Steve VarelaProfessor of International Business© 2009 – All Rights ReservedEffective Negotiations

WELCOME!!!!!! “Tell me and I'll forget; show me and I may remember; involve me and I'll understand.” -Chinese Proverb

Business English NegotiationsWelcomeInstructorIndex Card: Number + English_Name + EmailPersonal Info, work experience, academic focus, goals for this course, travel/overseas experience, sales and/or negotiation experience.Individual Student IntroductionsToday’s Agenda: Preview of CoursePair’s and Group’sQuestion of the dayChapter 1Textbook: Effective Negotiations by Jeremy Comfort,Oxford University Press , 2007

Syllabus

A word on Activity Based LearningLeft side is Old World method, Didactic.Right is CollaborativeLearn from each other Students are more active…understand more“Tell me and I'll forget; show me and I may remember; involve me and I'll understand.” -Chinese Proverb

Course Preview: A Chapter Every Two SessionsPreparing the “Ground” (Introductions, goals, place)Setting the Agenda (Negotiate what you will negotiate)Establishing Positions (What you want or have)Clarifying Positions (Check understanding)Managing Conflict (How to criticize)Proposals (Creating solutions)Bargaining (Exerting pressure)Conclusion& Agreement (Follow-up, implementation)

Typical Chapter Activities (8)Session 1: Topic Introduction & DVD Clip International Culture & Tactics Language FocusSession 2: Negotiating Practice Group’s (4) and Pair’s (2)

Evaluation CriteriaActivity Based Learning…Participation is key to Success!34% of final Grade depends on Class ParticipationMidterm Essay or Simulation (Chapter 4)33% of Final Grade6-8 Sentences or 5 minutesFinal Exam – Negotiation Simulation5 Minutes Video Taped / Analysis33%

Question of the Day (Graded Exercise)At the start of each chapter, one group answers the first two communication skills questions at the start of the class.List question on blackboard & present your answer to the class. 5 Minute Limit.Have ready before the class begins.i.e. Chapter 1 = Group 1, Chapter 2 = Group 2…

Questions???

*****Session 2****

Chapter Introduction QuestionGroup 1 Present the Answer/Commentary to the First 2 questions of Chapter1. … Group1.

Preparing the GroundA negotiation is a meeting in which both parties need each other’s agreement to reach a specific objective.Various Types of NegotiationsInternal / ExternalLong / ShortFormal / InformalWhat is your Goal?

Video Negotiating Context: Preparing the GroundOkus ITAndrew is the Export Sales Manager, He made the initial contact and knows SeanKaren is the project manager. She made the contract specifications and this is her first international negotiation. She is anxious.LevienFrancoise is the IT Manager, she is ready to be promoted to Logistics Head. She is Keen that her team (employees) are protected.Sean: from Levin’s Chicago office. He was sent to Brussels to develop Levin’s procurement policySituation: Andrew and Karen have arrived at Levin’s Brussels office to meet Françoise and Sean

Preparing the GroundVersion 1: Watch their body language with no sound? What problems do you expect?Version 2: Body language… Introduction differences?EN Chapter 1 Version 1.aviEN Chapter 1 Version 2.avi

Preparing for a Business Negotiation (p.68)Objectives: best, worst, bottom lineStrategies: main areas, sticking points, best order for discussion, concessionsRoles: who is responsible, skills of team members, the other teamCommunication: maintain positive communication, note taking, who asks questions? Who is the Chair?

Chapter 1: Preparing the “Ground”Culture and TacticsWork in Pair’sRead “Task Oriented” or “People Oriented” Present a Summary to your partner (pair)15 Minutes….

Chapter 1: How Do You See Yourself?iI start my day with a list (to do)ii I start my day with a chat (talk)iI don’t let personal feelings influence decisionsii I Consider human angle firsti Friendship not important if good job at workii Important to like people I work with

How Do You See Yourself? (p.2)i Meetings only purpose is to get things doneii Meetings are opportunities to develop relationshipsiI fell end of day frustration if my list not finishedii Feel “low” (sad) if have not got on with colleaguesScoring: 2 Points for every i 0 Points for every ii, 1 Point for every neither

What’s your score?6-10 Points = Task-Oriented4-5 Points = Balanced0-3 Points = People – OrientedNeither is betterLets us know who we are and what to plan for.

Language FocusFormal WelcomingOn behalf of…I’m very glad to welcome youIt’s a pleasure to see you hereIntroductionsThis is…He’s in Charge of… He’s responsible for...He is our President/Director In-FormalWelcome toThank you for comingIt’s nice to be hereLet me introduce you to…Have you met…?

Language Focus, (p.11)FormalIn-FormalHow are you?Great to see you again!Starting the NegotiationI was wondering if I could start by saying…..Were short of time, so lets get startedWe’ve got a very full agenda, so perhaps we’d batter get down to business.GreetingsHow do you doNice to Meet YouSmall TalkDid you have a good trip?How was your flightIs this your first visit to…

Next Session:Practice Negotiating!!!Use Checklist P. 68, #9 to prepare the following:ObjectivesStrategiesRolesCommunicationSpeaking Practice #4 in class, p.12Pair Work & Group Work 1, Neg. 1 & 2, p.13

Use Checklist P. 68, #9 to prepare the following:

Negotiation ChecklistObjectivesStrategiesRolesCommunications

Questions???Prepare for Negotiation #1…

Negotiation #1 (p.13)Group up…work in pairs (2)Use checklist to prepare and then negotiate the sale/purchase of the car15 minutes.

Group Work 1: Negotiation 1Two want a ban on smokingTwo want free smokingUse Checklist and NegotiateBe prepared to discuss what happened to the class.15 minutes.

For next Session…Chapter 2: Setting the AgendaRead: pages 16-20.Read: Video Transcripts Unit 2 (version 1 & 2)Do Questions:7 & 1on p. 17, 2 p. 18, 3 p. 19, 4 p. 20Review: Negotiating Practice, Negotiation #1, p.22Group 2 does Q1 “Chapter Introduction Chapter”

FeedbackAny questions????Visit my office anytime:#M615B OR email.

Welcome Back!Chapter 2: Setting the Agenda

Question of the ChapterChapter2 Present the Answer/Commentary to the First question of the Chapter (2). …Group2.

Setting the AgendaSome basic negotiations have only one point of discussionOthers are more complex…But all need a sense of direction, a clear understanding of the objectives and a plan…often, the Host is responsible for Chairing or controlling the negotiation.

Video Negotiating Context: AgendaOkus ITAndrew ready to present opening presentationKaren expects Francoise to set the agendaLevienFrancoise worried about protecting her staff’s jobsSean: wants to establish a clear and strong negotiating positionMain Issues (aspects): Who is in control,who is Chairing here???

Video: Roles of Chairperson, Agenda & ProcedureVersion 1What do you expect to happen in the first stage of the negotiation?EN_Chapter_2_Version_1a.aviWhat went wrong?Now, half focus on Levien side other half on Okus sideEN_Chapter_2_Version_1a.aviVersion 2EN_Chapter_2_Version_2.aviHow about Francois’s new performance?Now, lets identify the checklist steps…EN_Chapter_2_Version_2.avi

Setting the Agenda (p.71)Introduction: Who present? Roles?Purpose/Objectives: Shared Expectations and Critical IssuesAgenda Structure:How to Start and Finish the meeting?Procedure/Process: Will there be a Chair? Questions at end/during? Minutes?

Chapter 2: Setting the AgendaCulture and TacticsWork in Pair’sRead “Universalist” or “Particularistic” Where do you fit? More Univ. or Part.?What are advantages of each?UniversalisticOne correct wayFollow same procedure alwaysParticularisticAdapt to each situationProcess is customized

What are the Advantages and Disadvantages of each?ParticularisticUniversalistic

Identifying Working Cultures (Which is Which?)Crantons Engineering: old fashioned engineering firm run along traditional linesGilson, Merritt & Partners: Management Consulting, young and dynamicATZO: Large chemical multinational; merger of German and Italian companies; Bureaucratic, UnresponsiveCOMinternational: Medium sized financial services firm; reputation for financial management and control systems. Young CEO

Your Working/Studying Culture ExperienceUniversalisticAt your job/school, which style is commonly used?Examples???Particularistic

Break …

Language FocusObjectivesWere here today to…The main objective/purpose of today’s..Were looking to achieveAgendaWe’ve drawn up an agendaLets just run through the agendaThere are a number of items on the agendaI’d like to take that firstWe’ve put that Last

TimingThat gives us two hoursIt will take two hoursIt won’t be longI need to be away by…Roles …is going to sit in…is going to take the minutes…would like to say a few words…you’re going to give us a presentationProcedureWe’ll deal with that ….last/first/tomorrowWe’ll go round the tableWe’ll have a question and answer at the endWe can table that for discussion later

Speaking Practice (#4, p.20)Group up!Do the following in your groups…Present your introduction to the class (2 minute introductions)Use the Negotiation Checklist (p.71) to organize your introduction and agenda talkUse tips from Language Focus for your vocabulary15 Minutes to prepare.

Speaking PracticeImportant: Use a structured introductionAct as a Chairman, Chairwoman.Show Leadership.Practice in your group…Afterwards, we will present to class ---with Gusto!

Presentations….Group 1-X2 Minute maximum time Introduction only

For next session…Chapter 2: Negotiation PracticeRe-Read pages 16-20.Review Language Focus examplesReview: Negotiating Practice, Negotiation #1 & 2 p.22Be prepared to present to classyour2 minute Introductions onlyto No’s. 1 & 2. * Not a full negotiation- just introduction.

FeedbackAny questions????Visit my office anytime or email:#M615BOffice Hours: Monday 13:10 – 15:20Wednesday 15:20 – 17:10

Session 4Setting the Agenda II

Session AgendaVocabulary exercise: P. 19 No. 3Complete Speaking Practice Session 2Negotiation Practice, P.22, No.1 or 2.Everybody Participates!

Negotiation SimulationNegotiating Practice, P. 22, Negotiation # 12 Buyers: Toy manufacturer2 Sellers: Training consultantsBe prepared to present your introduction to class with Gusto!2 minute maximum *Only the introduction, not a full negotiation

*****Break*****

Introduction SimulationNegotiating Practice, Page 22, # 1 or 22 Buyers2 SellersNegotiate in Pairs for 30 MinutesTake notes as to what happened and whenBe prepared to present your results to classEx.Introduction Structure Names Purpose Roles Logistics Timing Proposal Issue Resolution

Negotiation Introduction No. 1Groups X-1Saroyan-Arttech: Toy Manufacturer seeks management training programConsultancy: Sent materials and was invited to make a presentation on your training services.

Negotiation Introduction #1, p. 22Group N – 1…Buyers (2)Sellers (2)3 Minute Maximum NegotiationSimulationFocus on: Introduction Structure.

Negotiation Introduction #2Futura: Large Manufacturing needs packaging materialsDTX Packaging, Vendor of packaging material.Groups 1-X, 3 minutes, alternate speakers

For next session…Chapter 3: Establishing PositionsRead: Pages 24, 25, 27, 28 & 29Read: Unit 3 Video TranscriptsReview Culture and Tactics StylesIndividualist & CollectivistDo p. 25-26-27 #’s 1, 2 & 3Review/Practice Language FocusGroup 3: Present your Chapter Question before class starts

Establishing Positions

Today’s Agenda: Establishing PositionsDilemma of PositionsPositive and Open vs. Room to Bargain laterHold Backpermits a discussion ( & creativity)Goal: Find out what they think about your offerThrough Effective Feedback & listeningCulture and Tactics: Direct vs. IndirectLanguage Focus: Vocabulary tips

Video Negotiating ContextOkus ITAndrew presents key aspectsKaren AssistsLevienFrancoise expects key aspectsSean: Chicago waiting for staffing info.Main Issues (aspects): Staffing levels: Take all Levin IT Staff?Support levelsLevel A: Full Support and New ProjectsLevel B: Full Support, Projects Cost Extra

ClipVersion 1: No SoundEN Chapter 3 Version 1.aviwatch body language both presenter and audienceVersion 1: SoundEN Chapter 3 Version 1.avi What should Andrew do? Start/stopVersion 2: No SoundEN Chapter 3 Version 2.avi watch changes note style Pauses to check for audience agreement, confirmationAndrew’s Presentation Style…How to Improve?

Language Focus…Asking for and giving feedback(p.27)Group Up.Each Group pick a section and write on a piece of paper, add missing words or put each phrase in a short two sentence dialogue.Each person should do only one phraseWrite you Name & Answers on paper, give to instructor – we will review a few in class.15 Minutes.

Culture and TacticsDirect CommunicationSay what you thinkFew wordsPractical, efficientIndirect CommunicationConcern about feelingsDamage relationshipSave face / time to think & respondAndrew frustrates Sean (too slow to get tothe point)“I’m interested to know what your position on our staff is?”

Direct versus IndirectWhich style (direct or indirect) is yours?Which style do you like?Which is more effective? Why?

Group Exercise: Culture and TacticsWhat is the more direct question or statement behind these sentences? (Page 25, #1)Change sentences to Direct StyleDo A, C, E Indirectness is achieved by making questions and statements vague and not specific. (Page 26, #2)Change sentences to Indirect StyleDo B & DWrite you Name & Answers on paper, give to instructor – we will review a few in class.15 Minutes.

For next session…Speaking Practice, p.28 #5, G1=a, G2=b, G3=c…Work in Groups (2+2)Create brief introductions for situation ( 2 mins.)Invite feedback oftenPractice and then change rolesNegotiating Practice, p.29 Group Work 2Groups choose a topicPrepare presentation to sell your product (5 mins.)Invite feedback from other group membersClass asks questions

Feedback Was anything unclear? Fuzzy?Stop by my office: M615B orEmail: svarela@thu.edu.twOr, Write it down and leave it at the desk… …I will address it next time we meet. Thank you.

Establishing Positions IISession 6

SessionAgendaSpeaking Practice p.28Work in Pairs.Take turns to make brief introductions to the following negotiation situations.Make sure to invite feedback as often as possible.Your partner should listen and respond to your presentation. Negotiation Practice p.29Work as a Group.Prepare a short presentation to sell your version of the product, service or idea.Integrating techniques and language which involve the audience (customer).Rest of class are customers. Ask questions.

Next Session: Clarifying Positions (Ch.4)Read Carefully “Video Negotiating Context” p.30Video Transcript Unit 4 p. 92Study pages 30-34Do Questions:P.31 #8P.32 #1 & 2

Questions?Stop by officeEmailOffice Hours: Monday 1:10 – 3:20 PMOffice Hours: Thursday 3:00 – 5:00 PM

Clarifying Positions

Clarifying Your Position’sLast session:Focus was Presenting your position and Interactive Communication using QuestionsThis session:Focus is on Clarifying: making sure we really understand each otherSkills to understand are:Good ListeningEffective Questioning

The ProblemMost of us do not communicate very well…We start with our own ideasWe wait for time to tell our ideasWe usually have already made up our minds, disagree or ignore the other side.We should be actively listening.An open mind to understand the other party better,Develop practical and beneficial solutions,Earn respect from the other team.

Video Negotiating ContextOkus ITKaren clarifies the details of Okus’ offerAndrew assistsLevienFrancoise is worried about extra project fee’sSean: Concerned about level of support from Okus.Main Issue (aspect): Support levelsLevel A: Full Support Packageincludes New Projects (ala Club Med All Inclusive Vacation)Level B: Cheaper, Monthly Invoice include regular support but no new project work; Projects cost extra

Clarifying PositionsMeeting Order?Everyone following their own Ideas…Karen is not happy; she can’t get her message across.What does she need to do?

Culture: Individualist vs. CollectivistGroup up!Decide weather our group is more Individualist or Collectivist10 Minutes…Then, Group X will give feedback to the class.

Language KnowledgeGeneral QuestionsI’d be interested to know more about…Could you tell me something aboutWhat exactly do you mean by…Could you be more specificConfirming phrasesSo you are sayingIf I understand you correctly…Is that clear?Does that explain it?

Read “Between the Lines” ask a supportive or reflective questionPage 34, number 5.

Next: Speaking Practice (p.35)BUYERNegotiate a Contract for the Catering and Entertainment for a Corporate Office PartyExplain the details (above) and then listen to the offer that Celebration Nights makes.SELLERYou represent Celebration Nights, a party planner for corporationsYou have been contacted by Buyer who wants to arrange (hold) an office partyYou must listen to Buyer’s plans and then clarify all points, and then present what your company can offerPractice using Active Listening and a variety of question types to show interest and get full details and understanding. Pairs 5 min. each.

Corporate Office Party (5 Minute Maximum)Buyer (Corporate Planner)Give details of Office Party Idea -Listen to optionsClarify your understanding Agreement.Seller (Celebration Nights)Introduce & Listen to customers needs.Understand, Summarize &Clarify IdeasProvide alternatives & Pricing.

For next session: Negotiating PracticePair Work, p. 36Form pairs from your groups (2 people only)If 5 in a group, 2+2+2=one person does two roles)Each student choose one of the 4 situationsEach student should present initially and the other student should listen, understand, clarify, and then summarize.2.5 Minutes each, 5 minutes per pair – In class.Change Roles. GRADED Exercise.

For next session:Midterm ReviewConcepts from Chapter’s 3 & 4What is a positionBest way to get feedbackEffective questioningActive ListeningEstablishing your position10 Questions, Multiple Choice1 Essay question: What is the purpose of a Negotiation Introduction?5-8 Sentences.

Feedback Was anything unclear? Fuzzy?Office Hours: Monday 1:00-3:00PMThursday 3:00 – 5:00 PMStop by my office: M615B orEmailOr, write it down and leave it at the desk… …I will address it next time we meet.

Clarifying Positions, Part II

AgendaSpeaking Practice: Page 35Negotiating Practice: Page 36Midterm Review (time permitting)

Speaking Practice (p.35)SELLERYou represent Celebration Nights, a party planner for corporations.You have been contacted by Buyer who wants to arrange (hold) an office party.You must listen to Buyer’s plans and then clarify all points, and then present what your company can offerConfirm throughout your talkBUYERNegotiate Contract for the Catering and Entertainment for an Office Party.Explain the details (above), then listen to the offer that Celebration Nights makesCheck for understanding throughoutPractice using Active Listening and a variety of question types to show interest and get full details and understanding. Pairs 2.5 min each.

***Break***

Negotiating PracticeTwo People (Pair Work, P. 36)Each student should present initially and the other student should (1) listen, (2) understand, (3) clarify, and then (4) summarizeYou are graded on the number of clarifications youmake2.5 Minutes each, 5 minutes per pair – In class.No exceptions.

Next Session: Midterm Review (Ch. 1-4)Review Carefully Opening “Objectives” for each ChapterPrepare questions on any terms you don’t understandReview: Negotiation Introduction: ”Setting the Agenda” Ch 2 & Page 71.Fully understand why we have this structure (organization)Review: Establishing PositionsUnderstand what your position is and your opponentsEffective questions and active listening: How to learn your opponents position.Review: Clarifying Positions Understand how this helps define the specifics and also push’s your opponent to reveal their important issues & Positions

Midterm ReviewWhat is a position?Your opening and later changing offers (price, delivery, specifications, preferences, work hours, location, benefits, etc).Holdback: The difference between your opening position and your bottom line. Gives you room to negotiate. (p. 24, No. 1)Best way to get feedback on your position? Say what you want, and also ask questions to get verbal and non verbal signals from customer or opponent (p.27, No. 3)Effective Listening: increase your understanding of the other sides needs, wants or capabilities (features, benefits, budget)

Review (Continued)Essay Question:What is the purpose of an introduction?Reduce Stress (everyone knows what will happen and when)Maintain order, structure (avoid Karen’s problem)Provide a good setting to cooperate and find good solutions.10 Questions, Multiple Choice

Feedback Was anything unclear? Fuzzy?Office Hours: Monday 1:00-3:00PMWednesday 3:00 – 5:00 PMStop by my office: M615B orEmailOr, write it down and leave it at the desk… …I will address it next time we meet.

Chapter 5: Managing ConflictAfter the mid-term ExamReview Video ContextReview Video Transcripts Unit 5For the next class meeting:Plan for Negotiating Practice No. 1Plan for Speaking Practice No. 6

Managing Conflict*****Session 10****

Today’s Agenda: Managing ConflictThis is the “Heart” of The Art of NegotiationCross-cultural negotiations fail due to misunderstandingsDue to our Inability to constructively criticize( > less personal)Goal: How to give and receive positive criticismOne Tactic: softer language useLanguage Focus: Modified Vocabulary

ConflictAdvantagesCan be a driving force to get the job done.Shows us the differences that need to be resolved.DisadvantagesCan be destructive to the relationshipIncreases StressCriticism can be received personally.Results in total breakdown.Some people like it because it helps them force a result…Other people do not like it, they avoid it.

Video Negotiating ContextOkus ITAndrew (sales manager) thinks his position is under threatKaren ‘feels’ frustrated with Sean and AndrewLevienFrancoise wants a positive atmosphereSean thinks negotiation is getting stuck, wants to ‘shake’ things up.Main Issues: What is support work and what is project work?Level A: Full Support and New Projects IncludedLevel B: Projects cost extra, open for abuse

- Version 1: EN Chapter 5 Version 1.avi - issue: logging or support work - inexperience remark causes offense - Sean and Francois not working as a teamVersion 2: EN Chapter 5 Version 2.aviSean adapts, downtones his remarks but,Confronts the issue, does not avoid sticky issues.Okus, Levin & TrustBreakdown in Trust arises because the definition of: Project Work ($$$) Support Work (included)Is not clear, easy to understand.How do they do it: Logging -

Version 2: EN Chapter 5 Version 2.avi

Sean adapts, downtones his remarks but,

Confronts the issue, does not avoid sticky issues.

How We Feel About ConflictAGREE --------------------------------------DISAGREEEven when I’m being confrontational, I’m never personally involved. It’s just tactics.I hate it when people get aggressive, it’s just not necessary.When people start criticizing, it’s hard not to take it personally.Being aggressive is a perfectly valid way of getting what you want.

Culture and Tactics, P. 40Discuss the four individuals negotiating styleCompare them to the people in your groupLater, tell the class which of those negotiators you most identify with and why? (which one’s are more like your group).

Language Focus: “creating options”

Modify the following remarks… p. 42We must cut the advertising budgetWe could perhaps cut the advertising budgetYou need to analyze your costs in more detailYou might check your costs in a bit more detailLook at page 32 of the documentMay I suggest you take a look at page 32?Intonation: Pitch up, cooperative Down = serious/negative

Modify the following…This is the worst food I’ve ever tastedThis is not the best food I’ve ever tastedDon’t be so late for classCould you be early for class?Your quotation is much too expensiveYour quotation is a bit too expensiveYour quotation is not as we hopedIntonation: Pitch up, cooperative, Down = serious/negative

Next Session: Speaking Practice #5 (p.43)Work in your groups (2 pairs each)Modify the following dialogue (conversation):Write your changes on paperSpecial attention to intonation (how you sound).Then either:Record your new dialogue on Mp3 orRole-play in classBring to class next session, we will all listen or watch.

And, Conflict Negotiation : Speaking Practice #6 (p.43)Student AManager: ProductionHave large quantity of extra components (parts) to make your productWhy are you paying for storage you don’t need?Customer cancelled and you don’t need these extra partsStudent BManager: PurchasingYou order parts based on production scheduleYou always order extra because there are problems with delivery and it takes a long time to arrive“Down-tone” the language to be more positive

Next Session:We review your two exercises.Remember you must work outside of classWrite your answers down and either:Record your voice for #5 orRole-play live in classSee me if you have any questions.

Managing ConflictDown-toning Your Language

Today’s Agenda#5: Modify your dialogue so that it is less confrontational (e.g. Sean)Group1-X#6: Production versus PurchasingBoth people think that the other is to blame.How to modify the language to be less aggressive (confrontational)

Make the sentences less confrontational… #5Your figures for last year look bad.Mp3 recordings orRoleplayYour figures for last year don’t look so good.Group X->1

There are a lot of electrical parts in the warehouse…#6Production Manager (A)Have large quantity of extra components (parts) to make your productWhy are you paying for storage you don’t need?Customer cancelled and you don’t need these extra partsPurchasing Manager (B)You order parts based on production scheduleYou always order extra because there are problems with delivery and it takes a long time to arrive“Downtone” the language to be more positive

Production ManagerPurchasing Manager

Next Session:Chapter 6: Making and Responding to ProposalsRead pages: 46, 47, 49Read carefully: “Video Negotiating Context”Read carefully: Video Transcript Unit 6Do: Language practice #4, p. 49

Remember: Participation is 34%Any questions????Visit my office anytime:#M615B04-239-0121 – x 3 5329svarela@thu.edu.twOffice Hours: Monday 13:10 – 15:20Thursday 15:20 – 17:10

Business NegotiationsMaking and Responding to Proposals

Proposals & CounterproposalsLast session:Focus was Down-toning Language, Constructive Criticism (managing conflict positively)This session:Reduce the gap between your position and the other side’s positionHow: by making proposals and counter proposalsSkills to learn are:Persuasive proposalsAsserting pressure

Problem: Levin and Okus are Stuck!Level A and Level B Support OffersLevin does not like either optionWhich side should now make a new proposal?Normally the supplier (seller) does this.The buyer has the advantage since they do not have to reveal anything about their position.However, the team that starts the next step sets the direction and range of possibilities.

Video Negotiating ContextLevienFrancoise looking for a solution to the ‘logging’ problemSean: Not happy about ‘logging’. Wants Okus to offer a better solution.Okus ITKaren makes a new proposal to break the deadlock.Andrew assistsCurrent Issue (Deadlocked Negotiations): Support levelsLevel A: Full Support Package (Complete) includes New Projects – Expensive but easy to ManageLevel B: Cheaper, Monthly Invoice includes regular support but no new project work; Projects logged and billed extra …”An open bar tab”

Proposals“NO!”What is the focus: What they can do..or What they cannot do?What should they do?

Make proposals and counter proposalsWe’re out for happy hour and snacks…Who is going to pay the bill?A: Let me pay this timeB: No, that’s not fair, I’m sure it’s my turnA: Why don’t we split it?Group up! 15 Minutes to practice the following Then we summarize each groups negotiation.

Negotiation Proposal & Counter Proposals…#3 It has become necessary to make budget cuts. You could let go two trainees with 6 months training…or you could economize in other ways. What do you cut?#4 Organize an important dinner for influential client. Client has strong religious beliefs…and can not eat/drink certain things. Decide on what kind of dinner to have.#1 The company is going to invest in a major, world class sports team. It is your responsibility to select which sport and which team to invest in.#2 One of you has to relocate to New York City…You don’t know the relocation package…but you have to make a decision now. Which one will go?

***Break***....VA - Cafe Brazillia - The Cream Of Latino Lounge (102 - Panaphonic - Sambastique.mp3

Language FocusMaking Proposals: I propose… I think we should… I suggest… Why don’t we… I advise you to… How/What about…NegativeI’m afraid that’s not possibleI can’t agree to thatThat is out of the questionPositiveGood IdeaThat sounds fineI’ll go along with that

Roleplay

Neutrally: Don’t agree, Don’t DisagreeThat’s true, but….How would that work?How about Sally’s Idea???What would that cost???I understand what you are saying.My ideas was to do it this way.We could do that. That’s possible, but…These may re-direct the conversation back to your ideas.

Next Session:Chapter 7: BargainingRead pages: 52, 53, 54, 56Read carefully: “Video Negotiating Context”Read carefully: Video Transcript Unit 7 Role-play: Group Work (4) Page 50-51 (All Groups) 5 Minute Time Limit

Now, we start to Think in English…Any questions????Visit my office anytime:#M615B04-239-0121 – x 3 5329svarela@thu.edu.twOffice Hours: Monday 13:10 – 15:20Thursday 15:20 – 17:10

Business NegotiationsBARGAINING

BargainingLast session:Focus was Proposals & Counter Proposals to reduce the gap between positions…This session:Keep a positive communication style while finalizing remaining differences.How: Keep the Big Picture in Mind (Objective)Skills to learn are:Conditional language: “If you do something…. then…”Hypothetical language: “ We would be able to give a discount if…”

Problem: Levin is Worried about People!Levin does not want to fire employeesCultural Styles are DifferentSean & Andrew, for example. Think Sharon & ThorAn open mind helps to think positively, accepting new ideas in order to reach an agreement versus: No.Outsourcing: The contractor (Okus) might be the new employer of the staff that workatthe customers offices(Levin)

Video Negotiating ContextLevienFrancoise wants to save her staff’s jobs…Sean: Worried about the Works Council (Employee Union)Okus ITAndrew thinks he is giving up to muchKaren originally planned to only hire two of Levin’s staff.Current Issue:Staffing Okus offers to hire only two of Levin’s Staff: Manager & EngineerRemaining work projects would be done by Levin UK Staff

Bargaining“NO!”What is the focus: What they can do..or What they cannot do?What should they do?

Example Bargaining IssuesDiscount: 2% in 10 Days, 0% 30days.Delivery Time: Now, Fast, Late, Specific DateDelivery Location: Your office, other place, customer paysPayment Method: Credit card, Wire, CashQuality: defect rate, failure rate, customer complaints

Hypothetical Language: More positive, open to suggestions.We could offer you a 2 % discount…if you guaranteed the orders.We could re-paint the office… if you agreed to work this weekend.We could consider a salary increase…if you agreed to move to London.

ConditionalPressure: If…Then.(I’m afraid) we will have to cancel the contract…unless you reduce your fees.We will have to choose another supplier…if you can’t make us a better offer.That looks like the end of the negotiation…unless you can make a concession

Negotiation Practice: BargainingRoleplay: Group Work (4) Page 50-51 (All Groups) 5 Minute Time Limit

For Final Exam: Negotiation Practice, p.59Training Company negotiating with a large company for sales and management training.Customer wants a discount for volume. Two Suppliers & Two Customers5 minute negotiation, prepare written outline only – give to professor prior to role-playMeasurement: Use of Structure & # of times you correctly use Language Focus phrases from all chapters

Next Session: Ch. 8 ConclusionRead: Video Negotiating ContextLanguage Focus Speaking iPractice: #6 p. 65DO: Prepare your Negotiation Outline for the Final Exam & Submit draft to instructor.

Now, we start to use short outlinesAny questions????Visit my office anytime:#M615B04-239-0121 – x 3 5329svarela@thu.edu.twOffice Hours: Monday 13:10 – 15:20Wednesday 15:20 – 17:10

Business NegotiationsNegotiation Conclusion

Conclusion Last session:Focus was Bargaining to add some pressure, continue with positive solutions and offer small concessions (gifts)This session:Conclusions take time…to re-confirm, clarify, organize and document agreed upon items.Think about the future (this is only the beginning)

Challenge: The Ending Sets the RelationshipThe Progress we made duringthe difficult negotiations are still at risk until the contract is signed.Summarizing is Critical to:Re-Confirm Agreed-upon ItemsClarify all open issues (& set at time to resolve)Suggest a pleasant (positive, memorable) departureNote: Culture often sets negotiation styleWin-Win Objectives: everybody benefitsWin-Loose still exists due to competition for resources, profits, politics, cultural preference, etc.

Video Negotiating ContextLevienFrancoise has a dinner engagement, needs to goSean feels he has a great deal, does not see any more critical decisions/issues to solveOkus ITAndrew Keen on getting homeKaren feels there are more issues to solveFinal Issue:Staffing has been decided, but…Their remain questions about exactly which staff will be hired and…What is the amount of the special “Contingency Fund” to be used for special projects

Conclusion“Leaving without a good understanding….”How will this affect the long term relationship?What should they do?

Final Exam Preview:5 Minute Final Negotiation SimulationGoal: Successful Agreement: WIN-WIN & “Mutually Beneficial”StructureIntroductionEstablishing PositionsClarifyingProposals & Counter ProposalsBargainingFinal Agreement & ConclusionClass & Professor will Evaluate (50%/50%)Use of Structure, Language Focus, Effective Listening & Feedback…creative solutions

Chapter 7 – Page 59: Training Services AgreementSuppliers:100 Days / Year PotentialDaily Costs $600 / $500Discounts not CommonWilling to offer 10% for 100 days and 5% for 80 daysCustomers: Want Volume Discount for 100 daysCant guarantee the exact number of daysThink rates should be cut by $100Can pay early for a good discount (15 days)

Resources: Everything is in Your TextLanguage FocusVocabularyExamplesStructure & Outline is KeyVideo TranscriptsSpecific PhrasesCulturally SensitiveUnderstand context & Meaning

FeedbackAny questions????Visit my office anytime:#M615B04-2359-0121 – x 3 5329svarela@thu.edu.twOffice Hours: Monday 13:10 – 15:20Wednesday 15:20 – 17:10

Business Negotiations(FinalExam)Negotiation Simulation

Final Negotiation Simulation Goal: Successful Agreement “Mutually Beneficial”OutlineIntroductionEstablishing PositionsClarifying – Understanding NeedsProposals & Counter ProposalsBargainingFinal Agreement & ConclusionClass & Professor will Evaluate (50%/50%)Use of StructureLanguage FocusEffective Listening & Feedback=> creativesolutions5 Minute MaximumGroup 1-> N1) Class Score Sheet (1 Min)2) Negotiation (5 Mins)3) Complete Sheet (3 Mins)4) Turn-In to Prof. (1 Min)

Next Session: Final ExamGoal: Successful Agreement “Mutually Beneficial”OutlineIntroductionEstablishing PositionsClarifyingProposals & Counter ProposalsBargainingFinal Agreement & ConclusionClass & Professor will Evaluate (50%/50%)Use of Structure, Language Focus, Effective Listening & Feedback…creative solutionsIndividual Grade’sEveryone must SpeakLive Negotiation – No Reading a script, Give your own words/languageGraded based on Score Sheet # Times correct use of language focus & structureVideo Taped.

Negotiation Context - Training Services ContractSuppliers:100 Days / Year PotentialDaily Costs $600 / $500Discounts not CommonWilling to offer 10% for 100 days and 5% for 80 daysCustomers: Want Volume Discount for 100 daysCant guarantee the exact number of daysThink rates should be cut by $100Can pay early for a good discount (15 days)

Break

Congratulations…you are 50% there!Next Semester:Effective Presentations by Jeremy ComfortMore focus on:Your Language Use – (Language Focus)Your Volume and Image on StagePersuasion SkillsOrganization & PowerPointReading Assignment:Chapter 1 & 2 – Video Transcript & NegotiationGroups 1 & 2 -- do First Question of Chapter & PresentWriting Assignment:Make one sentence using the Language focus phrases from each Chapter in the Effective Presentations textbook – Turn in to Prof.

Your comments please… Please Return Evaluations….....The Office - Salary Negotiation Vol 2.flvThey help me learn to make better courses…

Final ThoughtWhat one thing can you do… to learn better next semester? Write it down & look at it again on next semester.Lecture Power Points: www.slideshare.net/laoshi_steve

That’s All Folks!

www.docstoc.com