other party.The fear that many negotiators have concerning the possibility that aggressive first offers may scare or annoy the other party to the extent that it would break off the negotiation is often highly exaggerated.It causes most negotiators to err on the side of being overly-cautious and therefore to forgo optimal agreements.,16,5.3.7 A defence against first offers,When a negotiator does not have the opportunity to make the first offer,their protection against anchoring lies in making an aggressive counter-offer firmly based on the other partys BATNA,r
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