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READING FOR DETAIL AND VOCABULARY
Exercise 9. Now read the text again carefully and find words or phrases in the text which mean the following:
CHECK YOUR KNOWLEDGE.
Exercise 10. Give the Russian equivalent:
Exercise 11. You are going to take part in the discussion on «Effective negotiations». These are questions which can be asked during the discussion. The working language of the meeting is English. So, translate the following questions into English and be prepared to ask the participants a few questions.
1. Какие переговоры Вы считаете успешными?
2. Зависит ли успех переговоров от поставленной цели?
3. Какими качествами должен обладать «переговорщик»?
4. Какую предварительную работу Вы должны проделать дома?
5. К чему мы должны стремиться во время переговоров?
6. Какие виды переговоров существуют?
7. Легко ли добиться успеха при переговорах?
8. Чтобы выигрывать необходимо уметь уступать. Насколько это верно?
9. Необходимо ли ограничивать обсуждение во времени?
10. Всегда ли переговоры заканчиваются подписанием контракта?
11. Что невозможно делать во время переговоров ни при каких обстоятельствах?
12. Как бы Вы могли сформулировать «золотое правило переговоров»?
Exercise 12. Role play. Conduct a meeting dealing with negotiations.
Part 2. NEGOTIATION STRATEGIES.
Exercise 1. What is the best approach to negotiation?
The win – win approach, where both you and the other person can feel happy with the outcome, or the I win – you lose approach, where the strongest person gets the bigger share?
Which of these strategies are best for finding a win-win solution in a negotiation?
a) If you don’t agree, say “no”.
b) Support your proposal with reasons and arguments.
c) Ask questions to find out what your partner’s position is.
d) Keep repeating your demands.
e) Look for alternative solutions.
f) Take time to think.
Exercise 2. Viktor, a supplier, talks to two of his buyers, Xavier and Yacoub, about new delivery charges.
Read the two negotiations and answer the questions:
1. Which buyer is more likely to reach an agreement with Viktor?
2. How does Xavier respond in the first negotiation?
3. How does Yacoub respond in the second negotiation?
4. In the second negotiation, how does Viktor respond to the proposal?
Part 3. PREPARING FOR A NEGOTIATION: NEGOTIATING SCENARIO AND NEGOTIATING STYLES.
PREPARING TO NEGOTIATE
Exercise 1. What considerations are important in preparing to negotiate?
Suggest as many as you can. Write down your ideas.
Exercise 2. John Rix is an expert on negotiation. Read what he suggests, then compare your ideas with the ideas of John.
«Before negotiations begin, preparing and planning are very important.
a) Get as much information as possible about the situation. If dealing with people from another culture, find out about its etiquette and negotiating styles: the way people negotiate what they consider to be acceptable and unacceptable behaviour, and so on. (See «Culture Page»).
b) Work out your initial bargaining position: what are your needs and objectives (the things that you want to achieve)? Decide your priorities (the most important objectives).
c) Try to estimate the needs and objectives of the other side.
d) Prepare a fallback position: conditions that you will accept if your original objectives are not met.
e) Perhaps you are in a position to influence the choice of venue: the place where you are going to meet. If so, would you prefer to:
Ø be on your own ground/on home ground (in your own offices)?
Ø go to see the other side on their ground (in their offices)?
Ø meet on neutral ground, for example in a hotel?
f) If you are negotiating as part of a negotiating team, consult your colleagues about points a) to e), and allocate roles and responsibilities.»
At the beginning of a negotiation, follow these steps:
1. Meet and greet representatives of the other company and introduce your colleagues.
2. Offer coffee and small talk. Try to create a relaxed atmosphere.
3. Go to the meeting room and suggest that you get down to business.
4. Have a clear agenda and a timetable.
5. First, give the background to the negotiations. Talking about the situation is a good way of reminding people of key facts and issues.
6. Then kick off the negotiations themselves, perhaps by finding out more about the priorities of the other side (the things they think are most important) or talking about your own requirements.
When you’re negotiating with people from other cultures, it’s important to think about what they consider as «normal» behaviour (See «Culture Page»). You’ll need to think about the following:
Exercise 3. Read the text in which a Management Communications Consultant, Diana Ferry, talks about preparing for a negotiation.
Mark the seven points below in the order in which she mentions them.
I would have to say that one needs to be very prepared. I mean to know what you want from a negotiation, what’s your purpose, your aims and objectives. Without clear aims, you can’t have clear thinking, so aims are vital, to have a clear purpose. What do you want? A contract? You want a firm agreement – or just to find out a few things?
Then, you have to know what the minimum deal is. Decide what is the least – the lowest offer you can accept for a deal –an agreement.
Then you have to know where you can give way – or make concessions. So fixing concessions – and targets – is important. Without that you end up agreeing to something and later thinking «Oh no that’s a bad deal!» =or you miss out on what seemed a bad deal at the time but was in fact not bad anyway.
Another area – is to know your strengths and your weaknesses. If we take the classic marketing SWOT analysis – you have to understand your own strengths and weaknesses as well as the opportunities and threats or dangers that exist outside, from competitors for example.
So, know the market, know your strengths know about prices and other possibilities. If you do this, you can see the negotiation in its proper context.
Then you need to prepare all support information. Figures, numbers, pictures, whatever. It could be anything –but the most important thing is that you can support what you say. It helps you to be clear.
Next, the team Hs to be well prepared, well managed. If it’s a team you have, everyone needs a clear role, clear responsibilities –to have roles.
Finally, your opening remarks. Prepare what to say. Begin in general terms what you hope to achieve – the general intention, what you’re looking for. The opening statement sets up the right atmosphere, the right expectations; it helps things to be clear between the two sides.
Exercise 4. Match each of the four aspects of good preparation on the left with why they are important on the right. If in doubt, check your answer by reading the text again.
Exercise 5. As a Management Communications Consultant, write the Recommendations section of a report outlining your practical suggestions on how to train staff for successful negotiation. (Write your recommendations on how to train the staff to be successful in a negotiation).
Part 4. MAKING AN OPENING STATEMENT.
Exercise 1. Most formal negotiations begin with an opening statement from each side. What do you think an opening statement should include? Write down your ideas.
Exercise 2. Read the conversation between a small Singaporean software company called LP Associates and a possible partner, Kee Ltd. You will read part of an opening statement from Stella Wang, the Production Manager at LP Associates.
Tick (*) four of the eight statements given below the text which best represent what she says. (Students should identify four broad objectives of the negotiation).
Well, thank you for coming here today. As you know, we have a busy agenda. May I begin by outlining some basic thoughts that we have on this meeting? First of all, we see it very much as a first meeting, a preliminary negotiation to identify areas in which we can perhaps work together on certain products- prototype products – that we have developed. There are two, possibly three, ways in which we might go forward. I’d like to summarise these under three headings. First, development projects, second license agreements. The third is the possibility of some kind of consultancy relationship. Is everyone happy if I say a few words about these to begin with? Right, well. First of all, joint development projects. This is …
1. LP Associates want to reach a final agreement in this negotiation.
2. These are preliminary talks.
3. The two parties want to resolve a conflict.
4. They want to agree on a name for the joint venture.
5. LP Associates would like to consider joint product development.
6. They would also consider license agreements.
7. LP Associates want to agree a complete sale of their ideas.
8. They want to consider working on a consultancy basis.
Exercise 3. Compare Stella Wang’s opening statement with the suggestions you made at the beginning of this section.
a) What did she include that you also suggested?
b) What other things did she include?
Exercise 4. Suggest phrases for each of the following at the start of a negotiation.
a) Welcome the other side.
b) Develop small talk (trip, weather).
c) Mention plans for lunch – make your visitors feel welcome (see city centre/local restaurant).
d) Suggest you start talking about the main subject of your meeting.
e) Introduce a colleague (Luke Fox, Marketing Department).
f) Explain general aim or purpose of the meeting (preliminary/exploratory).
g) Say what your side wants from the meeting (establish beginnings of a partnership /learn about supply systems /price variations and supply costs)
Exercise 5. Try to bring together many of the phrases above in a single opening statement.
Exercise 6. Choose one of the following situations to prepare an opening statement in a negotiation. Remember to include welcoming remarks and some general comments on your expectations for a successful meeting and an agreement which leads to a lasting partnership.
Your company, Ultra Compo, is meeting representatives of OHTA Inc. from Tokyo. OHTA Inc. wants to set up an agency in your country to distribute its electronic components.
Exploratory talks to:
a) know more about the products;
b) find out about OHTA’s existing international distribution network;
c) discuss in general the terms under which the two companies could cooperate.
Independent objective: to internationalise your own company’s activity and extend your product range.
You are interested in buying some land in a suburb of Lima in Peru, where you want to establish a distribution warehouse to serve the Andean region of Latin America. You have a meeting with the lawyers acting for the landowner, PuertosCallao S.A., a port authority in Lima.
Exploratory talks to find out:
a) more about the land, its exact location relative to the port, airport, city centre, etc.;
b) the cost of a land;
c) the present condition of the land – existing buildings, etc.
Independent objective: to secure the land on the lowest possible terms, either by buying it now for cash, or getting a deal spreading costs over a longer term at low interest, or leasing the land.
GETTING WHAT YOU WANT.
Part1. KEY PRINCIPLES OF NEGOTIATING.
A key principle in negotiating is to give a little and get a little at the same time.
Win – win
In a successful negotiation, everyone should leave the negotiating table happy with the outcome: there shouldn’t be winners and losers. The negotiation should try to reach a win-win solution: an agreement of equal benefit to both sides. This can be achieved in a number of ways.
Part2. PROBING, PROPOSALS AND COUNTER-PROPOSALS, TRADE-OFFS.
One way of furthering negotiations is probing (asking the right questions and listening carefully to the answers).
Here are some probing questions:
a) What is the situation on production at your plant at the moment?
b) What sort of quantities are you looking for?
c) What are we looking at in the way of discount?
d) What did you have in mind regarding specifications?
e) What were you thinking of in terms of delivery dates?
f) How important to you is the currency for payment?
Proposal and counter-proposal.
Through a series of proposals or offers from one side and counter-offers from the other side, the two sides work towards an agreement which will benefit them both.
Trade – offs
When you offer to change your position to one that is less favourable to yourself, you make a concession. Perhaps this is in exchange for a concession from the other side, although there is no guarantee of this. Your concession may be a goodwill gesture: a concession that you make hoping that the other side will see this as friendly and make a concession in return.
Even in a friendly negotiation, there may be horse-trading, with each side making a series of concessions in return for concessions from the other side. (This expression is often used to show disapproval). If you argue about something for a long time, especially about the price of something, you haggle.
A series of concessions in exchange for concessions from the other side is a series of trade-offs. If you make a concession, you may not get anything back. If you make a trade-off, you give something away and get something in return.
Exercise 1. Read the text above again and answer the questions.
1. What situation can you observe in a win-win negotiation?
2. What do you mean by «probing»?
3. What question from B do you suggest for the following reply: «We’d prefer US dollars»?
4. What question from B do you suggest for the reply: «We’ll need the first 30 units in six months»?
5. What is the best translation for the following conjunctions:
6. When do we usually make a concession?
7. What is meant by «horse-trading»?
8. What two expressions do we use to describe long negotiations with a series of concessions?
9. What’s the difference between «to haggle» and «to make a concession»?
Part 3. BIDDING, BARGAINING AN D MAKING CONCESSIONS.
Exercise 1. Read the following extract. According to the writer, are these statements about negotiating True (T) or False (F)?
a) Decide on the most important and less important issues.
b) Try to guess what the other side thinks.
c) Note answer to the questions you ask.
d) Deal with issues in isolation, one at a time.
e) Make concessions and get a concession in return.
f) If there are problems, you have to accept or reject what is on offer.
g) Tough bargaining can combine with a spirit of cooperation.
Effective negotiating requires clear thinking and a constructive approach.
It is necessary to have a clear understanding of what for you are the most important issues and at the same time what for you are less important. Try to identify aspects in the second category where the other side will be happy to gain concessions. Give what is not so important for you, but is valuable for the other side.
To do this, you have to do the following:
Ø Check every item of what the other side wants. Ask how important items are and look for flexibility.
Ø Do not guess their opinions or motives – you could be wrong, or they won’t like your speculation.
Ø Note the other side’s answers, but don’t immediately say what you think.
Ø Avoid being forced into considering one issue alone, consider two or three at once – aim for an agreement to a package.
If there are big differences between the two parties, you have a choice of these opinions: to accept. To reject, or to carry on negotiating. If you decide to carry on, then the opinions in the next round are:
Ø to make a new offer;
Ø to seek a new offer from the other party;
Ø to change the shape of the deal (vary the quantity or the quality, or bring in third parties);
Ø begin bargaining.
Your bargaining should be governed by three principles: be prepared, think about the whole package, and be constructive. In preparing, you must identify the issues and prepare your bargaining position. You need:
Ø an essential conditions list – issues where you cannot concede anything;
Ø a concession list – issues where you can make concessions;
Ø to grade the concessions from the easiest to the most difficult, where you need most in return.
As for the package, you must look for agreement in principle on a broad front.
When the time comes for compromise, each party will concede on one issue if they win a concession on another.
The final principle is to be positive and constructive. You should be fair and cooperative, even during difficult bargaining. This approach is most likely to move the negotiation towards a settlement that both sides feel is to their advantage.
(From «Negotiating» by Bill Scott)
AFTER READING TASKS
Exercise 2. Read the text again to find out:
a) how to respond to what the other side wants;
b) three ways to change a deal;
c) three actions to prepare for bargaining.
Exercise 3. Read the extract again. Then make up a plan – logically connected items with the key words for each that can help you to retell the story.
Exercise 4. Write an essay on the subject «What you need for effective negotiating». An essay – a piece of writing by a student on a particular subject.
STOP AND CHECK.
Exercise 5. Match the word to the correct definition.
Exercise 6. Preparing for a negotiation.
1. Not all negotiations (or meetings) have a formal a ………………………….……. .
2. You should know your s ……..……..……. and w ……………………..………… .
3. Establish your o …………………………………………………………………… .
4. Have all the i ……………………………………………………….……. you need.
5. Prepare any v …………………………………………….………….……. supports.
6. Prepare an o …………………………………….. s ……………...……………….. .
Exercise 7. About the opening statement.
Mark the following statements as True (T) or False (F).
Exercise 8. Bargaining and making concession.
Choose the right alternative from the words in italics.
1. It’s okay with us so long as/whereas you can supply the goods by January.
2. If/Unless the specifications are right we’ll be happy.
3. We won’t pay that price if/unless you increase the quantity.
4. If you ask us to help you then we’ll/we do send someone immediately.
5. If you pay in dollars we had to/will have to pay bank charges.
6. We can offer a discount but only/however if you pay at the time of the order.
7. We can reach agreement unless/on condition that the price is fixed for two years.
IT’S INTERESTING TO KNOW.
Approaches to bargaining and negotiating can vary according to whether a company or culture is deal-focused or relationship-focused. Most negotiators lie somewhere between the two extremes. It is useful not only to recognise where your counterpart in the negotiation is placed, but also to identify which style reflects your own attitude to bargaining.
Part 5. TYPES OF NEGOTIATOR
Exercise 1. Try to remember the tree different types of negotiation described in the beginning. We may also speak about three types of negotiator: the fighter, the creative negotiator and the one who looks for independent advantage.
To find out which one you are, answer the following questions and check your answers with the key at the end.
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