Negotiation ppt GROUP 8

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- NEGOTIATION SKILLS



Peter Benjamin, the owner of an Australian Chemical Engineering Consultancy had an opportunity to submit a proposal for a huge Guangdong bre wery.

He was responsible for design of his countrys modern bre weries.

For this, he researched about the v iability of the pro ject

positi v e response urged him to go to China and discuss a potential deal with the Chinese.



A ll the bidders were put in the same hotel to pit them against each other. They used to discuss what the other party had talked to the

Chinese about.

The negotiations took place ov er se v eral weeks during which each of the foreign companies met with the Chinese team daily. The only 2things on which their negotiation focussed on was Price andTechnology.

Af ter f e w weeks, the Belgium and France companies pulled out f rustated due to their prior business commitments and cuisine problems in China.



The main negotiation e v entually was done on price. The Chinese maintained that they had limited budget and didnt ha v e much to

off er while Benjamin started high with his off er and e v entually off ered little discounts but not nearb y his limits.

The Chinese were trying to bu y time so that Benjamin would surrender on the price, but he had f lexible dates.

The Chinese used to change their minds on things thay had

already committed. The same strategy was adopted b y Benjamin with the help of Language barrier.



Now with negotiation down to just 2 companies, Benjamin tried ne w tactic and he presented the Chinese on how his designs could be

en v ironmentally benef icial to them and their reputation globally.

The Chinese were already f a vouring Benjamins idea and this ne wf eature completely bought them.

Af ter this, the Chinese sent people to e v aluate Benjaminssuppliers.

They were still skeptical about Benjamin because it was an ustralian company and they wanted a European company.

The V ice Gov ernor then f inally stepped in and made the decision in f a vour of Benjamin. This prompt decision made Benjamin to gi v e a

further 5 % discount to them.



1. AUCTION

The Chinese made all the prospecti v e bidders to stay in the same hotel to pit them against each other .

2. CHANGE THE NEGOTIATOR

There were a total of 30 people f rom Chinese side and e v ery time a diff erent person would talk to the bidders. This would create commitments to alter.

3. HOMEGROUND

This f rustated some countries and they e v entually lef t.



4. BAD GUY

W hene v er y ou think y ou had an agreement, he would pull y ou aside and tell y ou the complete opposite.

5. EMPTY POCKETS

The Chinese started negotiating on price b y crying poor and said

they had limited budgets.

6. DEADLINES

They used Benjamins planned return date to pressurize him on the

price .



7 . KNOWING THE OPPOSITION

Chinese members became angry and distressed to notice the reaction of Benjamin and thus study him.



1. KNOWING THE OPPOSITION It is said in the beginning that Benjamin carried out intensi v e

research about the Bre wery business in China and also about the Guangdong company.

2. HIGHBALL

Since the Chinese started crying poor and said that they had limited budget, he started his off er a bit high.

3. LANGUAGE BARRIER

Since he had a translator with him, he changed his mind on thingshe had already committed saying that he misunderstood it earlier.



4. Time should be on your side

Benjamin said that he was f lexible with his time and he will stay until the outcome of the deal is f inalized. So it didnt gi v e the Chinese people a chance to catch him on deadlines.

5. Check the Facts :

Benjamin pitched in the en v ironment benef its of his bre wery design to the Chinese explaining them how his design could make them world leaders in waste management. This shows that he had deepinsight about the product and what the Chinese demanded.

6. Maintaining P.R.

He was tight in negotiating and in the end he ga v e a 5% discount tothe V ice Gov ernor. This gesture helped him in building long lasting

relationship with the top management.



GROUP - 8

NIPUN JAIN 27

ANKITR AJDE 49

PA R THI V OR A 60

MANSI SHAH 56PUNIT KAMDA R 36

APA R RUSTA GI 52

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Negotiation ppt GROUP 8

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