Chapter 6 Law of Interest Distribution 利益分配原则 Personal Interests VS Organizational Interests 个人利益与集体利益 Personal Interests VS Organizational & National Interests 个人利益与集体和国家利益 Communication Skills交际练习 Effective negotiating 成功谈判 4. Clarifying Positions (VCD) During a negotiation, interests of different kinds with one another and interact on each other, exerting their influence directly or indirectly on the of a negotiation. Any negotiations occurred at home involve two levels of interests and sometimes three levels of interests: , and national interests. To what extent these interests can be coordinated, integrated and balanced _____ largely the and outcome of negotiations. Personal interests are represented by negotiators who act in negotiations on behalf of and , whose interests depend on individual negotiators’ efforts to be fulfilled. Organizations are as private or state-owned enterprises, institutions, collective bodies or other kinds of . States means all ?______?countries and states. Personal Interests VS Organizational Interests 个人利益与集体利益 Personal interests may include such major aspects as of personal value, to higher position, increasing personal and comfortable life. Comparatively speaking, personal interests can be easily brought into line with that of organizations since realization of one’s personal , social and his in others’ expectation are closely with his performance and ______ done for the . Therefore there is an connection between personal and organizational interests, so realization of organizational interests means of personal interests and vice versa. By this linkage, negotiators will make his utmost efforts to achieve interests of organizations he in the negotiation. However personal interests are not always in convergence with interests of organizations particularly when individuals their won interests before interests of the organizations or when their own interests are in with interests of the organizations, which are often of monetary . Once desires for gaining personal interests , the outcome of negotiation would be foreseeable, i.e., fulfilling interests of individuals and of grand interests of organizations. Investigations show that there are much more cases of bribery and corruption in state-owned enterprises because their leaders the organizational interests for their own . The cases have caused great losses to the organizations as well as the country. A released case in equipment procurement for the Three Gorges construction provides a to the point. Case In 1993, a group of 3, the formal general manger of Gezhouba Three Gorges industrial Company, the general engineer of the company and the managers from Hong Kong Minda Company, set out for a business tour to US looking for a seller who could provide second hand equipment suitable for Gezhouba’s construction. In the negotiation, Chinese engineer put forward three conditions for the equipment: all the equipment be manufactured after 1985; technical conditions of the second hand equipment equal to 80% of new equipment and price of second hand equipment not exceeding 40% of that of new equipment. American agent basically had no difference for the terms. In addition, it was willing to offer a seller’s credit in three years’ term, which means Chinese company could make the final payment three years after purchasing the equipment. After the first round of negotiation, the engineer was sent away to Sweden [???????] n.瑞典for a business inspection meanwhile the Chinese general manager and Hong Kong Minda Company signed the final contract with the American company. The signed agreement gave up the favorable term of seller’s credit and changed into buyer’s credit instead. Besides, the manufacture date and technical conditions of the equipment fell far behind the initial requirement, but the price was raised considerably. What is worse, some vehicles could not even drive into the cargo liner at American port, so they were dragged into the ship’s hold. The procured equipment at the cost of several hundred million RMB yuan turned out to be a junk of discarded iron. Later at the strong request of the company management and employees the contract was terminated. Now the payment for more than one hundred million RMB yuan equipment is unable to be retrieved and the Three Gorges Industry Company suffered a loss of 430 million yuan and is having a debt of 1.12 billion yuan. Personal Interests VS Organizational & National Interests 个人利益与集体和国家利益 Personal interests are found easier to be brought in line with interests of organizations by reason of linkage between the two. For individuals, national interests appear to be quite remote and connected with individuals’ and thus they are often looked upon as a guideline. However when an individual represents his country in binational negotiations, he will definitely the interests of the country and make every effort to gain state interests, since on such occasion state interests are so important that any of state interests will bring heavy not only to the but to and as well. Long Yongtu, China’s chief negotiator for WTO negotiation, says he is filled with strong when representing China talking with other nations. Nothing, not to mention and other interests, can be compared with the as the spokesman of 1.3 billion Chinese. Nevertheless such possibilities cannot be ruled out that a few negotiators their right in negotiation for their personal gains even at the of state interests, particularly in some talks. Interests of organization and the state should be in and well since state interests that of organizations in all. However, it is inevitable that some organizations only collective interests while or even undermining state interests. For example: A few enterprises imported from developed countries industrial garbage only in _____ of their own interests. Some other enterprises are manufacturing polluted chemical products transferred from industrialized countries jointly with foreign firms at the of term interests of the country and people for their interests. Communication practice交际练习 1. A positive comment makes people comfortable and ready to listen. Rewrite these sentences. 1) I really appreciate your understanding. 2) I really appreciate your meeting me at the airport. 3) I really appreciate your coming early. 4) I really appreciate your working overtime. 5) I really appreciate your cooperation. 2. A polite way to correct someone is to make the correction impersonal. Speak the sentence again. Try not to use the word you. 1) You pronounced the name incorrectly. 2) You talked to the wrong person. 3) You made a mistake. 4) You gave me the wrong figure. 5) You called the wrong customer. 6) This is not the right document. 7) You sent the wrong letter. You gave me the wrong file. 3. How would you express each of these ideas in negotiating? What would you say… if you’ve not understood an explanation? when you want to complain indirectly to someone? if you do not want to accept the advice someone is giving you? when you want to tell someone something? when you wish to agree with someone? when someone you already know is introduced to you? if you want to interrupt someone? when it’s unlikely that you can do something? when you would like a person to do something for you? when you want to give someone some information? 4. Make these statements into proposals and suggestions. Be inclusive---use we rather than I. Try to word your sentences so that they encourage feedback. 1) I think we should start by looking at the sales figures. 2) It’s important to identify who our main competitors are first. 3) I think that timing is essential, don’t you? 4) It’s your security system that is causing the problem. 5) I would prefer to discuss delivery issues at the end. 5. Put the following situational dialogue into English. (支付方式 ) 贺先生,昨天谈判结束后,我马上给公司打了电话,把你方的提议向公司作了汇报。他们原则上同意用分期付款的方式。 很好。我方当然很赞赏你所作的种种努力。 我想我们今天将讨论分期付款的一些细节问题,如分期付款的次数、每期付款的时间、金额及支付方式,你看如何? 我没有反对意见。我能了解一下你方的提议吗? 既然全部机器将分两批在两年内运抵你处,我是否可以建议付款分3期支付?签完合同后支付20%, 第一批货装船后再支付40%,最后40%在第二批货装船后支付。 恐怕我们不能接受你方的提议。 那你方的建议呢? 我们建议分5期支付。签完合同后支付10%,第一批或装船后支付35%,在第二批货装船后再支付35%,在机器通过最后验收后支付10%,最后10%等过了保修期后支付。 我们难以接受保留金,更不用说是20%的保留金。我方冒的风险太大。此外,公司规定对这样大的订单要先预付20%。 哦,我们目前在谈的是购买成套设备的合同。我方向你方购买的不仅仅是设备,而且还包括整个厂的成功运转。要是机器运抵我们这儿之后我们就支付了总价的80%, 其实我们所冒的风险比你方大得多。要是设备不能正常运转的话,我方的损失将很大。所以我们坚持要求20%的保留金。 我们可以保证我方设备的质量。我们可以向你方保证我们所提供的设备将会成功地运转。实际上,我们从来就不允许采用保留金的办法。 既然你方能保证设备的质量,那就更不必担心保留金了。要是机器成功运转的话,我方当然会支付余下货款的。 但是为了执行你方的订单,我们得向银行贷款,每个月我方得支付许多利息。 对你方来说,这可是一笔有利可图的投资。 但是投资者总是希望尽快收回投资。这样办你看行不行?我方接受10%的保留金,但必须在机器通过最后验收后支付,而条件是你方必须接受20%的预付款。 那不公平。预付款的比例应该和保留金的比例相同。 坦率地说,要说服公司接受我刚才所提出的10%的保留金,我还必须费一番工夫。要是你方坚持20%的保留金的话,我简直不知该如何做了。 你当然会有办法的。 我们今天就谈到这儿,后天再继续谈,好吗? 好吧,我试试看。 (两天后) 早上好,Smith 先生。 有什么好消息吗? 有的。我已成功地说服了公司接受20%的保留金, 但是他们要求这笔钱必须在机器通过最后验收后全部支付。此外,我们希望你方能接受20%的预付款。 我早就说过你会有办法的。我们确实非常感谢你所作的努力。好吧,我方将接受20%的预付款,但是对于保留金,我们至少要求有5%在过了保修期后支付。 你真是个难对付的人。好吧,为了做成交易,我们接受你方的提议。 很好。现在我让我们来讨论一下具体的付款方式好吗? 我方要求20%的预付款在合同签订后30天之内电汇给我方。 这没问题。但是你们必须在签订合同后马上让你方的银行出具一份保证函。其大致内容是要是你方没有执行合同的话, 出具保证函的银行将退还给我方预付款连同10%的年利息。 好的。我们会这么做的。另外两期各35%的付款用保兑的、不可撤che 销的即期信用证,凭装运单据付款。 我方认为对于这样一个时间长、内容复杂的合同使用信用证不太方便。你知道,信用证要求合同不得有任何变化。要是合同有任何变化的话,必须对信用证做出相应的修改。因此,我方建议用付款交单的付款方式。我们将请我方的银行中国银行上海分行出具一份保证函,保证我方在你方接受交付的机器质量和规格与合同规定完全相符的情况下付款。 好的,但我方要求用即期付款交单。最后两期付款用电汇,对吗? 对的。另外,我方只承担发生在中国的银行费用,发生在中国以外的银行费用由你方承担。 我同意。