CHINDIALeading Negotiations in Chindia - 3a Ed

7/31/2019 CHINDIALeading Negotiations in Chindia - 3a Ed

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SMM

Trend School

Center for Business Communication

Leading Negotiations in ChindiaThird Edition

[LEADING NEGOTIATIONS

IN CHINDIATEACHERS GUIDE]In business, you dont get what you deserve, you get what you negotiate.


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2 Trend School Center for Business Communication

SMM Skills for Management and Multiculture

Welcome to SMM Skills for Management and Multiculture Program. The objective of

this module is to prepare the participant to identify and do business in international

markets through the development of management skills in English, especially related to

Presentations and Negotiations, as well as the acquisition of multicultural knowledge in

emerging markets.

The curriculum encompasses the following elements to ensure that all components of

business communication are integrated:

1. Topic2. Business Communication Concepts3. Business Communication Skills4. Communication Tools5. Case Study6. MBC Multicultural Business Communication7. Trend Life8. Self Assessment Quiz9. Communication Tips

Trend Life is a virtual Business Communication environment aimed at gathering people in

an interactive space, where real life business applications are presented on a daily basis.

The concept is a unique and innovative way of bringing executives together in a learning

atmosphere, and at the same time, connecting cultural and business experiences from

around the world.

It is positioned as part of an integrated solution specially designed to give continuity and

enhancement to the classroom program. This combination will empower participants to

achieve outstanding results and motivate them in a daily learning process.

[TREND SCHOOLCENTER FOR BUSINESS COMMUNICATION

SMS SKILLS FOR MANAGEMENT & MULTICULTURE]


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Teachers Guide: LEADING NEGOTIATIONS IN CHINDIA

INDEX

In Classroom

Syllabus 04

Unit 1: Introduction to China 06

Unit 2: Introduction to India 17

Unit 3: Negotiating in Chindia 30

Unit 4: Language of Negotiations 39

Beyond the Classroom

Self Assessment 43

Trend Life 52


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SMM SKILLS FOR MANAGEMENT & MULTICULTURE

You are exposed to a variety of topics within business communication so as to provide you

with opportunities to discuss issues, concepts, and all interrelated subjects.

Here you will work with a specific business communication concept in order to enhance

your management skills and provide you with tools for effective communication.

The focus of these business communication skills is to practice oral communication skills

(listening and speaking).

This section encompasses the language skills that are necessary to communicate with

accuracy. You will review grammar concepts, expand your vocabulary, and practice your

reading and writing skills.

The case studies throughout the book provide you with an overview of multinational

companies, global markets, business situations and current global and business issues.

TOPIC

BUSINESS COMMUNICATION CONCEPT

BUSINESS COMMUNICATION SKILLS

COMMUNICATION TOOLS

CASE STUDY


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Multicultural business communication is essential to companies which are entering the

global market where diversity and cultural awareness play an important role in doing

business. Here, you will work with cultural awareness and how diversity affects

businesses.

Trend Life is an integrated multimedia website that provides you with all the tools to

improve your communication skills. More than that, Trend Life is a way of making business

communication a lifestyle that empowers you to be an effective communicator.

There is a self assessment quiz at the communication tools section so that you can see

which areas of communicative competence require further practice.

Here you will find tips on how to improve your communication skills within business

communication as well as the areas of language acquisition that require further practice.

MBC MULTICULTURAL BUSINESS COMMUNICATION

TREND LIFE

SELF ASSESSMENT QUIZ

COMMUNICATION TIPS


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SMM

LEADING NEGOTIATIONS

IN CHINDIA

UNIT 1 INTRODUCTION TO CHINA


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Warm-up

1. What is the first word that comes to mindwhen you think of business in China?

2.

Have you ever done business in China? Ifso, describe your experience.

3. What important aspects do you knowabout China and the Chinese culture?

Information on China

A. Read this information. Discuss most relevant points.

Capital: Beijing

Largest city: Shanghai

Official languages: Standard Mandarin (spoken), Simplified Chinese (spoken)

Population:

1,330,044,544 (Jul.08 est.)

Population growth rate:

0.629% (2008 est.)

GDP (purchasing power

parity):

$7.89 trillion (2008 est.)

GDP (nominal):

$4.222 trillion (Total) 3rd

GDP - real growth rate:

11.9% (2007 est.)

GDP - per capita:

$5,943 (2008 est.)


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Major Ports

Dalian, Guangzhou, Ningbo,

Qingdao, Qinhuangdao,

Shanghai, Shenzhen, Tianjin

Industrial production growth

rate:

13.4% (2007 est.)

Exports:

$1.22 trillion f.o.b. (2007 est.)

Exports - commodities:

Machinery, electrical products,

data processing equipment,apparel, textile, steel, mobile

phones

Imports:

$904.6 billion f.o.b. (2007 est.)

Imports - commodities:

Machinery and equipment, oil

and mineral fuels, plastics, LED

screens, data processing

equipment, optical and medical

equipment, organic chemicals,steel, copper

China Income Per Capita

In 2007, the government speeded up efforts in its Go West program to spread industrializationto the more rural West of China and to promote infrastructure development outside the Eastern

coastal areas. The new goal came in an announcement of top official in Beijing on October 12,

2008.


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Teachers Note: This section is optional. However, it is important for students to understand the

historical aspects of China and not only the business aspects of Chinese culture.

China has one of the world's oldest people and continuous civilizations, consisting of states and

cultures dating back more than six millennia. It has the world's longest continuously used written

language system, and is the source of such major inventions as what the British scholar and

biochemist Joseph Needham called the "four great inventions of Ancient China": paper, the

compass, gunpowder, and printing. Historically China's cultural sphere has been very influential in

East Asia as a whole, with Chinese religion, customs, and writing system being adopted, to varying

degrees, by its neighbors Japan, Korea, and Vietnam.

For 4,000 years, China's political system was based on hereditary monarchies (also known as

dynasties). The first of these dynasties was the Xia but it was later the Qin Dynasty who first

unified China in 221 BC. The last dynasty, the Qing, ended in 1911 with the founding of the

Republic of China (ROC) by the Nationalist Kuomintang (KMT). The first half of the 20th century

saw China plunged into a period of disunity and civil wars that divided the country into two main

political camps the Kuomintang (KMT) and the Communists. Major hostilities ended in 1949,

when the People's Republic of China (PRC) was established in mainland China by the victoriousCommunists. The KMT-led Republic of China government retreated to Taipei, its jurisdiction now

limited to Taiwan and several outlying islands. As of today, the PRC is still involved in disputes with

the ROC over issues of sovereignty and the political status of Taiwan.

Li River in Guangxi Tibetan Plateau in Southwest China Farmlands in East China

China's importance in the world today is reflected through its role as the world's third largest

economy nominally (or second largest by PPP) and a permanent member of the UN Security

Council as well as being a member of several other multilateral organizations including the WTO,

APEC, East Asia Summit, and Shanghai Cooperation Organization. In addition, it is a nuclear state

and has the world's largest standing army with the second largest defense budget. Since the

introduction of market-based economic reforms in 1978, China has become one of the world's

fastest growing economies and the world's second largest exporter and the third largest importer

of goods. Rapid industrialization has reduced its poverty rate from 53% in 1981 to 8% in 2001.However, the PRC is now faced with a number of other problems including a rapidly aging

population due to the one-child policy, a widening rural-urban income gap, and environmental

degradation.

(PPP Purchasing Power Parity; APECAsian Pacific Economic Cooperation; WTO World Trade

Organization).


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Reading - How to negotiate in China and other Chinese business practices

1. What are the challenges of negotiating in a country with such a contrastingcultural background?

2. Read the text below and underline all advice you consider important.3. Compare/discuss with your colleagues or teacher.

Relationships in China are based on mutual

trust and respect; equality, commitment and

common goals, communication and

compromise. It takes time and effort to build

relationships, which Western companies

(Motorola, Vodaphone, Intel to name a few)

have found to be the case.

Below are insights that successful expatriate

managing directors; leaders of global teams,

and explorers of business opportunities follow

to build business in China.

Communication Strategies

Persuasion - There may be sensible

and intellectual discussions, but

individuals know their place in the

team or organization (hierarchy), e.g.,

contributing or deciding role. They

know when to stop or when pushing

too hard may be offensive or

counterproductive.

Feedback - Chinese generally do not

volunteer information or give

feedback. If you want feedback, ask

persistently and politely. Remember

that Chinese are not comfortable

giving praise.

Self-glorification or Promotion -

Expressing one's attributes or

accomplishments runs contrary toChinese values of modesty and

humility. The norm is to be self-

deprecating. Sending a company a

letter ahead of your meeting that

gives bio data with accomplishments

(academic titles, positions held, major

deals or projects completed) of the

visiting team members is appropriate.

Confrontation - Chinese avoid

confrontation altogether. This is done

to save face and preserve group

harmony (as confronting can translate

to there being a winner and a loser).Individuals should discuss different

viewpoints and try to build consensus.

This holistic culture does not

compartmentalize work and personal

feelings. Its important to note

everything is personal.

Negotiation Strategies

Chinese Negotiating Style - While

Westerners are generally results-

oriented (focusing on tasks at hand,

specific terms and conditions, and

time efficiency) Chinese are

relationship-oriented. They focus on

harmony and flexibility, and are

patient in getting the job done.

They do all they can to avoid 'tong

chuan yi meng' which translates to

'same bed, different dreams'. Chinese

are known to be tough negotiators.

Building Trust - Begin to build trust

based on mutual respect, modesty,

equality and harmony. Chinese are notcomfortable being rushed, or jumping

right into business discussions without

proper introduction. They believe

getting to know each other and

building trust is necessary in

negotiations.


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Rationale - Chinese take time to

understand the reason, logic and

motivating factors in a holistic manner

- connecting the dots. They must be

convinced there's a win-win deal to be

made.

Cultural Priorities - In negotiations,

Chinese cultural priorities are

relationship first followed by

rationale, and legal. Check your

cultural assumptions in relation to

these priorities - they may be in

reverse order.

Style - Chinese listen more than they

talk. They may appear to be delaying,

but they are gathering pertinent

details on issues and personalities.

The indirect, unemotional styleaccompanied by vagueness allows

room for maneuverability and outs.

Silence is constructive ambiguity'. It is

rude to interrupt. To build a

productive relationship each side must

accept different styles of team

building and group dynamics.

Compromise - Chinese know what

they want and are willing to

compromise. Give and take' is a

means to achieve harmony in Chineseculture. As such, compromise is not

considered weak or giving in.

Revisiting agreed items or terms - It is

not unusual for Chinese to revisit

items previously discussed and agreed

upon, and try to renegotiate. If this

happens, graciously enter into talks,

be flexible and well prepared for what

you are willing and unwilling to do,

and prepare your organization that

there may have to be changes.

Subtleties Matter

Attitude matters and yours will be

constantly read by the Chinese. Your

patience, professionalism, and

courtesy are sending messages of your

personal integrity. Understand that

you must take many small steps

before taking larger steps. Focus on

developing a consensus.

Know and stick to your company's

policy on ethics.

Listen empathetically and observe.

Pay attention to details. Note Chinese

body language and hidden meanings.

Understand cross-cultural

communication barriers such as

cultural frames, traditions, etiquette,

time and place, status and power,

English comprehension level.

Always bring your own interpreter,

even when the Chinese offer to

provide one for you.

The one who speaks least in a meeting

may actually be the most powerful. Be

sure to know the position of thoseyou're dealing with.

Don't rush to give your opinion or

advice. Take the time to diagnose and

understand the problem first. Respect

viewpoints of others.

Make your self' easy to understand.

Speak clearly, concisely, and slowly.

Avoid asking or' questions (you may

get a both' answer). Ask questions

and clarify politely.

Focus on issues. Take the blame out ofdiscussions. Don't insist you are right

even if you are. Leave room for outs'

(face-saving maneuvers).

1. Avoid saying no. A direct and bluntno may be perceived as a slap in the

face. Use wording such as like "It's

very difficult for me to.....", "It's really

not possible to...."

Try not to overuse the word you';

instead use the third person one'.

Pronouns aren't used as much in

Mandarin as in English, and as thelistener, hearing you' could be taken

personally. For example, instead of

"You should not jump to conclusions

without all of the facts...", say, "One

should not jump to conclusions..."

Err on the side of being more formal in

meetings. Sit straight and be attentive.


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Slouching and relaxing postures are

considered bad manners. It's impolite

to cause disruptions such as standing

up to stretch and walking around the

room. Do not interrupt unless the

presenter or the leader makes a point

to allow so. Asking questions during a

presentation is considered

interrupting and rude. Whenever

possible, use laser pointers. Avoid

pointing with any one finger; use

whole-hand gestures instead.

However your meetings go with your Chinese

counterparts, focus on building the

relationship for the long term, and extending

your guan-xi network. Patience, politeness and

persistence will bring opportunities for you

and your Chinese customers, suppliers or

coworkers.

Recognize that social-personal relationships

drive business culture in a holistic way. They're

cultivated over time. Remember, relationships

first and results will follow.

.Published on VentureOutsource.com (http://www.ventureoutsource.com)

Business Communication Concept: Guanxi

1. What does the text above say about Guanxi and relationships?2. Have you understood the concept? Explain using your own words.Video 1: Western - Chinese Culture Part 1

http://www.youtube.com/watch?v=qingy5JAt8w Western-Chinese Business You could already be in too deep

1. Does the speakers definition of Guanxi match your own?2. Does this concept exist in your country? If not, are there any similarities?Video 2: Western - Chinese Culture Part 2

http://www.youtube.com/watch?v=Ul4WWhMZpj8 Western-Chinese BusinessWhy Westerners Do Not Get It

A. Watch the video once.

B. Choose the best option

1. Westerners tend to:a) see everything from their own perspectiveb) accept other perspectivesc) see China from a different perspective

2. Westerners are defined as being from:a) North America, Canada and Australia, mainlyb) All of America and Oceaniac) Europe, North America, Canada and Australia, mainly

3. Westerners.a) Share and understand many culturesb) Are comprised of many culturesc) Share only one culture
http://www.ventureoutsource.com/http://www.ventureoutsource.com/http://www.ventureoutsource.com/http://www.youtube.com/watch?v=qingy5JAt8whttp://www.youtube.com/watch?v=qingy5JAt8whttp://www.youtube.com/watch?v=Ul4WWhMZpj8http://www.youtube.com/watch?v=Ul4WWhMZpj8http://www.youtube.com/watch?v=Ul4WWhMZpj8http://www.youtube.com/watch?v=qingy5JAt8whttp://www.ventureoutsource.com/


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4. Westerners tend to thinka) There is a better way to do thingsb) There is only one way to do thingsc) There are many ways to do things

5. Europeans havea) an advantageb) a disadvantagec) more benefits

6. Becausea) They are more adaptableb) They are better preparedc) Both a and b

7. The main requirement to negotiate with Chinese executives isa) to understand the differencesb) to understand the similaritiesc) to understand the right way to do things

8. In summary, executives must learn toa) respectb) understandc) both a and b

About the Speaker

Greg Bissky is Managing Director of Treasure Mountain Consultants in Victoria, Canada, Shanghai

and Taipei. Greg Bissky is Canadian, 53, with an MA, University of British Columbia (modern

Chinese politics), BA, University of Victoria (Chinese studies and modern Chinese politics). He lived

in Taiwan from 1985 to 1998 and, in 1990, founded a management consulting and training firm

that is currently active throughout the region. His strengths are sales and marketing, project and

team leadership, cross-cultural understanding and communication, product and service

development. He conducts speeches, seminars and workshops for both Western and Chinesemanagers (in English or Chinese). He also is active leading Chinese teams in major reengineering

and performance management projects for Western and Chinese firms. Author of Wearing

Chinese Glasses, 2007.


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Communication Tools: Supposed/Expected/Meant to

Teachers note: Tell students that supposed has other meanings which are out of context in this

unit. For more information, they should consult their grammar books.

Suppose is similar in meaning to think:

I suppose we should be leaving. Its getting late.

We use mean to to say we intend to do something:

I meant to meet you as we agreed, but I was delayed.

We use be supposed to, be expected to and be meant to to describe something someone else

thinks we should / shouldnt do:

Youre not supposed to park here.

Youre expected to arrive by 9.00 for the interview.

When talking about the past we use was/were supposed to/expected to/meant to in place ofshould have done to criticize someones behavior:

Youre late! You were supposed to be here an hour ago.

You were expected to wear a suit for the meeting.

We use was/were supposed toto say that events didnt happen the way we expected:

We were supposed to stop somewhere nice for lunch. (but we didnt)

A. Underline the correct option

1 Visitors suppose / are supposedto see the famous London sights.

2 Lunch should / was supposed to be in a typical English restaurant, but it wasnt.

3 I was meant / meant to send you a card for your birthday, but I forgot.

4 According to the invitation, what time do we expect / are we expected to arrive?

5 A famous actor meant / was meant to open this restaurant.

6 Youre not suppose to / supposed to walk on the grass.

7 The result wasnt what it was expected / expected to be.

8 We supposed / were supposed to have a meeting.

B. Tick the correct sentence in each pair.

1a. You expected to dress smartly for a wedding.

1b. You are expected to dress smartly for a wedding.

2a. Cars meant to make our lives easier.

2b. Cars are meant to make our lives easier.


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C. Write 10 sentences using meant to, supposed to and expected to based on past experience

with foreign/Asian executives. Read the sentences to your teacher for feedback and corrections.

Teachers Note: Students may need some help with this exercise. Allow them to make up some

sentences first, and write them on the board. For example, In China, you are supposed to leave

your shoes at the door, but I did not.In India, you are expected to know certain customs.

Negotiations went better than expected.

Quiz: Business in China

Based on your experience and the information studied in this unit, complete the following quiz.

1. Aggressive negotiation tactics are recommended.a) trueb) false

2. Is it acceptable to answer phone calls in meetings.a) trueb) false

3. Who would you expect to make decision from negotiations and meetings?a) The negotiation team through consensusb) Most senior ranking attendeec) Your director counterpart

4.

Which of these should you do when negotiating in China?a) Inflate your pricesb) Pretend to reject demandsc) Concede easily to demands for concessions

5. Which of these should you try and have on your business cards?a) Titleb) Age

6. How should one receive business cards?a) Both hands


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b) Right handsc) With left hand propped by right

7. Which of these should you not do during a business meeting?a) Address anyone but the head of the Chinese contingencyb) Show emotion

8. Gifts within the business context are seen as bribes.a) Trueb) False

9. A handshake in China should bea) Limp and briefb) Strong and lengthyc) Firm but brief

10.The Chinese prefer business communication by which of these methods?a) Phoneb) Face to Facec) Writing

Video 3: Western - Chinese Culture Part 3http://www.youtube.com/watch?v=T7GKa57mwqY- Western-Chinese Business Doing Business in Asia

Teachers Note: This video is optional. It provides better understanding of the Chinese mind frame

and is purely informative for students who show interest of this subject.

Video 4: This is China (optional)http://www.youtube.com/watch?v=2TRs2s-22tg&feature=related

Teachers Note: To wind down, play the video, This is China. I strongly suggest you play the entire

8 minutes.
http://www.youtube.com/watch?v=T7GKa57mwqYhttp://www.youtube.com/watch?v=T7GKa57mwqYhttp://www.youtube.com/watch?v=2TRs2s-22tg&feature=relatedhttp://www.youtube.com/watch?v=2TRs2s-22tg&feature=relatedhttp://www.youtube.com/watch?v=2TRs2s-22tg&feature=relatedhttp://www.youtube.com/watch?v=T7GKa57mwqY


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SMM

LEADING

NEGOTIATIONS INCHINDIA

UNIT 2 INTRODUCTION TO INDIA


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Warm-up

1. What do you know about India and Indianculture?

2.

What do you think is the greatest challenge ofdoing business in India?

3. Name the biggest difference between India andBrazil.

Information on India

A. Read this information. Discuss most relevant points.

India's total area is 3.29 million squarekilometers. Size is slightly more than one-

third the size of the US.

Capital: New Delhi

Government: Federal republic

Languages spoken: English is the preferred

business language. Hindi is the national

language and primary tongue of 30% of the

people.

Population:

1,129,866,154 (July 2007 est.)

GDP (purchasing power

parity):

$4.042 trillion (2006 est.)

GDP (official exchange rate):

$796.1 billion

GDP - real growth rate:

8.5%

GDP - per capita (PPP):

$3,700

Labor force:

509.3 million

Inflation rate (consumer

prices):

5.3%

Industrial production growth

rate:

7.5%


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Exports:

$112 billion f.o.b.

Exports - commodities:

textile goods, gems and jewelry,engineering goods, chemicals,

leather manufactures

Imports:

$187.9 billion f.o.b.

Imports - commodities:

crude oil, machinery, gems,

fertilizer, chemicals

Export and import growth (%)

Exports Imports

2002 20.3 14.5

2003 23.3 24.12004 28.5 48.6

2005 23.4 32.0

2006 20.0 26.2

2007 16.0 20.0

2008 15.0 19.2

Sources: Reserve Bank of India

India, officially the Republic of India is a

country in South Asia. It is the seventh-

largest country by geographical area, the

second-most populous country, and the

most populous democracy in the world. It is

bordered by Pakistan to the west; People's

Republic of China (PRC), Nepal, and Bhutan

to the north; and Bangladesh and Myanmar

to the east.


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Four major world religions, Hinduism,

Buddhism, Jainism and Sikhism originated

there, while Zoroastrianism, Judaism,

Christianity and Islam arrived in the first

millennium CE and shaped the region's

diverse culture. Gradually annexed by the

British East India Company from the early

eighteenth century and colonized by the

United Kingdom from the mid-nineteenth

century, India became an independent

nation in 1947 after a struggle for

independence that was marked by

widespread nonviolent resistance.

Delhi

India is a republic consisting of 28 states and

seven union territories with a parliamentary

system of democracy. It has the world's

twelfth largest economy at market exchange

rates and the fourth largest in purchasingpower. Economic reforms since 1991 have

transformed it into one of the fastest

growing economies; however, it still suffers

from high levels of poverty, illiteracy, and

malnutrition. A pluralistic, multilingual, and

multiethnic society, India is also home to a

diversity of wildlife in a variety of protected

habitats.

Tso Kiagar Lake at Ladakh on the Himalayas

In the 20th century, a nationwide struggle for

independence was launched by the Indian

National Congress and other political

organizations. Indian leader Mahatma

Gandhi led millions of people in national

campaigns of non-violent civil disobedience.

On 15 August 1947, India gained

independence from British rule, but at the

same time Muslim-majority areas were

partitioned to form a separate state of

Pakistan.[3 On 26 January 1950, India became

a republic and a new constitution came into

effect.

Topographic map of India.

Since independence, India has faced

challenges from religious violence, casteism,naxalism, terrorism and regional separatist

insurgencies. Since the 1990s terrorist

attacks have affected many Indian cities.

India has unresolved territorial disputes with

P. R. China, which in 1962 escalated into the

Sino-Indian War; and with Pakistan, which

resulted in wars in 1947, 1965, 1971 and

1999. India is a founding member of the

United Nations (as British India) and the Non-

Aligned Movement. In 1974, India conducted

an underground nuclear test and five moretests in 1998, making India a nuclear state.

Beginning in 1991, significant economic

reforms have transformed India into one of

the fastest-growing economies in the world,

increasing its global clout.


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10)(Embarrass) If I said anything as stupid as he did in front of a thousand people, I'd feelreally __________________ .

11)(Disgust) The kitchen hadn't been cleaned for ages. It was really __________________12)(Excite) I'm starting a new job next week. I'm quite __________________ about it.13)(Bore) The lecture was __________________ I fell asleep.14)(Embarrass) It's sometimes __________________ when you have to ask people for

money.

Key

1. confused

2. frightening

3. interested

4. irritating

5. surprised

6. depressed

7. relaxing

8. bored

9. annoyed

10. embarrassed

11. disgusting

12. excited

13. boring

14. embarrassing

B. Give your opinion about the information on pages 18, 19 and 20. Use some of the following

structures and the words in the box below.

I found the information on imports very..

I was .. to see that..

The GDP figures were very

The facts on population seemed..

shock amaze interest bore

confuse alarm encourage amuse

Which other words can you think of?Annoy, concern, embarrass, energize, humiliate, entertain, exhaust, frustrate, intrigue, overwhelm,

please, perplex, relax, satisfy, terrify, surprise, and tire.


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Video 5Indias Global Influence

An interview with Minister of Commerce, Kamal Nath

A. Watch the video and discuss the answers to the following questions with your classmates.

1. Why are we seeing all these Indian companies making acquisitions outside of India?

2. Why is foreign investment increasing substantially in India?

3. What are the difficulties of doing business in India?

4. What is Mr. Kammal Nath doing to make it easier to do business in India?

5. What does he mean by There is a paradigm shift in the way India is looking at the

economy?

6. What is the message to the American CEOs attending the Fortune Global Forum?

7. Why did he choose the slogan Incredible India?

Video 6Interview with Kamal Nath

http://www.youtube.com/watch?v=1WCQVCgGnTg- Erin Burnett in India - Interviewing Kamal Nath


B. Choose the bestoption to complete the statements. All answers should be based on the

video.

1. Erin Burnet wants to know if India is really . to become an economic superpower.a. poisedb. posedc. positioned

2. The main concern regarding business in India is.a. infrastructureb. structurec. information

3. In addition to airports and railways, the challenge includesa. real roadsb. rural roadsc. urban roads

4. People need access to drinking water and medicala. facilitiesb. servicesc. establishments

5. The trillion dollar investment on infrastructure will be . in five years.a. employedb. deployedc. enjoyed

6. Roads will assure rural ..a. collectivityb. connectivityc. complexity
http://www.youtube.com/watch?v=1WCQVCgGnTghttp://www.youtube.com/watch?v=1WCQVCgGnTghttp://www.youtube.com/watch?v=1WCQVCgGnTg


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7. The only closed and controlled sector in India is..a. outsourcingb. wholesalec. retail

8. Investments in ports, airports and roads are:a. on the handleb. on the anglec. on the tangent

9. Investment has risen dramatically in the past four years due to:a. labelisationb. globalizationc. innovation

10. India has been self-sufficient regarding.a. foodb. edible oilsc. minerals

11.Self-sufficiency may only be hindered in the case of . failurea. monsoonb. month-longc. Munson

12.China has a . growth story, while India is a growth storya. export market-driven/domestic market-drivenb. domestic market-driven/export market-drivenc. none of the above

13.Both countries have their own.a. geniusesb. geniusc. ingenious

14.Relations between India and France are.a. ambiguous

b. friendlyc. close

15. India is considered the biggest market on earth becausea. it is equal to Chinab. it is larger than the USc. it has a larger middle class

C. Watch the video again to check your answers.

Teachers Note:

Labelisation accreditation

On the angle occurring, on the rise

Trade commerce (tell students that the word Trade is often used to refer to Commerce)

Monsoon - A wind from the southwest or south that brings heavy rainfall to southern Asia in the

summer.


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Task

Teachers Note: This section contains a huge amount of text. Students should only scan the text,

look up new words and prepare the outline without your interaction. Not all titles need to becovered in the questions and answers. Make sure questions (Student B) are complex and

interesting. They should avoid silly questions like, How do I say, Hello? and ask complex questions

like, What are the rules for greetings between men and women?

When both students/ groups are ready, initiate the 20 Questions session. Incorrect answers

should be included during feedback, so make sure you know the text.

Student A/Group A

You are an expert on India. Read the information below and take notes. Underline all important

information and use the headings as guidelines to prepare a short guide to business in India.

Student B/Group B

You are visiting India next week on business. Read the information below and prepare 20

questions. Use the headings as guidelines. Remember, you are not supposedto know the answers!

Reading

In India business life and home life are largely fused into synthetic cooperation, work and

play. The private and the corporate are often brought together in the common thread of

the day-to-day. The following is cultural and practical information that should aid you in

your business and personal interactions.

Culture and BusinessCultural life in India can be described as aconstant negotiation between strongly held

traditional values and emerging modern

business and personal practices. While this

dynamic may sometimes cause frustration to

foreigners doing business in India, it is also

the means by which India has been defining

itself in relation to the global market,

protecting its own resources, and attempting

to positively benefit Indian interests as much

as possible while becoming a formidable

player. After India's independence in 1947,

the Indian government enacted a number of

protectionist laws that made India relatively

isolated from the larger free-market global

Business Transactions and ProtocolIn the U.S., the virtues of good business

include efficiency, adhering to deadlines,

streamlined communications, and a host of

similar matters. In India, however, many of

these virtues are underplayed or absent. In

their place are unique sets of issues that help

define business culture in India. Below we

review those we think are most essential in

seeing to the success of your personal

interactions in India.

Not all of the items listed below may apply to

all companies and industries in India. In

many cases, the larger industries or those

companies well-versed in foreign business

are often closer to their Western

counterparts. For example, the IT industry in

India is thoroughly multinational and, as a

result, is an exceptionally efficient industry in

terms of international trade and business

practice.


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Timing - In general, the workday is from 9am

to 5pm, though most inter-business matters

are conducted between 11am and 4pm.

Most businesses have a one-hour lunch. The

work week is generally six days long, with

Sundays off. Some businesses give their

employees every other Saturday off, or make

a shorter work day on Saturday. Business is

not conducted during the numerous

government and religious holidays. Different

holidays are observed throughout the many

regions and states of India.

Delays - Indians appreciate punctuality but

don't always practice it themselves. Keep

your schedule flexible enough for last-minute

rescheduling of meetings. In India delays are

inevitable, particularly when dealing withgovernment bureaucracy. The Indian

government is well-known for moving at a

slow pace, and communication within the

country can sometimes be a challenge.

The Indian Company Family - In many

companies in India, strict hierarchies are

adhered to, and the CEO of a company takes

on the mantle of a father figure. Depending

on your position within this hierarchy, you

may have to play a variety of roles. Emphasisin the workplace is often placed on protocol,

manners, and obligations. The chain of

command is often strictly enforced, and

breaching this chain can have adverse

effects. For example, an employee will

always call his or her superior "Sir" or

"Madam," and an employee will rarely

expect to do tasks outside of their job

description unless specifically asked to do so

by a superior. Furthermore, one should first

approach the senior-most person in an

organization, even though a subordinate maybe delegated the work requested.

Business Dress - Formal business attire is

normal for the workplace in India unless

otherwise made explicit. For men suits and

ties are appropriate. However, in very warm

weather (April-June usually), men may opt

for an Indian safari suit, which is a

comfortable suit made of lightweight cotton

consisting of a button-down, untucked shirt,

and matching pants. For casual wear, short-

sleeved shirts and long pants are preferred

for men. Shorts are acceptable for men only

when exercising; women who jog should

wear track pants.

Businesswomen should wear conservative

dresses or pant suits. Dresses should not

reveal too much of the legs. Pants for

women are also acceptable. Sandals or

chappals are an alternative during the hot

months and the monsoon.

Special occasions require a sari, if desired.

Your hosts will interpret it as a gesture of

good will and equality if you make the effort

to wear an Indian outfit. For men duringcultural ceremonies, a well-made kurta and

pajama is appropriate. This consists of a long

thin shirt, usually made of silk, and thin

matching pants. Women often wear a similar

outfit called a salwar kamiz.

Mens formal attire Salwar kamiz

Names & Titles - There is a reverence for

titles in India. Whenever you can, use

professional titles such as Professor and

Doctor. For those without professional titles,

use courtesy titles such as Mr., Mrs., or Miss.

Wait to be invited before addressing

someone by his or her first name.

Interpersonal Relationships and Corporate

Politeness - The hierarchical nature of Indian

society demands that the boss be recognized

as the highest individual in authority. In

some offices, employees rise each time the

boss enters the room to acknowledge

respect. Employees also tend to follow the

lead of their superiors in other actions and


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aspects of the work environment. Even if an

employee may think that the boss is wrong,

he/she would often find it inappropriate to

disagree. The boss makes all of the decisions

and accepts all of the responsibility.

Consequently, you'll often find that

subordinates are reluctant to accept

responsibility. In general, subordinates will

be able to meet only with a subordinate and

bosses with bosses. In a group discussion,

only the most senior person might speak, but

that does not mean that the others agree

with him.

Similar to a family, many smaller businesses

function on handshakes, verbal agreements,

and trust. While it should be obvious that

one should not base an international

business transaction simply on trust, oneshould take the time to get to know one's

business contacts individually in order to

develop professional trust. Professional trust

can move mountains, especially mountains

of stalled paperwork.

Talking about your friends and family is an

important part of establishing a relationship

with those involved in the business process.

Many Indian businesses are run by families.

Within family-run businesses, business affairs

are often restricted within the family andthere is a distrust of outsiders. All

transactions are conducted by the head of

the family, in his/her presence.

Interpersonal skills such as the ability to form

friendships are sometimes considered more

important than professional competence and

experience. Nevertheless, there is

admiration for accomplishment, such as

previous successful business ventures or an

individual's university degrees.

Saying No - Many Indians are generally toopolite to directly answer no. Equivocal

answers are considered more polite, rather

than a straightforward refusal. For example,

when declining an invitation, an Indian may

be more likely to answer, "I'll try," rather

than "No, I can't."

An Indian who hesitates to say no may

actually be trying to convey that he is willing

to try, but it may also indicate a negative

response.

Criticism and Aggressiveness - While

moderate aggressiveness is often revered in

the Western workplace as a sign of

confidence and ingenuity, in the Indian

context it can be seen as a sign of disrespect,

particularly if it is from a subordinate or from

someone unfamiliar.

Gender and the Workplace. As is the case in

Western societies, women in India are

finding themselves more comfortable in the

workplace, but equality between the sexes

by no means has been achieved. Men stilldominate the working world in India, as in

the U.S., but times are changing, especially in

new economy sectors. Both Indian and

foreign women feel safe and are able to

adapt to a corporate work environment.

However, it is necessary to bear in mind the

conservative dress codes and modest gender

interactions.

Food and Business

Food Taboos - Keep in mind that mostHindus do not eat beef, and most Muslims

do not eat pork. For Muslims, other types of

meat must be ritually slaughtered. Most

Jains do not eat meat, honey, or many kinds

of vegetables. Some Indians are strict

vegetarians so take this into account when

Indian executives visit your country.

As is well known, the left hand in India has

particular connotations of uncleanliness and

inauspiciousness. When dining, be sure to

eat, if possible, with your right hand.

Serving Alcohol - Although Islam prohibits

drinking and the Sikh religion prohibits

drinking and smoking, not everyone is strict

in these observances. Traditional Indian

women, regardless of their religion, do not

smoke or drink, but Indian women of a

certain social position sometimes do.


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Among those who drink alcohol, the fine

liquors are appreciated, especially whiskey,

ideally imported. Some of the many brands

of Indian beer are good. One can find good

Indian wines, especially in the state of

Maharashtra.

It is better to ask your guest: "What would

you like to drink?" rather than "Can I get you

a beer?" Even guests who are drinkers will

not drink alcohol on certain occasions such

as religious festivals or if there is an older,

respected individual present (such as one's

boss). Always have juice and soft drinks

available for the non-drinkers.

Entertaining for Business - In India, the host-

guest relationship is quite important, and it is

normal for business contacts to invite you totheir homes and indulge in personal talk

often. All this is very much a part of business.

One is expected to accept the invitation

gracefully. Taking a box of sweets, chocolates

or a simple bouquet of flowers would be a

welcome gesture.

Businesswomen can take Indian

businessmen out for a meal without causing

awkwardness or embarrassment to the men.

Lamb, chicken, and fish are the meats eaten

by all Indians who are not vegetarians.During events, the food at the buffet table

should be clearly labeled so everyone finds it

easy to decide what they can eat. Ensure

that you have plenty of vegetarian dishes.

When you are hosting a social event, every

guest should be contacted personally by

phone, even if you have already sent a

printed invitation. Phone calls should be

placed closer to the party day.

Husbands or wives should be invited to bring

their spouses to a social function, though it is

not uncommon that the spouse will notattend. Some guests bring their own guests,

so be prepared for a larger number than

expected.

Business Lunches/Dinners - Many of your

business interactions will not be as formal as

hosting an event or attending one. As in the

West, much business takes place over a meal

at a restaurant. One note on tipping may be

in order: over-tipping is discouraged. In

better restaurants, 10-15% is a sufficient tip,

if the service charge hasn't been added to

the bill. When in doubt, you may certainly

ask your dinner companion what would be

appropriate.

A common dish - thali.

Day-to-day concerns

Exchanging Gifts - Gifts, in general, are not

opened in the presence of the giver. If you

receive a wrapped gift, set it aside until the

giver leaves. Don't wrap gifts in black or

white, which are considered unlucky colors.

Instead, use green, red, and yellow, since

they are considered lucky colors. When

invited to an Indian's home for dinner, bring

a small gift of imported chocolates or

flowers. If you are staying with a family, feelfree to ask them what they would like.

Images of dogs are considered unacceptable

to Muslims, so never give toy dogs or gifts

with pictures of dogs to Indian Muslim

friends. Many Hindus do not use products

that are made from cattle. Consequently,

most leather products may not be

appropriate gifts for Hindu friends.

Daily Etiquette - In India public intimacy is

not common. Indians of all ethnic groupsdisapprove of public displays of affection

between people of the opposite sex. Refrain

from greeting people with hugs or kisses.

Outside of the work setting, if you are male it

is prudent to avoid talking to a woman who

is alone.


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Westernized Indians will shake hands with

the opposite sex. If you are unsure of

whether to offer your hand, the best policy is

to follow your counterpart's lead. Western

women should not, however, initiate

handshaking with Indian men. The traditional

Hindu greeting and farewell is "namaste." To

perform the "namaste," hold the palms of

your hands together (as if praying) below the

chin, nod or bow slightly, and say "namaste"

(nah-mas-tay).

Pointing with your finger is considered rude;

Indians prefer to point with the chin. Feet

are considered unclean, so never point your

feet at another person. You will be expected

to apologize whenever your shoes or feet

touch another person. Whistling under any

circumstances is considered rude andunacceptable.

Gratuity & Alms - If you want to tip a taxi

driver, simply round up the fare. Tipping for

taxis, however, is wholly optional, unlike at a

restaurant where it is expected. When

making purchases at a store, your change is

often simply placed in your hand without

explanation of the amount. Keep plenty of

small change on hand, as street merchants

and taxi drivers will often claim that they

don't have change.

The average visitor to India will not only

marvel at the beauty and complexity of its

culture, but also at the depth of the poverty

it holds. If you are moved to give money to

the poor, it is our recommendation that you

do so by donating funds to a known and

reputable charity, rather than distributing

change to beggars on the street. Often

children who beg have a "manager" who will

take the money from them. If you want togive directly to the poor on the street, we

suggest you give food.

http://asnic.utexas.edu

Video 7I am Indiahttp://www.youtube.com/watch?v=F2qZEiZMgWs&feature=related

Teachers Note: To wind down after a tough day, play the video I am India. The music is relaxing

;)

This film is a journey through emerging India," the fastest growing free market democracy

in the world". It celebrates the relentless spirit of the people of India, who through their

karma give it a place amongst the leading economic nations of the world.

Conceived and produced by Bharatbala Productions (BBP) for India Band Equity Foundation (IBEF).
http://asnic.utexas.edu/http://asnic.utexas.edu/http://www.youtube.com/watch?v=F2qZEiZMgWs&feature=relatedhttp://www.youtube.com/watch?v=F2qZEiZMgWs&feature=relatedhttp://www.youtube.com/watch?v=F2qZEiZMgWs&feature=relatedhttp://asnic.utexas.edu/


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SMM

LEADING

NEGOTIATIONS INCHINDIA

UNIT 3 NEGOTIATING IN CHINDIA


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B. Check true or false for the following statements. Correct all false statements.

1) China and India are looking for advice from other countries (true/false)2) Business relations between China, India and Europe are based on reciprocity (true/false)3) Joint ventures in India comprise high domestic participation (true/false)4) CRH buys small to mid-sized companies in the same areas (true/false)5) India has less similarities with Ireland (the British Isles) than China (true/false)6) Rules of law in China, India and Ireland are based on similar concepts (true/false)7) They is too much red-tape in India due to the civil-service mentality (true/false)8) The Chinese way of doing business is more dynamic than the Indian way of business

(true/false)

9) CRH is interested in acquiring stakes in a large Chinese textile company (true/false)Its acement company.

10)Liam OMahoney believes that the company employees are their greatest asset(true/false)

C. What is the secret of CRHs success in India and China, in particular?

Communication Skills Studying cultural clashes

A study of cultural clashes can be very helpful before initiating a cross-cultural negotiation.

Some of the topics to consider are:

Introduction

IndividualismUncertainty Avoidance

Non-verbal communication

Business Etiquette

The study should compare your own country with the country of interest, and contain a conclusion

regarding the most relevant differences between both cultures.

Teachers Note: Uncertainty Avoidance - Acceptance of assumed causes or explanations of a

situation as facts to escape the discomfort associated with ambiguity or uncertainty.

Specify some sub-topics for each of the topics above. Fill in the chart below/overleaf.

Teachers Note: Students will need help with this activity = Brainstorm. Some ideas are provided.


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Introduction Country Overview (population, languages, religion, etc.)

IndividualismIndividualism vs. Collectivism, whether family/business/resultsoriented

Pitfalls

Uncertainty AvoidanceCredit Index, the influence of religious beliefs in decision-making

(karma, etc.), national economic situation (indexes, etc.)

Non-verbal communication Eye contact, prohibited gestures, personal space

Business EtiquetteGreetings (use of titles, handshake, interaction between men and

women, Meetings (punctuality, duration, etc.)

ConclusionMany points and differences to take into consideration (more/less

personal space, strict punctuality, less/more eye contact, etc.

Video 9Asian Business Culture Saying No

http://www.youtube.com/watch?v=z4HB1aUE4p4

1. Is it common to simply say, no during a negotiation in your country?2. What other ways are there for saying, no?3. Is it polite to say no in most Asian countries?4. How do you know when a Chinese executive is saying, no?

A. Watch and listen to a very interesting situation told by Greg Bissky.

1. What is one method the Chinese use to say, no? (They use objections)2. How does Mr. Smith interpret these objections? (He thinks Mr., Chan needs more

convincing, more information)3. How does Mr. Smith interpret Mr. Chans silence? (He thinks it means agreement)4. What does Mr. Chans silence actually mean? (That X should not be done)5. How can these misinterpretations be clarified? (Confirm agreement)6. Are these misinterpretations common? (Yes, in Asian)7. Why? (Rules of communication are different)8. What is Greg Bisskys advice? (Two objections means disagreement)
http://www.youtube.com/watch?v=z4HB1aUE4p4http://www.youtube.com/watch?v=z4HB1aUE4p4http://www.youtube.com/watch?v=z4HB1aUE4p4


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ReadingCultural Notes: India and the meaning of Yes

Indians have founded more engineering and

technology companies in the U.S. during the

past decade than immigrants from Britain,

China, Taiwan and Japan combined. Theentrepreneurial abilities of Indians in general

have amazed business people around the

world for years. It seems that Indian culture

produces an uncommon blend of innovative

thinking, business-minded aggression, and

comfort with numbers. But there is another

ingredientIn India, every transaction

EVERY transaction is negotiated.

Merchandise, cab fare, restaurant bills,

wedding dowries the list is endless.

Hotmail founder Sabeer Bhatia credited the

bargaining skills he learned in vegetable

markets at home for getting Microsoft to

push its acquisition price for his company

from $160 million to $400 million.

Stepping on Trust

Trust and relationships take time to build,

and Indians take that all too seriously! They

also consider it rude to question the client.

Rather than express their inability to

understand, they prefer to solve the problem

"among themselves, through discussions."

The general belief is, "Let's at least give it a

shot; if we can't do it, we'll learn that later."

According to the founder of a leading

venture capital firm, Indian programmers

have always had the tendency to say they

are adhering to the schedules, but when the

delivery time arrives, they admit to not

completing the same. This puts the entireplanned agenda of the client in jeopardy --

and, of course, the long-term relationship.

Competing? Yes or Maybe No?

The outsourcing industry faces similar

problems across Asia. The Thai language hasno word for "No"! In China, a "Yes" can be

translated as, "We can take the talks to a

more concrete level." The same is true for

Indonesia. Not willing to be impolite or

embarrass, Indonesians end up conveying

exactly the opposite of what they actually

mean. The native language Bahasa

Indonesian -- has 12 words that say, "Yes,"

but actually mean, "No." Translations in

English fail to capture the intent!

Evidently, phrases such as, "I understand,"

"We will see," "Yes, but" are just polite

versions of "No" in the Asian culture. It's

imperative that the client be able to decipher

these phrases appropriately, as they may not

necessarily indicate agreement.

To avoid any pitfalls, you must ensure that

the service providers have a complete

understanding of the quality and time of

deliverables. Clearly state all the

requirements in the contracts and try to

evolve effective communication channels.

In a nutshell:

The Indian mindset is that clients are

always right.

Indian vendors may agree to the

most unreasonable demands in the

hope of building relationships.

Indians have always maintained that

it is better to say, "There is a

possibility" than refuse.

You'll find similar trends across Asia.


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Summary of differences

There are a number of differences between Competitive and Collaborative negotiation, which are

summarized in the following table:

Characteristic Competitive approach Collaborative approach

Relationship Temporary Long-term

Consideration Self Both parties

Atmosphere Distrust Trust

Focus Positions Interest

Aim to gain Advantage, concession Fair agreement

Information Concealed, power Shared, open

Strategy End justifies means Objective and fair rules

Tactics Coercion, tricks Stick to principlesOutcome Win-lose Win-win

4. Balanced negotiation: Walking between collaborative and competitive negotiation.

It is in this gray zone between black and white where many real-life negotiations tread, as the

participants struggle between the need to achieve their more immediate substantive goals whilst

also keeping within social norms and personal values.

Task - Preparation

A. In groups or pairs

1. Think of all the information you have gathered in Units 1, 2 and 3.2. Prepare a chart (see page 35) with all important information from India or China.3. Provide conclusions based on a comparison with your country.4. Decide on the negotiation style you should adopt, based on this information.5. Think back to the last negotiation you participated in (domestic or overseas companies).

This experience will be the backdrop to your task. Write a short pre-negotiation objectivesmemorandum. The memo should include:

a. Defined goals and objectivesb. Anticipation of the goals of the opposition (based on information from units)c. Alternative to main objectives

Teachers Note: Students may role-play the entire negotiation or only one aspect (pricing, delivery,

contract terms, etc.). This is a pre-activity for the final role-play in the next unit.


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Introduction

Individualism

Uncertainty Avoidance

Non-verbal communication

Business Etiquette

Conclusion


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Teachers Note: This is a sample Pre-Negotiation Memorandum. Students can use their own

formats, with less information, or write on this page directly. Obviously, most information can be

omitted but the terminology of the memorandum can be useful.

PRE-NEGOTIATION MEMORANDUM (PM) FORMAT

1. Grantee Contracting Activity ___________________________________ 2. Date ____________

3. RFP/IFB or Contract Number _____________________________________________________

4. Modification Number ___________________________________________________________

5. This acquisition is being accomplished by (check one)

Full and Open Competition _____________

Other than Full and Open Competition _____

State reasons for other than full and open competition.

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

6. Contract Type _________________________________________________________________

7. Offeror's (Name, Address)

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

8. Business Size and Type (Small, Large, WOB) ________________________________________

9. Offeror's Proposed Amount ______________________________________________________

10. Procurement Description (briefly describe the procurement)

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

11. Pricing Structure

Cost

Fee/Profit ______%)

Total Price

Pre-negotiation Objective

$_______________

$_______________

$_______________12. Delivery of Performance Period ___________________________________________________

13. Points of Contact for this Document (name and phone number)

a. Contracts___________________________________________

b. Technical___________________________________________


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SMM

LEADING

NEGOTIATIONSIN CHINDIA

UNIT 4 LANGUAGE OF

NEGOTIATIONS


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Introduction

When negotiating with foreign executives in

English, remember that structures should be

kept simple. Avoid phrasal verbs, colloquialisms,

complex jargon or slang. Jokes, sarcasm andirony should also be avoided to prevent

misinterpretation. This is one of the main

differences between negotiating in your own

language or with native English speakers. Can

you think of any other important differences?

This unit will present and provide practice for basic language you will need during your negotiation

task. Before we start, lets practice some vocabulary.

Vocabulary of Negotiations

Teachers Note:

Use the vocabulary cards (provided with this course book) for this activity. This activity can be a

quiz in which students must match the words with the correct definition and then make up a

sentence with the corresponding word. The best/correct/first sentence gets a point.

The Art of Negotiation - Overview

Skilful negotiators are flexible. They do not "lock themselves" into a position so that they will lose

face if they have to compromise. They have a range of objectives,- thus allowing themselves to

make concessions, for example, "I aim to buy this machine for 2,000" and not "I must buy it for2,000". Poor negotiators have limited objectives, and may not even work out a "fall-back"

position.

Successful negotiators do not want a negotiation to, break down, If problems arise, they suggest

ways of resolving them. The best negotiators are persuasive, articulate people, who select a few

key arguments and repeat them. This suggests that tenacity is an important quality.

Finally, it is essential to be a good listener and to check frequently that everything has been

understood by both parties.(from Business Class: David Cotton, Sue Robbins. Pearson Education)

In summary

Good negotiators try to create a harmonious atmosphere at the start of a negotiation.

Good negotiators try to reach an agreement which meets the interests of both sides.

Skillful negotiators are flexible

Successful negotiators do not want a negotiation to break down.

It is essential to be a good listener.


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Always keep in mind that a negotiation...

Involves more than one person

Bargaining

Solving Problems

Agreement and disagreementClosing the deal

The secrets of good negotiators

Planning & Preparation

The more you do, the better

Know your negotiation limits

Set your goals at the planning stage

Research

Do as much as possible

Technique

Establish a good rapport by confirm your negotiation theme, listening carefully,

avoiding conflict, summarizing, agreeing, and confirming.

Ask for more than you expect to get.

Put yourself in the other partys shoes.

Negotiate the package not just the price.

Never give without asking for something in return.

Language

Soften your language

Use negative questions: That seems rather high Isnt that a little low?

Not very + positive adjective: The hotel was dirtyThe hotel was not very clean.

Be clear to avoid misunderstandings

What exactly do you mean?

When did you say you can do that/When can do you that?

Im sorry, I dont quite understand

Ask (direct) questions

Can you tell me about your terms of payment?

What sort of discount would you give?

What kind of discount were you looking for?


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What exactly did you have in mind?

Make proposals and concessions

We normally only offer these conditions to regular customers, but we can do this

for you.

Thats a little short for us, but we could deliver in a month.

If you deliver in four weeks, we will place an order. Can you do that?

If we order in bulk, what sort of price could you give us?

Use word you know well

Use different ways of saying, no

Ill see what I can do

Ill let you know

Maybe

Only use phrases like, No, Im afraid not, when you can provide a clear reason.

Stages of Negotiation

Negotiations usually comprise the following stages:

In the following pages, we will discuss the correct language for these stages.

Teachers Note: To make this section more dynamic, ask students to provide their own sentences

(see below). Write them on the board and make sure they use them all during their role-play


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Preparation

Preparation generally includes the following:

Introduction

Opening the negotiation

Clarifying proposals

Check the language next to each heading and underline which option you would be most

likely to use in your own language. Some topics can be omitted altogether.

Introduction Welcoming:

On behalf of ... I would like to welcomeyou to ...

It's my pleasure to welcome you to ...

Good morning/afternoon and welcome to ...

Introducing:I would like to introduce ..

Firstly, allow me to introduce.

Opening Suggesting a procedure:

I would like to begin now by suggestingthe following procedure (agenda).

To start with, I think we should establish the overall procedure.

As our first order of business, can we agree on a procedure?

Checking for agreement:

Does that seem acceptable to you?

Is there anything you'd like to change?

Is this okay with you?

Giving the discussion leadership to a colleague:

I will now hand you over to Mr. Brown___ , who is ...I will now hand the floor over to Mr. Adams , who is ...

Now let me hand the meeting over to my colleague, Ms. Jones , who

Clarifying

proposals

General outline of a proposal:

May I please ask what your proposal is in connection with our company?

What, in general terms, are you looking for here?

Putting forward future possibilities:

We foresee ...

We predict ...

We see ...

Defining a proposal more specifically:

It involves ...

It covers ...It includes ...

It leaves out ...

Seeking clarification: Could you clarify one point for me?

I'm not sure I fully understand yourpoint.

What exactly do you mean by ... ?

Could you be more specific?


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Bargaining

The bargaining stage involves a variety of issues. Check which phrases you would use in each

situation.

Signaling the start of bargaining

We've looked at what you have proposed, and we are ready to respond.After serious consideration, we are prepared to respond to your proposal

Responding to a proposal

Regarding your proposal, our position is ...

Our basic position is ...

As far as your proposal is concerned, we think that ...

Making and qualifying concessions

We would be willing to ..., provided, ofcourse, that ...

We'd be prepared to.... However, there would be one condition.

Making counter proposals

May we offer an alternative? Wepropose that ...

We'd like to make an alternative proposal. We propose that ...

From where we stand, a better solution might be ...

Identifying obstacles

The main obstacle to progress at the moment seems to be ...

The main thing that bothers us is ...

One big problem we have is ...

Analyzing an obstacle

What exactly is the underlying problem here?

Let's take a closer look at this problem.

I would like to analyze this situation and get to the bottom of the problem.

Asking for concessions

In return for this, would you be willingto ...?

We feel there has to be a trade off here

Declining an offer

I'm afraid your offer doesn't go far enough.

Unfortunately, we must decline your offer for the following reason(s).

I'm sorry, but we must respectfully decline your offer.

Asking for further information

Would you like to elaborate on that?

Could you go into more detail on that?

Agreement and understanding on a point

I agree with you on that point.


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So what you're saying is that you...

In other words, you feel that...

You have a strong point there.

I think we can both agree that...

Objection to a point or offer

I'm prepared to compromise, but...

The way I look at it...

The way I see things...

I'm afraid I had something different in mind.

That's not exactly how I look at it.

From my perspective...

I'd have to disagree with you there.

I'm afraid that doesn't work for me.

Is that your best offer?

Closing and Commitment

Checking

Let's just confirm the details, then.

Let's make sure we agree on these figures (dates/ etc).

Can we check these points one last time?

DelayingWe would have to study this. Can we getback to you on this later?

We'll have to consult with our colleagues back in the office.

We'd like to get back to you on it.

I'd like to stop and think about this for a little while.

Let's meet again once we've had some time to think.

AcceptingWe are happy to accept this agreement.

This agreement is acceptable to us.

I believe we have an agreement.

Commitment

I think we both agree to these terms.

I think we should get this in writing.

Would you be willing to sign a contract right now?


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Task Negotiation

(Continued from the task in Unit 3).

Teachers Note:

You must provide all the instructions for this activity based on number of students, fluency, etc.

Students should maintain the same team, group or pair of the previous task (Unit 3).

This task requires your active participation or the participation of an outsider (another teacher or

student that speaks fluent English). You, or this person, must play the role of Indian or Chinese

negotiator. If you have enough students, you can also ask one of the students from Group A to play

to role of foreign negotiator for Group B, and vice versa. This assures tough negotiating practice as

the foreign negotiator will not cooperate with the opposing team.

This activity should be a competition. Students should compete to produce the best negotiation

styles, language and results. This will also force students to perform better and speak more during

negotiations.

The outsider, or neutral party, should choose the best team and give reasons for this choice

(confidence, richness of vocabulary and phrases, etc.).

If there is time, show students DVD 1 Trend Life Activity (see page 52) and, ask them to do the

Self-Assessment, which contains lots of useful grammar and structures.

Based on the preparation task in Unit 3, plan a detailed negotiation outline. You must use all

phrases you selected in this unit, and go through all the negotiation stages. Remember you are

negotiating with executives from China or India. Think about how you would alter your negotiating

style, technique and language accordingly.

Your teacher will give you instructions for the role-play activity. Good Luck!


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Self Assessment

Part I - Forming Questions

Fill in the crossword puzzle with the missing words in the clue-sentences below. Write phrases

with more than one word as one word, e.g. how much = howmuch.

1

2

3 4

5 6

7

8 9

10

11

12

Across

4. _HAVE__ you had a look at the samples weve

sent you?

5. _HOW MANY_ tons of soy meal would you

like?

7. _ARE_ you absolutely sure that's the best price

you can find?

8. You wouldn't mind receiving the buns in

cardboard boxes of 40, _WOULD_

you?

10. _IS__ the suggested supplier ISO 9001

certified?

11. _DID__ we discuss prices on the phone?

12. _CAN__ we deal with technical details later?

Down

1. _WHERE_ do you manufacture the gearboxes?

2. _WHY_ is your product 30% more expensive

than your competitors?

3. _DO_ you want the first shipment next week?

5. _HOW_ can we proceed from here?

6. _WOULDNT_ you agree that this solution is

exactly what you need?

9. You handled the shipment to Ultrafert

yesterday, _DIDNT_ you?

12. _COULD_ you tell me about your quality

control system?


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Part II - Forming Questions

A. Form questions by putting the words in the correct order.

1)history / tell / you / us / could / about / your / something / companys

_Could you tell us something about your companys history_____?

2) would / a month / how / of / powder/ you / tons / need / egg yolk / many

__How many tons of egg yolk powder would you need a month____?

3)production / your / a month / maximum / Whats / capacity

__Whats your maximum production capacity a month__________?

4) and / system / drawing / have / smart boards / for / the / writing / does

__Does the system have smart boards for drawing and writing_____?

5) turbines / eight / and / install / 200 / be able/ in / less than / to build / would /months /you

__Would you be able to build and install 200 turbines in less than 8 months__?

6)be able / give / think / do / youd / when / to / us / a firm / you / order

__When do you think youd be able to give us a firm order_________?

7) standard / are / the / and / between / what / versions / differences / Enterprise

__What are the differences between the standard and enterprise versions__?

8) was / what / I / finish / I / could / saying / just

__Could I just finish what I was saying______?

9) be impossible / it / is /that / what / would / saying / youre/ to give a discount /so,

__So, what youre saying is that it would be impossible to give a discount___?

10)by / what / mean / you / low quality product / exactly / do

__What do you mean exactly by low quality product_?


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Part III

A. Fill in the blanks with the words in the box.

1) Unless you __COME UP WITH_ some better conditions, we __WONT_ do any business with

you.

2) If you __CANT AGREE__ to paragraph 2 in the contract, _WELL_ have to call it a day.

3) We __CANT SIGN__ the contract, if you __WONT__ change the terms of delivery.

4) I __CANT ACCEPT__ this quality, unless you _REDUCE_ the price substantially.

5) If we __DONT RECEIVE_ the first shipment on the 16th, __WELL_ cancel the contract.

B. Use the form in exercise 1A (If, or unless) to exert pressure in the following situations.

Example:

(Supplier to company) Accept our standard contract / get our standard discount.

Unless you accept our standard contract, you wont get our standard discount.

You wont get our standard discount, if you dont accept our standard contract.

1) (Negotiator to other negotiator) Call it a day / a concession.

__UNLESS YOU MAKE A CONCESSION, WELL CALL IT A DAY._________

2) (Company to ISP (Internet Service Provider)) Cancel your services / reduce your fees.___IF YOU DONT REDUCE YOUR FEES, WELL CANCEL YOUR SERVICES._____

3) (Purchaser to supplier) Choose another supplier / better offer.

__UNLESS YOU MAKE A BETTER OFFER, WELL CHOOSE ANOTHER SUPPLIER._______

wont cant sign well dont receive come up with

wont reduce cant agree well cant accept


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4) (Employee to boss) Find another job / better salary.

__IF I DONT GET A BETTER SALARY, ILL FIND ANOTHER JOB.______

5) (Boss to employee) Stop pressuring / get fired.

__UNLESS YOU STOP PRESSURING, YOULL GETFIRED._______

C. Attaching Conditions - Fill in the blanks with the words in the box.

1) We __WOULD OFFER__ you one per cent, if you __AGREED__to payment within fifteen days.

3) On the one condition you __CHANGED__ that in the contract, __WED AGREE__ to the rest.4) I _WOULD WRITE__ a check right away, provided that you _OFFERED/GUARANTEED__ a five

per cent discount.

4) __ID ACCEPT__ this quality as long as you __REDUCED__ the price substantially.

5) We __WOULD WANT___ to hire your services, if you __AGREED____ to maintaining our website as well.

D. Make offers and attach conditions.

Example:

Offer: renew the contract

Condition: a two per cent discount

We could renew the contract on the condition that you offered us a two percent discount.

offered guaranteed wed agree reduced would want

Idaccept changed would offer agreed would write

accept


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Offer/Condition

1. Offer: be our sole distributorCondition: sign distributor agreement

__________________________________________________________________________

____________________________________________________________________________________________________________________________________________________

2. Offer: new notebook computersCondition: reach sales targets

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

3. Offer: free internet accessCondition: give a firm order now

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

4. Offer: get a raise and some perksCondition: work hard the next two months

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

5. Offer: position on the boardCondition: agree to work in Argentina

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________


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About China

The following videos give you good glimpses of doing business in China.

Business Ethics in China

9. Why is Guanxi important to business in China?10.Regarding business attire, what are some observations that men and women must

pay attention to in China?

11.Mianzi is a very important part of the Chinese culture. Can we trust the facialexpressions of people from other countries like Brazil and the U.S.? Are they as

transparent?

12.In negotiating in China, how should we interpret: possibly, maybe or Ill thinkabout it?13.The Chinese are very skilled negotiators, what are some tips you must know?

Modern Business in China

1. Could a wrong handshake for example, jeopardize a business negotiation in China?2. Has modern business principals in China changed drastically over the years?3. What are some tips that were presented that can help during a meeting in China?4. During a presentation in China, what are some things you must do?5. Is it easy building business relationships in China? How is it different from Brazil

CHINDIALeading Negotiations in Chindia - 3a Ed

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