Charles DAY

Thomas VISAN

David DERHY

INTERNATIONAL CONTRACT

NEGOCIATION

FR

AN

CE

ISR

AE

L

MEETING :

December, 1st 2014, 4:00 pm, Paris

Volumic 3D (France)

vs. Re/max Israël Real Estate

(Israël)

Mediator: CMAP Paris

TABLE OF CONTENT

I- PresentationII- Culture in NegotiationIII- Strategy of NegotiationIV- Negotiation TechniquesSources

I- Presentation

A- French CompanyB- Israeli CompanyC- C.M.A.PD- Video of the MeetingE- Investigations

Company: VOLUMIC 3D - Founded in 1986

Headquarters: Nice, FRANCEWorkshops: Nice, FRANCE

Industry: Graphic and PrintProducts: 3D Printers

Story: Volumic was doing 3Dimensions Virtual Conceptions for architecture and communication. They recently created their first 3D Printer especially designed for performance. New Objective :

Export the French 3D Printer in the World

A- French Company

THOMAS VISAN

Chief Executive Officer

A- French Company

Company: Re/Max Israel - Founded in 1995

Headquarters: Shoham, ISRAEL

Industry: Real Estate

Number of Real Estate Agencies in Israel : 250 AgenciesNumber of Real Estate Agencies in the world: 7000 Agencies

Ranking: N°1 Real Estate Network in Israel

Objective: Be the first to

propose innovative offers to its customer

B- Israeli Company

DAVID DERHY

Shareholder and Purchasing Director

B- Israeli Company

Centre for Mediation and Arbitration of Paris (CMAP)Founded in 1995 by the Paris Chamber of Commerce and Industry as a non-profit organization under the Law of 1901.

Leading French, one of the leading European center for the management and resolution of commercial disputes.

Offers : Mediation and Arbitration, Technical expert advice and Rapid decision services.

Objectives : - Resolve disputes at a reasonable cost.- Manage conflicts and determine the best way to resolve them quickly and permanently.

C- C.M.A.P.

Business Mediator – Charles DAY

Neutral mediator engaged between two business parties that have required the services of the other and are deadlocked in an acrimonious debate.

To avoid this, the business mediator will seek the necessary information from both individual parties and attempt to come to a resolved agreement on both parties' behalf.

C- C.M.A.P.

D- Video of the Meeting

References in Specialized Magazines

Research on social networks Profesionnal and Personnal

Connections Education (High School, University) Experience Domain of Expertise Personality

E- Investigations

Example Maslow Pyramid : ISRAELI’S PERSONNALITY

E- Investigations

NAMESDavid DERHY

Thomas VISAN

Charles DAY

MBTI RESULTS

ExtravertSensingFeeling

Percieving

ExtravertIntuitiveThinkingJudging

ExtravertIntuitiveThinkingJudging

Personality Results: Myers–Briggs Type Indicator

E- Investigations

David DERHY Thomas VISAN

Charles DAY

ESFP’s Caracteritics ENTJ’s Carateristics

- Outgoing, friendly, accepting.- Exuberant lovers of life, people,

and material comforts. - Enjoy working with others to

make things happen. - Bring common sense and a

realistic approach to their work, and make work fun.

- Flexible and spontaneous, adapt readily to new people and environments.

- Learn best by trying a new skill with other people.

- Frank, decisive, assume leadership readily.

- Quickly see illogical and inefficient procedures and policies.

- Develop and implement comprehensive systems to solve organizational problems.

- Enjoy long-term planning and goal setting.

- Well informed, well read, enjoy expanding their knowledge and passing it on to others.

- Forceful in presenting their ideas.

Personality Results: Myers–Briggs Type Indicator

E- Investigations

II- Culture in Negotiation

A- Risks to Care AboutB- Main Cultural

DifferencesC- Video Cultural Analysis

A- Risks to Care About

Cross Cultural Risk - Religious parctices- Cultural differences

- Body Language

Commercial Risk

-

French Culture:

French Corporate Culture:

France: Dining and entertainment:

Israeli Culture:

Israeli Corporate Culture:

Israeli: Dining and entertainment:

B- Main Cultural Differences

Common points

Differences France/Israel

C- Video Cultural Analysis

III- Strategy of Negotiation

A- Product’s Presentation

B- Negotiation’s Preparation

C- Tree of NegotiationD- Points to Negotiate

A- Product Presentation

3 Dimensions Printer : Machin that prints 3 Dimensions objects such as architectural structures.

Features : For profesional use, Fast printing, New printing technology, Made in France.

Cartridges : Multiple choice of color cartridges

Best alternative to negotiation (BATNA):

ExampleIsraeli ExW minimum Price : 2500€ / Unit at beginning for 250-320 units (Maximum ?)French ExW minimum Price : 3000€ / Unit at beginning for 300 units (Minimum ?) Agreement : 2850€ / Units

B- Negotiation’s Preparation

Zone of possible agreement (ZOPA) : the range or area in which an agreement is satisfactory to both parties involved in the negotiation process.

Example: Isreali wanted between 250-300 3D printers (250 for Israel and 70 more maybe for other agencies).French needed to sell 300 3D printers to be profitable and to fill a 20 feet container. Agreement : 300 3D Printers

B- Negotiation’s Preparation

INFORMATIONSISRAELI COMPANY FRENCH COMPANY

• Turnover• Project objectives• Company’s needs• Budget allowed to

the project

• Notoriety• Export experience• Production Capacity• Margin applied• Delivery conditions

B- Negotiation’s Preparation

DECISION TREE OF NEGOCIATION

Product

Model

Stream 20

Stream 20 PRO

ExW

Price

2500€/unit

3000€/unit

2850€/unit

Quantity

250-320

units

300

units

Transport

ETD - ETA

ETD : mid june ETA : end of

june

ETD: mid

october ETA: end of

October

ETD: Mid

August ETA: Sept

INCOTERM

DDP Shoha

m

ExW Nice

CIF Haïfa

Quality Control

Exporter’s Costs

Importer’s Costs

Importer’s Costs + 20%

Penalty on CIF price of each

defect. product

Warranty – Staff Training – Cartridges

Warranty 4 years- Cartridge 18 euros- Staff Training Free

Warranty 2 years- Cartridge

26€-Staff Training 10000€

Warranty 3 years- Cartridge

20€/3years then 25€-Staff Training 3000€

PaymentPayment Terms

90 days after shipping

50% prepaymt – 50% after shipping

20%prepayment – 80% after shipping

Payment Method

Bank Check SWIFT

CREDOC

CurrencyUS Dollar

Euro

Penalties

0,5% CIF /Week

C- Tree of Negotiation

• Product : Model, ExW Price, Quantity

• Supply chain : Incoterm, ETD/ETA, Penalties

• Quality Control : Importer’s/Exporter’s Costs, Penalties

• Warranty / Cartridge / Staff Training

• Payment : Payment Terms, Payment Method, Currency, Penalties

D- Points to Negotiate

IV- Negotiation Techniques

a- Examples of Techniques

b- Techniques used in the video

c- Analysis

• Door in the Face : Outrageous demand to reach an acceptable point

• Foot in the Door : Make to the other party accept a small point to make it accept a more important

• Reach a Win-Win Situation

• Split the difference: agree on a price that is halfway between what you want and what the other person wants. (50/50)

A- Examples of Techniques

• Being Cutsomer Oriented

• Dealing with Objections

• Discussion which is not Price Focused

• Make Concessions and Discounts

• Pressure : Time available or Deadlines

• Threat

A- Examples of Techniques

• Being Cutsomer Oriented

• Dealing with Objections

• Set-aside: resolve many of the little issues first to establish before leading up to the big issues.

Ex : Quantities Transport Quality Warranty PRICE

• Make Concessions and Discounts

• Non-negotiable Demands

Ex : Currency : EURO

FRANCE

B- Techniques Used in the Video

• Door in the Face : Outrageous demand to reach an acceptable point

Ex : Price of 2500€ / unit

• Reach a Win-Win Situation

• Deadline pressureEx : Needs the product for the high season

• ThreatEx : On the quality of the product

• Body Language

ISRAEL

B- Techniques Used in the Video

• Pressure : on time available for example

• Create available options

• Reformulation to validate each point negociated

• Reach a Compromise offering something else

Ex : Warranty + Staff Training + Discount on Cartridges

MEDIATOR

B- Techniques Used in the Video

GOOD POINTS BAD POINTS• Each Parts were

prepared for the Negociation

Ex: French and Israeli talked on the phone and Mediator was well-informed of the situation.

• Deal concluded

• Intercultural problemsEx: French and Mediator didn’t really adapt to the Israeli

• Mediator was to much in a hurry

C- Analysis

The negotiation presented or others always contains common interests and conflictual subjects.

We need to cooperate, compromise, accept and refuse demands, but…

Main Objective : Focus on creating value from the negotiation before to share the benefits.

“Negotiation Cake”

CONCLUSION

Thank you for your attention

Bureau Veritas : http://www.bureauveritas.fr/wps/wcm/connect/bv_fr/localhttp://www.bureauveritas.fr/wps/wcm/connect/bv_fr/local/home/searchResults?keyWord=israel&submit=+&selectedSource=1017

COFACE :http://www.coface.com/fr/Etudes-economiques-et-risque-pays/Israelhttp://www.coface.fr/france.html

Centre de Médiation et d’Arbitrage de Paris :http://www.cmap.fr/WHO-WE-ARE/Introducing-CMAP-114-en.htmlhttp://www.cmap.fr/WHO-WE-ARE/Our-Mediators/Who-are-our-mediators-122-en.html

Geert-Hofstede :http://geert-hofstede.com/http://geert-hofstede.com/france.htmlhttp://geert-hofstede.com/israel.html

SOURCES

Humanmetrics : http://www.humanmetrics.com/cgi-win/jtypes2.asphttps://prezi.com/xnle1v-r23es/comparative-analysis-of-israel-culture-versus-american-culture/

Manuport Marseille :http://www.manuport-marseille.com/

Re/max : http://www.remax.co.il/fr-fr/about/about.asp

Ubifrance :http://www.ubifrance.fr/default.html

Volumic 3D : https://www.imprimante-3d-volumic.com/fr/volumic-3d.cfmhttps://www.imprimante-3d-volumic.com/fr/vente-imprimantes-3d-volumic-stream.cfmhttps://www.imprimante-3d-volumic.com/fr/filaments-imprimante-3d.cfmhttps://www.imprimante-3d-volumic.com/fr/pieces-detachees-imprimante-3d-volumic-stream.cfm

SOURCES