9/2/2018

BUSINESS NEGOTIATION

Mr. CHÂU THẾ HỮU – MBA

International Business
Administration Department
0907 414 021
chauthehuu@gmail.com

CHAPTER 2

BUSINESS NEGOTIATION

In this chapter
1. Negotiation in correspondence
2. Negotiation in Face-to-Face meeting
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1. Negotiation in
Correspondence
Steps in Foreign Trade transaction
Enquiry vs Replies / Offer
Complaint vs Replies to Complaint

1.1. Steps in Foreign Trade

transaction
Enquiry / Inquiry
Offer
Order
Counter-offer
Acceptance
Confirmation

SELLER BUYER
Enquiry / Inquiry
Reply to enquiry

Offer (Firm / Free offer)

Counter - offer
Order

Acceptance

Confirmation
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1.2. Enquiries vs Replies /

Offer
1. Parts of an enquiry (inquiry):
- Telling the supplier how you obtained your
potential suppliers’ name.
- Introducing to your supplier what sort of firm you
are.
- Indicating the state of the market.
- Asking for more information (catalogues, price-
list, prospectus, samples, patterns …)
- Suggesting terms, methods of payment,
discounts.
- Hoping for an early offer / quotation / reply.

1.2. Enquiries vs Replies /

Offer
2. Parts of a reply to an enquiry
- Express thanks to the enquiry.
- Confirm that you can help.
- Enclose requested documents (price-list,
quotation, catalogue, samples, …)
- Promise to favor the customers.
- Add your favourable comments on the goods
sold.
- Expressing regret (if any), offer an alternative (if
any)
- Hope for an order.

Parts of an offer
I. Opening
1. Express thanks for an enquiry
2. Pleasure to offer
II. Major terms and conditions
1. Commodity // 2. Quality // 3. Quantity // 4. Price // 5.
Payment // 6. Delivery // 7. Packaging and marking // 8.
Validity
III. Additional suggestions
1. Ask for instructions
2. Give comments, encourage an order or promise
3. Offer for other items
IV. Closing: Hope for future order.
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1.3. Complaint vs Replies to

Complaint
Basic parts of a complaints:
Acknowledge receipt of the goods
State the condition of the goods
Enclose necessary documents
State the reason to complain
Suggest solutions
Hope for the action

1.3. Complaint vs Replies to

Complaint
Basic parts of a reply to letters of
complaint:
Acknowledge receipt of complaint
Explain the mistake
Solve the problem
Reject a complaint
Repeat apologies
Walt for the acceptance

2. Negotiation in Face-to-Face
meeting
Preparation stage
First contact / meeting stage
Negotiation stage
Finalizing stage
Internal meeting stage
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2.1. Preparation stage

Language? Interpretation?
Information on goods, market and partners
Human resources: knowledge, skill and
quality
Forming team of staff specializing in Law,
Technique and Commerce
Time and place of negotiation

2.2. First contact / meeting

stage
Creating meeting atmosphere
Exploring partner’s intention
Editing plans (if necessary)
Opening
Preliminary Questions and Answers

2.3. Negotiation stage

Requesting and listening
Receiving and giving concession
Breaking the “rock”
Heading for Agreement
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2.4. Finalizing stage

Briefing notes
Contract drafting and finalizing

2.5. Internal meeting

Discussing the case
Learning from experience

Q&A

ANY QUESTIONS?