447

If people negotiate (have negotiations), they talk in order to reach an agreement which will be to their mutual advantage1. Negotiations can be classified into

customer – supplier negotiations;

wage negotiations;

merger and take over negotiations;

trade negotiations.

Negotiations also take place to settle all kinds of disputes, like trade disputes, labor disputes and contract disputes.

Someone who takes part in negotiations is a negotiator, and if that person is good at getting what he or she wants, then he or she is a tough negotiator.

As for the way of conducting negotiations, they can be intense (intensive), delicate or tense, protracted or last-minute. Note:1 –to their mutual advantage – к взаимной выгоде

Task 9

Match the sentence beginnings (1-8) with the correct endings (a- h). All the expressions are from text 5.

Note: National Parent Teachers Association – Национальная Ассоциация родителей и учителей;

hijackers –угонщики самолета.; put … back on track – вернуть

… на рельсы ( вернуться к конструктивным переговорам).

Negotiations: Situations and Negotiators

Part II

Vocabulary

preparing and planning is very important.

a.Get as much information as possible about the situation. If dealing with people from other culture, find out about their etiquette and negotiating styles: the way they negotiate, what they consider acceptable and unacceptable behavior.

b.Work out your initial bargaining position. What are your needs and objectives? Determine your priorities.

c.Try to estimate the needs and priorities of the other side.

d.Prepare a fallback position: conditions which 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:

-be on your ground/ on home ground ( in your office);

-go to see the other side on their ground ( in their office);

-meet on neutral ground(for example, in a hotel)?

f.If you are negotiating as part of the team, consult your colleagues about all these issues and allocate roles and responsibilities.

73

Negotiating scenario. At the beginning of negotiations follow these steps

1.Meet and greet representatives of the other side and introduce your colleagues.

2.Offer coffee and start small talk to create a relaxed atmosphere.

3.Go to the meeting room and suggest that you get down to business.

4.Have a good clear agenda and timetable.

Negotiating styles. When you are negotiating with people

from other culture, it is important to think about what they consider normal behavior. You will have to think about the following: body language physical contact; conversational rules; relationship building; hierarchy and attitude to time.

Ideal situation. In successful negotiations everyone should leave the negotiation table happy with the outcome: there should not be winners or losers. The ideal situation is when negotiators try to reach a win-win solution which is an agreement with equal benefits for both sides. This can be achieved in a number of ways. One way of furthering negotiation is probing (asking the right questions and listening to the answers carefully). Here are some probing questions:

a.What is the situation on production at your plant at the moment?

b.What sort of quantities are 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 in terms of delivery dates?

f.How important to you is the currency for payment?

Proposal and counter-proposal. Through a series of proposals from one side and counter-proposals or counter-offers from the other side, the two sides work towards an agreement

74

which will benefit them both. Here are some ways of making offers:

If you place a large order until the end of the month, Model: then we will offer good discounts.

Если вы разместите большой заказ до конца месяца, то тогда мы предложим хорошие скидки.

This model is very productive, use it in as many cases as you can.

Trade-offs. When you offer to change your position to the other position which is less favorable 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 friendly negotiations there may be so-called horsetrading (when each side makes a concession in return for the

75

concession from the other side). The expression Horse-trading is used to show disapproval. If you argue about something, especially about the price, for a long time, you haggle1.

A series of concessions in exchange from concessions from the other side is a trade-off. There is a great difference between the concession and the trade-off. When you make a concession, you may get nothing in return. If you make e trade-off, you get something away and get something in return.

Note: 1 – торговаться (сбивать цену).

Task 10

Choose the right reply to the probing questions a-f (see the text).

1.Perhaps over 100 units per year over 5 years.

2.We can offer 10 ten percent if the quantity is right.

3.We‟d like to see a ten percent improvement in performance.

4.We‟d prefer Euros or US dollars.

5.We will need the first ten units in six months.

6.We are operating full capacity.

Part III Dealing with Problems

When negotiations get struck, don‟t progress, there are a number of things you can do.

a.Underline the common ground: the area where agreement can be reached.

b.Reassure the other party on key points that have been decided and confirm that you have not changed your mind.

c.Be ready to compromise on your original objectives: Be ready to accept less than you wanted in exchange for compromises from the other side.

76

d.Identify the exact obstacles: what exactly is causing negotiations to become difficult.

e.Postpone the discussion until later so that each side can reconsider the position.

Task 11

The Producer (the Seller) of engines is having some difficulties at the negotiations with the Buyer. Match the sentences 1-5 with the expressions a-e.

1.With currency values changing so quickly, you should think further ahead about the currency you want to be paid in.

2.If you can increase the performance of the type of engine we are interested in, we may be willing to pay a little more.

3.Well, the currency for payment seems to be the problem here.

4.We have reached the agreement on the two types on engines you are willing to buy, and that is very positive.

5.We have definitely reached a consensus on the price of this type on engine – at least that much is agreed.

Part IV

Reaching an Agreement and Checking the Deal

An agreement of any kind is a deal. When you reach an agreement, you can talk about closing a deal. A bargain is also an agreement reached through negotiations. An agreement may be in the form of a contract. The word “contract” is used in these combinations:

4.Mr. Peters claimed that Mr. Schaffer was only an employee in his company, but Schaffer asserted that an unwritten … contract made them partners.

5.She had a … contract with the school authorities due to expire at the end on the academic year, and wanted to take time off work to have children.

Task 13

Study the expressions used to check the points of the deal and rearrange them in the correct order (from a to h).

1.Let me just run over the main point. On the quantity of engines, …

2.I think that covers everything.

3.If you agree to the proposal, we‟ll draw up a contract based on these points.

4.… payment to settle, and there is still an outstanding issue of documentation.

5.… We agreed that you would improve the power of the engine by 10 percent.

6.… We agreed that you will supply us with 20 units over four years. As far as performance is concerned, …

7.We still have the question of the currency for…

8.We‟ll send you a written proposal on these last two issues.

79