On logistics risk in international business.
International business activities are very complicated. International business activities pursue commercial interests, and interests and risks go hand in hand. In order to avoid risks, we must fully understand all kinds of risks in international business activities and correctly implement risk management. This paper mainly discusses the logistics risk in international business and its countermeasures.
Keywords international business; Logistics risk; Risk management; Coping strategy
I. Introduction
International business activities pursue commercial interests, and interests and risks go hand in hand. In order to avoid risks, we must fully understand all kinds of risks and correctly implement risk management. Risk management refers to the management of preventing risks through a series of activities such as risk identification, risk estimation, risk control and risk monitoring [1]. Only by understanding all kinds of risks can we really plan ahead, warn of risks and manage risks. Sun Wu in the Art of War? As described in Nine Changes:? The worries of the wise are inevitably mixed with interests, interests and trustworthiness, and injuries and solvability? This is the principle.
Some risks in international business are discussed in Liu's Comparison between International Business and Domestic Business and Operation Form of International Business [2], Liu Ying's Cognitive Analysis of International Business Activities [3], Wang Bianfang's Study on Cultural Factors in International Business Negotiation [4] and Shao Yaqi's Brief Discussion on Cultural Differences in International Business Communication [5]. Its research results are not without benefits.
However, the logistics risk in international business has not been involved. Among many business models, international trade in goods, international trade in services and international direct investment involve more logistics activities. This is a risky transnational logistics activity. This paper mainly discusses the logistics risk in international business and its countermeasures.
Second, the types of logistics risks and their countermeasures
Risk refers to the possibility of a certain loss in a certain environment and within a certain period of time. Risk consists of risk factors, risk accidents and risk losses [6]. This paper mainly studies the logistics risk in international business activities based on the risk factors of risk. Logistics risk in international business refers to the uncertainty of logistics activities in international business activities, which can be divided into narrow sense and broad sense. The narrow sense of logistics risk only refers to the uncertainty of logistics activities, while the broad sense of logistics risk refers to the performance of non-logistics factors other than the uncertainty of logistics activities in international business activities. The main logistics risks in international business activities are as follows, and the corresponding strategies are put forward:
1. Logistics standard risk
Refers to the risk caused by inconsistent logistics standards and lack of compatibility. Logistics standards mainly include four aspects, namely, logistics technical standards, logistics operation standards, logistics management standards and logistics information standards. These standards are difficult to achieve harmony, unity and compatibility within a country, and it is even more difficult to achieve unity and compatibility between countries. This kind of logistics standard risk often leads to the delayed completion, cost increase and even failure of international business activities. In order to avoid this risk, it is necessary to consider the domestic and international situations when formulating logistics standards, and try to adopt internationally accepted standards, which are at least compatible with international standards and do not harm national interests.
2. Logistics infrastructure equipment risk
Refers to the existence of logistics infrastructure and the same or compatible risks. For example, Shanghai Port is equipped with advanced port logistics facilities and equipment. It is necessary to consider whether the transit and destination have facilities and equipment with the same function to load and unload the goods loaded by these advanced facilities, otherwise it will bring risks. Our country not only has international business dealings with developed countries, but also with many third world countries, so we should consider various actual situations and avoid the risks of logistics infrastructure equipment. For example, underdeveloped areas and countries without advanced port facilities can reduce logistics risks without special loading and unloading equipment (ro-ro).
3. Logistics political risk
Refers to the performance of political uncertainty in logistics. For example, marine logistics often involves terminal loading and unloading. In case the dockers in a certain country go on strike, the logistics will be interrupted. In view of this risk, keep information flowing, or postpone, or advance, or cancel, or choose neighboring ports as backup.
4. Logistics legal risks
It refers to the risks brought by different laws and regulations in different countries and even conflicts in logistics. For example, dozens of countries prohibit or restrict the import of China moon cakes. Once China moon cakes are found in their customs, they will be destroyed. Fully understand or abide by the provisions of the law in view of risks; Or we can rely on the government's public relations to force it to revoke the relevant legal provisions.
5. Logistics cultural risks
Refers to the performance of cultural differences and even cultural conflicts in logistics. For example, cultural aversion and cultural conflict caused by different understanding of the cultural meaning of the signs on logistics vehicles or packaging will lead to the reduction or even interruption of logistics speed. In view of this risk, fully understand and respect each other's culture, strengthen cultural exchanges, and do as the Romans do.
6. Logistical military risks
Refers to the performance of military factors in logistics. For example, if a war breaks out in a region or country that is about to pass or arrive, it may lead to the interruption of logistics, the change of logistics route and the damage of goods.
7. Logistics technical risks
Refers to the performance of technical differences and incompatibility in logistics. For example, the logistics technology in developed countries is different from that in underdeveloped countries, which greatly affects the logistics efficiency between these countries. In view of this risk, we should make full use of the compatibility between technologies to reduce this risk.
8. Natural risks of logistics
Refers to the performance of natural factors in logistics. For example, natural disasters will seriously affect the progress of logistics, even interrupt logistics and destroy goods. ? Know the world, win or not? , a comprehensive understanding of the relevant countries and regions of typhoons, tornadoes, earthquakes, tsunamis, mudslides, fog, frost, rainstorms, floods and other related information, to do a good job of prevention and avoidance programs.
Three. conclusion
In short, logistics risks in international business activities can be identified, controlled, avoided and monitored. With the trend of economic globalization, business internationalization and logistics internationalization, it is necessary for us to study logistics risks in international business activities in order to reduce risks, avoid risks, and even save the day and seek benefits from risks. This paper briefly discusses the logistics risk in international business and its countermeasures, which is worthy of further study.
References:
[1] Anonymous. Risk management. Baidu encyclopedia [EB/OL][20 12-04-06].
[2] Liu. Comparison between international business and domestic business and business forms of international business [J]. Modern Economic Information, 20 12( 1):77.
[3] Liu Ying. Cognitive analysis of international business activities [J]. Science and Technology Information, 2007(4):29.
[4] Wang Bianfang. Cultural factors in international business negotiations [D]. Shanghai: East China Normal University, 2006.
[5] Shao Yaqi. On cultural differences in international business communication [J]. Reform and opening up, 2009(5):65.
[6] Anonymous. Risk-Encyclopedia of -MBA Think Tank [EB/OL][20 12-04-08].
On win-win situation in international business negotiation.
With the continuous growth of China's economic strength, more and more enterprises have started? Go out? Or gradually move towards the high end of the industrial chain. In this process, how to communicate and negotiate with international partners is a skill that China enterprise managers urgently need to learn and improve. In the process of business negotiation, both parties should take the pursuit of win-win as the basic goal, rather than nitpicking. This paper first introduces and analyzes in detail? Win-win? Then it analyzes the reasons why we can't achieve a win-win situation in business negotiations, and finally puts forward some suggestions to achieve a win-win situation in negotiations.
Win-win, seeking common ground while reserving differences, and rational layout
In the impression of many people, business negotiation is like a war without smoke. But in fact, this is a one-sided understanding of business negotiations. There are indeed many conflicts in business negotiations, but more and more business negotiations are reached? Win-win? And development is a negotiation game between the two sides for common interests and the realization of their own interests. ? Win-win? Idea is now a highly respected negotiation idea in many negotiations. At the negotiating table? No losers? The concept of win-win is gradually taking shape.
First, right? Win-win? understand
Right? Win-win? Our understanding is reflected in the following two points: first, your interests must be based on the existence of the other party's interests; Secondly, your interests are mutual. ? Win-win? The purpose of the negotiation is to find a solution that can make both sides gain something. ? Win-win? The result of the negotiation is: you won, but I didn't lose either.
Is it true that rational people will pursue in negotiations? Win-win? Situation. But what about the pursuit? Win-win? There are costs and costs. Pursuit? Win-win? The first cost is the gap between the expected goal and the actual goal, which may be unavoidable in most negotiations. The remaining two costs are: the consumption of people, money and things, the waste of resources and the opportunity cost of negotiating resources. The benefits brought by the cost are the completion of the company's financial objectives in the short term, the maintenance and development of business relations in the medium term, and the completion of the company's biggest and long-term goals in the long term.
Second, out of reach? Win-win? reason
In practice, it is difficult for us to achieve it? Win-win? Situation. There are both subjective and objective obstacles to the realization of win-win goals in negotiations. First of all, we may come to a conclusion about the negotiation too early, which will lead us to insist blindly. When the other party always sticks to his own position, and the negotiators lack rational and intelligent thinking at this time, they may reduce their own interests, or they may blindly and stubbornly stick to their own positions, leading to the two sides breaking up in discord; Secondly, it pays too much attention to the intersection of interests of both sides and ignores the invisible interests of both sides.
Contradictions and conflicts have always been partners in business competition. The key is how negotiators can effectively solve contradictions and conflicts, so as to achieve common interests. This? Common interests? Is it a superficial position or a substantial interest? Is it a one-time benefit or a long-term benefit? Is it sunk interest or future interest? Is it explicit interest or implicit interest? Is interest incompatible or interest compatible?
What obstacles will many negotiators encounter in real negotiations? Face? , will pay special attention to their own position, what's more, blindly stick to their own position without considering the real interests, often leading to a deadlock in the negotiations. Some negotiators pay more attention to their own one-off interests, because in order to achieve their own goals, it is easy for the other party to doubt the sincerity of their actions and lead to the breakdown of negotiations. Even if negotiations are reached, it is only this kind of cooperation, and it is difficult to have long-term cooperation. On the contrary, many negotiators care too much about long-term interests and want to cooperate with each other for a long time. I hope that if our negotiators are too obvious or too urgent, they will be easily used by the other side, thus reducing their due interests. Therefore, negotiators should give consideration to both temporary interests and long-term interests in the negotiation process and handle the relationship between them well. Sometimes, when negotiators have been unable to reach an agreement on a cooperation project, they often cling to the sinking of interests and even continue to increase investment in order to complete this negotiation. Therefore, when negotiators can't recover the sunk interests, they should immediately find a new path instead of increasing investment, and should focus on future interests. Negotiators must attach equal importance to explicit interests and implicit interests. All parties to the negotiation should actively communicate, pay more attention to finding compatible interests, and do everything possible to turn incompatible interests into compatible interests.
Third, how to achieve it in negotiations? Win-win?
The goals in the negotiation need to be divided into two categories: the first category, the goals are quite different; In the second category, there are similarities and differences in goals, many overlapping interests and great conflicts of interests.
The first solution is simple, and interests are separated. For example, in an engineering contract, the contractor pays attention to price and the developer pays attention to quality. Then the contractor gives the developer the price, and the developer promises the quality to the contractor, and everyone takes what they need to achieve a win-win situation.
The second category is a bit troublesome. Generally speaking, there are several ways:
(1) Try to make a big cake.
In business negotiations, people may fall into the wrong thinking that the interests are fixed, and if the other party gets more, then the share that should belong to them will be less. In this way, the two sides will be entangled in this issue, which may eventually lead to the breakdown of negotiations. But in fact, the two sides can jump out of this inertia thinking, proceed from the overall situation, communicate with each other, and put this? Cake? Make it bigger so that both sides can share it? Cake? More, not the small part stuck in front of you? Cake? . For example, two artists share jade. There are two artists sharing a piece of uncut jade. If the two artists do not increase the value from the overall situation and divide the jade, the result will only be an imperfect jade. If two artists take a cooperative approach and brainstorm a plan to carve beautiful jade together, through the joint efforts of two people, beautiful jade will become a diluted treasure, so that not only the value of beautiful jade will be sublimated, but also the two artists will be praised by everyone. For the people, there is one more treasure and one more work of art in the world. Therefore, it is necessary to work hard on the total amount of interests, find relevant interests, and finally make the cake bigger, so that negotiations will be easier to reach.
Disperse goals and avoid conflicts of interest.
Are you getting bigger? Cake? On the basis of diversification, to avoid conflicts of interest. The conflict of interests is caused by the overlapping interests of both sides, so negotiators need to create multi-level needs. Try to shift the target as much as possible in order to negotiate smoothly. According to Maslow's hierarchy of needs, negotiation needs are divided into physiological needs, security needs, social needs, respect needs and self-realization needs. Only by deeply understanding each other's multi-level needs can we better avoid conflicts of interest.
(3) Subjectively for yourself and objectively for others.
In other words? Think of each other and finally achieve your goals? . In the negotiation, we should put ourselves in each other's shoes. We can't ask too much in the negotiation, but should take care of each other. If you only care about your own interests and take all the interests into your own hands, it is equivalent to killing each other and then quickly killing your future interests. From the other side's point of view, consider the interests that the other side needs. In this process, because our own side is cooperative and self-interested, we can achieve our goals. Both sides of the negotiation should be flexible on specific issues, and both sides are satisfied when the problems are solved.
(4) Eliminate opposition, seek common ground while reserving differences and narrow differences.
More generally, this can be expressed as? Appropriate concessions? . Under the guidance of the win-win principle, both sides must make some concessions when necessary. Admit differences, take everyone's common interests as the starting point, make appropriate concessions and minimize opposition. For example, in history, Shu and Wu sought common ground while reserving differences and jointly resisted Cao. The basic principle of concession is to change the big for the small. But concessions are not? Just give in? And there should be a corresponding bottom line. If we simply take the bottom line of interests as the bottom line of concessions, blindly give in and stick to the so-called? Win-win? This will only be a way of putting the cart before the horse.
Four. conclusion
Win-win negotiation is a cooperative process based on long-term common interests. Negotiations should be win-win, and there are no real losers. This kind of negotiation is really successful.
& gt& gt& gt More exciting next page? International business papers?