6. Most important needs or demands:

7. Position (often the final one) that both sides accept:

Use the vocabulary words to complete the paragraph on negotiations.

a) Offer / a) Discount / b) Outcome / c) Increase / d) Compromise /e) Concessions / f) Reduce / g) Bargaining / h) Deal / i) High / j) Short / k) Flexible /l) Terms

Paragraph on Negotiation

The process of making and reacting to offers in a negotiation is often called (1) ............... A price can be too (2) ................. or too low. A delivery time can be too long or too (3) ................. Terms of payment can be very strict or more (4) ..................

To reach a (5) ......................, both sides may have to make some (6) .......................... . For example, the supplier might have to (7) ................. the price or increase the (8) .................. The customer might have to (9) .............. his order.

If the (10) .............. is successful, both sides will be able to agree to (11) .................... and say It’s a (12) ...............................

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| NEGOTIATING SKILLS HIT refers, in negotiation terms, H - HAVE TO HAVE, I — INTEND,T -TRADABLE. A HAVE TO HAVE is an essential aspect or outcome for one of the parties in the negotiation. Generally, there are only one or two in each negotiation. However, they are a must! You must achieve these items in order for your negotiation to be successful. INTEND refers to something that is less essential, but still important in the negotiation. You might be prepared to be flexible with respect to these items. You only have a few of them, i.e. perhaps two to five. A TRADABLE item is something you put in your proposal which you believe your partner would like to have. You are prepared to exchange this item for something which you would like to obtain. Before you begin the negotiations with your partner, it is very important to determine these issues and decide which category they belong to from your point of view. These issues should be clear to all members of your negotiating team. The clearer you are about your goals and needs and those of the opposite party, the more effective you can be as a negotiator. As a result, you are more likely to obtain the result you want. |

| SET SMART OBJECTIVES When you decide on your 'H's', it is best to set very clear and targeted objectives. To help you define them effectively, it is recommended to set SMART goals. Your objectives must be: Specific — state exactly what you want to achieve Measurable — know how much you have achieved Achievable — choose realistic goals for the given circumstances Relevant — find interesting points for both parties Timed — set a realistic deadline |

| BARGAINING VS. NEGOTIATING Hard Bargaining: In hard bargaining, each party tries to achieve their aims without making concessions or making only few or small ones. The aim is to 'beat' the other side. This style leads to a win—lose scenario, i.e. one side wins and the other loses. Often, the result is a stalemate, which results in a lose—lose situation. Soft Bargaining: In soft bargaining, the parties try to reach an agreement by giving concessions very freely. The soft bargainer often makes proposals very quickly and says 'yes' rather soon. This type of negotiator is often afraid of hurting the other party's feelings. Principled Negotiating: In their book, Getting to Yes, Fisher and Ury introduced this term. It refers to a style which focuses on discovering the interests behind the position. The principled negotiator separates the person from the issue and concentrates on mutual gain in order to reach agreement. In short, it leaves both sides with a sense of achievement, i.e. a win—win situation. |

Vocabulary Review

Try to guess the meanings of the underlined words through their context

1. The manager admitted that the proposal was great. However, he was to think it over before approving it.

2. Mr. Johnson’s business opponent sent him an invitation

3. Bill has negotiated with the top businessmen in the world.

4. To be successful, you must have a certain business strategy.

5. Talking with your colleagues causes a delay in the completion of work.

Pick out the word that fits the context:

work atmosphere /proactive/ motivated/ investment/ enthusiastic

1. As a team leader, you must be \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ about your job.

2. Workers are \_\_\_\_\_\_\_\_\_\_\_\_\_ to render their services if they are praised.

3. In order to survive the competition a company should be \_\_\_\_\_\_\_\_\_\_\_\_\_ not reactive.

4. A house and lot is a good \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

5. A positive \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ produces positive results.

Pick out the word that would best fit the context

Potential/ rescheduled/ business trip /supplier

1. The CEO’s \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ has been \_\_\_\_\_\_\_\_\_ due to the typhoon.

2. We need a new textile \_\_\_\_\_\_\_\_\_\_\_\_\_ for our new designs.

3. The committee has already spotted a \_\_\_\_\_\_\_\_\_\_\_\_\_ chairperson to manage the Finance Department.

key practices/ obstacles/ implement/competent/ reluctant

1. Ms. Shin seldom smiles; other employees are \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ to talk to her.

2. What the company needs are \_\_\_\_\_\_\_\_\_\_\_\_\_ workers.

3. Don’t think of problems as \_\_\_\_\_\_\_\_\_\_\_\_\_ to your success.

4. Everyone has to follow the \_\_\_\_\_\_\_\_\_\_\_\_\_ to help create productive and competent workers.

5. The chairperson has to \_\_\_\_\_\_\_\_\_\_\_\_\_\_ new regulations which are helpful in the company’s development.

Underline the correct phrase in the sentences.

1. If I understand you correctly/Are you proposing/ Do you suggest to help out at the meeting?

2. We are talking about / We are confident/ We believe the goods are faulty.

3. Does that mean / In my opinion / Do you suggest we have to move to Nottingham?

4. Do you suggest/ In our opinion / Do you mean you will check on the details?

5. Do you think/ We strongly believe / I imagine it something like we can work this out.

6. We feel that / We are of the opinion that/ We are talking about an increase of 10%.

LANGUAGE BOX

In negotiations, the first conditional form (if + present +future) is used when we are more certain.

The second conditional form (if + past + would infinitive) is more tentative:

ex: If you agree to the new working conditions, we’ll sign the contract now.

There are several ways to express a condition without using an if-clause.

A simple conditional with Suppose / Supposing + a verb in the present or past tense:

ex: Suppose they don’t accept, what will you do? (If they don’t accept...)

1st conditional form (if + present + future)

If + you + agree to the new working conditions, we’ll sign the contract now.

2nd conditional form (if + past +would infinitive)

If + you + accepted 5%, we’d be prepared to negotiate the second point.

Answer the question using 1st conditional form or 2nd conditional form. Start your sentences with:

If there are changes in the company, I will...

If there were changes in the company, I would...

How do you manage changes in the company?

Complete the table using the convenient words

| | | | | |

| --- | --- | --- | --- | --- |

| Verb | Noun | | Verb | Noun |

| To negotiate | | To transport | |

| To quote | | | preparation |

| To propose | | To chair | |

| | specification | | | calculation |

| | arrangement | | | information |

| To produce | | To deliver | |

| To disscuss | | | production |

| | payment | | To meet | |

Put the words in the right order to make phrases.

1. able work to We out were things

2. get to business us Let down

3. certainly It an would alternative to be ...

4. alternatives far So three established have we ...

5. two but you We have imagine possibilities could ...

6. option sounds my In like opinion that an

Synonyms are words and phrases that can be used in place of other words. Find the synonyms for the following words and place them in the box below

Example: That sounds like an alternative/option or choice.

aim•belief•goal•position•proposal•quotation•target• to determine•to forecast•to go up•to identify•to look up•to investigate •to project•to raise•to recommend•to resolve•to suggest•to tackle

| | | |

| --- | --- | --- |

| Offer | Quotation | Proposal |

| 1 to propose | | |

| 2 to increase | | |

| 3 to predict | | |

| 4 to establish | | |

| 5 opinion | | |

| 6 to research | | |

| 7 objective | | |

| 8 to solve | | |

Rewrite the statements using the synonyms above for the following words:

1. This --------------------------------- is now two months old. (offer)

2. Can you --------------------------------- the problem? (solve)

3. Sales have --------------------------------- by 10%. (increase)

4. We have--------------------------------- the facts. (establish)

5. I --------------------------------- looking for a different supplier. (propose)

6. Our--------------------------------- is to lower costs. (objective)

7. Mike wants --------------------------------- the material. (to research)

8. We--------------------------------- that the price will go up. (predict)

9. It is our --------------------------------- that this offer cannot be beaten. (opinion)

Match the sentence beginnings (1-6) with the sentence endings (a-f).

| | | |

| --- | --- | --- |

| 1.Our goal is ... | a use the old machines too. | 1= |

| 2.Does this mean ... | b a loss-making subsidiary must close. | 2= |

| 3.It is our opinion that ... | we had made good progress. | 3= |

| 4.I am not in a position to do this ... | d to complete it by the end of August. | 4= |

| 5.You would have to ... | e the company will not shut down for the Games? | 5= |

| 6.The inspector thought ... | f because head office has already signed the contract. | 6= |

Use the words in the previous exercise to complete the sentences.

1. What do you----------------------------- ? I do not understand.

2. I am very happy with your ----------------------------- in this company.

3. What is your ----------------------------- on a husband and wife working in the same department?

4. We have a----------------------------- in China.

5. There is a ----------------------------- vacant in the finance department.

6. Please----------------------------- the figures as soon as possible, as I must check them this week.

7. If you want to rent sewing----------------------------- , you must sign a five-year contract.

8. The shop----------------------------- because there were not enough customers.

Writing

MEMO

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| --- |

| There has been a delay with Ching Company’s order. They said they need more time to think it over, but I heard that there is a new company which is considered to be our opponent. They are negotiating a much lower price with them. They even offered a 5% discount. We need to do everything to keep this account. I will be announcing the schedule for our meeting with the president. However, before we have the meeting, I want you to plan new strategies on how to keep future clients. |

1. What is the memo about?

2. According to the memo, what is the cause of the delay?

3. Do you see negotiation as being about:

• 1. a fair and equal transaction?

2. compromising?

3. making a joint decision in which you get some of what you want and they get some of what they want?

Speaking: Role play

Role-play with your teacher the situation below.

You have been offered a higher position in the company you work for. But, you are dissatisfied with the conditions that apply. How will you negotiate with the manager? ....

Exercise: Dealing with unreasonable demands

Read the following two business negotiations where one side/party is being unreasonable in its demands or behaviour. In the first, the re-negotiation is for a service contract for IT support. In the second, the negotiation is for a contract for television components.

From the context, try to guess what the meaning of the words/phrases in bold are. Then do the quiz at the end to check if you are right.

Negotiation One

Seller:'For a 2 year extension to the current service contract, the price will be $5 million.'

Buyer:'It's a lot higher than what we paid for the current contract.'

Seller:'To be honest, we've made a lost on the current contract with you. We've looked at the numbers and we can't lower it.'

Buyer:'Let me just make sure I know what you're saying, for exactly the same contract as we have now, we'll have to pay $1.5 million more.'

Seller:'As I said before, we've lost money on the existing contract we have with you. Plus, consider how much time and money it will cost you to change to a new service provider, at least $2 million and hundreds of hours of training and business downtime.'

Buyer:'I don't think that I'll be able to sell this back at head office.'

Seller:'As I said, to set up with a new provider will cost you more with higher risk.'

Buyer:'What would you do in our position if you had to pay 33% more to extend an existing contract?'

Seller:'I appreciate how you feel. It does seem a lot, but it'll cost you more if you change.'

Buyer:'What do you think will happen if we don't agree?'

Seller:'I suppose that you'll decide to give the contract to someone else.'

Buyer:'So, would you prefer to lose the contract or make a concession?'

Seller:'Of course, we don't want to lose the contract, but we feel we've made you a very reasonable offer.'

Buyer:'So you won't consider making a concession on price?'

Seller:'I'm afraid it's the lowest price we can offer you.'

Buyer:'Well, if that's your position, I'm afraid there's nothing else we can do! I think it's better if we finish the meeting now. If you reconsider your position, get in touch with me.'

Negotiation Two

Buyer:'From our perspective, $4.35 per component is too much. We're not willing to pay more than $3.00 per component.'

Seller:'So, if I understand you correctly, you're looking for $3.00 per unit for an order of 40,000 per month.'

Buyer:'Yes.'

Seller:'Would you excuse us for a moment?'

Buyer:'No problem.'

10 minutes later

Seller:'Your offer is very low. For that price we would make a loss on each component we sold you. It wouldn't make any sense for us to agree to a contract with these terms.'

Buyer:'We have found two suppliers who are willing to offer that price.'

Seller:'But will they provide the same quality of product and guarantee of service and delivery?'

Buyer:'Yes.'

Seller:'What if we offered you each component at $4.15 on condition that you increased your order to 50.000 per month?'

Buyer:'I appreciate the offer, but we're only prepared to pay $3. You do know that prices of televisions fell by 15% last year. We need to cut costs I'm afraid. So, are you willing to accept our offer?'

Seller:'I understand what you're saying, but we simply couldn't do it. It would ruin us. How do you suggest we proceed?'

Buyer:'I appreciate how you see it and I would like to make a compromise, but we have to save money somewhere!'

Seller:'I think it's best if we have a few days to think about it.'

• Now, do a similar example