Stages of Negotiation Opening statement

Welcome to … We would like to reach agreement on … I’d like to begin with a few words about our general expectations… May I outline our principal aims and objectives today … We have to clarify our positions … There are three specific areas we would like to discuss. These are … I’d like to end there and give you the opportunity to respond to this. I’d like to hand you over to my colleague …

Exercise 7 Most formal negotiations begin with an opening statement from each side. What do you think an opening statement should include?

a) Read a part of a meeting between a small Singaporean software company called LP Associates and a possible partner, Kee Ltd., in a joint venture. This is part of an opening statement from Stella Wang, the Production Manager at LP Associates. Check (۷) four of the eight statements below which best represent what she says.

Well, thank you for coming here today. As you know, we have a busy agenda. May I begin by outlining some basic thoughts that we have on this meeting? First of all, we see it very much as a first meeting, a preliminary negotiation to identify areas in which we can perhaps work together on certain products - prototype products - that we have developed. There are two, possibly three, ways in which we might go forward. I’d like to summarise these under three headings. First, development projects, second, license agreements. The third is the possibility of some kind of consultancy relationship. Is everyone happy if I say a few words about these to begin with? Right, well, first of all, joint development projects. This is ...

Exercise 10 Read and translate the text about branding. Before reading discuss the following questions: 69

1. Who in your group is wearing clothes of well-known brands? 2. Why are these brands so popular? 3. What is the difference between a logo, a brand, and a trademark? Think of examples of each. 69

Branding 70

Since the early days of marketing, brands have always been important. 70

Exercise 11 Answer the following questions: 71

1. Why did people brand an item in former times? 2. What do brands signal in the 21st century? 3. What are brands nowadays? 4. How does American Marketing Association define a brand? 5. Give the definitions of a brand name, a brand mark and a trademark. 6. What brand elements do you know? 7. What should brand names as well as other brand elements be? 8. Why do logos, symbols, characters and even brand names have to be updated? 9. What characteristic make a successful global brand? 10. Name and characterize brand categories. 71

Exercise 12 How many expressions with brand do you know? Match the terms in the box with their definitions. 72

3. SUMMARIZING AND CONCLUDING 80

Summaries restate what has already been said. Remember the maxim: ‘In a presentation, say what you are going to say, say it, then tell them you’ve said it.’ Some are like this, but not all. 80

Conclusion is different: it often contains a message which grows out of the information described in the main body of the talk. It may contain lessons learnt, recommendations and next steps. 80

4. QUESTIONS AND DISCUSSION 81

I’m afraid that’s outside the scope of my talk / this session. 81

Study some rules of using visual supports 83

Exercise 11 Role-play: Presentations 83

Exercise 13 Read the text. Is it worth believing advertisements or not? Do you agree that advertisements have such an impact on people? Think and present your own examples of how advertising influence people and you personally. 102

Effects of Advertising 102

Exercise 17 Read and translate the dialogue ‘Discussing the price problem’. 117

______ ______ in which we can perhaps ...

d). There are two, possibly three, ways in which we ______ ______ ______ .

e). I’d like to ______ these under three headings.

Exercise 8 Suggest phrases for each of the following at the beginning of a negotiation. Try to bring all the phrases together in a single opening statement.

a) Welcome the other side.

b) Develop small talk (trip, weather).

c) Mention plans for lunch – make your visitors feel welcome (see city centre / local restaurant).

d) Suggest you start talking about the main subject of your meeting.

e) Introduce a colleague (Luke Fox, Marketing Department).

f) Explain general aim or purpose of the meeting. (Establish beginnings of a partnership / learn about supply systems / price variations and supply costs.)

Bargaining / Making concessions / Agreement / Rejecting

We can agree to that if … (on condition that…/as long as…) That’s not acceptable unless … (without…) If you could … we could consider … As long as … we could agree to … On condition that we agree on … then we could … That seems acceptable. Before agreeing to that we would need … I don’t think it would be sensible for use to …

Exercise 9 Read the following dialogue concerning bargaining stage of negotiations. This is a part of a negotiation between Arco, a German-owned manufacturing company in Ireland, and an Irish research company called Central Auto Systems, CAS.

Twelve months ago Arco and CAS agreed a joint development programme to manufacture an engine designed by CAS. However, Arco has recently carried out a major restructuring of its activities. The company has decided not to proceed with the joint venture for the new engine.

The negotiation is about ending the joint venture and agreeing compensation for CAS. In the extract, you will read the conversation between Dietmar Topfer and Erich Rinalder of Arco talking to Celia Spencer of CAS. Read once and mark the following as true (T) or false (F):

a) The reversal of rights is linked to the compensation agreement.

b) Dietmar Topfer thinks Arco’s work on the fuel system must be considered.

c) It will be difficult for CAS to find a new partner.

celia: One consideration is the question of compensation to CAS, another is the reversal of all rights presently held by Arco. Now, clearly the question of rights is very important to us.

dietmar: Yes, yes, we understand that. But, we have to think about the joint development aspects. The fuel injection system has been developed using Arco technical expertise. In fact, we are happy that you have all the rights, we accept that the engine is basically your design. On the other hand, since we have contributed to the engine, we hope that the compensation we agree to pay ... we want compensation to take our work into account.

celia: So you’re prepared to give up all rights, basically the whole product reverts to CAS?

dietmar: Yes, we can agree to that ... so long as we can accept your compensation demands. So, we need to link the question of rights to compensation.

celia: Well, as you know, we’ve been thinking about compensation based on two years’ earnings from the product.

dietmar: Right, I think Erich has some comments on the two years’ proposal.

erich: Yes, we feel that two years is a little too long, especially if we revert all rights to CAS. The problem is that if we revert all rights, we have to keep the compensation within acceptable limits. Two years is a lot. We believe this, particularly because you will find a new partner. And this is important: the time spent this year has included useful advances, good progress, in the design. So we need you to reduce your compensation demands a bit.

Exercise 10 Make conditional sentences which include concessions based on the prompts below. The first is done for you as an example.

1. a better warranty / quicker payment terms

We could offer a better warranty if you would agree to quicker payment terms.

2. free delivery / larger order

3. free on-site training / small increase in price

4. 5% discount / payment on delivery

5. extra £50,000 compensation / agreement not to go to law

6. promise to improve safety for staff / agreement on new contracts

7. better working conditions / shorter breaks

Exercise 11 Which of the following words indicate rejection is coming? Mark them with an R (rejection). Mark the others with an A (agreement).

1. Unfortunately … _________7. It’s a pity, but … _________

2. Sadly …________________8. We don’t think …_________

3. We regret that …_________9. We cannot possibly …_____

4. I’m pleased to say …______10. I’m sorry, but …_________

5. Fortunately …____________11. It’s possible that …_______

6. I’m afraid …_____________12. Happily … ___________