Introduction to Business English

Negotiations (Part 1)

What are Negotiations?

• Negotiations aren’t just in business• Negotiations are a discussion between two

people to make some agreement for the future.• Negotiations are used for:

– Reach an understanding– Resolve issues– Making compromise– Make goals– Discuss issues (exploratory meeting)

• Negotiations are used in government, business, legal issues, marriage, between friends

Conciliatory meetings

What is a basic negotiation

Suggestion

Counter Suggestion

Agreement

Confirmation

Negotiations

• Listen…• What are they negotiating about?

Answer: C, A, B

Negotiation Types

• Win-Win Negotiations– Making an agreement that both parties like– The agreements have some compromises at

times– Tries to gain value for both parties

• Distributive Negotiations (Independent advantage)– One party gets more than the other– All about what position you are

Negotiation Types

• Positional Negotiations (Win – Lose)– One person wins, one person loses– Universally understood– Negatively rewards stubbornness and

deception

Preparing for negotiations

• Listen…• What are some items you need?

– Prepare your negotiation position – know your aims and objectives.

– Identify your minimum requirements.– Decide what concessions you could make.– Know your strengths and weaknesses.– Prepare any figures, any calculations and support

material– Know your role as a part of the team.– Prepare your opening statement.

What’s wrong here?

Could he had made it more successful?

CHALLENGE!

Group AYou are sales manager for a large automotive components

manufacturer. You are having a meeting with the leader of the sales representatives about a new contract. Sales have not increased in the past year so you don’t want to increase the rep’s pay or commissions

Group BYou are the leader of the sales reps. Your pay hasn’t

increased for three years. You have a meeting with the sales manager to renegotiate your contracts.

Making a formal opening

• Welcome

• Agenda of the meeting

• Objectives for the meeting

• Expectations from both sides

• Hope to accomplish on their side– Simple and general ideas

• Thanks for the opportunity

Opening Statement

• Listen…• What are the objectives they make in this

audio?– These are primary talks– LP Associates would like to consider joint

product development.– They would also consider license

agreements.– They want to consider working on a

consultancy basis.

Negotiating

• General items– Check items that the other wants.– Don’t guess their opinions or motives.– Note what the others say. Don’t always

answer immediately– Don’t get forced into considering only one

option.– Understand why they are giving you the

options.

People in a Negotiation

Main Speaker• Create the agenda• Questions needs and

wants• Don’t talk too much• Listen• Make common ground• Be Clear, Brief, Firm• Follow the rules

Support Speakers• Don’t speak until the chair

introduces you• Be Clear, Brief, Firm• Follow the rules• Help the main speaker

– Agree– Emphasize points– Add missing points– Allow Main speaker to

make the decisions

Negotiating

• Decisions making– Accept, Reject or continue to negotiate– Accept: Next slide– Reject: end the meeting– Negotiating:

• Make a new offer• Seek a new offer from another party• Change parts of the deal

Always be positive, constructive, cooperative and fair.

Accepting and Confirming

• Listen…

Summarizing/Closing

• Like at the end of a meeting summarize what was accomplished:– Confirming what things you agreed on.– Determine what things you didn’t agree on

and may need to talk about later.– When the next meeting will be or when the

contracts will be prepared.

• Close the meeting like all other meetings