Read and translate the text.
AT THE NEGOTIATING TABLE
Negotiation is an essential part of the every-day business life. It is the process for resolving conflict between two or more parties to achieve an acceptable compromise. Negotiations take place to handle differences or conflicts of:
• Interests (wages, hours, work conditions, prices).
• Rights (different interpretations of an agreement).
The aim of a negotiation is to come to an agreement that is acceptable to both sides. There are four main stages of, negotiations:
1. preparing objectives, information, strategy
2. discussing (argue)
3. propose and bargain
4. close and agree.
The objectives are classified as follows:
Like - ideal
Intend - achievable
Must - real.
80 % of the negotiating time is spent arguing. There are two kinds of arguing:
• reasonable and constructive - debates, discussions;
• unreasonable and destructive - emotional quarrels.
A negotiator should be constructive in arguments and try to get information by asking open questions. It is important to state only ideals at first.
Another very important point of negotiations is proposing and bargaining. Proposals should be realistic.
The final step is closing and agreeing. The aim of closing is to get the opposition to stop bargaining and to make an agreement. The final thing to do is to write down the agreement and agree what is written down.
To be an effective negotiator one should have such characteristics as:
• preparation and planning skills;
• knowledge of the subject matter being negotiated;
• ability to think dearly under pressure;
• ability to express thoughts verbally;
• listening skills;
• judgement and general intelligence;
• integrity;
• ability to persuade others;
• patience;
• decisiveness.
In order to be a success at the negotiating table, one should have negotiation skills as well as a theoretical knowledge. But without a practical experience it is hard to negotiate effectively.
III. Post-reading stage:
3. Give the Ukrainian equivalents to the following words and word-combinations:
I An essential part Preparing objectives To get information
Resolving conflict Arguing To ask open
questions
An acceptable compromise Propose and bargain To state ideals
To handle differences Negotiating time The final step
Work conditions Debates To make an
agreement
To be acceptable Emotional quarrels An effective
negotiation
4. Answer the following questions:
1. What is negotiation?
2. What is the aim of negotiation?
3. What are the main stages of negotiation?
4. What characteristics are necessary to be an effective negotiator?
5. Read and learn the negotiating expressions:
| To make a deal | укласти угоду |
| To sign a contract | підписати контракт |
| To meet a deadline | наблизитись до крайнього терміну |
| To reach an agreement | досягги домовленості |
| To resolve one's differences | владнати непорозуміння |
| To propose a solution | запропонувати рішення |
| To consider a proposal | розглянути пропозицію |
| To reject an idea | відхилити ідею |
6. Translate the following sentences into Ukrainian:
1. May I suggest that we table this discussion until tomorrow?
2. We must figure a way to resolve our differences.
3. Let's consider this new proposal.
4. Can we reach an agreement in time to meet the deadline? 5.1 do not know if this will solve our problems.
6. The president will reject any opposing ideas.
7. Perhaps you can propose a solution to this problem.
8. Let's make a deal!
7. Read and learn the verbs of negotiation:
1. to suggest - пропонувати
2. to recommend - рекомендувати
3. to propose - пропонувати
4. to offer - робити пропозицію
5. to bargain - торгуватися, домовлятися
6. to compromise - йти на компроміс
7. to settle - вирішувати
8. to resolve - вирішувати
8. Translate the following sentences into Ukrainian:
1.1 would like to recommend a 10 percent pay cut. 2.1 propose a $104 per share tender offer on this stock. 3.1 suggest we redesign the equipment. 4.1 am offering a 6 percent commission on the sale.
5. We need to bargain with our competitors and make a deal.
6. Let's settle our disagreements before progressing further.
7. Can we compromise here? ГИ give a little, you give a little; maybe we can reach an agreement.
8. We need to resolve our problems first, then we can talk about contracts.
9. Read and learn the sentences with conceding, downplaying, and exploring other possibilities:
| I see your point. | Я розумію вашу точку зору. |
| I'll go along with that. | Добре, я погоджуюсь з цим. |
| I'll buy that. | Я беру це. |
| This is a minor point. | Це незначне зауваження. |
| This is of little (no) importance. | Це не має великого значення. |
| Only (or just). | Лише. |
| What would happen if...? | А що було би, якби...? |
| Is it possible that...? | Чи можливо, щоб...? |
| Do you have any other ideas? | Чи є у вас інші ідеї? |
| Perhaps (maybe). | Можливо. |
10. Translate the sentences into Ukrainian:
1. The cost is of little importance if we can't sell the product.
2. The design is a minor point here; what matters is how much it costs.
3. It's only a design; it's a nice feature, but it's not the most important thing.
4. It's just another software program among thousands; why is it so special?
5. What would happen if our company bought fewer machines at a higher price? Would that work for you?
6. Is it possible to redesign the software for us?
7. Do you have any other ideas about solving this problem?
8. Perhaps you need to give this some additional thought before deciding
11. Give the equivalent verb for:
• concession • offer
• proposal • settlement
• agreement • negotiation
• suggestion
12. Match the expressions on the left with those on the right that have a similar meaning:
| 1. I'll buy that | a) a bargain |
| 2. A minor point | b) worry |
| 3. Maybe | c) perhaps |
| 4. To settle | d) I agree |
| 5. A good price | e) Reassurance |
| 6. To propose | f) Nevertheless |
| 7. No cause for concern | g) To suggest |
| 8. In any case | h) To resolve |
| 9. Concern | i) Of little importance |
13. Write sentences using the following expressions:
1. make a deal
2. reach a compromise
3. reject an idea (or point of view)
4. propose a solution
5. make a concession
DIALOGUE 1 I. Pre-reading stage:
1) What do sides usually consider during the negotiations?
2) What is Letter of Credit?
/. Study the following words and word combinations:
1. on the whole - у цілому
2. condition - умова
3. competitive - конкурентноспроможній
4. somewhat high - дещо великий
5. per cent - відсоток
6. to increase - збільшувати
7. to give a discount - надавати знижку
8. to settle a problem - врегулювати питання
9. parcel - партія (обладнання, машин)
10. a lot - партія (вантажу)
11. remaining - той, що залишився
12. as regards - щодо, відносно
13. shipping documents - вантажні документи
14. a letter of credit – акредитив
II. While-reading stage:
2. Read and translate the dialogue.
DISCUSSING A CONTRACT
The export department of Goldman & Co. sent their offer of compressors. When Mr. Bunin came back from Edinburgh, he and Mr. Zotov considered the prices, the terms of payment and delivery and the technical information of the offer. They found that their compressors were the latest design. So Bunin decided to meet Mr. Lipman again to discuss the offer.
Bunin: Good afternoon, Mr. Lipman.
Lipman: Good afternoon, Mr. Bunin. Will you take a seat? Have a cigarette, please.
Bunin: Thank you.
Lipman: Did you enjoy your trip to Edinburgh?
Bunin: Yes, it was pleasant, indeed. I also had a good opportunity to contact businessmen of different British companies.
Lipman: I see. Now, Mr. Bunin, what do you say to your offer?
Bunin On the whole your terms and conditions are acceptable to us. But I'm afraid your prices are not quite competitive. They are somewhat higher then the prices of other firms. Could you reduce your price by 7 per cent?
Lipman: I say, Mr. Bunin, we've sold our compressors at the price of $2000 each. They are the best on the world market at this price. However, if you increase your
order, we'll give you a discount of 5 per cent.
Bunin: I believe we can buy 15 more compressors.
Lipman: Fine. That will settle the price problem.
Bunin: Quite so. Now there is another point, Mr. Lipman. Your delivery
dates don't suit us. We require the first parcel of 20 compressors a
month after we sign the contract.
Lipman: So I understand that we are to ship the first parcel in December. And what about the remaining goods?
Bunin: We can accept them in March.
Lipman: Very good. Well, Mr. Bunin, as regards the terms of payment I hope you'll pay against shipping documents by a Letter of Credit. You are to open it with the London Bank after our fax that the goods are ready for shipment.
Bunin: Quite right. I'll be glad to sign the contract when you get it ready. Lipman: We can sign it tomorrow. I'll be glad, Mr. Bunin, if you and Mr. Zotov join our Sales Manager and me for lunch after we sign the contract.
Bunin: Thank you.
Lipman: So we hope to see you at our office at 12 tomorrow.
Bunin: Good. See you tomorrow.
III. Post-reading stage:
3. Consult a dictionary, read and translate the following words:
to consider offer to increase shipment
to discuss order to reduce Letter of Credit
to accept discount to sign term
4. Match the expressions on the left with those on the right that have a similar meaning:
a) to sign a contract а) збільшити замовлення
b) to settle the price problem б) конкурентоспроможні ціни
c) to increase the order в) прийнятні умови
d) acceptable conditions г) платити за акредитивом
e) competitive prices ґ) надавати знижку
f) to be ready for shipment д) обговорювати ціни
g) to give a discount ж) бути готовим до відвантаження
h) to pay by a Letter of Credit з) врегулювати проблему цін
і) to consider the prices и) підписати контракт
Complete the dialogue.
A: Good afternoon Mr. Lake.
B: ____________________________________
A: Will you sit down, please?
B: ____________________________________
A: What can I do for you, Mr. Lake?
B: You see, Mr.Pospelov, my firm is interested in your boilers.
A: What do you say to our offer?
B: ____________________________________
A: You want a discount, don't you?
B: __________________________Could you reduce price_________________?
A: Surely, if you _____________________________________________, we'll
B. Fine. That will settle the price problem.
6. Fill in with the prepositions and make up a dialogue on the basis of the text:
I work... "Avantis". A lot... foreign firms are interested... doing business... us. We have made some contracts... boilers... latest design lately. Our boilers are... a great demand now, and we sell them... high prices.
The other day Mr.Gray... Roberts &Co. came... Kherson to negotiate... us. As soon as he came... Kherson he phoned our secretary and made an appointment... us... the next day.
He came to see us... half... nine. We discussed a lot... different questions. Our terms... payment and delivery were acceptable... him. When the negotiations were over we asked Mr. Gray to have dinner... us... Saturday.
DIALOGUE 2 I. Pre reading stage: 1. Read and learn the new words and set expressions:
1. transaction - операція
2. we were inclined to consider the prices - ми вважали за необхідне обговорити ціни
3. power consumption - енергоспоживання
4. reliability - надійність
5. trouble-free performance - безперервна робота
6. to assure - запевняти
7. we won't let you down - ми вас не підведемо
8. the Release Note for Shipment - документ, що дозволяє завантаження, накладна
9. to submit - передавати, надавати у розпорядження
10. our good will - наша добра воля
11. discount - знижка
12. the amount of the Contract - сума контракта
13. concession - поступка
14. profit - прибуток
15. currency - валюта
16. terms of payment - умови платежу
17. cash - готівка
18. Letter of Credit - акредитив
19. Telex Transfer - переказ телексом
20. Certified Check - завірений чек
21. Invoice - рахунок-фактура
22. a Packing List - пакунковий лист
23. a Certificate of Origin - сертифікат виникнення
24. a Certificate of Quality - сертифікат якості
25. an Insurance Policy - страховой поліс
26. cargo - вантаж
27. shipment - відвантаження
2. Learn the terms of contracts:
CIF (Cost, insurance, freight) - СІФ - умова продажу товару, згідно з якою до ціни реалізації товару включаються його вартість, витрати на страхування та транспортування до місця призначення.
FOB (Free on board) - ФОБ - комерційні умови постачання та оплати товарів, за яких ціна реалізацї включає ціну самого товару і транспортні витрати (оплата доставки та завантаження товарів на борт судна).
FOB Airport - вільно в аеропорту - умови, за якими продавець доставляє товар авіаційному перевізнику, укладає угоду з перевізником від свого імені, отримує експортну ліцензію та виконує митні формальності, передає покупцю комплект документів (включаючи авіонакладну). Покупець повинен оплатити товар та всі витрати, пов'язані з його транспортуванням, після передачі його перевізнику. Ризик та право власності переходить від продавця до покупця після передачі товару перевізнику.
FAS (Free alongside Ship) - різновид комерційних умов постачання та оплати товарів, за яким продавець несе всі витрати за доставку товару до борту судна, а також продавець за свій рахунок здійснює:
• поставку товару з доданими документами, які підтверджують його відповідність вимогам контракту;
• упаковку товару для транспортування;
• доставку товару у вказані у контракті строки до порту і складування його на причалі вздовж борту судна;
• повідомлення покупця про розміщення товару на причалі і передачу йому розписки порту про прийняття вантажу.
Крім цього, продавець зобов'язується за проханням покупця і за його рахунок надати останньому допомогу в отриманні додаткових документів, які необхідні для ввозу товарів у його країну.
Покупець за свій рахунок:
• фрахтує судно та сповіщає продавця про дату прибуття судна до порту;
• страхує вантаж та оплачує завантаження товару на судно;
• здійснює оплату товару.
Ризик пошкодження та втрати вантажу, а також право власності на нього переходить до покупця у момент розміщення товару на причалі.
II. While reading stage:
3. Read, translate and act the dialogue:
DISCUSSING A CONTRACT
Mr. Rogers: Good afternoon, Mr. Bunin. I am happy to come back from the Exhibition.
Mr. Bunin: Didn't you enjoy it, Mr. Rogers?
Mr. Rogers: Not really. It was tiring. I don't like traveling, you know.
Mr. Bunin: Let's discuss the commercial side of our transaction. We were inclined to
consider the prices today. Mr. Rogers: You find them attractive, don't you? Mr. Bunin: Unfortunately, no. Comparing them with those of your competitors, they are
5 - 10 % higher. Mr. Rogers: I'm afraid I can't agree with you there. Don't you know that we've made
some modifications and reduced the power consumption of our equipment? Mr. Bunin: Sure, I know that, but you can't say that the power consumption of your
equipment is very low. However, our main requirements are reliability and
trouble-free performance of the equipment. It involves the problem of Test
and Guarantee. Mr. Rogers: We can assure you, Mr. Bunin, that we won't let you down. On our part, we
expect the Release Note for Shipment to be signed immediately after the
tests are carried out and the Test Report is submitted Mr. Bunin: I see, but as we are in close touch with the market now we are informed that
other companies can quote lower prices. We expect understanding of our
good will and of the fact that our company is rather new and intends to have
long-term relations with yours. Mr. Rogers: Right, but business is business. What are your reasons for the discount? Mr. Bunin: I've already mentioned your competitors' prices. Besides your price must
depend on the amount of the Contract. Mr. Rogers: Well, if you increase your order to €500 000 we will be able to give you a 2 % discount.
Mr Bunin: It's better, but we expected at least a 4 % discount.
Mr. Rogers: Let us make some calculations.... 3 % and no more, Mr. Bunin. Even this concession leaves only a very small profit for us. This price is final. CIF Odessa, isn't it? Now the terms of payment. We accept: Cash, Letter of Credit, Telex Transfer, Certified Check.
Mr. Bunin: Unfortunately, cash is out of question. It isn't allowed in our country for foreign trade. The Letter of Credit appears to be the most acceptable.
Mr. Rogers: All right. What currency can you pay in: Euro or dollars? We insist on Euro.
Mr. Bunin: It's possible. But we need a Bill of Lading, an Invoice, a Packing List, a Certificate of Origin, a Certificate of Quality and an Insurance Policy to be faxed within 2 days after the cargo is ready for shipment.
Mr. Rogers: Good. We could meet tomorrow. What time could you come here again Mr. Bunin?
Mr. Bunin: I suppose I can make it only after two.
Mr. Rogers: Then see you at 3. Good buy.
III. Post reading stage:
4. Match the equivalents in two columns:
1. transaction вимога
2.competitor __________________________готівка____________________
3.requirement _________________________ гарантія ___________________
4.Test and Guarantee ___________________ завірений чек _______________
5.discount ____________________________ страховий поліс ___________
6.Letter of Credit ______________________ операція ___________________1
7.Certified Check ______________________ вантаж ____________________
8.Cash ______________________________ конкурент _________________
9.Certificate of Quality _________________ знижка ____________________
10.Insurance Policy _____________________ акредитив __________________I
11.cargo ______________________________ сертифікат якості ___________
5. Answer to the questions while reading the dialogue:
1. What was the subject of negotiations between Mr. Bunin and Mr. Rogers?
2. Who was the Seller?
3. Who was the Buyer?
4. What were the reasons for the discount asked by Mr. Bunin?
5. Did the parties reach agreement as to the discount?
6. What amount of discount did Mr. Bunin insist on?
7. What did the parties agree as to the terms of contract?
• Terms of payment;
• Terms of delivery;
• Documents required;
8. How do you think were these negotiations successful?
9. Who was the most successful negotiator? Why do you think so?
6. Complete the following statements:
1. Let's discuss the commercial side of_____________________________.
2. We were inclined_______________________________________today.
3. Comparing prices with those of your____________they are 5 - 10 % higher.
4. We can assure you, Mr. Bunin, that_______________________________.
5.1 see, but as we are in close touch with the market now we are informed that other companies____________________________________.
6. We expect understanding of________________________and of the fact that our
company is rather new and intends to have_________________________.
7. Right, but business is_______________. What are your___________for the
discount?
8. Well, if you__________________________to €500 000 we will be able to give
you a 2 %_____________________.
9. The Letter of Credit appears to be the most__________________________.
7. Add question-tags to the following statements:
1. Mr. Black came to London on business,...?
2. Both parties agreed to a 5 % discount,...?
3. The Buyers didn't receive the goods at the agreed time,...?
4. The manager made a correct decision,...?
5. Last year your customs' tariffs were too high,...?
Translate the following into English.
1. Вони часто ведуть переговори з іноземними фірмами.
2. Вони зараз ведуть переговори.
3. Вони вели переговори з цією компанією минулого тижня.
4. Коли ми повернулися до офісу, вони все ще вели переговори.
5. Ми збираємося вести з ними переговори наступного тижня.
6. Наша компанія відвантажує обладнання вчасно.
7. Наша компанія відвантажила обладнання минулого місяця.
8. Наша компанія відвантажить обладнання в наступному місяці.
Practice
