Skills of negotiating

Most negotiations are conducted with a view to reaching a compromise agreement. Both parties together move towards an outcome which is to mutual benefit.

This is a range of tactics which can help conduct negotiations.

It’s no use immediately discussing business matters. The topic at the outset of negotiations should be neutral, non-business. It could be immediate experiences, the sort of journey the visitor has had; football, ice-hockey, the morning’s newspaper headlines, common interests, etc.

Five per cent of the negotiating time is devoted to breaking the ice. The two parties adjust their thinking and behavior to one another.

If you want to follow the reaction of your visitor introduce in your speech the question – “Agree?”

At the very beginning of the talks get agreement covering the purpose, plan, agenda of a meeting.

Here is some advice to a negotiator:

1. First discuss major items, then minor items.

2. Follow the headlines of the plan one by one.

3. Come over to the next point after you have resolved the previous one.

There are always differences of view between the parties.

Here is some advice on problem-solving tactics:

1. Present a problem in general and obtain the other party’s view on it.

2. Look together at the possibilities of joint advantage.

3. Suggest practical actions to resolve a problem.

If negotiations are difficult and you are in a deadlock, take time-out. It’ll help you build bridges between yourself and your partner when you resume negotiations.

Ex.1. Give the English equivalents to the Ukrainian words and word combinations in the box.

1. бути присвяченим чомусь; 2) проводити переговори;

3) загальні інтереси; 4) запропонувати; 5) зайти у безвихідь; 6) поновлювати переговори; 7) нема сенсу; 8) на самому початку; 9) спільна користь; 10) отримати точку зору

Ex.2. Read the following sentences and decide if they are true or false. Use: You are mistaken, the text says…, It’s really so, As far as I know, etc.

1. The main purpose of most negotiations is to reach a compromise agreement.

2. It’s necessary to discuss business matters at once.

3. Most of negotiating time is devoted to non-business time.

4. First of all the talks get agreement covering the purpose, plan and agenda.

5. There are never differences of view between the parties.

Ex.3. Answer the questions.

1. What’s the main purpose of most negotiations?

2. What can help conduct negotiations?

3. What advice could you give to a negotiator?

4. How should problem points be solved?

5. What should you do if you are in a deadlock?

Negotiating: reaching agreement

Ex.4.Work in two groups, A and B. Look at the negotiating tips below.

a) Each group agrees on the 5 most important negotiating tips on their list.

b)Then form new groups with members from group A and B.

Agree on a single list of the 5 most important tips from both lists.

Negotiating tips group A

• Be friendly.

• Have clear aims.

• Tell the other side what you want.

• Listen carefully.

• Pay attention to other side`s body language.

• Don`t change your plan during the meeting.

• Never be the first to make an offer.

Negotiating tips group B

• Be strong and try to win.

• Prepare carefully before you negotiate.

• Ask a lot of questions.

• Have a lot of options.

• Summarise often the points you agree on.

• Change your strategy during the negotiation, if necessary.

• Never show any emotion.

Ex.5. You will read a negotiation between Michelle, the manager of a bookstore chain, and a website designer. Complete the chart below.

Text B

1. M: Let`s talk about the time for setting up the website. We want it in a month`s time. That`s the end of July

D: It`s a bit early. I was hoping to have 2 months to do the job. If I finish in one month, will you agree to reduce the number of pages?

M: Yes, that`s no problem. Just do the best you can. Our priority is to have the website up and running as soon as possible.

D: OK then, agreed.

2. M: Now about payment. You want to charge us $50 an hour. That works out at $400 a day, I believe.

D: Yes, that`s the normal fee for the job.

M: Well, we`d prefer to pay you a fixed amount for the work. We can offer you $6,000.

D: I see. Do you mind if I ask you why you want to pay that way?

M: Well, you see, that way we can control the costs of the project. If we pay you per hour, the costs could become high. It could get out of control. This way, we know where we stand.

D: I see, $6,000. Mmm, that could be all right, I suppose, as long as I get some money in advance. How about paying me half when I start the work and half at the end?

M: Yes, I think we could arrange that. OK. I agree to that.

3. D: Now, the design of the website. Will we have book covers on it?

M: Absolutely. I`d like to display a large number of book covers on every page. They`d really attract people`s attention. What do you think?

D: It`s a bit too much. I`a say. A lot of pictures take too long to download. I`d prefer one big image. How about that?

M: Mmm, I don`t know. People like to see the book covers. It draws them into the website, believe me.

D: Maybe you are right. How about 2 covers per page, then?

M: Ok, that sounds reasonable. Now, what else do we need to discuss before you get started?

Negotiating point	What`s Michelle wants	What the designer wants	What they agree
Schedule for setting up the website		Two months
Payment terms	Fixed amount: $6,000
Website design			Two covers per page

Ex.6. Read again the third part of conversation. Note down all the expressions for agreeing and disagreeing. Decide whether they express a) strong, b) polite or c) hesitant agreement and disagreement.

Ex.7. Role play this situation.

A representative of website maintenance company meets a company manager to negotiate a maintenance contract.

Website maintenance company representative.

You want:

1. A three-year contract.

This allows you to offer the best service to customers and it will be profitable for you.

2. To test the website each month.

This will give the best level of service to the client and increase your earnings.

3. Response time - 24 hours.

You want the company to contract you by e-mail if there is emergency. You want up to 24 hours to solve any problems.

Company manager

You want:

1. One–year contract

You want to see how well the company does the job and if they are reliable before giving them a long contract.

2. To have the website tested every 3 months

You want the maintenance costs to be as low as possible. However, you would like to have weekly checks on the security of the website.

3. Response time – 2 hours

You want to contract them at any hour by phone if there is an emergency. You want the maintenance company to solve any problems within 2 hours.

Read your role cards. Then do the negotiation.

Useful language

Stating aims

We`d like to have it in a month`s time. We must have delivery by the end of next week.

Making concessions

If I have to finish in one month, I`ll need to have an extra designer.

That could be all right – as long as I get some money in advance.

Rejecting suggestions

We`d prefer to pay you a fixed amount.

Bargaining

How about paying me a half when I start the work?

Focussing the discussion

Let`s talk about the time for setting up the website

Presenting your company

Ex.1. Which of these suggestions do you agree with?

To make an effective presentation, you should:

1. find out as much as possible about your audience.

2. introduce yourself (name, position, company).

3. start with a joke.

4. outline the structure of your talk.

5. vary the tone of your voice.

6. refer to your notes as often as possible.

7. use clear visual aids.

8. summarise your main points.

Ex.2. Read a presentation about Tara Fashions. Complete the chart.

Text C

Good morning, everyone. Thanks for coming to my presentation. My name’s Marta Rodriguez. I’m Personnel Director of Tara Fashions. I’m going to talk to you today about our company. First, I’ll give you some basic information about Tara Fashions. Then I’ll talk about our overseas stores. After that I’ll outline the strengths of the company. Next I’ll talk about career opportunities with Tara. And finally I’ll mention our future plans. I’ll be pleased to answer any questions at the end of my talk.

Let me start with some basic facts about Tara. The company started in 1978. We are a family-owned business and our head office is in Cordoba, Spain. We sell clothes for men and women, and our costumers are mainly fashion-conscious people aged 20 to 35. We have 15 stores in Spain. All of the stores are very profitable.

Right, those are the basic facts.

Let me add a few figures. We have an annual turnover of about €260 million. Our net profits last year were approximately €16 million. We have a workforce of just over 2,000 employees. So those are the numbers. Now about our overseas stores. We have 4 large stores in France and another 10 in other European countries. We are planning to open 5 new stores next year.

What are our strengths? We keep up with fashion trends. If we spot a trend, we can bring out a new design in 15 days. And we get it to the stores very quickly. We deliver to stores twice a week. And we sell our designs at the right price.

OK, now what about career opportunities? It’s quite simple. If you are ambitious and fashion-conscious, we have opportunities in all areas of our business. We will welcome you with open arms.

Finally, a few words about our new project. We are planning to open a new store in New York next year – on Fifth Avenue. This will give us a foothold in the US market. We’re very excited about this new development.

Well, thanks very much for listening to my talk. Are there any questions?

Tara Fashions

Where is the head office?	Cordoba, Spain
What does it sell?
Who are its customers?
Annual turnover?
Annual net profits?
Number of stores: in Spain? in other European cities?
Strengths?
Future plans?

Ex.3. Invent a company. Use the headings in Exercise 2 to help you prepare a presentation about it. Then work in pairs. Make a presentation about the company. Ask questions after your partner’s presentation.

Useful language

Outlining the presentation

First, I’ll give you some basic information.

Secondly, I’ll talk about our stores in other countries.

Next, I’ll talk about career opportunities.

Last of all, I want to look at our future plans.