Unit 3 exploring the zone of bargaining

Synopsis The November 2^nd meeting continues with Yasukawa clarifying further points in Visitron’s proposals and then moving on to the probe the limits of its negotiating position. The main point for clarification is the question of component supplies to the joint venture. After a review of Visitron’s proposal up to this point, Yasukawa identifies the area that will be excluded from any agreement and bring up the question of Visitron’s willingness to grant global licences for new products. Parker makes it quite clear what Visitron’s final package should contain.

Read the memo and answer the questions.

1. What are Richard Hamilton’s personal views on licenses?

2. Why did Deborah Highsmith’s arguments for licenses fail to convince Parker?

3. What are Richard Hamilton’s main negotiating targets in this session?

4. What is Howard Parker’s role in this session of the negotiations?

From: H.P.

To: R.H. /D.H.

Subject: Kamakura negotiations - licenses

STRICTLY CONFEDENTIAL

Following our strategy meeting this afternoon, may I confirm the following:

1. Although I take note of R. H.’s point that a no licensing position is a high risk strategy, which may ultimately lead to no deal, it was agreed at this stage that we take a hard line on this one. It is my view that a licensing policy will only delay the process of declining within this company. This board was appointed to reverse this decline, not to delay it.

2. Although D. H. Pointed out that a combination of joint venture income in Europe and global license revenues could be generating £80m annual income by 2000, my view is that this is optimistic. Licenses transfer know-how and stimulate competitive R&D. By 2000 Kamakura may no longer need our licenses!

3. With regard to the high risk strategy, we must remember that there are risks on both sides. Our strategy must be to reinforce the other side’s perception of the dangers facing them if they fail to get an agreement with us.

Action:

1. R. H. to firmly reject licence proposals.

2. R. H. to demonstrate limitations of Europe only deal.

3. H. P. to reinforce Kamakura’s strategic anxieties.

Vocabulary Tasks

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

1. anxiety

2. assembly operation

3. break-down of shareholders

4. cost safeguard

5. embattled firm

6. eventually

7. hypothetical question

8. imponderable

9. inadequate

10. indivisible package *

11. initial appraisal of proposals

12. merger

13. perception

14. precise

15. probe (to probe)

16. recess

17. sub-contracting

18. to be at cost or open to competitive tender *

19. to be on the table

20. to generate

21. to reverse a decline

22. to take a hard line on smth

23. ultimate

* definitions are available in the glossary

Task II. Translate the sentences into Russian:

1. Although I take note of Richard Hamilton’s note that a no licensing position is a high risk strategy, which may ultimately lead to no deal, it was agreed at this stage that we take a hard line on this one.

2. Our strategy must be to reinforce the other side’s perception of the dangers facing them if they fail to get an agreement with us.

3. There’s one point we must clear up here. Do you see this as an assembly operation or does it involve full production?

4. Can I sum up so far? Your objective is an immediate commitment to a global joint venture which would include both the VS10 and HHS as integrated programmes.

5. The investment needed would cover new plant costs and a contribution to further development work.

6. The division of funding and income between the partners will be subject to detailed negotiations.

7. If Kamakura were unable to enter global agreement with you, would you be willing to grant global licenses for the new products?

8. Informed sources say that further recent buying of Visitron shares by Bellair signals an improved bid by Hyperscan for the embattled scanner firm.

9. Deborah Highsmith was very precise about dates and figures.

10. She showed the present break-down of Visitron shareholders.

11. The embattled entrepreneur struck a deal with a rival businessman in an attempt to save his business empire.

Task III. Translate the sentences into English:

1. Мы должны занять твердую позицию по отношению к неделимому пакету предложений. Нам придется столкнуться с препятствиями, но в конечном итоге, мы сумеем убедить партнёров принять все наши условия.

2. Извините, но мне хотелось бы полностью прояснить вопрос. Вы говорите о слиянии или о захвате?

3. Во время небольшого перерыва в переговорах Debora Highsmith известила представителей «Kamakura» о предложении компанией «Hyperscan» купить контрольный пакет акций компании.

4. Если я Вас правильно понял, Вы будете единственным поставщиком магнитов. В таком случае, какие гарантии по цене Вы нам можете дать?

5. Задача нового совета директоров - предотвратить спад, а не оттянуть его на более поздний срок.

6. После недавних встреч и переговоров мы подготовили начальную оценку предложений, представленных нам главными производителями сканнеров.

7. Компания, вокруг которой разгорелась борьба, по-прежнему остается в центре внимания средств массовой информации.

8. Конвейерное производство – процесс, широко используемый в промышленных отраслях, ориентированных на массовое производство.

9. Нашей наибольшей заботой является предотвращение враждебного поглощения со стороны главного конкурента.

10. Компанию обвинили, что она не обеспечила защиту своих работников.

11. Вопрос о сотрудничестве на европейском рынке снимается с обсуждения.

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