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AnswerKeysChapter11.TheBATNAandReservationpriceoftherentingnegotiation.(1)BATNA:Inthiscase,ifyoufailtonegotiatewiththelordonnotraisingtherent,yourBATNAistoendtheleaseandmovetoanewapartment.Thisalternativeisbasedontherealityofthesurroundingapartmentrentalmarket(similarapartmentscanberentedfor2,000yuan).ToimprovetheBATNA,youcancontacttherentalagenttofindavailableapartmentsandgettoknowtheirrentalprices.Youcanalsofigureouttheexpensesofmovingbycontactingthemovingcompany.Ifyouhavealreadydeterminedwhichnewapartmenttorentandevencompletedtheplantomovebeforenegotiatingwiththelandlord,youhaveaveryclearandworkableBATNA,andyouwillbemoreconfidentandcomfortableinsubsequentnegotiations.ReservationPriceTherentalpriceintheneighborhoodis2000yuanpermonth.Themovingexpenseis1200yuan.Therefore,thetotalexpenseofyourBATNA,torentandmoveintoanewapartmentforoneyear,is¥1200+¥2,000x12=¥25,200.Inthenegotiation,tokeepthetenant,thelandlordmustlowertherentuntiltheyearlypriceislessthantheBATNA.(¥25,200).25,200÷12=¥2,100.Therefore,themonthlyrentof$2,100istheRPforthisnegotiation.FourStepstoDeterminetheBATNAandReservationPrice(1)ListAlltheAlternativesIfNoAgreementIsReachedThroughBrainstormingInthiscase,ifthenegotiationfailed,therearetwoalternativesasfollows:AlternativeA:refusethecompany’sdispatchandcontinuethepreviousjob.AlternativeB:quitandsearchforanotherjobWecanlistmorealternativesthroughfurtherconsideration.Thetwolistedherearejustforreference.(2)EvaluateAlltheAlternativesandFindtheBATNANegotiationsareliabletofail,whichmeansthatwemustbepreparedwithalternativesandevaluatethem.Whenevaluatingthesealternatives,youshouldnottellwhichoneisgoodandpracticalbasedonyoursubjectiveexpectationsbutonanobjectiveanalysisofthecurrentsituationsandsurroundings.TheevaluationofAlternativeA:Mr.Wanglearnedfromthesimilarexperiencesofothercolleaguesthatifherefusedthecompany’stransfer,hewouldprobablylosehisfuturedevelopmentopportunitiesinthecompany,whichwouldbeequivalenttogettinghissalarydownto55,000yuan.TheevaluationofAlternativeB:Mr.Wangfoundthatinthecurrentjobmarketofhisindustry,therewasahighprobability(70%)thathecouldfindasimilarjoblocallywithanannualsalaryof65,000yuan.Atthesametime,healsohada15percentchanceofgettingahighersalaryinhisnewjob(70,000yuan)anda15percentchanceofgettingalowersalaryinhisnewjob(55,000yuan).55000×0.15+70000×0.15+65000×0.7=64,250yuan.Therefore,ifMr.Wangdecidestoquithisjob,hisnewsalarywillbearound64,250yuan.(3)FigureOutandImprovetheBATNAMr.Wangwouldearnonly55,000yuanifherefusedtobetransferredfromhiscurrentjob.Ifhequitandfoundanewjob,hisnewjobwouldbe64,250yuan.SoAlternativeBisMr.Wang’sBATNA:toquitandfindanewjobinthecity.TofurtherrefineWang’sBATNA,hecanstartsendingresumestofavoredlocalcompaniesandtrytoattendinterviews.IfMr.Wangcangetanofferwithasalaryof64,250yuan(oreven70,000yuan)fromanotherlocalcompany,hewillhavestrongernegotiatingpowerwhennegotiatingwithhisbossaboutthetransfer.(4)FigureOuttheReservationPriceAftercarefulweighing,Mr.Wangfoundthattheextracostofmovingtoanothercitywouldbearound3,000yuan.Itmeansthatonlyifthecompanyraiseshissalarybyatleast3,000yuanbeforeheacceptsthetransfer.Therefore,thesalarythatMr.Wangcangetinthejobmarketatpresentplusthecostofmovingout,namely64250+3000=67250yuan,istheRP.Ifthenewjobofferslessthan67,250yuanintotal,heshouldrejecttheofferandlookfornewone.Fromtheabovefoursteps,Mr.WangcanfigureoutthatBATNAistoquitthejobandfindanewonelocally.TheRPis6,7250yuan.UsetheKnowledgeofthisChaptertoAnalyzetheChanyuanTreaty.BATNAForbothSongandLiaointhisnegotiation,theBATNAistocontinuethewar,i.e.oncethenegotiationfails,theonlychoiceistocontinuetofight,whichneithersideiswillingtochoose.ForLiao,consideringthattheLiaoarmywasweakerthantheSongarmyanditssupplieswererunningout,thedisadvantageoftheLiaoarmywouldbecomemoreandmoreobviousastimewentby.Thecostofcontinuingthewarwashighandthechanceofwinningwaslow.ForSong,EmperorZhenzongandsomegovernmentofficerswereafraidoftheenemyandworriedaboutlosingthewar,andtheyhopedtonegotiatepeaceassoonaspossible.WithbothsidesfindingtheirBATNAunattractive,reachinganagreementbecameagoalthatbothsideswantedtoachieve.CoreInterestsThecoreinterestofSongistoendthewarassoonaspossibletorestorethestabilityandpeaceofthecountry,especiallyalongtheborder.Liao’scoreinterestistogeteconomicbenefits.TheChanyuanTreatysatisfiedthecoreinterestsofbothsides,theSongandLiaonolongerhadanylarge-scalewarforahundredyears,andtheyexchangedcourtesiesanddiplomaticmissions.Also,SongandLiaostartedtotradewitheachother,whichpromotedeconomicdevelopmentandculturalexchangesforboththeHanandKhitanpeople.Theborderwasinarelativelypeacefulstateandthecommonpeoplenolongerhadtosufferfromthewar.TheSongStatesavedagreatnumberofwarexpensesandgainedconsiderableprofitsfromthefreetradebetweenthetwocountrieseveryyear.Chapter2(1)TheBATNAtothisnegotiationistocontinuetouseyouroldbikeforoneyearandtospend$360oncareforyouroldbike,i.e.,youwillchoosetocontinuetouseyouroldbikewhenyouandtheusedbikedealercannotreachanyagreement.(2)supposePisthepurchasepriceagreedbetweentheusedcardealerandyouforyouroldcar,thepriceyouwillpayforyournewmountainbikeis:700-P.BasedonyourBATNA,theRPshouldbethemaintenancepriceoftheoldcar($360),i.e.,youcanconsideracceptingtheusedcaragent’sofferaslongasthepriceyoupayforthenewcar(700-P)islessthan$360.Therefore,whenthepurchaseprice(P)ishigherthan$340,youcanagreetotheoldcarpurchaseandbuyanewcar;otherwise,youmaychoosetousetheoldcarinstead.TheChinesedelegatessentacartopickuptheMalaysiandelegatesandofferedthemMoutaiwineasatreatfortheVIPs,whichreflectedthesincerityoftheChinesedelegates.However,itisclearthattheChinesedelegatesdidnotdoagoodjobinpreparingforthenegotiationsregardingthepartof“knowingyourselfandyourrival”.First,thelackofunderstandingoftheopponentofthenegotiationledtotheactof“offending”theotherside.Muslimsarenotallowedtodrinkalcohol,buttheChineserepresentativetriedtopersuadetheothersidetodrinkalcohol.Therefore,theMaotaiwinemadetherelationshipembarrassing.Secondisthelackofunderstandingofthecultureofthetargetcountry.Chinesecultureattachesmoreimportancetopunctuality,anditisvitaltokeepthetimeappointed.However,Malaysiabelongstothecultureofflexibletime,sotheconceptoftimeisrelativelyweak.Beinglatebecauseoflingeringbeautydidnotmatterintheiropinion.Nonetheless,fortheuninformedChineserepresentatives,questioningthesincerityoftheMalaysiansideattheoutsethassetthestageforadeadlockinthenegotiation.Therefore,webelievethatitisessentialtobewellpreparedbeforethenegotiation,especiallyforcross-culturalones.Itisnecessarytohaveathoroughanddetailedunderstandingofthelanguagehabits,culturalcustoms,andotherinformationofthetargetcountrysothatyoursidecanadapttothesituationandconductthenegotiationwithease.(1)Thecompositionoftheotherparty’steamWhatisthecompositionoftheotherparty’snegotiatingteam?Howdotheyrelatetoeachother?Whatisthepositionofthenegotiatingmembersinthecompany?Howisdecision-makingpowerdistributed?Whatarethepersonalitiesofthenegotiators,anddotheyhaveanyparticularexperiencesorpreferences?(2)TheinterestsoftheotherpartyDotheotherpartieswantthecompanytobeacquired?Whataretheirmaininterests?Whataretheirnegotiatingobjectives,bottomline,andBATNA?(3)TheeconomicstrengthoftheopponentWhatisthemarketpositionoftheothercompanyintheoilindustry?Whatarethecurrentprofitsandliabilities?Whatisthereputationoftheothercompany,andwhatisitsbrandinfluence?(4)PoliticalandlegalbackgroundWhataretherecentdiplomaticrelationsbetweenChinaandIran?WhataretheIranianlawsandpoliciesoncorporateacquisitions?(5)RelationshipbetweenthepartiesWhatistherelationshipbetweenCompanyAandCompanyB,andhastherebeenanycooperationorcompetition?(1)Thisnegotiationisaproxynegotiationand,atthesame,timeaposition-basedtransactionalnegotiation.(2)Thetimefactorandtheinternationalcontext.Thebackgroundofrawmaterialshortage,inthiscase,ledtoagreaterdemandforrawmaterialsontheKoreanside,whichtoacertainextentputtheKoreansideinaweakpositioninthenegotiation,andtheChineseagentdominated;atthesametime,theChinesesidehadafullunderstandingofthetimerequirementforCompanyCtoproducetheproduct,andCompanyC,asthetime-strappedparty,hadtomakeconcessionstoreachasmoothagreement.(3)ThesuccessfulcompletionofthenegotiationsbyCompanyAwas,toalargeextent,duetothethoroughpreparationsmadebyCompanyAbeforethenegotiations.AsCompanyAhaddonedetailedresearchonCompanyCanditsmarket,amorecomprehensivegraspoftheinformationrelatedtothisnegotiationbyCompanyC,especiallythetimeandrawmaterialrequirementsofCompanyC,andwasproperlypreparedintermsofassessingitself,evaluatingitsopponentandanticipatingthenegotiationsituation.ThenegotiationsweredominatedbyCompanyAandwereveryfavorabletothecompletionofCompanyB’snegotiations.5.(1)“Knowyourself”:DukeWenofJinandDukeMuofQinbesiegedthestateofZheng,andthestateofZhengwasindangerofdemise.Therefore,theprimaryobjectiveofthenegotiationwastopersuadethestateofQintogiveupattackingthestateofZheng.(2)“Knowyourenemy”:ZhuzhiwuknowswellaboutthesurroundingsofQin.Forexample,heanalyzedthatafterdestroyingthestateofZheng,thestateofQinonlyaddedterritorytothestateofJin.Therefore,startingfromthecompetitiverelationshipbetweenQinJinandChina,hedismissedtheideaofanalliancebetweenQinandJintoattackthestateofZheng.Meanwhile,ZhuZhiwuisveryfamiliarwiththepersonalexperienceofDukeMuofQin.Forexample,thedukeoncegavefavortoDukeWenofJin.JinWengongpromisedtogiveQinJiaoandXia.However,DukeWenofJincrossedtheriverinthemorningandbuiltafortificationintheeveningtoguardagainstthestateofQin.AlloftheabovetacticsofZhuzhiwuarecloselyrelatedtohislong-terminvestigationandunderstandingofthestateofQinbeforethenegotiation.(3)Particularityofthenegotiationscenario:thenegotiationbetweenZhengandQinisbasedoninterests,andbothsidesstartfromdeepercommoninterests.ZhuZhiwufullyunderstoodtheinterestsofthestateofQinandputforwardasolutioninlinewiththecommoninterestsofbothsides.Itcanbeseenfromthisstorythatthenegotiationunderthissituationrequiresustoinvestigatetheinterestneedsoftheotherpartymoredeeplyinthepreparationbeforethenegotiation.Chapter3DistinctionsandlinksbetweendistributiveandintegrativenegotiationDistinctions:Object:Distributivenegotiationfocusesmoreonthedistributionofexistingfixedinterests,whileintegrativenegotiationusesstrategiessuchasintroducingothernegotiationissues,payingattentiontodifferences,etc.,tobroadentherangeofnegotiatedinterests(擴大談判利益的范圍).Motive:Distributivenegotiationisdeemedasazero-sumgame(零和博弈),whereoneparty’sgainsmeantheother’slosses,wherebothpartiestrytomaximizetheirinterestswithinalimitedZOPAandtofeelouttheotherparty’sRP.Integrativenegotiationisbasedonmutualtrust,witheachsidefocusingontheother’sinterestsandseekingtoachieveawin-winsituation.Relationship:Distributivenegotiationismoreconcernedwiththeinterestsobtained,whileintegrativenegotiationtendstoseeklong-termdevelopmentandpartnership.Links:Eitherdistributiveorintegrativenegotiationinvolvesthedistributionofinterestsintheend.Pleasealwaysbearinmindyourpositionandcoredemands.2.SalarynegotiationstrategiesSetanRPandlookfortheBATNA.Beforethenegotiation,youshouldcomparetheothercareeropportunitiesatyourdisposalhorizontallyandsetyourRP,i.e.theminimumexpectedsalary,basedonthemarketsituation,companycharacteristics,andjobrequirements.Duringthenegotiation,youshouldsticktothebottomline.Whenyourbottomlineisbroken,youcanabandonthisnegotiation,assumingothercareeropportunitiesareavailable.Setfeasiblehightargets.Youshouldfindoutwhat’sgoingonintheindustry,andthesalarystructureofthecompany,andthussetahightargetthatcanbeaccomplishedandpresentyourneeds.Remembertoreinforcetherationaleofyoursalarywithfacts.Bringinmoreissues.WhentheZOPAissmallduetocostcontrolsandjobconstraintsofthecompany,otherissuescanbebroughtin,suchasrentalallowances,vacationtime,developmentopportunities,etc.3.AnswerKeysAsamemberofthemanagement,youshouldmakeeffortstoemphasizethecommongroundbetweentheparties,minimizedifferences,andthusfindcommongoalsforbothpartiesduringnegotiation,toensureasmoothexchangeofinformationandtounderstandtheneedsoftheotherparty.Facingthisconflict,themanagementcannegotiatewiththeunion,proposingthatthecompanywillnotadoptthearrivaldateasthecriterionfordividingpositionsandcalculatingseniority,instead,itwillre-divideallpositionsintothosethatrequireaperiodofworkintheoldplantandthosethatrequireimmediatemovementtothenewplant.Therefore,employeescanchoosetheirpositionsinadvance.Onceselected,theirsenioritywillbetransferredtothecorrespondingpositionsimmediately.4.AnswerKeys(1)Avoidfixed-pieperception.Inatensesituation,ChuLongknewthatinordertoconvincetheEmpressDowagerofZhao,hehadtomakeherunderstandthat“parents’loveforchildrenisfar-reaching”.Otherwise,ifChuLonghadstartedfromnationalinterestsasotherministers,EmpressDowager,outofherexcessiveindulgencetowardsLordChang’an,woulddefinitelyhaveputpersonalinterestsinoppositiontonationalinterests.Inthissense,thenegotiationwouldhavebecomeadistributiveone,withChuLongnotonlyreturningwithoutaccomplishinganythingbutalsomakingafoolofhimself.Therefore,toreachanagreement,ChuLongfirstgotridoffixed-pieperceptionandexploredtherealdemandsandinterestsofEmpressDowager.HechosetofollowEmpressDowager’srationalebytakingadvantageofherindulgencetowardsLordChang’anandmanagedtopersuadeherfromdifferentaspects.Buildtrusttoensurebilateralinformationexchange.ChuLongearnestlyaskedforhelpforhisyoungestson,ShuQi,tomakeEmpressDowagerempathizewithhim,thusdrawingheroutandgaininghertrust.Itworked.SheconsideredChuLongasa“confidant”whosharedthesameillness.Thissucceededinlayingasolidfoundationfornegotiationonthesubjectofparents’loveforchildren.(3)Focusoninterest.Thekeytoreachingawin-winagreementistofocusoninterests.WhentheotherministersnegotiatedwiththeEmpressDowagerofZhao,theydidnottakeintoaccountthefactorof“human”.Inotherwords,theydidnotconsiderwhattheEmpressDowagerofZhao,asamother,wasthinking:sendingLordChang’anoutwouldbetantamounttosendinghersontodeath.ThesuccessofChuLonglayinthathetookEmpressDowager’sconcernsintoaccountandmadehernoticeherpersonalinterestsbydoingso.Subsequently,ChuLongseizedtheopportunitytoexpresshisviewonlovingchildren,praisingherwisdominlovingherdaughter,theQueenofYan,inafar-reachingway,incontrasttohershortsightwhenlovingLordChang’an.Hefurtheranalyzedthereasonwhydescendantsoffeudalprincesfailedtoinheritthemantle,claimingthattheywereblessedwithhighstatusandsalaryaswellasabundanttreasuresyetlittlecontribution.HealwaysfollowedEmpressDowager’srationale,startedfromthefundamentalinterestsandfutureofLordChang’an,broughtingenerationsofdescendantsandothercountries,andthusinspiredandguidedherinawaythatcombinedfeelingsandreasons.HedidnotaccuseEmpressDowager’sindulgenceofheryoungerson,asotherministershaddone,instead,hecriticizedherfornotlovinghimenough.Therefore,EmpressDowagerlistenedtohimverywellandacceptedChuLong’sadviceunknowingly.Chapter41.Amongthethreenegotiationemotions(positive,negativeandrational),whichoneisthemostconducivetonegotiation?Pleasegiveyourunderstanding.A:Positivenegotiationemotionscanoftenplaythemostdrivingroleinthenegotiation,astheycanhelpbothpartiestobuildtrustandcreateaharmoniousnegotiatingatmosphere.Whenpeoplenegotiatewithanoptimisticandrelaxedattitude,theprocessisoftensmootherwithmorecreativity.Atthesametime,itpresentsagoodgoalandprospectforbothpartiesandimprovesexpectations.Therefore,positiveemotionsaremostlikelytoadvancethenegotiations.However,thisdoesnotmeanthatpositiveemotionalstylesneedtobeusedinallnegotiations.Negotiatorsshouldfindthemostsuitableemotionalstylebasedonthenegotiationsituation.2.Whatarethefiveconflictresolutionmodes?Howtodealwiththefivestylesinthenegotiation?Pleasegivetwoexamplestoillustrate.A:Thefiveconflictresolutionmodesare:competing,accommodating,avoiding,collaboratingandcompromising.Whendealingwith“competing”negotiators,wecanemphasizethecoredemandsofbothpartiesandusetheprincipleofreciprocitytofindasolutionthatcanmeettheinterestsofbothparties.Atthesametime,sticktoyourbottomlineandlistenactivelybeforeputtingforwardyourownproposal.Whenfacingthe“avoiding”negotiator,youcanasktheotherparty’sviewsonyourownplan,remindtheotherpartyofthepossibleseriousconsequencesofavoiding,andencouragetheotherpartytofindanintegratedsolutionthatcanavoidconflict.3.Whichtwoconflictresolutionmodesarereflectedabove?Arethereothermodeswhichcansolvethisconflict?A:Sofar,wehaveusedtwoconflictmanagementmodes:oneis“competing”,andtheotheris“accommodating”,bothofwhicharesomewhatunsatisfactory.Ifweadopt“compromising”-suchasopeningthewindowatcertaintimesandclosingthewindowatothertimes,anagreementmaybereached.Wecanalsotrythe“collaborating”mode,thatis,torepositionthedesktodifferentpartsoftheroomtoensurethatthecolleaguecangetfreshairandyoucanavoidfreezingyourself.4.UsetheknowledgeinthischaptertoanalyzewhichstrategicstyleZhugeLiangandLuSumainlyusedinthenegotiation.TheselectedtextmainlytellsthatZhouYusentLuSutoNanjuntoaskLiuBeiandZhugeLiangforJingzhou.ZhugeLiangtriedtopersuadehimsentimentallyandrationallyandusedadelayingtactic.LuSuhadtoreturntoZhouYuandreportthetruth.WhennegotiatingwithLuSu,ZhugeLiangmainlyusedarights-basedstrategicstyle.Focusingonrightsinnegotiationmeansthatnegotiatorstrytoresolvedisputesaccordingtocertainfairstandards.OnbehalfoftheEasternWu,LuSuaskedLiuBeiforJingzhou,relyingonthefairstandardthatEasternWudefeatedCaoCaoandsavedLiuBei.Therefore,theninecountiesofJingzhoushouldbelongtoEasternWu.WhileZhugeLiang’sfairstandardwasthattheninecountiesofJingzhoubelongedtoLiuJingsheng,anditwasreasonableforLiuBeitoassisthisson,LiuQi,inoccupyingJingzhouasanuncle,thusdenyingLuSu’sclaimthatJingzhoubelongedtoEasternWu.ZhugeLiangalsoletLuSumeetLiuQiandwouldassistLiuQiaslongashewasalive.Therearemanyfairstandardsinnegotiation,andthemoregenerallyacceptedfairstandardwillbemoreconvincing.Inthisstory,bothsidesemphasizedthattheyhadtherighttoownJingzhou.ButZhugeLiang’sstandardwasmoreacceptableandconvincing.Therefore,LuSucouldnotrefuteit,sohehadtocompromiseandagreethathewouldaskforJingzhouifLiuQidied.Chapter5Therearefivementalmodelsofnegotiation:hagglingmodel,cost-benefitanalysismodel,game-playingmodel,partnershipmodelandproblemsolvingmodel.Negotiators’mentalmodelshapestheirbehavior,andtheninfluencesthenegotiationprocess.Negotiatorscanchooseanegotiationmentalityaccordingtodifferentnegotiationscenarios.Amongthem,theproblem-solvingmodelisconsideredbymanyresearchersasthebestnegotiationmentality.Toacertainextent,“Businessisthesaltoflife”correspondsto“Dealingwithproblemsratherthanpeople”inprinciplednegotiationtheory.“Businessisthesaltoflife”comesfromthetwenty-fourthchapterofThreeKnight-errantsandFiveRighteousPersons:“Theruleinbusinessisthatfriendshipstillexistseventhoughthetransactionisnotachieved.Althoughthewoodhasnotbeensold,wineanddishesshouldbeprepared.”Itmeansthatalthoughnoagreementhasbeenreached,itwillnothurtthepeaceandhindertherelationshipbetweenthetwoparties.Itisconsistentwiththeprincipleof“Dealingwithproblemsratherthanpeople”intheprinciplednegotiationtheory.Thatis,inbusinessnegotiations,weshoulddistinguishbetweentheattitudetowardsnegotiatorsandtheattitudetowardstheissuesinvolvedinthenegotiations.Negotiatorsofbothpartiesshouldmaintainagoodworkingrelationshipandavoidbecomingemotionalorpersonalizingtheissuesinthenegotiationregardlessofwhetheraconsensuscanbereachedonthenegotiationmatters.Ofcourse,theissueof“people”isofteninevitableinnegotiation,suchasdeepmisunderstandingbetweenthetwoparties,mutualdistrust,oremotionsofoneparty.Negotiatorsshouldsolvetheseproblemsthroughanaccurategraspoftheperspectivesofbothparties,directcommunication,appropriateexpressionofone’sownfeelings,andafuture-orientedperspective,ratherthanmixing“people”with“problems”—forexample,refusingtoacceptawin-winagreementproposedbytheotherpartybecauseofdissatisfactionwithyouropponentsormakingexcessiveconcessionsbecauseoffearofthestrongemotionsoftheotherparty.Principlednegotiationtheorybelievesthatfocusingontheinterestsofbothparties,empathyandeffectivecommunicationcanleadtoagreements.Inthisstory,ChenZhendidnotimposehisownviewsonZhaoYangbutputhimselfinZhaoYang’sshoes.Intheend,hewasabletomakeZhaoYangunconsciouslyaccepthisownopinionsthroughhisreasoningandanalysis.Thiswayofcommunicationcaneffectivelyavoidtheotherparty’snegativeemotionsandcanalsogaintheunderstandingoftheotherparty,thusmakingthemmorereceptivetoourdemands.Inaddition,ChenZhencanfocusontheinterestsofbothparties,lookattheproblemfromtheotherparty’sstandpoint,analyzetheresults,andfinallycometotheidealsolution.Chapter6(1)Consumers’trustinsellersisdeterrence-basedtrust.Becausetheycanlodgeacomplaintoncesellersviolatetheregulationsonchangingorrefundinggoodsordeliverytime,andsellerswillbelegallysanctionedorhavetooffercompensation.(Theroleoftrustisanopen-endedquestionandreasonableanswersareallacceptable.)Investors’trustinfundmanagersofinvestmentconsultancyisknowledge-basedtrust.Becauseinvestorswillconductalotofbackgroundresearch,comparemanagers’performance,knowabouttheirinvestmentstylesandthenchooseappropriatemanagerswhenlookingforinvestmentadvisors.Thisisbothatrustbasedonalotofunderstandingandknowledgeandatrustrelationshipbasedonrecognitionoftheirexpertisewiththegoalofwin-winoutcomes.(Theroleoftrustisanopen-endedquestionandreasonableanswersareallacceptable,e.g.,suchatrustrelationshipwillenablethecommunicationbetweenthetwopartiestobesmootherandmoreefficient.)ThetrustrelationshipbetweenLiuBeiandZhuGeliangistypicalidentification-basedtrust(alsoentangledwithknowledge-basedtrust).AlthoughLiuBeiandZhuGeliangarerulerandsubjectrespectively,theyaremorelikementorsandfriendstoeachother,andtheyhaveestablishedtrustbasedontheiridentityandmutualgoals.(Theroleoftrustisanopen-endedquestionandreasonableanswersareallacceptable.)(1)Beforethenegotiation:MeideGrouphasdeepenedbothparties’understandingofcorporateculture,futurestrategies,managementphilosophyandcapabilitiesofeachotherthroughseveralinformalmeetingsandexchanges,breakingthemutualdistrustanddoubtsandlayingasoundfoundationfortheformalnegotiationlater.Duringthenegotiation:①MeideGroupmaintainedanattitudeofhonesty,respectandunderstandingthroughoutthenegotiation.Itstateditspurposeatthebeginningofthenegotiation,thatis,toachieveawin-winoutcome.Intheconsultationstage,itmadeseveralconcessionsexceptforpriceandequity.Inaddition,itpromisedtoestablishagoodrelationshipwithlocalgovernmentagenciestomakethemergerandacquisitionrunsmoothly.②AfterSFacceptedMeideGroup’scounter-offerfora100%equitypurchase,MeideGroupmadepromisesintermsofemployeeretentionandtheintroductionofnewtechnologiesforSF.ThereasonableandappropriaterequirementsandconcessionsofMeideGroupmadeitpossibletoconductbusinesswithstakeholdersofSF.Afterthenegotiation:①Duringthetransitionperiodofco-management,MeideGrouptransferredacertainamountofmoneytothejointaccountinordertoshowitssincerityforcooperationandfinancialstrength.②Aftertheformalsigningoftheequityacquisitionagreement,MeideG

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