7. Fill in the gaps with the following words:

Question, cues, funds, client, exchange, tactics

1. Business people need to be skilled in negotiation ________ and understand how to effectively communicate during the negotiation process.

2. Paying attention to non-verbal ___________can help you to change your strategy.

3. If you want something from your _________, be prepared to offer something comparable in ___________.

4. After asking an open-ended ____________, sit quietly and wait for an answer from the other person.

5. If you are in the midst of a financial negotiation, do not demand __________.

8. Answer the following questions:

1. What is business negotiation?

2. What gesture can express disagreement?

3. When will communication in a negotiation be smoother and more effective?

4. What must you do to make your current negotiation successful?

5. What is an important element of international business negotiation?

6. What is business negotiation about at the end of the day?

9. Read the following statements and decide if they are true or false:

1. Business negotiation may be only as simple as choosing a meeting time and place.

2. If you want to get something, never ask for it directly.

3. The exchange includes identifying the goal of the negotiation, brainstorming multiple solutions and determining what the main negotiation tactic may be.

4. After asking an open-ended question, stand up and ask the opposite question.

5. All cultures expect a strictly business approach to negotiations.

6. Negotiation is best conducted on friendly, personal terms.

10. Read the following negotiation between a television manufacturer and a components company for a 2 year contract for components. Bill is representing the television company and Fleur is representing the component company. Focus on the words/phrases in BOLD ITALICS and think about their meaning. Then act out the dialogue.

Fleur: So, we could supply you with 40,000 components per month, for a two-year period at a unit cost of $4.35 per component.

Bill: There seems to have been a slight misunderstanding. You do realize that we want to order nearly a million components. And for that quantity, the price per unit does seem to be very high.

Fleur: We have taken into account the size of the order you require. And we have reduced the unit price markedly from what we normally ask. In terms of unit price, what were you thinking of?

Bill: Well, we were hoping for something around $3.40 per unit. Please bear in mind that we want to order nearly a million components, not a thousand.

Fleur: $3.40 per unit. I am afraid that is out of the question. If we sold it to you at that price, we would be making loss on every unit sold.

Bill: Well, we have received a quote from one of your competitors at $3.53 per unit.

Fleur: I am afraid that we can't match that. But If I were you, I would be asking myself how can they sell the components at such a low price? I would say that they are sacrificing the quality of the component for price. But there may be some room for manoeuvre. If you were to increase your order to 50,000 components per months, then we could lower the unit cost to $4.15.

Bill: For 50,000 units per month we wouldn’t expect to pay more than $3.85 per unit. I would say that this price is the going rate for this quantity.

Fleur: I don’t think that we could go that far. Under $4 per unit. It’s not enough.'

Bill: Well, could you meet us halfway? At $4 per unit?

Fleur: If that’s $4 per unit, 50,000 per month for 2 years. I think we can do that.

11. Imagine that your company wants to buy some modern gardening equipment. So you are going to conduct business negotiation with the Head of Sales Department of a landscape designing company in connection with purchasing of necessary equipment. Create an outline of the main points you are going to discuss. Think of the following:

- names and quantities of the equipment you would like to purchase;

- gathering information about its design, quality and technical characteristics

- asking for some concessions and discounts

12. Work in pairs. Imagine that one of you is a representative of the company that wants to buy modern gardening equipment and the other one is the Head of Sales Department of the landscape designing company selling this equipment. You should conduct a negotiation trying to reach a win-win outcome. Use the phrases contained in the Appendix VII

Unit 10