Part 2 negotiations unit 1 opening the negotiations

Synopsis Kamakura’s negotiating team arrives at Visitron’s Head office for the opening of the negotiations. Richard Hamilton welcomes them and suggests a negotiating procedure. Howard Parker makes an opening statement and presents an outline of Visitron’s proposals. Kenji Yasukawa asks questions about the scope of the proposals, Visitron’s current financial position and the new technology. Don Chapman then begins a presentation of the new products.

Study Visitron’s confidential negotiating brief below and then answer the questions.

1. What is Visitron’s overall target?

2. What are the roles for the Visitron’s team?

3. What is Visitron’s major bargaining strength?

4. What is Visitron looking for in return for its offer of the new technology?

5. What is Visitron not willing to negotiate on?

From: H.P.

To: R.H. /D.H./ D.C.

Subject: Kamakura’s negotiations – Negotiating brief

Strictly confedential

As agreed at the August 18^th meeting, the negotiations will be led by Richard Hamilton who will work to the brief set out below. Deborah Highsmith will be present at all negotiating sessions to handle all questions of finance. Don Chapman will make a general presentation of the new technology at the first meeting and thereafter be on call for specifically technical questions. I shall be present at all sessions to support Richard.

NEGOTIATING BRIEF

Negotiation target: To achieve a 50 : 50 joint venture agreement with Kamakura to develop, manufacture and market the VS10 and HHS in worldwide markets.

Initial offer: Our major strength is the new products. The VS10 and HHS technology will be made available to the joint venture on reaching a fair and equitable agreement on cost and revenue sharing.

Target response:

1. Full commitment of Kamakura global marketing resources to the joint venture.

2. Agreement to fund 50% of all further R&D and plant costs of new products.

Areas for negotiations:

1. Royalty payments for Visitron technology.

2. Production sharing.

3. Component supplies.

4. Revenue sharing.

Non-negotiable:

1. Visitron R&D resources.

2. Patents

Tactics: Richard Hamilton will make an immediate offer of the new technology and outline the expected quid pro quo. Any concessions or retreat to fallback positions to be agreed with H.P. and D.H. prior to presentation.

Vocabulary Tasks

Task I. Define the meaning of the following words and expressions, translate them into Russian:

1. awkward

2. bold

3. comprehensive agreement

4. concession

5. cost and revenue sharing

6. digression

7. fair and equitable agreement

8. fruitful

9. full commitment to

10. major beneficiary

11. on behalf of

12. prior to presentation

13. quid pro quo *

14. remainder (of the meeting)

15. rumors

16. strategic acquisitions *

17. to exploit one’s weaknesses

18. to fill smb in on some front

19. to hand smb over to smb

20. to keep smth from happening

21. to retreat to fallback position *

22. to sketch

23. incredulity

* definitions are available in the glossary

Task II. Translate the sentences into Russian:

1. Gentlemen, may I welcome you on behalf of the Visitron board to London. I hope your stay will be fruitful and successful.

2. Firstly, Mr. Parker outlines our current view of the market situation. Secondly, I sketch some of the possibilities we see open for our companies.

3. In the last three years we have seen a major shift in demand towards the smaller end of the market.

4. Worldwide Small Unit sales now represent 47% of total sales and this figure is forecast to rise to 70% by the end of the century.

5. Not only do they have the advantage of low unit costs as a result of the huge sales volume but we also know that they are now involved in a policy of strategic acquisitions around the world.

6. In the long term that would mean one thing, by the end of the year 2000 our industry will be dominated technically and commercially by a single operator.

7. We believe the scale of the Hyperscan threat requires a bold, comprehensive and coordinated response.

8. What we are looking for is a comprehensive agreement across the small end of the market, worldwide.

9. As a gesture of our seriousness, we intend to put at the center of our talks the recent major advances in technology that I outlined to you in Tokyo.

10. Yasukawa’s questioning of Chapman on the technical aspects of the new market and detector components was very detailed.

11. It is awkward to discuss such matters in public.

Task III. Translate the sentences into English:

1. В основе слияния двух компаний лежало честное и справедливое соглашение о разделении всех доходов и издержек.

2. Завтра вся документация будет передана новому бухгалтеру фирмы.

3. Нужно любой ценой удержать наших акционеров от продажи акций, давайте хотя бы в общем представим картину наших будущих преобразований и их шансы на успех.

4. Максимальную выгоду от сделки получит тот, кто сможет вовремя обнаружить слабые места партнера и с пользой на них сыграть.

5. Сила нашей компании в том, что в случае непредвиденных затруднений она всегда может отступить на заранее подготовленные позиции.

6. Все ожидаемые взаимные уступки должны быть обговорены до начала презентации.

7. Расчеты показывают, что компания выживет на рынке только при условии полного вложения средств в производство.

8. Очевидно, что данная компания следует политике скупки малых предприятий.

9. Слухи о приближающемся крахе компании «Visitron» внесли смятение в ряды акционеров.

10. Председатель собрания передал слово казначею, который ввел всех присутствующих в курс финансовых проблем компании.

11. Совет директоров попал в щекотливое положение.

12. Он решился на очень смелый шаг.

Task IV. Make up your own sentences using the vocabulary of the unit.