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(2) Successful Negotiations A multimedia business English study guide to negotiating effectively in English. Written by James Moss Audio produced & recorded by Paul Meredith Online activities by James Moss & Mario Dubielzig. Copyright 2009 Business English Pod Ltd. All rights reserved. No part of this book may be used or reproduced without written permission, except in the case of brief quotations embodied in critical articles or reviews. Published 2009. © 2009 All rights reserved: www.businessenglishpod.com.

(3) Successful Negotiations Table of Contents (Click a unit title to jump to the start of that unit) 1.. Introduction. pg 4-5. 2.. Unit 401 – Negotiation Strategy (Part 1). pg 6-15. 3.. Unit 402 – Negotiation Strategy (Part 1). pg 16-25. 4.. Unit 403 – Building the Relationship. pg 26-36. 5.. Unit 404 – Getting Started. pg 37-47. 6.. Unit 405 – Clarifying and Evaluating Positions. pg 48-56. 7.. Unit 406 – Declining an Offer & Maintaining Goodwill. pg 57-67. 8.. Unit 407 – Bargaining. pg 68-78. 9.. Unit 408 – Restarting Talks. pg 79-88. 10.. Unit 409 – Closing the Deal. pg 89-99. 11.. Useful Language by Function. pg 100-108. 12.. Online Flash Quizzes (click here to view the online activities). © 2009 All rights reserved: www.businessenglishpod.com.

(4) Successful Negotiations Successful Negotiations This is an e-book brought to you by Business English Pod, the leading provider of on-demand training for business English communication skills, available on the Web at www.businessenglishpod.com. In Successful Negotiations we’ll explore the language of negotiating in English with a series of lessons and activities that examine several typical business negotiations and the language used in each stage of the process. The goal is to study all the essentials language you need to present your case and discuss different options in a negotiation. The first two lessons cover the fundamentals of negotiation strategy and common terms and collocations used to describe different aspects of a negotiation. In the following seven lessons, we will examine two different styles of negotiations: A transactional negotiation between Tony, a supplier of building materials, and Paul, a purchasing manager for a large construction company; and, a strategic negotiation between the owners of two mobile phone service providers who are trying to negotiate the merger of their companies. First, we look at how building a strong relationship at the beginning of a negotiation can help overcome obstacles in later stages. Then, we’ll look at how to start off a negotiation, set ground rules for the discussion and begin to explore possibilities. After that, we’ll study stating, clarifying, and evaluating positions. As not all negotiations are successful, we’ll also cover how to decline an offer while maintaining the goodwill generated through the discussion. The next lesson deals with the process of trading concessions by making offers and counter-offers. The final two lessons focus on overcoming obstacles by identifying stumbling blocks and exploring alternatives; and how to close the deal by summarizing details, tying up loose ends, and reinforcing the relationship. In all, this e-book has over four hours of information-packed audio lessons. The accompanying study notes contain a complete transcript of every lesson, vocabulary definitions, extra practice questions, and study strategies. And you can access over 90 interactive Flash exercises via the Business English Pod website and the activity links in this e-book. In each lesson, we’ll introduce the topic, then you’ll hear a dialog that demonstrates the key language. Afterwards, in the “debrief” section, we’ll take you through the main points and explain important vocabulary and idioms. For each skill, we’ll learn more phrases that you can use. Then, finally, in the practice section of each debrief, you will have the opportunity to practice the language you covered in the lesson.. © 2009 All rights reserved: www.businessenglishpod.com. 4.

(5) businessenglishpod Learners often ask me how to study more efficiently and effectively. I have some suggestions. Listen to each chapter and practice the example phrases multiple times. First listen without the transcript; then, when you have time, go back and listen again with the transcript. Underline and look up words you don’t understand. It’s important to study vocabulary in context: Pay attention to collocations, or word partnerships, and words in whole sentences, with their accompanying prepositions and other grammatical characteristics. Do the practice section of each debrief at least a couple times; try substituting different language the second time you practice. Substitution helps you increase your fluency, that is, your ability to say the same thing in many ways. You can also record yourself, write and act out dialogs, and practice together with a learning partner. These and many more strategies are covered in the study notes for each chapter. Successful Negotiations is targeted for intermediate learners at or above the Common European Framework (CEF) level B2. This corresponds to a BULATS score of 3 or higher or an IELTS score of 5 or higher. The materials are designed, however, to be useful to students at a variety of levels: intermediate learners will focus initially on language development, whereas upperintermediate and more advanced learners can zoom in on skills development, high-level vocabulary, fluency, confidence and enhancement of overall professionalism.. What’s Included? All Business English Pod e-books come with a variety of study resources to provide learners with maximum flexibility and value. You can access and download all the materials for this e-book on this webpage: www.businessenglishpod.com/learningcenter2/ebooks/business-english-negotiations-ebook. Each e-book includes the following resources:. Podcasts. Study Notes. MP3 lessons you can listen to on your computer, MP3 player or mobile phone.. PDF lesson transcripts with extra vocabulary and language exercises.. PhraseCasts. Online Activities. Compact MP3’s of just the dialog, phrases and speaking practice.. Interactive quizzes, listening and language review exercises.. © 2009 All rights reserved: www.businessenglishpod.com. 5.

(6) Successful Negotiations Online Activities:. MP3 Podcast:. BEP 401 – Negotiation Strategy (Part 1) This is the beginning of a new series on the skills and language of negotiating in English. Over the coming months we’ll explore the topic in a series of podcasts that examine several typical business negotiations and the language used in each stage of the process. Today’s show is the first in a two-part sequence on the fundamentals of negotiation strategy. We will be hearing an interview with experienced management consultant Brian Fields. Brian discusses key concepts and important strategic considerations. The dialog teaches us both useful vocabulary and helpful skills. As you listen, try to answer the following questions.. Listening Questions 1) What are the top mistakes people make in a negotiation?. 2) What is a BATNA, or “best alternative to a negotiated agreement?”. 3) What does Brian think about the idea of “win-win” negotiations?. © 2009 All rights reserved: www.businessenglishpod.com. 6.

(7) businessenglishpod Vocabulary Overemphasis: Too much emphasis. The verb form is to overemphasize. “In my discussions there is an overemphasis on price, in my opinion.” Bargaining chips: Something you give away in a negotiation to get something in return. (“Chip” originally refers to the round plastic coins used in betting during card games such as poker.) “We have to think of a few things that we can give away as bargaining chips during our talks.” Tactical questions: In many contexts, tactics refers to details and specific concerns whereas strategy may refer to general principles and the bigger picture. “How to get a larger discount on this order is more of a tactical question whereas how to build a long-term relationship is more of a strategic one.” Coherent strategy: A logical and consistent method of approaching a game, battle, war or negotiation in order to protect one’s interests and act in one’s benefit. “We should build a coherent strategy for dealing with this market.” BATNA: Short for “best alternative to a negotiated agreement.” This is what you will do if you don’t reach an agreement. “Before you go into a negotiation, you should have an idea of what you will do if talks break down – this is called your BATNA, and it should be better than your bottom line; otherwise, you have nothing to gain from the negotiation.” Bottom line: The worst possible result we are prepared to accept before we walk away from the talks. “I’m already at my bottom line – I can’t accept a lower price than this.” To have/put sth on the table: To put sth. on the table refers to making an offer; to have sth on the table refers to an offer that is already made. “He put $3 million on the table, but I though it wasn’t enough.” “We have a lot of offers on the table, but none of them meet our expectations.” To structure the deal: To organize the contract or arrangement, including, for example, credit terms, ownership, payment, and so on. “How you structure a deal can be just as important as the actual price.” Potential buyers: People who may wish to buy what we are selling, but who have not yet made offers. “We should contact a range of potential buyers.” Deal sweeteners: Things used to make a potential deal more attractive. “Good credit terms can be a great deal sweetener.” Win-win agreement: An agreement in which both parties benefit. “Actually, in most cases negotiations are win-win – otherwise, how do people reach a compromise? Cliché: A word or expression that has become meaningless from overuse. “The idea of a ‘win-win’ agreement has almost become a cliché.” Zone of possible agreement: The range of overlap between two negotiation parties bottom lines that represents a possible area of agreement. (If no such overlap exists, agreement is impossible.) “If I am buying, and you are selling, then our zone of possible agreement is the range between the highest price I am willing to pay and the lowest price you are willing to accept.” Reach a compromise: To reach an agreement based on making concessions, i.e., based on all parties to a negotiation being willing to give up something in order to make a deal. Compromise can also be used as a verb, in which case it means something similar to: to make a concession. “We reached a compromise after many days of hard talks.” To swap concessions: Swap means to trade, so swapping concessions means both parties to a negotiation giving up things in turn to reach an agreement. “To reach a compromise, it’s usually necessary for both sides to swap concessions.”. © 2009 All rights reserved: www.businessenglishpod.com. 7.

(8) Successful Negotiations Dialog Interviewer: What do you think are some of the top mistakes people make going into a negotiation? Brian: Well, a lot of the most common mistakes usually start before the negotiation even begins. Interviewer: How do you mean? Brian: For example, in the planning stages there is often an overemphasis on price… things like, “Should I put the first number on the table, or wait for them to make the first move?” “Should I tell them what we really need, or should I include some bargaining chips that we can give away later.” Interviewer: Aren’t those things important? Brian: Yes, of course, but they are just tactical questions. None of them can be answered without developing a coherent strategy first. Interviewer: So what goes into building a strategy? Brian: There are several factors to consider. The first one is what you’ll do if you don’t come to an agreement… this is often called your BATNA, or “best alternative to a negotiated agreement.” Interviewer: Isn’t that the same as your bottom line? Brian: Not necessarily. Your BATNA is what is already available, so your bottom line should be better. Otherwise there’s nothing to be gained from negotiation. Interview: That makes sense. Brian: And in determining the best alternative, we have to look at more than just the offers that we currently have on the table, and we have to take other factors into consideration than just the price. For example, there may be other ways to structure the deal, more potential buyers out there, or deal sweeteners, such as payment in cash instead of credit. Interviewer: Is it all about maximizing your own benefit? Or do you think there’s anything to the idea of a win-win agreement? Brian: Well, win-win has become a bit of a cliché. But let’s take a look at the original meaning of the word: Of course we are both trying to get the best deal, but consider this: If I am selling, and you are buying, and my bottom line is lower than the highest price you are willing to pay, then we call that overlap the zone of possible agreement. Reaching a compromise anywhere in that zone is a win-win solution. It’s just a matter of swapping concessions to get there.. © 2009 All rights reserved: www.businessenglishpod.com. 8.

(9) businessenglishpod Debrief Let’s review the vocabulary and concepts that Brian uses to introduce the topic of negotiations. How does the dialog begin? The interviewer asks Brian about the top mistakes people make in a negotiation. Surprisingly, Brian replies that the most common mistakes actually start before the negotiation begins. What are those mistakes? Listen again. Brian: For example, in the planning stages there is often an overemphasis on price Brian says people have an overemphasis – that is, too much emphasis – on price. The verb form is to overemphasize. This word is useful for describing situations in which someone pays too much attention to something, often to the neglect or detriment of something else. Let’s listen to a few more examples of this expression in use.   . In my opinion, there seems to be an overemphasis on price in our discussions. If you ask me, we’re overemphasizing delivery time – we should be more focused on quality. We have to be careful not to overemphasize minor factors.. Brian then goes on to provide two examples of an overemphasis on price. Brian: … things like, “Should I put the first number on the table, or wait for them to make the first move?” “Should I tell them what we really need, or should I include some bargaining chips that we can give away later.” What are bargaining chips? In a game of cards, such as poker, we often bet “chips” – little round plastic discs – instead of cash. Each chip represents a certain amount of money. Idiomatically, a “bargaining chip” is anything that you can bet or give away in return to something else. (For example, you may be able to use delivery time as a bargaining chip in order to get a concession on price.) Let’s practice this idiom by listening to some more examples:  . . Since he was very flexible on warranty period, he used this as a bargaining chip to get concessions on delivery time. They are obviously using their good relationships with local government as a bargaining chip to try to negotiate exclusive rights to sell our product in this market. It’s too early in the negotiation to throw away bargaining chips – never give something up without getting something in return!. How does the interviewer respond to Brian’s statement that people often overemphasize price? Interviewer: Aren’t those things important?. © 2009 All rights reserved: www.businessenglishpod.com. 9.

(10) Successful Negotiations Brian: Yes, of course, but they are just tactical questions. None of them can be answered without developing a coherent strategy first. Brian’s point here is that price is merely a tactical question, which can’t be answered until we first develop a coherent – that is logical and consistent – strategy. What is the difference between tactics and strategy? They are often used the same way. But here’s one way to think of the difference: Tactics are what we need to win the battle, whereas strategy is what we need to win the war. Tactics usually refers to details, whereas strategy often refers to general principles. Let’s listen to some more examples of tactics and strategy:   . We always have to keep in mind our long-term strategy of building a good relationship. Tactical concerns include discount and delivery; using this client to establish a relationship in this new market is more of a strategic concern. It’s time to go beyond just thinking about short-term tactics and start considering long-term strategies.. Next, Brian discusses an important factor in building a strategy: Your best alternative to a negotiated agreement or BATNA. The interviewer asks about the difference between a BATNA, or best alternative, and a bottom line, which is also know as your “walk-away point,” the minimum offer you are prepared to accept: Interviewer: Isn’t that the same as your bottom line? Brian: Not necessarily. Your BATNA is what is already available, so your bottom line should be better. Otherwise there’s nothing to be gained from negotiation. Brian is saying that our BATNA is what we will do if we don’t reach an agreement, so our bottom line – the worst possible agreement we can accept – should be better than that. Now, listen to some example phrases using BATNA and bottom line.    . To determine our BATNA, we have to consider not just the other offers on the table, but also potential buyers that we haven’t yet talked to. Before you can determine your bottom line, you need to put a value on your best alternative. Sometimes your best alternative is to do nothing at all. Several not-so-obvious things go into deciding your BATNA, including the timing of the deal – a bird in the hand may be worth two in the bush.. The last example includes an idiom – a bird in the hand is worth two in the bush. This means that gains we have gotten now should be valued more highly than greater gains that are merely promised for the future. The difference between BATNA and bottom line should now be clear. But how do we determine our BATNA?. © 2009 All rights reserved: www.businessenglishpod.com. 10.

(11) businessenglishpod Brian: And in determining the best alternative, we have to look at more than just the offers that we currently have on the table, and we have to take other factors into consideration than just the price. For example, there may be other ways to structure the deal, more potential buyers out there, or deal sweeteners, such as good timing or payment in cash instead of credit. As Brian points out, our best alternative is not necessarily just the best offer we have on the table, that is, our BATNA is not necessarily the best offer we have received so far. Also, to decide our best alternative, we have to actually consider a number of factors besides just price. What are these other important considerations? The first one is how the deal is structured, that is, for example, credit terms, payment periods, legal aspects, and so on. Second, we may want to think about other potential buyers – not just the ones we have already contacted. Finally, there may be some deal sweeteners, which refer to factors beyond mere price that make an arrangement “sweeter,” that is, more attractive. Let’s look at some example phrases with this last idiom, deal sweeteners.   . If we’re going to get them to agree to our offer, we’re going to have to think of some ways to sweeten the deal. Why don’t I sweeten the deal a little by increasing our discount by 1%? There’s a variety of deal sweeteners that we can use to make buying our company more attractive.. Next, the interviewer asks Brian what he thinks about the idea of a win-win negotiation. Brian replies that win-win has become a cliché, that is an expression that is used so much that it becomes meaningless. But then he encourages us to think about the actual meaning of win-win: Brian: …Of course we are both trying to get the best deal, but consider this: If I am selling, and you are buying, and my bottom line is lower than the highest price you are willing to pay, then we call that overlap the zone of possible agreement. Reaching a compromise anywhere in that zone is a win-win solution. It’s just a matter of swapping concessions to get there. What Brian is saying is that all negotiations – to be successful – must be winwin: If you are buying, and I am selling, the lowest price I am willing to give you must be under the highest price that you are wiling to pay. This area of overlap between our bottom lines is referred to as the zone of possible agreement. Any compromise we reach in that zone benefits both of us. We reach an agreement in this zone by swapping – that is, trading – concessions: First you make a concession, than I make one, until we make a deal. Let’s review agreement, compromise, and concessions with some example phrases. As you listen, pay attention to collocations – word partnerships between nouns and verbs.. © 2009 All rights reserved: www.businessenglishpod.com. 11.

(12) Successful Negotiations   . If there’s going to be any agreement, it’s necessary for one of us to make a concession. The only way to reach a compromise is to make a concession. The negotiation was finally successful when the other party backed down and compromised on a key issue.. From these examples, we notice a couple things: First, we usually say to make a concession and to reach a compromise. A compromise is a kind of agreement, and a concession is something we do to reach it. Note, however, that in the last example compromise is used as a verb. In this case, to compromise basically means to make a concession. (For this reason, sometimes we also say to make a compromise with a similar meaning as to make a concession.) Now, it’s your turn to practice. First, we’ll review some of the verb collocations we just learned. In a moment, you’ll hear a series of sentences with a verb blanked out or replaced with a beep. Repeat the whole sentence, supplying the missing verb in the correct form. For example, if you hear: The only way forward is if one of us <beep> a concession. You will say, The only way forward is if one of us makes a concession. Let’s give it a try. Cue 1: By trading concessions, we will eventually <beep> a compromise. Learner 1: Cue 2: I think we can <beep> our strong brand name as a bargaining chip. Learner2: Cue 3: In last week’s negotiation, I <beep> a concession on price. Learner 3:. Cue 4: I think that an overemphasis on price is keeping us from <beep> an agreement. Learner 4:. Answer 1: By trading concessions, we will eventually reach a compromise. Answer 2: I think we can use our strong brand name as a bargaining chip. Answer 3: In last week’s negotiation, I made a concession on price. Answer 4: I think that an overemphasis on price is keeping us from reaching an agreement.. © 2009 All rights reserved: www.businessenglishpod.com. 12.

(13) businessenglishpod Next we’ll use the same method to review key vocabulary. In a moment you’ll hear another series of cues. As before, one word is blanked out with a beep. Repeat each sentence, putting in the missing word. Cue 1: In our discussions, there seems to be an <beep> on price. Learner 1:. Cue 2: It’s too early in the negotiation to throw away <beep> chips. Learner 2:. Cue 3: We always have to keep in mind our long-term <beep> of building a good relationship. Learner 3:. Cue 4: There’s a variety of deal <beep> that we can use to make buying our company more attractive. Learner 4:. Answer 1: In our discussions, there seems to be an overemphasis on price. Answer 2: It’s too early in the negotiation to throw away bargaining chips. Answer 3: We always have to keep in mind our long-term strategy of building a good relationship. Answer 4: There’s a variety of deal sweeteners that we can use to make buying our company more attractive. That concludes the first in this two-part series on negotiation strategy. In this episode, we’ve learned both a variety of useful language and a range of helpful skills. Thanks for listening, and see you next time!. © 2009 All rights reserved: www.businessenglishpod.com. 13.

(14) Successful Negotiations Language Review A. Useful Vocabulary Review useful vocabulary by filling in the blanks with words from the box. tactical. bargaining overemphasizing. bargaining. bottom. alternative. 1. If you ask me, they are ___________ rapid delivery to the detriment of quality. 2. Since he was very flexible on warranty period, he. used this as a. ______________ chip to get concessions on delivery time. 3. _______________ concerns include discount and delivery; using this client to. establish. a. relationship. in. this. new. market. is. more. of. a. ________________ concern. 4. Before you can determine your ______________ line, you need to put a value on your best ______________.. B. Collocations Supply the missing collocations in the sentences below to review important negotiation vocabulary. 1. If there’s going to be any agreement, it’s necessary for one of us to ___________ a concession. 2. The only way concessions.. to. ____________. a. compromise. is. to. ___________. 3. To ________________ an agreement, we had to use delivery time as a bargaining chip. 4. Let’s try to think of ways ________________ the deal.. to. make. our. offer. more. attractive. by. 5. We need to _____________ a better offer on the table.. Study Strategy Consider a negotiation that you have participated in. It can be anything from a formal business negotiation to an informal personal discussion. Analyze it in the terms that we have learned in this episode: Was there an overemphasis on price? What did you give away as bargaining chips? What was your BATNA and your bottom line? How did you reach a compromise?. © 2009 All rights reserved: www.businessenglishpod.com. 14.

(15) businessenglishpod Answers Listening Questions 1) Brian says that a top mistake people make is to overemphasize price. More generally, he says they focus too much on tactical questions without first developing a coherent strategy. 2) Your best alternative to a negotiated agreement (BATNA) is what you will do if you don’t reach an agreement during the negotiation. Your BATNA is what is already available, so your bottom line should be better than your BATNA. 3) Brian says that win-win has become a bit of a cliché. However, the basic meaning of the word is that, under normal circumstances, both parties must benefit in order to come to a deal. In this sense, all successful negotiations are “win-win.” Language Review A. Useful Vocabulary 1. If you ask me, they are overemphasizing rapid delivery to the detriment of quality. 2. Since he was very flexible on warranty period, he used this as a bargaining chip to get concessions on delivery time. 3. tactical concerns include discount and delivery; using this client to establish a relationship in this new market is more of a strategic concern. 4. Before you can determine your bottom line, you need to put a value on your best alternative. B. Collocations 1. If there’s going to be any agreement, it’s necessary for one of us to make a concession. 2. The only way to reach a compromise is to swap/trade/make concessions. 3. To reach/get to an agreement, we had to use delivery time as a bargaining chip. 4. Let’s try to think of ways to make our offer more attractive by sweetening the deal. 5. We need to put a better offer on the table.. Links (click a link to open the exercise) Online Activities – Flash Quizzes. (click above to open). © 2009 All rights reserved: www.businessenglishpod.com. 15.

(16) Successful Negotiations Online Activities:. MP3 Podcast:. BEP 402 – Negotiation Strategy (Part 2) This is the second in a two-part series on negotiation strategy. It is part of a longer sequence on negotiation skills. In the first episode, management consultant Bryan Fields discussed the basics of making a deal. We learned how to avoid some top common mistakes and we reviewed important vocabulary, such as BATNA, bottom line, bargaining chip, win-win, and zone of possible agreement. Today’s show continues the interview with Bryan. In the dialog, we’ll learn five important elements of strategy – parties, interests, value, power and ethics. And along the way we’ll study useful vocabulary and idioms.. Listening Questions 1) What is the interviewer talking about when he refers to a “trap?”. 2) How does Bryan say we should think about interests?. 3) In the interview, we learn that overcoming blockage – that is, getting past problems – is not just about reaching the agreement but also about maximizing what?. Vocabulary “Not by a long shot:” “Not even close.” “We don’t think there is any money to be made in this deal for us – not by a long shot.” Party: A participant in a negotiation. “Identifying the real parties to a negotiation is a key step in your preparation.” Decision maker: The person in charge of making a final decision. “In Chinese culture, it may not at all be obvious who the real decision maker is when you first meet.. © 2009 All rights reserved: www.businessenglishpod.com. 16.

(17) businessenglishpod Trap: Something that wastes time, energy, or money in a negotiation, or which can even cause it to fail. In some cases, your opposite number may even intentionally lay or set a trap for you. “They set a trap for us, and we fell right into it.” Interests: The motivations and aims that help define each part’s objectives. “To achieve your own goals, it’s essential to consider the other parties’ interests.” Opposite number: The person (usually of equal rank) who holds your job on the other party. “My opposite number in the negotiation had years more experience than I did.” Where is/are he/she/they coming from? What is their motivation? What drives them? What are their real interests? “We’re trying to understand where they are coming from, but so far it’s difficult to determine. Value: Includes not just monetary value (price) but also intangible, abstract things like loyalty, brand image, synergies, etc. Collocates with to create, to deliver, etc. “We have to find more ways to create value and deliver it to our customers.” Synergy (n) /synergetic (adj.) / to synergize (v): Synergy refers to a situation in which the whole is greater than the sum of the parts (that is, situations in which one plus one is greater than two). “We are looking for synergy effects in order to maximize joint value.” To think outside the box: To think creatively outside the normal habits of a group or organization. “People who can think outside the box are often the best at finding a compromise that all sides can agree to.” To contribute to the image of sth. : In this case, image refers to the way that something is seen – its’ reputation. “Stocking a famous brand can often contribute greatly to a store’s image.” Commercial transaction: A situation in which party A buys something from party B and gives them money for it. “Simple commercial transactions are only one type of negotiation.” To set up/remove barriers/obstacles/impediments: Barriers, obstacles, and impediments are all things that block the road. A barrier is total – the road cannot be passed; whereas, obstacles and impediments only hinder progress. “Traditional thinking can be an impediment to positive change.” Joint value: Mutual benefit. “We have to think of ways to create joint value.” To overcome blockage: To defeat or conquer barriers to a negotiation. “Overcoming blockage requires a sincere desire on all sides to reach an agreement.” To make the deal: To reach agreement. “It took two weeks to make this deal.” To maximize value: To create the most value possible. “Negotiation is not just about reaching a simple agreement but about maximizing value.” Corporate social responsibility: Values of moral responsibility to the environment and to the public that companies use to create value by improving their image and reputation. “In today’s business environment, corporate social responsibility is an important factor in any global company’s success.” Shareholder rights: Rights of stockholders in a company to information, dividends (profit share) etc. “One of the most important shareholder rights it that to information about a company’s profit and loss.”. © 2009 All rights reserved: www.businessenglishpod.com. 17.

(18) Successful Negotiations Dialog Interviewer: Okay, and are those the main things to planning strategy? Bryan: Not by a long shot. There are several other things to consider. For instance, we should constantly be asking ourselves, who are the real parties in the negotiation… who are the decision makers. Sometimes the person sitting across the table from you is not the person in charge, or isn’t who they seem to be. Interviewer: Right, I can see how that could be a trap. Bryan: Absolutely. And another thing is to think creatively about interests. That means, what are their fundamental needs and priorities? A lot of people make the mistake of not considering carefully where their opposite number is coming from, and what goals he has to accomplish. Interviewer: That has to do with benefits? Bryan: Certainly, and it leads into a discussion of value. We are looking for synergy effects, i.e., ways to make 1 + 1 equal more than 2. The questions are, How can value be created? and, Who is likely to get it?. We need to think outside the box. Interviewer: Can you give me an example? Bryan: Well…. For instance, you may be interested in buying my product because it contributes to the image of your store. Or you may want to acquire my business because it will help you control a key part of the market. There is much more to all this than a simple commercial transaction. Interviewer: Okay, so far we’ve only talked about positive things. What are the negatives that come up in a negotiation? Bryan: There’re certainly negatives as well. We often call these barriers. It’s important to think of these not just in terms of obstacles that might prevent agreement, but, much more subtly, as impediments to maximizing joint value. Interviewer: So overcoming blockage is not just about making the deal, it’s about maximizing value as well. Bryan: That’s right. And to do that, you have to watch out for the ways that various parties influence the negotiation process and its outcome. This kind of power to remove or set up barriers to agreement can be both a blessing and a curse. Interviewer: It seems to me that there’s one last thing that hasn’t come into the discussion so far, and that’s: Morally, what is the right thing to do? Bryan: If you had asked me that question 15 years ago, I might have laughed. But these days we think of ethics in broader terms to include the environment… corporate social responsibility… shareholder rights… and all these areas have a lot of potential value for companies.. © 2009 All rights reserved: www.businessenglishpod.com. 18.

(19) businessenglishpod Debrief As the dialog opens, the interviewer – referring to the first half of the discussion in the previous episode – asks Bryan if that was all there was to negotiation strategy. Bryan replies, “Not by a long shot,” which means, “not at all.” Then he goes on to mention another key strategic concern: Bryan: …For instance, we should constantly be asking ourselves, who are the real parties in the negotiation… who are the decision makers. A party to a negotiation is a person, group, or company that has an interest in the discussion. For example, in a typical sales negotiation there are at least two parties – the buyer and the seller. Bryan emphasizes how important it is to determine who the real parties are – who are the decision makers, that is, the people who have the final authority to make a decision, be it yes or no, buy or sell. He says, “sometimes the person sitting across the table from you is not the person in charge.” The interviewer refers to this as a trap, which in this case means a situation that leads us to waste time and energy or, in the worst case, causes us fail. So determining the real parties – the decision makers – is the first strategy that Bryan mentions. Let’s listen to some more example sentences discussing this element of strategy:   . It’s not always obvious at first glance who the decision makers are. Often, there are more than just two parties to a negotiation – deals may be complex, and we must also consider government or shareholder involvement. It’s important to recognize the real parties to the negotiation and identify the key decision makers.. After interests, what is the next strategy Bryan talks about? Bryan: … And another thing is to think creatively about interests. That means, what are their fundamental needs and priorities? A lot of people make the mistake of not considering carefully where their opposite number is coming from, and what goals he has to accomplish. Here Bryan emphasizes the importance of thinking creatively or originally about the actual interests or goals of the parties to a negotiation. We must consider where they are coming from – that is, what their opinions and viewpoints are, what motivates and drives them, etc. The idiom – where someone is coming from – is a useful oral English expression for discussing interests. Listen to some more examples of its use:   . I don’t think I really understand where he’s coming from on this issue. We asked them about their motives for the merger to get a feeling for where they were coming from. It’s not at all clear to me where she is coming from.. As the interviewer points out in the dialog, thinking about interests means considering the other parties benefits. How does Bryan react to this observation?. © 2009 All rights reserved: www.businessenglishpod.com. 19.

(20) Successful Negotiations Bryan: Certainly, and it leads into a discussion of value. We are looking for synergy effects, i.e., ways to make 1 + 1 equal more than 2. Value is a key consideration in any business deal. It is a broad, abstract term that does not refer merely to money but more generally to benefit and gain of all types. We often speak of creating value and delivering value to customers. Creating value involves looking for synergy, which, as Bryan points out, means situations in which the whole is greater than the sum of the parts – or, as he says, in which one plus one is equal to more than 2. This term – synergy – has become a very popular and important word in business language.   . After many mergers, the promised synergies fail to materialize, often because of cultural and management differences. A lot of what we are doing in negotiation is looking for synergies between our companies. Identifying synergy effects requires creative thinking.. Next, Bryan goes on to talk about how to create synergy effects… Bryan: The question is, How can value be created? and, Who is likely to get it? We need to think outside the box. To think outside the box is another popular, useful business idiom. It means to think outside the normal habits of a group or organization – in other words, to think creatively.   . I particularly admire his ability to think outside the box – he’s very original. In many tough negotiations, it can really help if there is someone on both sides who can think outside the box. Often, finding and creating value requires thinking outside the box.. Bryan gives two examples of thinking outside the box: 1) Carrying a product in a store not just to sell it but because it contributes to the image of our business; and 2) Buying a business not to directly add to our profit but to control a part of the market. As he underlines, there is much more to all of this than a simple commercial transaction, i.e., more than mere buying and selling. Next, the discussion turns from positives to negatives – things that can cause a negotiation to falter or fail: Bryan: There’re certainly negatives as well. We often call these barriers. It’s important to think of these not just in terms of obstacles that might prevent agreement, but, much more subtly, impediments to maximizing joint value. Bryan calls these negative barriers. Words he uses with the same or similar meanings include obstacles and impediments. All of these words collocate with the verbs set up (to create) and remove (to get rid of), and they use the preposition to: For example, Bryan says it’s important to remove obstacles to maximizing joint value. That means, to get rid of things that prevent all sides from getting more benefit. Together, all these negatives – obstacles,. © 2009 All rights reserved: www.businessenglishpod.com. 20.

(21) businessenglishpod impediments, and so on – are referred to as blockage, which must be overcome or removed. Let’s listen to more examples that demonstrate this important vocabulary:   . It was a real challenge to remove the barriers that had been set up, but in the end we succeeded. Overcoming blockage is a process of getting rid of obstacles in the road to an agreement. A typical impediment to compromise is an overemphasis on price.. The discussion of blockage leads into the next important strategic consideration – power. As Bryan thinks of it, this means the ability to set up or remove barriers, which – depending on what side you are on – can be a blessing or a curse. This last phrase forms a common idiom. It refers to something that can be bad or good, depending on the situation. (We also say something is both a blessing and a curse.) Listen to some more examples of this expression:   . Fierce competition can be both a blessing and a curse. Time constraints can be a blessing and a curse – both speeding things along and causing people to give up without reaching agreement. Having a clear bottom line can be both a blessing and a curse – it’s often better to be fairly flexible in your approach.. What is the last point that the interviewer raises in the discussion, before the interview draws to a close? It’s ethics, or morality. The interviewer poses the question, “Do we need to think morally, what is the right thing to do?” How does Bryan respond? Bryan: If you had asked me that question 15 years ago, I might have laughed. But these days we think of ethics in broader terms to include the environment… corporate social responsibility… shareholder rights… and all these areas have a lot of potential value for companies. Bryan’s opinion is that ethics have become more and more important to business. Examples he gives are the environment, corporate social responsibility (often referred to as CSR) and shareholder rights (which mainly refers to the right of company stockholders to information, but also to the right to dividends or profit share and the right to cast votes). As Bryan points out, all these moral issues are areas of great potential value to companies. Let’s explore all these expressions with example phrases. .  . Corporate social responsibility is an area of great potential value to companies these days, since it can help companies build brand image and loyalty. More and more companies are recognizing the potential value of environmental protection. There is good evidence that expanding and protecting shareholder rights actually can have a positive effect on stock price.. © 2009 All rights reserved: www.businessenglishpod.com. 21.

(22) Successful Negotiations Now, it’s your turn to practice. First, we’ll review some of the verb collocations that we just learned: In a moment, you’ll hear a series of sentences with a verb blanked out or replaced with a beep. Repeat the whole sentence, supplying the missing verb in the correct form. For example, if you hear: It is important to <beep> obstacles to reaching an agreement. You will say: It is important to remove obstacles to reaching an agreement. Let’s give it a try. Cue 1: To reach an agreement it’s necessary to <beep> blockage. Learner 1: Cue 2: Ideally, negotiation is a process of <beep> joint value. Learner 2: Cue 3: We have to try to <beep> outside the box on this. Learner 3: Cue 4: Let’s try to think of ways to <beep> more value to customers. Learner 4: Answer 1: To reach an agreement it’s necessary to overcome blockage. Answer 2: Ideally, negotiation is a process of maximizing joint value. Answer 3: We have to try to think outside the box on this. Answer 4: Let’s try to think of ways to deliver more value to customers. Next we’ll use the same method to review key vocabulary. You’ll hear another series of cues. As before, one word is blanked out with a beep. Repeat each sentence, supplying the missing word. Cue 1: After many mergers, the promised <beep> fail to materialize. Learner 1: Cue 2: It’s not at all clear to me where she is <beep> from. Learner 2: Cue 3: Fierce competition can be both a <beep> and a curse. Learner 3: Cue 4: More and more companies are recognizing the great <beep> value in environmental protection. Learner 4: Cue 5: Corporate <beep> responsibility is an area of great concern to many companies these days. Learner 5:. © 2009 All rights reserved: www.businessenglishpod.com. 22.

(23) businessenglishpod Answer 1: After many mergers, the promised synergies fail to materialize. Answer 2: It’s not at all clear to me where she is coming from. Answer 3: Fierce competition can be both a blessing and a curse. Answer 4: More and more companies are recognizing the great potential value in environmental protection. Answer 5: Corporate social responsibility is an area of great concern to many companies these days. That concludes this two-part series on negotiation strategy. We have looked at common mistakes and reviewed important elements of strategy, including BATNA, interests, values, barriers, power and ethics. We’ve also covered significant verb collocations as well as a range of useful idioms and expressions, such as bargaining chips, deal sweeteners, synergy, and thinking outside the box. In future episodes, we’ll take a closer look at negotiation language and skills. Thanks for listening!. © 2009 All rights reserved: www.businessenglishpod.com. 23.

(24) Successful Negotiations Language Review A. Useful Language Review important vocabulary by filling in the blanks in the following sentences with words we covered in this episode. 1. Often, the most vital step is to recognize real parties to the negotiation and identify the. 1). ___________ decision makers.. 2. We asked them a series of questions about their motives and interests to get 2). a feeling for where they are really. _____________ from.. 3. A lot of what we are doing in negotiation is looking for. 3). ______________. between our companies. 4. In many tough negotiations, it can really help if there is someone on both sides who can think. 4). ________________ the box.. 5. Having a clear bottom line can be both a blessing or a often better to be fairly. 5). ____________– it’s. 7). ___________ in your approach.. 6. More and more companies are recognizing the great. 8). ________________. value in environmental protection. 7. Corporate social. 9). companies these. ______________ is an area of great potential value to days, since. it. can. help. companies build brand. 10). ___________ and loyalty. B. Prepositions Review To review useful expression, supply the missing prepositions in the following sentences. 1. A typical impediment _____ compromise is an overemphasis ______ price. 2. Overcoming blockage is a process of getting rid _____ obstacles _____ the road ______ an agreement. 3. It was a real challenge _______ remove the barriers that had been set up, but in the end we succeeded. 4. It is important to remove obstacles ________ reaching an agreement.. Study Strategy Think of a negotiation that you had recently or that you have watched or know about. Analyze it in the terms we have learned in this episode and the last. What were the parties’ BATNAs and bottom lines? Who were the real decision makers? What were their interests? How did power play a role? Were their any ethical questions? Did the people involved think outside the box to maximize joint value? Or was there an overemphasis on price? Prepare a short talk presenting your findings.. © 2009 All rights reserved: www.businessenglishpod.com. 24.

(25) businessenglishpod Answers Listening Questions 1) The interviewer uses “trap” to refer to the situation Bryan describes in which the person sitting across from you in a negotiation is not the actual party or decision maker you should be negotiating with. 2) Bryan says we should think creatively about interests: We should think of the real goals of our opposite number – the person with whom we are negotiating – and use this creative thinking to find new ways to create value for all sides. 3) As Bryan and the interviewer discuss, we shouldn’t just think of blockage as obstacles to reaching an agreement but also as impediments to maximizing shared value. That is, overcoming blockage is also about increasing value. Language Review A. Useful Language 1) Often, the most vital step is to recognize real parties to the negotiation and identify the 1) key decision makers. 2) We asked them a series of questions about their motives and interests to get a feeling for where they are really 2) coming from. 3) A lot of what we are doing in negotiation is looking for 3) synergies between our companies. 4) In many tough negotiations, it can really help if there is someone on both sides who can think 4) outside the box. 5) Having a clear bottom line can be both a blessing or a 5) curse – it’s often better to be fairly 7) flexible in your approach. 6) More and more companies are recognizing the great 8) potential value in environmental protection. 7) Corporate social 9) responsibility is an area of great potential value to companies these days, since it can help companies build brand 10) image and loyalty. B. Prepositions Review 1) A typical impediment to compromise is an overemphasis on price. 2) Overcoming blockage is a process of getting rid of obstacles in the road to an agreement. 3) It was a real challenge to remove the barriers that had been set up, but in the end we succeeded. 4) It is important to remove obstacles to reaching an agreement.. Online Activities – Flash Quizzes. (click above to open). © 2009 All rights reserved: www.businessenglishpod.com. 25.

(26) Successful Negotiations Online Activities:. MP3 Podcast:. BEP 403 – Building Relationships This episode on relationship building is part of an ongoing series on negotiation skills. There’s an old saying in business – It’s easy to make money once, but it’s hard to keep making money for a long time. In other words, I may be able to make a deal with you this one time, but unless we establish a relationship based on long-term mutual benefit, you may not answer the phone the next time I call. In negotiation, establishing a good relationship based on trust makes it possible to jointly search for creative solutions, to overcome blockage and even to turn conflict into a productive force. In this episode, both Peter and Maxine are owners of local telecommunication services that provide mobile phone users with ring tones and games. Peter’s company, Textacular, has a significant presence in Denmark; meanwhile, Maxine’s company, Gamester, is based in northern Germany. Peter is working on a plan to sell his business to a large, European-wide telecom service provider. In an effort to increase his company’s value so that he can get more money for it, Peter wants to roll up or buy other local services like his. In today’s listening, he is having lunch with Maxine to find out whether she might be interested in selling her company. As the dialog starts, they have just ordered their food.. Listening Questions 1) Have Peter and Maxine met before?. 2) What does Peter say is his and Maxine’s “biggest overlapping concern?”. 3) How does Peter bring up the subject of a possible merger between his and Maxine’s company?. © 2009 All rights reserved: www.businessenglishpod.com. 26.

(27) businessenglishpod Vocabulary Only good things, I hope! Small talk. Typical response to the phrase, “X has said lots about you." “A: Jenny has said a lot about you. B: Only good things, I hope!” To be very impressed with sth: To have a good impression of sth. or to be filled with admiration about sth. “I was very impressed with how he handled the situation. Mutual interests: Joint/shared concerns or benefits. “We have a lot of mutual interests that are worth exploring.” Overlapping concerns: Shared areas of interest or concern. “I would be very interested in discussing our overlapping concerns in this area.” Pan-European providers: “Pan” means all; provider refers to a service provider. A pan-European provider, thus, is a company that provides service to all of Europe. The trend is towards sth.: To have a tendancy towards sth. “The trend in the market is towards smaller and smaller cars.” Consolidation: The act of small parts merging into one. “There are so many small, regional players in this market that we think some consolidation is inevitable.” To be in sth. together: To be on the same team; to face difficulties together. “There’s no way I’m abandoning you – we’re in this together.” To band together: To form a strong group. “In the face of a strong common opponent, the companies banded together. To join forces (with) s/o: To combine resources and strength with s/o. “To remain competitive, we were forced to join forces with another regional provider.” To cross one’s mind: To occur to s/o. “The thought has crossed our minds.”. © 2009 All rights reserved: www.businessenglishpod.com. 27.

(28) Successful Negotiations Dialog Peter: So, Sam has said a lot about you. Maxine: Only good things, I hope! Peter: Of course. And I’ve been looking at the figures, and I must say I’m very impressed with your company. Maxine: Thanks. Peter: It’s great to finally have the opportunity to meet you. Maxine: Likewise. Peter: So, have you eaten here before? Maxine: Once or twice. Can I make a recommendation? Peter: Yes, that’d be great. [Fade out] Peter: [Fade in] Mhhmm. The food is delicious… Maxine: I’m glad you like it. Peter: So, as I mentioned over the phone, I’m hoping we can explore some mutual interests. Maxine: Yes, we certainly have overlapping concerns. Peter: Obviously, the big one is how to remain competitive in the face of pan-European providers. Maxine: Sure. The trend is definitely towards consolidation. Peter: The way I see it, we’re in this together. We have everything to gain by banding together. Maxine: What did you have in mind? Peter: We’re wondering whether you’ve ever considered joining forces with another regional provider… Maxine: The thought’s certainly crossed our minds. Peter: Well, then I’d say we have a lot to talk about.. © 2009 All rights reserved: www.businessenglishpod.com. 28.

(29) businessenglishpod Debrief At this point in his conversations with Maxine, Peter has not actually directly brought up the fact that he wishes to buy her company. Until now, he has just been focusing on creating a good atmosphere and establishing common interests. Peter knows that for a merger to succeed, building a good relationship is essential. So he is being careful to lay good groundwork, that is, to establish a strong foundation for his partnership with Maxine. Let’s look in detail at some of the positive language and expressions that Peter uses at the beginning of the dialog: Peter: So, Sam has said a lot about you. Maxine: Only good things, I hope! Peter: Of course. And I’ve been looking at the figures, and I must say I’m very impressed with your company. Maxine: Thanks. Peter: It’s great to finally have the opportunity to meet you. First, Peter mentions a mutual acquaintance, Sam. Next, he uses two phrases to start the conversation off on the right foot, that is, to start it off on a positive basis: First he flatters Maxine on her business – he says, “I’m very impressed with your company.” Second, he says, “It’s great to finally have the opportunity to meet you.” Using this kind of language on the first meeting is often an important element in starting off on the right foot – that is, making a good impression and creating a good atmosphere. Let’s study more phrases that we can use:    . It’s great finally to have the opportunity to meet you in person. I’m grateful for this chance to talk. We’ve heard a lot of great things about you. Your reputation precedes you.. What happens next? Peter and Maxine order their food, and the dialog fades out while they begin eating. For more practice on business meals, we can listen to BEP 96, which deals specifically with this topic, including ordering, recommending dishes, and paying the bill. When the dialog fades back in, Peter is ready to turn the topic of conversation to business. How does he do that in a positive and productive way? He emphasizes the interests that he and Maxine share. Listen again. Peter: So, as I mentioned over the phone, I’m hoping we can explore some mutual interests. Maxine: Yes, we certainly have overlapping concerns. “I’m hoping we can explore some mutual interests…” is a great way of bringing up the topic of possible cooperation; since the emphasis is not only on my own aims but rather on common goals, this kind of language helps establish a feeling of shared benefit. Considering the other party’s benefit expresses “you-attitude” – instead of focusing on me, I start off by considering you. The “you-attitude” – that is, taking a genuine interest in the other person – is useful in establishing. © 2009 All rights reserved: www.businessenglishpod.com. 29.

(30) Successful Negotiations trust and building rapport in a relationship. Let’s listen to some more examples of using a “you-attitude” to explore mutual needs.      . What direction are you taking your business? What would be an ideal outcome for you? What are the top five things you value most in a business relationship? What do you like most about your current supplier, and what would you like to change? What are you hoping to achieve in the next year? What are your medium and long-term goals?. After Peter has turned the conversation to business by exploring mutual needs, how does the dialog continue? Maxine agrees with Peter that they have overlapping or shared interests. Maxine: Yes, we certainly have overlapping concerns. Peter: Obviously, the big one is how to remain competitive in the face of pan-European providers. Having opened the topic of business, Peter and Maxine now emphasize a common interest that will form the basis of his relationship with Maxine: How to remain competitive in the face of pan-European providers. “Pan” means “all,” a “providers” means competing service providers, like Peter’s and Maxine’s companies. So, Peter is talking about competition from larger, Europe-wide companies that sell ring tones and games. Thus, Peter and Maxine can say that their major overlapping concern is how to remain competitive in the face of larger providers. Peter and Maxine use these phrases to establish common interests. Let’s review some more types of useful expression for this purpose:    . We have a lot of common ground. There are definitely many areas where our interests are aligned. There is great potential for synergy between our two businesses. Our needs in this area complementary, don’t you think?. How does the dialog continue to develop? Maxine agrees with Peter about the threat they jointly face from larger competitors, doesn’t she? Maxine: Sure. The trend is definitely towards consolidation. In this context, consolidation refers to smaller companies merging or being bought to form larger companies. The positive response that Peter is getting from Maxine is, of course, due to his focusing specifically on clear areas of common interest. Next, Peter takes advantage of this positive response to build on the good atmosphere by emphasizing solidarity. Solidarity is, as Peter puts it, the feeling that we are in this together. It is the basis of loyalty and trust. Listen again.. © 2009 All rights reserved: www.businessenglishpod.com. 30.

(31) businessenglishpod Peter: The way I see it, we’re in this together. We have everything to gain by banding together. To band together similarly means to form a strong group. Giving emphasis to feelings of togetherness and solidarity is an effective method of building a strong relationship. Listen to some more useful language:   . Our long-term partnership can only contribute to the success of both our companies. This is a great chance to forge an even closer and more productive working relationship. By working closely together, we can achieve great things.. As their conversation continues, it’s now Maxine’s turn to ask Peter for clarification about what exactly he is thinking of: Maxine: What do you have in mind? Peter: We’re wondering whether you’ve ever considered joining forces with another regional provider… Peter asks Maxine if she has ever considered joining forces. This is the most direct reference that Peter makes to a merger during the dialog. To join forces is an idiom that comes from military language. The original meaning is to merge armies. We can use this expression with the preposition with – for example, to join forces with someone. Here are some more examples with this phrase:  . Because we faced such fierce competition from larger companies, I suggested joining forces with some of our competitors. Originally, they were on opposite sides; but then, when they faced a common enemy, they joined forces to defeat their competitor.. How does Maxine respond to Peter’s suggestion that they should join forces? Maxine: The thought’s certainly crossed our minds. Peter: Well, I’d say we have a lot to talk about. To cross one’s mind means to occur to someone. So Maxine is saying that she had actually already been thinking about possibilities for some sort of merger. Peter finishes off the dialog by suggesting a next step – he says, “Well, I’d say we have a lot to talk about.” Of course, in a business discussion it’s not enough just to build the relationship – at some point, we need to take action. Let’s review further expressions for proposing the next step.    . This is an area that’s worth exploring further. Let’s try to hammer out an agreement. Why don’t we get together next Thursday or Friday to talk? The next step, I’d say, is to get all the parties around the same table.. Now, it’s your turn to practice.. © 2009 All rights reserved: www.businessenglishpod.com. 31.

(32) Successful Negotiations First, we’ll review the language of exploring each other’s needs and establishing common ground. Imagine you are in discussions with some potential partners. First you’ll hear a cue prompting you to ask them about their needs. For example, if you hear… Example cue: Directions, taking your business. <beep> You can ask, Example answer: What directions are you taking your business? Next, listen to their reply. After they have finished, respond by using a phrase we studied for establishing common ground. For instance you could say, “We have a lot of common ground…” or “Our needs in this area are complementary, don’t you think?” Are you ready? Let’s give it a try. Cue 1: hoping to achieve, next year? Learner 1 – Question:. Partner 1 – Reply: We’re looking to expand into new markets. Learner 1– Response: :. Cue 2: ideal outcome, for you? Learner 2 – Question: ‘ Partner 2 – Reply: We’re hoping to double profits in the next five years. Learner 2 – Response: :. Cue 3: directions, taking your business? Learner 3 – Question:. Partner 3 – Reply: We’re focusing more and more on innovation. Learner 3 – Response: :. © 2009 All rights reserved: www.businessenglishpod.com. 32.

(33) businessenglishpod Now, let’s listen to some example answers. Cue 1: hoping to achieve, next year? Learner 1 – Question: What are you hoping to achieve in the next year? Partner 1 – Reply: We’re looking to expand into new markets. Learner 1– Response: Yes, there’s definitely many areas where our interests are aligned. Cue 2: ideal outcome, for you? Learner 2 – Question: What would be an ideal outcome for you? Partner 2 – Reply: We’re hoping to double profits in the next five years. Learner 2 – Response: Well, there is great potential for synergy between our two businesses. Cue 3: directions, taking your business? Learner 3 – Question: What directions are you taking your business? Partner 3 – Reply: We’re focusing more and more on innovation. Learner 3 – Response: Our needs in this area are complementary, don’t you think? Practice 2 Next, we’ll review some of the useful vocabulary and collocations that we studied in this episode. You’ll hear a series of sentences with a verb blanked out or replaced with a beep. Repeat the whole sentence saying the missing word. For example, if you hear… Example cue: It’s great finally to have the <beep> to meet you in person. You can say: Example answer: It’s great finally to have the opportunity to meet you in person. After each response, we’ll play the correct answer. Let’s begin. Cue 1: I’m <beep> for this chance to talk. Learner 1: Cue 2: This is a great chance to <beep> an even closer relationship. Learner 2: Cue 3: By working closely together, we can <beep> great things. Learner 3: Cue 4: They joined <beep> with each other to defeat their common opponent. Learner 4: Cue 5: Let’s try to <beep> out an agreement. Learner 5:. © 2009 All rights reserved: www.businessenglishpod.com. 33.

(34) Successful Negotiations Answer 1: I’m grateful for this chance to talk. Answer 2: This is a great chance to forge an even closer relationship. Answer 3: By working closely together, we can achieve great things. Answer 4: They joined forces with each other to defeat their common opponent. Answer 5: Let’s try to hammer out an agreement. That’s all for this episode on relationship building. We’ve talked about the importance of a “you-attitude”, learned useful idioms, and studied language and expressions for starting off on the right foot, exploring each other’s needs, establishing common interests, emphasizing solidarity and suggesting the next step. See you next time, and thanks for listening!. © 2009 All rights reserved: www.businessenglishpod.com. 34.

(35) businessenglishpod Language Review A. Starting Off on the Right Foot Put the following jumbled sentences in order to review language for starting off on the right foot. Write your correct response into the blank below each group of mixed up words. 1) person it great have to opportunity the to meet you in finally is. 2) talk I grateful am for to chance this. 3) we things you a lot of great about have heard. 4) your you proceeds reputation. B. Exploring Mutual Needs and Establishing Common Interests Review useful collocations by filing in the blanks with words from the box below. taking synergy change outcome complementary medium achieve aligned common value Explore each other’s needs with a you-attitude 1. What directions are you __________ your business? 2. What would be an ideal __________ for you? 3. What are the top five things you __________ most in a business relationship? 4. What do you like most about your current supplier, and what would you like to __________? 5. What are you hoping to __________ in the next year? 6. What are your __________ - and long-term goals? Establishing common interests 1. We have a lot of __________ ground. 2. There are definitely many areas where our interests are __________. 3. There is great potential for __________ between our two businesses. 4. Our needs in this area __________, don’t you think?. Study Strategy On a piece of paper draw a small circle. That circle is yourself. Next, draw several other circles of varying distances from the first to represent the various people, companies, and organizations with whom you have built relationships. The distance represents the closeness of the relationship. After you have finished, consider how all these relationships were formed. Some – like those with your family – you did not choose. Others you have worked hard to form. Give a presentation to a friend or a colleague about the relationships, and use the opportunity to discuss the practices and customs of relationship building in your culture.. © 2009 All rights reserved: www.businessenglishpod.com. 35.

(36) Successful Negotiations Answers Listening Questions 1) No, Peter and Maxine have not Met before. Peter says, “It’s great to finally have the opportunity to meet you.” 2) When Maxine mentions that she and Peter have some overlapping concerns, Peter replies, “Yes, big one is how to remain competitive in the face of panEuropean providers.” “Pan” means “all,” so Peter is concerned about how to compete with larger companies that have all of Europe as their market. 3) Peter is careful about how he approaches the subject of a merger between his and Maxine’s company: He indirectly brings up the topic near the end of the dialog when he asks Maxine, “We’re wondering whether you’ve ever considered joining forces with another regional provider…” He has not at this point clearly indicated that he wishes to buy Maxine’s company, Gamester. Language Review A. Starting Off on the Right Foot 1. It is great finally to have the opportunity to meet you in person. 2. I am grateful for this chance to talk. 3. We have heard a lot of great things about you. 4. Your reputation proceeds you. B. Exploring Mutual Needs and Establishing Common Interests Explore each other’s needs with a you-attitude 1. What directions are you taking your business? 2. What would be an ideal outcome for you? 3. What are the top five things you value most in a business relationship? 4. What do you like most about your current supplier, and what would you like to change? 5. What are you hoping to achieve in the next year? 6. What are your medium- and long-term goals? Establishing common interests 1. We have a lot of common ground. 2. There are definitely many areas where our interests are aligned. 3. There is great potential for synergy between our two businesses. 4. Our needs in this area complementary, don’t you think?. Online Activities – Flash Quizzes. (click above to open). © 2009 All rights reserved: www.businessenglishpod.com. 36.

(37) businessenglishpod Online Activities:. MP3 Podcast:. BEP 404 – Getting Started This is part of an ongoing series on negotiations. In this episode, we’ll study how to open a traditional commercial negotiation between buyer and seller. We’ll focus on creating goodwill, starting off, setting ground rules, suggesting an agenda and exploring possibilities. We’ll be listening to a telephone conversation between Tony, a supplier of building materials, and Paul, a purchasing manager for a large construction company. Paul is buying materials for a harbor project. A harbor is a protected area of water where boats dock, or park. For this project, Paul needs to buy anchor bolts. These bolts are the thick steel screws that are embedded or buried in concrete to support or anchor structural steel columns. Structural columns refer to the steel frameworks that hold buildings up. This is the first time Tony and Paul have talked on the phone. As you listen, pay attention to the language they use to get the negotiation started, and try to answer the following questions.. Listening Questions 1) How does Tony begin the phone call to establish goodwill?. 2) How long does Paul say he has available for the phone call?. 3) Paul asks Tony how he will be using the bolts. How does Tony respond?. 4) What other option does Paul want to explore with Tony?. © 2009 All rights reserved: www.businessenglishpod.com. 37.

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