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Successful Negotiations
Useful Language
BEP 401 – Negotiation Strategy (Part 1)
Overemphasis on sth. / to overemphasize sth.
! 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.
Bargaining chip
! 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!
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.
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.
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.
Concession, compromise, agreement
! 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.
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BEP 402 – Negotiation Strategy (Part 2)
Parties and decision makers
! 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.
Interests: Where someone is coming from
! 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.
Synergy
! 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.
To think outside the box
! 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.
Overcoming blockage: Removing barriers, obstacles and impediments
! 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.
To be a blessing or a curse
! 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.
Business ethics: Potential value
! 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.
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Successful Negotiations
BEP 403 – Building Relationships
Starting off on the right foot
! 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.
Explore each other’s needs with a you-attitude ! 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?
Establishing common interests
! 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?
Emphasizing solidarity
! 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.
Joining forces
! 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.
Suggest 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.
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BEP 404 – Getting Started
Goodwill
! I feel sure that you share our desire to find a solution.
! We are committed to being your partner in developing long-term, mutual value.
! We are dedicated to building a lasting relationship. ! We really look forward to working with you.
Starting off
! May I begin by saying that we have looked at your quotation very closely. ! First of all let me give you some background on our proposal.
! We understand that you are looking for a solution to this problem.
Suggesting an Agenda
! We have three main issues we’d like discuss with you today.
! I was thinking we could start by discussing the details of the order, then moving on to price.
Setting ground rules
! Before we go on, could we agree on procedure? ! Why don’t we break after an hour for lunch?
! Please feel free to interrupt me at any time if you have any questions.
Clarifying
! What exactly do you mean by that?
! If I understand correctly, you’re saying that production costs will be much higher than expected.
! Right. So I think what you’re saying is you are not prepared to offer a higher discount unless we increase our order, is that right?
! Can you perhaps go into a little more detail on that?
! Before we discuss this point I’d like to be sure about your position on exclusivity.
Probing
! Could you tell us more about your product’s special features.
! Could you go into more detail about your standard delivery terms. ! What kind of special offers do you have?
! Wouldn’t it be possible to ship the goods through South Africa? ! Have you got an example of this?
! I can’t see how your position ties up with the rising raw material prices.
Exploring possibilities
! I would like to explore a number of options with you. ! There are a number of ways to look at this.
! I think there are a number of possibilities we’d suggest looking at. ! I’m sure we can find some common ground.
Being non-committal
! Hmm… I’d need to think about that. ! That could be a possibility.
! That might be worth trying.
! That depends… can you tell me more?
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Successful Negotiations
BEP 404 – Clarifying and Evaluating Positions
Stating your position - strong
! Frankly, I must say that we have to be very firm on this point. ! We have to insist on our point of view.
Stating your position - careful
! At first sight, this appears to be an untenable position for us.
! It seems to me that this is an area where it would be very helpful for you to make a concession.
! I would not like you to think that we are being inflexible.
Clarifying positions
! If I understand the position correctly, you are looking for better credit terms, am I correct?
! As we see it, this is the position at the moment: ! How do you see our objectives?
! Can I just summarize our positions as I see them?
Giving supporting reasons
! Let me explain why we have reached this conclusion, ! I also have to take into account many other factors. ! There are several aspects to this situation.
! I’d just like to briefly run through seven points that explain our position on this.
Evaluating positions - positive
! Despite a couple points of minor disagreement, the arrangement under discussion obviously has a lot to offer both sides.
! Though there are still a couple of loose ends to tie up, we feel overwhelmingly positive about the compromise that we’ve reached.
! This is a good offer – no doubt about it.
Evaluating positions - negative
! Honestly, this offer leaves a lot to be desired, in our point of view.
! We’ve looked at the figures closely, and I can’t say that we currently have a very high appraisal of this deal.
! At this point, I think it’s really tough to see where the value is for our side.
! 2009 All rights reserved: www.businessenglishpod.com 104
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