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3.2 COVERING LETTER WITH MARKET RESEARCH

OAO YOUR MARKET GUIDE

Russia, 121351, Moscow, Partizanskaya st., 11-2-50

We have pleasure in presenting the results of our research into the health food market. You will recall that in your terms of reference you instructed us to report on three main subjects: on the overall size of the market, on the present trends, and on the companies which are currently supplying the market and which might be your competitive rivals if you were to launch your products in Russia.

In broad outline we find that, though static for several years, the market is now expanding. There are seven major firms presently operating on the market, one of which holds 40% of the trade. However, Wholesale Health Co. sells a number of products which are not available here and which might well fill a promising gap.

Our recommendation is that you should sell directly through your existing sales force to supermarket and hypermarket chains. We consider that your products have every chance of success.

Attached you will find a detailed account of our research, including details on retail and wholesale pricing. Naturally, if you have any queries, we remain at your entire disposal.

Sincerely yours,

M.Pushkina

Maria Pushkina Market analyst

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FOCUS 2. Comprehension questions. LETTER 1.1

?Which party to the contract has written the letter?

?What do the Buyers think about the new line of the goods?

?What terms of payment are offered?

?What terms of delivery are stipulated?

LETTER 1.2

?What information on the product line modification is provided by the Seller?

?What solution is offered?

?What are the arguments for the substitute?

?What publicity campaign is to back the launch?

?What concessions is the Seller willing to grant?

?What terms of delivery are guaranteed and on what condition?

LETTER 1.3

?Is the order confirmed?

?What problems have the Buyers faced?

?What market trend is outlined in the Buyers’ letter?

?What imperative condition for further business is put forward?

LETTER 2.1

?What is sales incentive?

?Which party to a potential contract has written the letter?

?What sales incentive is put forward?

?On what condition are the Sellers ready to grant discounts?

?In what way will further negotiations be held?

LETTER 2.2

?Are the terms accepted?

?What quantity of the products is ordered?

LETTER 3.1

?Where did the writer of the letter obtain the address of OAO Your Market Guide?

?What do Wholesale Health Co. require?

?What is the immediate objective?

?What shall the market research contain?

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FOCUS 4. Fill in the gaps with one of the following words or word combinations. Use the appropriate tense form.

1.… your offer of October 15th 20__, we are pleased to enclose our revised formal ….

2.As we mentioned previously all orders received before April 1, 20__ … a discount of 15%.

3.Attached you will find a detailed … of our research, including details of … and … pricing.

4.Now we intend … the Russian market.

5.Our new … is due to begin in a few weeks and the goods will be advertised extensively in national media in your country.

6.Overall design, fabrics and colours are fully … both the market trends and our customers’ wishes.

7.Please also let us know your best delivery dates for a …, in case we need … our stock.

8.We … to the … we mailed to you on January 28, 20__.

9.We are … for any further information you may require.

10.We are an … dealing in health food in the USA and EU.

11.We are prepared … prices for Model A8 and Model A9 by 5% and 7% … if you order minimum 100 units of each Model.

12.We shall be happy … you an extra 5% discount for 700 items, and can promise you immediate ….

13.We should be glad if you could … the order for 700 items of Model L21 in place of the … Model K21.

14.We will settle at receipt of the goods against … so that we may … the 2% cash discount mentioned in your ….

15.You instructed us to report on the companies who would be your direct … if you were … your products in Russia.

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LETTER 1.3

12.Ссылаясь на вашу оферту от 15 апреля 20__ года, мы прилагаем наш заказ на поставку электрических радиаторов.

13.Нам удалось получить этот заказ лишь за счет снижения нашей комиссии на 3%.

14.Нам бы хотелось узнать Вашу позицию по данному вопросу.

15.Мы хотели бы воспользоваться данной ситуацией и подробно изложить нашу позицию по данному вопросу.

16.Эта тенденция становится все более очевидной.

17.Жесткая конкуренция препятствует заключению выгодных контрактов.

18.Мы намерены активизировать рекламную кампанию и направить усилия на продвижение товара на рынок.

19.Судя по тому, как обстоят дела, мы надеемся в будущем заполнить нишу рынка.

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40.Уважаемый г-н Джордан!

Ссылаясь на Вашу оферту от 23 января 20__ года, мы прилагаем к данному письму наш официальный заказ на покупку купальных костюмов (позиции по каталогу № № XL16, CH24 и KY96).

Товар должен быть поставлен к 20 апреля 20__ года с тем, чтобы дать нам возможность подготовиться к сезонному повышению спроса. Мы готовы оплатить товар по получении против счета-фактуры и поэтому рассчитываем на предложенную в Вашем письме от 15 января 20__ года скидку за наличный платеж. Также мы хотели бы узнать, предоставляете ли Вы скидки на крупные и повторные заказы.

Снетерпением ожидаем Вашего ответа.

Суважением,

Д.Денисов Менеджер по закупкам

FOCUS 7. Letters to make up.

1.Make up a letter in which you ask to send a new winter Catalogue of Clothes. You are interested in seasonal discounts and the terms of delivery as you are sure you will have to replenish stocks.

2.You have received quotations for radiators from your business partners and think that the prices, offered by them are too high. You ask them to reduce the prices and assure that you will place a large order.

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FOCUS 8. Role play.

1.Hold negotiations following Letters 1.1, 1.2, 1.3. The Buyers (Agents) are ready to place an order with the Sellers. But the Sellers do not have the required items in stock, so they offer a substitute. The Buyers think the Sellers should reduce the price otherwise they will lose the market share.

2.Hold negotiations following Letters 2.1, 2.2. The Sellers offer the goods at a reduced price. The Buyers welcome the incentive.

3.Hold negotiations following Letters 3.1, 3.2. The Sellers (Wholesale Health Co.) want to enter a new market and thus need a market survey. They apply to OAO Your Market Guide for information who advise Wholesale Health Co. of the results of their research.

FOCUS 9. Act as an interpreter.

DIALOGUE 1

–Добрый день, это Мария Пушкина из «Your Market guide». Я хотела бы поговорить с Мэри Кэннингэм.

–Mary Canningham speaking. Hello, Maria, nice to hear you. How are you?

–Спасибо, все отлично. Я звоню по поводу проведения исследования рынка по Вашему запросу. Все документы готовы. Когда мы можем встретиться, чтобы передать бумаги?

–That’s really some work magic. If the survey is ready we can meet in person and discuss the particulars next week.

–Хорошо. Обзор рынка затрагивает все интересующие Вас аспекты: общий объем продаж, компании-лидеры, их ближайшие конкуренты, текущие оптовые и розничные цены.

–I hope we will find some promising gap. We are expanding our operations at the moment.

–Я уверена, что компания с такими традициями, как Ваша, несомненно, добьется успеха. Нам также необходимо окончательно урегулировать вопрос оплаты проведенных исследований.

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MEMORANDUMS AND MINUTES OF MEETING

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FOCUS 1. Read and discuss the following.

LEAD-IN

Negotiating a contract is a complicated business as there are a lot of terms and conditions to be agreed upon. Each party pursues its own goals and wants to protect its interests. That is why the process of negotiation is a way of finding a compromise to reconcile differences. This goal is achieved through a series of negotiations. At all stages various issues are discussed, and parties may come to an agreement on some specific terms and conditions. To summarize the results of each stage of negotiations parties must draw up and sign minutes of meeting (MOM) in which the reached agreements are stated. This document is aimed at facilitating the signing of the contract.

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MINUTES OF MEETING

These Minutes of Meeting (MOM) are drawn up pursuant to the visit of representatives of TELECOM CO. to Moscow and meetings held with V/O ROSEXPORT.

During negotiations which took place within the period from 10 to 16 January 20__ the Parties summarized the results of activity on «STAR» project and reached the following agreements:

1.On technical issues of «STAR» project:

1.1.The basis for technical aspects reports was pre-design phase documentation delivered under Contract No. 68 handed over to ROSEXPORT.

1.2.The Parties have discussed in detail all technical issues raised by the experts of TELECOM CO. While studying pre-design documentation and other issues relating to the project ROSEXPORT have given exhaustive answers and additional information that are described in APPENDIX 1 to the present MOM.

1.3.As a result of technical negotiations the Parties have agreed, that after signing the present MOM, they have completed basic technical reviews as well as determined requirements for the project as per the draft of Contract No. 68.

Requirements» and submit to TELECOM CO. the documents in question.

2.Financial issues of «STAR» project:

2.1.As a result of the price negotiations: TELECOM CO. has defined its position concerning the total price of «STAR» project to the extent of 85 million (eighty five million) US dollars.

2.2.ROSEXPORT has defined its position concerning the total price of «STAR» project to the amount of 105 (one hundred oh five million) US

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365

MEMORANDUM OF UNDERSTANDING

This Memorandum of Understanding (MOU) is made on this day of May 31, 20__ by and between: Ministry of Telecommunications of India and ROSTELECOM Agency:

Whereas, TELECOM CO. of India, incorporated in India and ROSEXPORT incorporated in the Russian Federation have decided to conclude Contract No.

referred to as «Contract»;

Whereas, the parties recognize that the proper fulfilment of the Contract and the satisfactory operation of the satellite system during its lifetime, also depends on

economic cooperation between the two countries.

The Parties have agreed on the following:

1. The Contract shall be fulfilled in complete and in accordance with the conditions agreed upon therein and the parties undertake to do their utmost to that effect.

2.The Parties shall respectively encourage TELECOM CO. and ROSEXPORT to perform all their obligations under the Contract in strict accordance with the delivery and payment schedules agreed therein.

ROSEXPORT all licences, or other authorizations that may be required for meeting their obligations under the Contract.

5.The Parties shall refrain from any action that may hinder the proper fulfilment of the Contract in accordance with conditions agreed upon

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therein and undertake to remove such obstacles.

For and on behalf of

Ministry of Telecommunications of India

For and on behalf of

ROSTELECOM Agency

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FOCUS 2. Comprehension questions. LEAD-IN

?Why is it necessary to draw up minutes of meeting?

?What is this document aimed at?

MINUTES OF MEETING

?What main issues do MOM cover?

?What is the subject of the negotiations?

?What have the Parties agreed upon in the course of technical negotiations?

?What are the results of the price negotiations?

?What possible steps is ROSEXPORT going to take to make the price positions closer?

?What issues are stated in the appendix to the MOM?

MEMORANDUM OF UNDERSTANDING

?What is the aim of this MOU?

?What does the proper fulfilment of the contract depend on?

?Why is the complete fulfilment of the Contract so important?

?What do the Parties undertake to do to facilitate the execution of the Contract?

FOCUS 3. Study the notes, writing patterns and vocabulary.

NOTES

Протоколы переговоров и меморандумы о взаимопонимании являются предконтрактной документацией, фиксируют достигнутые соглашения на различных этапах переговоров и декларируют намерения сторон. Стандартных документов такого типа не существует, поскольку каждый документ отражает специфическую ситуацию.

3.The Parties have reached the following Стороны пришли к соглашению по agreements on… следующим вопросам…

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8.Any issues different to those defined in Любые вопросы, не оговоренные в Clause … will be a subject for additional пункте …, должны быть оговорены negotiations. отдельно.

9.Notwithstanding the divergence in the Несмотря на расхождения в позициях Parties positions in respect of …, they по …, стороны согласились agreed to take positive efforts in making предпринять все необходимые меры their positions closer. для нахождения консенсуса.

13.The Parties shall refrain from any action Стороны обязуются воздерживаться that may hinder the proper fulfilment of от любых действий, препятствующих the Contract. должному выполнению контракта.

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VOCABULARY

370

371

FOCUS 4. Fill in the gaps with one of the following words or word combinations. Use the appropriate tense form.

1.A new system of … is proposed whereby each Party will take it in turn to chair the meeting.

2.Any other financial schemes of the project different to those defined in Clause 2.1, 2.2 will be a subject for ….

3.As a result of technical negotiations the Parties have completed basic technical reviews as well as determined requirements for the project as per the … of Contract No. 68.

4.As a result of the price negotiations ZAO Romashka … its position concerning the total price of the project.

5.During negotiations the Parties … the results of activity on the project and … the following agreements.

6.Everyone agreed … on the idea that all the members of the negotiations express their … with the format of the reports presented.

7.It is agreed that the Parties will hold a meeting in Moscow … the contract negotiations.

8.Notwithstanding the … in the Parties positions in respect to the price, they have agreed to take positive efforts in making their positions closer in order to achieve a ….

9.ROSEXPORT prolongs the validity of its … till February 25, 20__.

10.TELECOM CO. of India, … in India and ROSEXPORT … in the Russian Federation have decided … Contract No. 69.

11.The basis for technical aspects reports was … delivered under Contract No. 68.

12.The Contract shall … completely and in accordance with the conditions agreed upon therein and the parties … to do their utmost to that effect.

13.The Parties … from any action that may hinder the proper fulfilment of the contract.

14.The Parties have discussed … all technical issues raised by the experts of ZAO Romashka.

15.The parties recognize that the … of the Contract and the … of the equipment during its lifetime, also depends on the proper training of personnel.

16.The Parties shall grant the companies all licences, or other … that may be required for meeting their obligations under the Contract.

17.The Parties shall provide … to the companies that may be required for the proper fulfilment of their … under the Contract in strict compliance with the ….

18.The Parties undertake to remove any … to the proper fulfilment of the contract.

19.These Minutes of Meeting are drawn up … to the visit of representatives of Business Ltd. to Moscow and meetings held with ZAO Romashka.

20.This price can be achieved by … a discount off the total project price.

21.Without coming to any agreement on Point 8 on the … the negotiations … till further meetings between the Parties.

1.Without coming … any agreement … Point 8 … the agenda, the meeting was adjourned.

2.Additional information … «STAR» project is given … Appendix 1 … the present MOM.

3.The mutually acceptable price can be achieved … granting 15% discount … the total price … the extent … $150,600.

4.First meeting … representatives … TELOCOM CO. will take place … the period … the 6th … the 10th … September 20__.

5.… discussing amendments … the document … the Buyer the Seller has prolonged the validity … his offer … January 10.

6.… negotiations the Parties agreed … the following.

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7.… signing the present MOM the Parties have determined … the requirements … the project … question.

8.A new system was proposed whereby each member … the group took it … turn to chair the meeting.

9.The Agreement … the future … the Unost project was reached … a heated debate lasting

…an hour.

10.It is agreed … all the present that Ben Johnson take the chair … the absence … the CEO.

11.It was reported that some members … the group were dissatisfied … the format … the reports.

12.The authorities will provide the Parties … the Contract … necessary assistance required … the proper fulfilment … their obligations.

13.The basis … price negotiations is financial documents handed … … VO NOVOEXPORT.

14.The Buyer undertakes to refrain … any action that may hinder … the proper fulfilment … the Contract.

15.The Contract … development, manufacturing and delivery… a satellite system was signed

…the 26th … June, 20__.

16.The Contract will be fulfilled … accordance … the conditions agreed … the MOU.

17.The draft contract discussed … detail was drawn pursuant … the talks … ROSEXPORT and TELECOM CO.

18.The minutes, circulated … the meeting, were duly signed.

19.The Parties having summarized the results … the negotiations reached essential agreement both … technical and financial issues.

20.The fulfilment … the Contract … question is … importance … strengthening … friendly relations … the two countries.

21.The satisfactory operation … the equipment … its lifetime depends … the proper training

…the personnel.

22.To fulfil the obligations … the Contract the Parties may require … additional authorization.

23.Who is to sign the Memorandum … Understanding … and … behalf … the Ministry … Foreign Trade?

FOCUS 6. Translate into English.

MINUTES OF MEETING

1.По итогам встреч и переговоров между российской компанией РОСЭКСПОРТ и австралийской компанией ТЕЛЕКОМ КО. был составлен Протокол переговоров и Меморандум о взаимопонимании.

2.Стороны подытожили результаты, достигнутые в ходе работы над проектом STAR, и внесли соответствующие изменения в Требования к работе и эксплуатации объекта.

3.После подробного обсуждения эксперты компании Продавца дали исчерпывающие ответы на технические вопросы, поставленные Покупателем.

4.Продавец и Покупатель сформулировали свои позиции по финансовой стороне проекта.

5.Несмотря на расхождения в позициях по общей стоимости проекта, стороны согласились продолжить переговоры с целью установления цены, приемлемой для обеих сторон.

6.Протокол переговоров был составлен в соответствии с форматом процедуры и передан участникам для подписания.

7.Участники переговоров единогласно пришли к соглашению о том, что представители каждой стороны будут председательствовать во время переговоров поочередно.

8.Стороны выразили удовлетворение форматом представленных докладов.

9.Не достигнув соглашения по пункту 10 повестки дня, стороны прервали заседание.

10.Другие вопросы, не затрагивающие финансовую сторону проекта, станут предметом дополнительных переговоров.

11.Продавец продлевает срок действия предложения на условиях, указанных в пункте 5 настоящего Протокола переговоров.