14. Answer the following questions:

1. What is Mr. Pavlenko's working position at Ukrimport?

2. What firm does Mr. Turnball represent?

3. What is the subject of negotiation between Mr. Pavlenko and Mr. Turnball?

4. What does Mr. Pavlenko inform his counterpart about concerning the system which is purchased?

5. Why does not Mr. Pavlenko agree with the prices for some items?

6. What prices do the competitors propose to the Ukrainian party?

7. Why cannot Mr. Turnball solve the problem of prices himself?

15. Think and answer:

1. Why was Ukrimport interested in goods from London Tools Ltd?

2. Had the representatives of the two companies met before Mr. Turnball came to Kyiv? Why do you think so?

3. Why didn't all the prices of the company suit the Buyers?

4. Why did Pavlenko and Mr. Turnball decide to meet again?

16. Act out dialogues on the basis of the following situations:

1. Tell Mr White you have looked through their latest catalogues and quotation closely. The quality of the machines meets your requirements but you cannot to their price. Tell him you will place a big order with the company if they give you a discount.

2. Green & Co are regular buyers of pumps. They would like to place an order with you. So their representative comes to your office. Discuss the price and terms of delivery and payment.

3. You have just visited the Sellers' plant and have seen the machines you are going to buy in operation. Tell Mr. Blake about your impressions of the machines. Discuss with him delivery dates. You require the goods for immediate shipment.

17. Complete the sentences:

1. Mr. Pavlenko ... Director of Ukrimport met Mr Tumball ... of London Tools Ltd.

2. They met at the Ministry of Foreign ... to negotiate the ... of an electronic system.

3. We have studied all the technical ... of the system and concluded that they ... our requirements.

4. The system is up to world ... and it is in great ... on the world...

5. I must get in ... with my company to ... the prices.

6. I think that our terms of... and ... time ... you.

18. Translate into English:

1. Нам необхідно обговорити питання про закупівлю цієї електронної системи для нового аеропорту в Києві.

2. Переговори між Генеральним директором "Укрімпорта" і представником компанії "Лoндон Тулз Лімітед" відбулися в Міністерстві зовнішньої торгівлі.

3. Ми вивчили технічні характеристики вашої системи і прийшли до висновку, що вони відповідають нашим вимогам.

4. Система відповідає світовим стандартам і користується великим попитом на світовому ринку.

5. Ми хочемо обговорити комерційну сторону нашої угоди.

6. Мені необхідно зв'язатися з моєю фірмою, і я вам дам відповідь завтра.

7. Конкуренти пропонують ціни, що на 30—40 % нижче, ніж ваші.

8. Ваші умови і час постачання прийнятні для нас.

19. Study the following Role Plays and be ready to represent one of them. Role Play 1: The Conflict

Problem:

Here is the case how the Directorate of Ukrainian producer plant acted in a conflicting situation.

The root reason for the conflict was insufficient quality of the equipment delivered by a West European supplier. The maximum capacity reached was about 1600-1800 pieces of steel moulds per hour instead of 2000 pieces designed. Another complaint was that part of the equipment was still in a warehouse where it had been for more than 2 years. Progressively the losses were running into a huge sum.

To cut the loss, the management of the plant decided to exercise their legal right to compensation. They made a formal claim on their business partners and submitted all relevant supporting documents.

Under Ukrainian law the liability for damages is limited to 50 per cent of the value of the goods supplied. The plant management was determined to recover the amount of loss.

Analyze the case:

1. Do you find the position of the Buyers substantiated?

2. What losses were incurred by the Buyers?

3. What could be the Seller' position in the dispute?

4. Who has a real chance to win the case if the matter is submitted to Arbitration?

Roles:

The Buyers' side: Managing Director, Manager of the Finance and Currency Department.

The Sellers' side: Chief Business Executive, Product Manager, Technical Expert.

Buyers:

You represent the interests of the Ukrainian Production Plant. You claim full compensation for the losses.

The list of damages includes:

1. part of the purchase price for the delivered equipment;

2. projected transport charges back to the country of origin;

3. the fee to the Experts' Commission.

You also claim the “lost profit”. Under Ukrainian Law that is the profit that could be gained if the supplied equipment ran at its designed capacity. If your partner blocks the negotiation the only option left is to submit the case to Arbitration. Tell your partner that you are ready to present:

1. An Act of Experts' Examination;

2. Chemical analysis of the content of steel.

During the negotiation you may refer to the Ukrainian Civil Code. Article 219 entitles you to compensation.

Seller:

You represent the interests of the Suppliers.

During the talks you cannot deny poor operation of the equipment as finished products have visual defects. But you are sure that the only reason for malfunction is improper steel. You are dead sure that poor quality steel affected the quality of the finished product.

In business you are always committed to customer and your rescue plan may be:

1. to run a test with your own sample of steel used. (It will help to discover the real fault);

2. to complete the commissioning of the full set of equipment. (You will select people of better professional skills). You may devise another plan. Just remember, that your main purpose is to dissuade your partners from rash actions.

Useful language:

- Anything the matter?

- The thing is…

- Your claim should be supported by evidence

- That sounds reasonable

- There are complaints because…

- There is also the problem of…

- It came as a surprise

- It happened through no fault of ours

- Let's split the expenses

- That's just what we are going to suggest

- That seems fair

Further Subjects for Discussion:

An efficient business manager must know the law governing in a country where he runs his business. In business management it is a crucial point, especially when disputes arise.

How must a manager behave in a conflicting situation? What are his rights by law? Where can he apply for help? These are the key questions to answer if you want to be an expert management. Exchange your opinions on the problem.

Written follow-up:

Write up minutes of the meeting.