NEGOTIATION PROCESS

NEGOTIATION PROCESS

1. AGREEMENT

2. EXECUTION

   • RENEGOTIATING EXISTING TRANSACTIONS
     • POSTDEAL (after the contract, review the relationship, understand the alternatives, always use good faith varies from country to country the precise content), INTRADEAL ( adapt to circumstances, clause involve hard work and good faith) AND EXTRADEAL (a party insists to renogotiate, one side has not achieve the benefits the other must give up smth, can create bad feelings and mistrust)
   • THE CHALLENGES OF DEAL MANAGEMENT
     • AFTER SIGNED THE CONTRACT ASK: HOW WELL DO WE KNOW EACH OTHER? PERSONAL CHAMISTRY BETWEEN US (COMPANY LEADERS)? DO WE UNDERSTAND EACH OTHERS GOALS, WHAT EXTENT IS THE DEAL BALANCEAD AND ADVENTAGEOUS FOR BOTH SIDES?
     • CONTRACT -> RELATIONSHIP: CLOSELY INVOLVEMENT, LEADERSHIP, INFORM NOT INVOLVED PERSONEEL ABOUT THE DEAL, REGULARY MEET, SELECT CAREFULLY MANAGER OF THE RELATIONSHIP
     • THE FOUR BUILDING BLOCKS (RELATIONSHIPS)
       • COMMUNICATION
         • - TWO-WAY COMMUNICATION - ADRESS THE MODES OF COMMUNICATION - IS OVERLOOKED AND CONSIDERED NATURALLY -ATTENTION TO DIF. LANGUAGES.- MEANS OF COMMUNICATION: VISITS, CALLS VIDEO....
       • COMMITMENT
         • BOTH PARTIES MUST BE COMMITED TO EACH OTHER RELATIONSHIP-- MEASURE THE COMMITMENT BY STRUCTURING TRANSACTION AND INCREASING LEVELS OF EFFORT
       • RELIABILITY
         • DEPENDENT ACTING TO ACCOMPLISH GOALS, IS THE BASIS OF TRUST, PREDICTABLE CONDUCT, HONORING PROMISES AND COMMITMENTS, IMPLIES HONESTY
       • RESPECT
         • BEGINS WITH THE PRINCIPLE OF EQUALITY, RECOGNIZE THE OTHER, DIPLOMACY AS WAY OF ACKNOWLEDGE A COUNTRYS STATUS, RESPECT CULTURE (CONFLIICT)