Lecture Slides for student access and assignment reference from Business Negotiations , Tunghai University, Taichung, Taiwan by SAV

1. Steve Varela Professor of International Business © 2009 – All Rights Reserved Effective Negotiations

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

3. Business English Negotiations Welcome Instructor Index Card: Number + English_Name + Email Personal Info, work experience, academic focus, goals for this course, travel/overseas experience, sales and/or negotiation experience. Individual Student Introductions Today’s Agenda: Preview of Course Pair’s and Group’s Question of the day Chapter 1 Textbook: Effective Negotiations by Jeremy Comfort, Oxford University Press , 2007

4. Syllabus

5. 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

6. Course Preview: A Chapter Every Two Sessions Preparing 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)

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

8. Evaluation Criteria Activity Based Learning…Participation is key to Success! 34% of final Grade depends on Class Participation Midterm Essay or Simulation (Chapter 4) 33% of Final Grade 6-8 Sentences or 5 minutes Final Exam – Negotiation Simulation 5 Minutes Video Taped / Analysis 33%

9. 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…

10. Questions???

11. *****Session 2****

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

13. Preparing the Ground A negotiation is a meeting in which both parties need each other’s agreement to reach a specific objective. Various Types of Negotiations Internal / External Long / Short Formal / Informal What is your Goal?

14. Video Negotiating Context: Preparing the Ground Okus IT Andrew is the Export Sales Manager, He made the initial contact and knows Sean Karen is the project manager. She made the contract specifications and this is her first international negotiation. She is anxious. Levien Francoise 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 policy Situation: Andrew and Karen have arrived at Levin’s Brussels office to meet Françoise and Sean

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

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

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

18. 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 decisions ii I Consider human angle first i Friendship not important if good job at work ii Important to like people I work with

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

20. What’s your score? 6-10 Points = Task-Oriented 4-5 Points = Balanced 0-3 Points = People – Oriented Neither is better Lets us know who we are and what to plan for.

21. Language Focus Formal Welcoming On behalf of… I’m very glad to welcome you It’s a pleasure to see you here Introductions This is…He’s in Charge of… He’s responsible for... He is our President/Director In-Formal Welcome to Thank you for coming It’s nice to be here Let me introduce you to… Have you met…?

22. Language Focus, (p.11) Formal In-Formal How are you? Great to see you again! Starting the Negotiation I was wondering if I could start by saying….. Were short of time, so lets get started We’ve got a very full agenda, so perhaps we’d batter get down to business. Greetings How do you do Nice to Meet You Small Talk Did you have a good trip? How was your flight Is this your first visit to…

24. Negotiation Checklist Objectives Strategies Roles Communications

25. Questions??? Prepare for Negotiation #1…

26. Negotiation #1 (p.13) Group up…work in pairs (2) Use checklist to prepare and then negotiate the sale/purchase of the car 15 minutes.

27. Group Work 1: Negotiation 1 Two want a ban on smoking Two want free smoking Use Checklist and Negotiate Be prepared to discuss what happened to the class. 15 minutes.

28. For next Session… Chapter 2: Setting the Agenda Read: 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. 20 Review: Negotiating Practice, Negotiation #1, p.22 Group 2 does Q1 “Chapter Introduction Chapter”

29. Feedback Any questions???? Visit my office anytime: #M615B OR email.

30. Welcome Back! Chapter 2: Setting the Agenda

31. Question of the Chapter Chapter2 Present the Answer/Commentary to the First question of the Chapter (2). …Group2.

32. Setting the Agenda Some basic negotiations have only one point of discussion Others 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.

33. Video Negotiating Context: Agenda Okus IT Andrew ready to present opening presentation Karen expects Francoise to set the agenda Levien Francoise worried about protecting her staff’s jobs Sean: wants to establish a clear and strong negotiating position Main Issues (aspects): Who is in control,who is Chairing here???

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

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

36. Chapter 2: Setting the Agenda Culture and Tactics Work in Pair’s Read “Universalist” or “Particularistic” Where do you fit? More Univ. or Part.? What are advantages of each? Universalistic One correct way Follow same procedure always Particularistic Adapt to each situation Process is customized

37. What are the Advantages and Disadvantages of each? Particularistic Universalistic

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

39. Your Working/Studying Culture Experience Universalistic At your job/school, which style is commonly used? Examples??? Particularistic

40. Break …

41. Language Focus Objectives Were here today to… The main objective/purpose of today’s.. Were looking to achieve Agenda We’ve drawn up an agenda Lets just run through the agenda There are a number of items on the agenda I’d like to take that first We’ve put that Last

42. Timing That gives us two hours It will take two hours It won’t be long I 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 presentation Procedure We’ll deal with that ….last/first/tomorrow We’ll go round the table We’ll have a question and answer at the end We can table that for discussion later

43. 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 talk Use tips from Language Focus for your vocabulary 15 Minutes to prepare.

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

45. Presentations…. Group 1-X 2 Minute maximum time Introduction only

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

47. Feedback Any questions???? Visit my office anytime or email: #M615B Office Hours: Monday 13:10 – 15:20 Wednesday 15:20 – 17:10

48. Session 4 Setting the Agenda II

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

50. Negotiation Simulation Negotiating Practice, P. 22, Negotiation # 1 2 Buyers: Toy manufacturer 2 Sellers: Training consultants Be prepared to present your introduction to class with Gusto! 2 minute maximum *Only the introduction, not a full negotiation

51. *****Break*****

52. Introduction Simulation Negotiating Practice, Page 22, # 1 or 2 2 Buyers 2 Sellers Negotiate in Pairs for 30 Minutes Take notes as to what happened and when Be prepared to present your results to class Ex.Introduction Structure Names Purpose Roles Logistics Timing Proposal Issue Resolution

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

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

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

56. For next session… Chapter 3: Establishing Positions Read: Pages 24, 25, 27, 28& 29 Read: Unit 3 Video Transcripts Review Culture and Tactics Styles Individualist & Collectivist Do p. 25-26-27 #’s 1, 2 &3 Review/Practice Language Focus Group 3: Present your Chapter Question before class starts

57. Establishing Positions

58. Today’s Agenda: Establishing Positions Dilemma of Positions Positive and Open vs. Room to Bargain later Hold Backpermits a discussion ( & creativity) Goal: Find out what they think about your offer Through Effective Feedback & listening Culture and Tactics: Direct vs. Indirect Language Focus: Vocabulary tips

59. Video Negotiating Context Okus IT Andrew presents key aspects Karen Assists Levien Francoise expects key aspects Sean: Chicago waiting for staffing info. Main Issues (aspects): Staffing levels: Take all Levin IT Staff? Support levels Level A: Full Support and New Projects Level B: Full Support, Projects Cost Extra

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

61. 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 phrase Write you Name & Answers on paper, give to instructor – we will review a few in class. 15 Minutes.

62. Culture and Tactics Direct Communication Say what you think Few words Practical, efficient Indirect Communication Concern about feelings Damage relationship Save face / time to think & respond Andrew frustrates Sean (too slow to get tothe point) “I’m interested to know what your position on our staff is?”

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

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

65. 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 often Practice and then change roles Negotiating Practice, p.29 Group Work 2 Groups choose a topic Prepare presentation to sell your product (5 mins.) Invite feedback from other group members Class asks questions

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

67. Establishing Positions IISession 6

68. SessionAgenda Speaking Practice p.28 Work 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.29 Work 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.

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

70. Questions? Stop by office Email Office Hours: Monday 1:10 – 3:20 PM Office Hours: Thursday 3:00 – 5:00 PM

71. Clarifying Positions

72. Clarifying Your Position’s Last session: Focus was Presenting your position and Interactive Communication using Questions This session: Focus is on Clarifying: making sure we really understand each other Skills to understand are: Good Listening Effective Questioning

73. The Problem Most of us do not communicate very well… We start with our own ideas We wait for time to tell our ideas We 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.

74. Video Negotiating Context Okus IT Karen clarifies the details of Okus’ offer Andrew assists Levien Francoise is worried about extra project fee’s Sean: Concerned about level of support from Okus. Main Issue (aspect): Support levels Level 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

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

76. Culture: Individualist vs. Collectivist Group up! Decide weather our group is more Individualist or Collectivist 10 Minutes… Then, Group X will give feedback to the class.

77. Language Knowledge General Questions I’d be interested to know more about… Could you tell me something about What exactly do you mean by… Could you be more specific Confirming phrases So you are saying If I understand you correctly… Is that clear? Does that explain it?

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

79. Next: Speaking Practice (p.35) BUYER Negotiate a Contract for the Catering and Entertainment for a Corporate Office Party Explain the details (above) and then listen to the offer that Celebration Nights makes. SELLER You 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 offer Practice using Active Listening and a variety of question types to show interest and get full details and understanding. Pairs 5 min. each.

80. 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.

81. For next session: Negotiating Practice Pair Work, p. 36 Form 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 situations Each 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.

82. For next session: Midterm Review Concepts from Chapter’s 3 & 4 What is a position Best way to get feedback Effective questioning Active Listening Establishing your position 10 Questions, Multiple Choice 1 Essay question: What is the purpose of a Negotiation Introduction? 5-8 Sentences.

83. Feedback Was anything unclear? Fuzzy? Office Hours: Monday 1:00-3:00PM Thursday 3:00 – 5:00 PM Stop by my office: M615B or Email Or, write it down and leave it at the desk… …I will address it next time we meet.

84. Clarifying Positions, Part II

85. Agenda Speaking Practice: Page 35 Negotiating Practice: Page 36 Midterm Review (time permitting)

86. Speaking Practice (p.35) SELLER You 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 offer Confirm throughout your talk BUYER Negotiate Contract for the Catering and Entertainment for an Office Party. Explain the details (above), then listen to the offer that Celebration Nights makes Check for understanding throughout Practice using Active Listening and a variety of question types to show interest and get full details and understanding. Pairs 2.5 min each.

87. ***Break***

88. Negotiating Practice Two People (Pair Work, P. 36) Each student should present initially and the other student should (1) listen, (2) understand, (3) clarify, and then (4) summarize You are graded on the number of clarifications youmake 2.5 Minutes each, 5 minutes per pair – In class. No exceptions.

89. Next Session: Midterm Review (Ch. 1-4) Review Carefully Opening “Objectives” for each Chapter Prepare questions on any terms you don’t understand Review: Negotiation Introduction: ”Setting the Agenda” Ch 2 & Page 71. Fully understand why we have this structure (organization) Review: Establishing Positions Understand what your position is and your opponents Effective 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

90. Midterm Review What 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)

91. 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

92. Feedback Was anything unclear? Fuzzy? Office Hours: Monday 1:00-3:00PM Wednesday 3:00 – 5:00 PM Stop by my office: M615B or Email Or, write it down and leave it at the desk… …I will address it next time we meet.

93. Chapter 5: Managing Conflict After the mid-term Exam Review Video Context Review Video Transcripts Unit 5 For the next class meeting: Plan for Negotiating Practice No. 1 Plan for Speaking Practice No. 6

94. Managing Conflict*****Session 10****

95. Today’s Agenda: Managing Conflict This is the “Heart” of The Art of Negotiation Cross-cultural negotiations fail due to misunderstandings Due to our Inability to constructively criticize( > less personal) Goal: How to give and receive positive criticism One Tactic: softer language use Language Focus: Modified Vocabulary

96. Conflict Advantages Can be a driving force to get the job done. Shows us the differences that need to be resolved. Disadvantages Can be destructive to the relationship Increases Stress Criticism 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.

97. Video Negotiating Context Okus IT Andrew (sales manager) thinks his position is under threat Karen ‘feels’ frustrated with Sean and Andrew Levien Francoise wants a positive atmosphere Sean 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 Included Level B: Projects cost extra, open for abuse

99. Sean adapts, downtones his remarks but,

100. Confronts the issue, does not avoid sticky issues.Okus, Levin & Trust Breakdown in Trust arises because the definition of: Project Work ($$$) Support Work (included) Is not clear, easy to understand. How do they do it: Logging -

101. How We Feel About Conflict AGREE --------------------------------------DISAGREE Even 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.

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

103. Language Focus: “creating options”

104. Modify the following remarks… p. 42 We must cut the advertising budget We could perhaps cut the advertising budget You need to analyze your costs in more detail You might check your costs in a bit more detail Look at page 32 of the document May I suggest you take a look at page 32? Intonation: Pitch up, cooperative Down = serious/negative

105. Modify the following… This is the worst food I’ve ever tasted This is not the best food I’ve ever tasted Don’t be so late for class Could you be early for class? Your quotation is much too expensive Your quotation is a bit too expensive Your quotation is not as we hoped Intonation: Pitch up, cooperative, Down = serious/negative

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

107. And, Conflict Negotiation : Speaking Practice #6 (p.43) Student A Manager: Production Have large quantity of extra components (parts) to make your product Why are you paying for storage you don’t need? Customer cancelled and you don’t need these extra parts Student B Manager: Purchasing You order parts based on production schedule You 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

108. Next Session: We review your two exercises. Remember you must work outside of class Write your answers down and either: Record your voice for #5 or Role-play live in class See me if you have any questions.

109. Managing ConflictDowntoningYour Language

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

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

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

113. Production Manager Purchasing Manager

114. Internal Negotiation – Personnel Problem Roles: Commercial Director Marketing Manager Human Resources Director Sales Manager Public Relations Manager Female staffer is complaining that she was discriminated against for a department promotion. Goal: Avoid legal suit, decide on alternative solution to make everybody happy P. 44, group work (5 people)

115. Next Session: Chapter 6: Making and Responding to Proposals Read pages: 46, 47, 49 Read carefully: “Video Negotiating Context” Read carefully: Video Transcript Unit 6 Do: Pair Work, #7, p. 47, 3 minute limit

116. Remember: Participation is 34% Any questions???? Visit my office anytime: #M615B email Office Hours: Monday 13:10 – 15:20 Thursday 15:20 – 17:10

117. Business Negotiations Making and Responding to Proposals

118. Proposals & Counterproposals Last session: Focus was Down-toning Language, Constructive Criticism (managing conflict positively) This session: Reduce the gap between your position and the other side’s position How: by making proposals and counter proposals Skills to learn are: Persuasive proposals Asserting pressure 

119. Problem: Levin and Okus are Stuck! Level A and Level B Support Offers Levin does not like either option Which 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.

120. Video Negotiating Context Levien Francoise looking for a solution to the ‘logging’ problem Sean: Not happy about ‘logging’. Wants Okus to offer a better solution. Okus IT Karen makes a new proposal to break the deadlock. Andrew assists Current Issue (Deadlocked Negotiations): Support levels Level A: Full Support Package (Complete) includes New Projects – Expensive but easy to Manage Level B: Cheaper, Monthly Invoice includes regular support but no new project work; Projects logged and billed extra …”An open bar tab”

121. Proposals “Win-Loose Style of Sean” EN Chapter 6 Version 1.avi Does Sean let Okus explain their proposal? EN Chapter 6 Version 2.avi Focus on exchange between Francois and Karen – solution oriented

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

123. Negotiation Proposal & Counter Proposals…(p.47) #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? Follow the problem solving model of Karen & Francois, p. 93 transcript.

124. ***Break*** ...A - Cafe Brazillia - The Cream Of Latino Lounge (02 - Panaphonic - Sambastique.mp3

125. Language Focus Making Proposals: I propose… I think we should… I suggest… Why don’t we… I advise you to… How/What about… Negative I’m afraid that’s not possible I can’t agree to that That is out of the question Positive Good Idea That sounds fine I’ll go along with that

126. Roleplay

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

128. Next Session: Chapter 7: Bargaining Read pages: 52, 53, 54, 56 Do p. 56 #4 & p. 57 # 5. Read carefully: “Video Negotiating Context” Read carefully: Video Transcript Unit 7 Role-play: Group Work (4) Page 50-51 (All Groups) 5 Minute Time Limit Full Cumulative Grading (Chapter’s 1-6)

129. Now, we start to Think in English… Any questions???? Visit my office anytime: #M615B Office Hours: Monday 13:10 – 15:20 Thursday 15:20 – 17:10

130. Business Negotiations BARGAINING

131. Bargaining Last 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…”

132. Problem: Levin is Worried about People! Levin does not want to fire employees Cultural Styles are Different Sean & Andrew, for example. Think Sharon & Thor An 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 work at the customers offices(Levin)

133. Video Negotiating Context Levien Francoise wants to save her staff’s jobs… Sean: Worried about the Works Council (Employee Union) Okus IT Andrew thinks he is giving up to much Karen originally planned to only hire two of Levin’s staff. Current Issue: Staffing Okus offers to hire only two of Levin’s Staff: Manager & Engineer Remaining work projects would be done by Okus UK Staff

134. Bargaining “NO!” What is the focus under pressure: What they can do..or What they cannot do? What should they do? Version1: EN Chapter 7 Version 1.avi Version2: EN Chapter 7 Version 2.avi

135. Example Bargaining Issues Discount: 2% in 10 Days, 0% 30days. Delivery Time: Now, Fast, Late, Specific Date Delivery Location: Your office, other place, customer pays Payment Method: Credit card, Wire, Cash Quality: defect rate, failure rate, customer complaints

136. 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.

137. 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

138. Exercises P. 56, No 4 Use the ideas to make offers and attach conditions. Offer; Extend the contract Condition: 1% Discount We could extend your contract as long as you offered us a 1% discount. P. 57, No 5 Complete the dialogue using expressions from Language Focus (p. 56). We seem to have reached a stalemate. Were not going to progress _________ you can make us a better offer.

139. Negotiation Practice: Bargaining Roleplay: Group Work (4) Page 50-51 (All Groups) 5 Minute Time Limit

141. City Council Community Group

142. For Final Exam: Negotiation Practice, p.59 Training Company negotiating with a large company for sales and management training. Customer wants a discount for volume. Two Suppliers & Two Customers 5 minute negotiation, prepare written outline only – give to professor prior to role-play Measurement: Use of Structure &# of times you correctly use Language Focus phrases from all chapters

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

144. Now, we start to use short outlines Any questions???? Visit my office anytime: Or Email Office Hours: Monday 13:10 – 15:20 Thursday 15:20 – 17:10

145. Business Negotiations Negotiation Conclusion

146. 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)

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

148. Video Negotiating Context Levien Francoise has a dinner engagement, needs to go Sean feels he has a great deal, does not see any more critical decisions/issues to solve Okus IT Andrew Keen on getting home Karen feels there are more issues to solve Final 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

149. Conclusion EN Chapter 8 Version 1.avi #1 Focus on Francois, whatdoesshe do? Worry about? #2 Focus on Karen and Andrew, are theyworking as a team? EN Chapter 8 Version 2.avi #1 Focus on Francois: Make a list of the wayssheendsdifferently. #2 Videostop’sreview. Summarizes » So we have agreed an initial 1 yrcontract Agrees on Action: Wewillmeetagainhere to interview Apologizes for having to leavequickly “Leaving without a good understanding….” How will this affect the long term relationship? What should they do?

150. Language focus exercises. Complete the concluding phrases…(p. 64) Let me just_____ the main points. I think that just about ____ it. It ___ say how much we appreciate your contribution. Does that accurately ____ what we agreed during the meeting? Could you _____me a written proposal before the next meeting? I ____we meet later in the week. As ____ payment ___, there are still some _____ issues to resolve.

151. Language focus exercises. Discuss the following tactics Which do you agree with and why? What other advice would you give…(p. 62) Never negotiate a single issue. Always bargain from a position of strength. Don’t let your negotiation partners feel too comfortable. Identify and reinforce the weak points in their argument. Never show your real feelings. Keep your strongest cards up your sleeves.

152. Final Exam Preview:5 Minute Final Negotiation Simulation Goal: Successful Agreement: WIN-WIN & “Mutually Beneficial” Structure Introduction Establishing Positions Clarifying Proposals & Counter Proposals Bargaining Final Agreement & Conclusion Class & Professor will Evaluate (50%/50%) Use of Structure, Language Focus, Effective Listening & Feedback…creative solutions

153. Negotiation Outline Chapter 1 Preparation (p.68) Objectives of the negotiation Best & Worst Case, Bottom Line Strategies: Best order to discuss issues Likely “Stick Points (problems)” Concessions (advance preparation) What do we know about the other team Introduction (p.69) Names, Roles, Titles (special knowledge/skills) Purpose of Meeting/Negotiation Chair of the meeting, Minute (note) taker Questions (how to manage)

154. Outline Agenda (p.71) How to Start/Finish How long to meet? Meal arrangements (lunch and/or dinner) Travel needs (hotel, airline confirmation, taxi) Agenda items Topic 1 Topic 2 … www.slideshare.net Tunghai Negotiation Checklist

155. Chapter 7 – Page 59: Training Services Agreement Suppliers: 100 Days / Year Potential Daily Costs $600 / $500 Discounts not Common Willing to offer 10% for 100 days and 5% for 80 days Customers: Want Volume Discount for 100 days Cant guarantee the exact number of days Think rates should be cut by $100 Can pay early for a good discount (15 days)

156. Resources: Everything is in Your Text Language Focus Vocabulary Examples Structure & Outline is Key Video Transcripts Specific Phrases Culturally Sensitive Understand context & Meaning

158. Ending… At the end of a meeting we often make a remark about the meeting…(p. 64) “That was a very positive start. I look forward to our next meeting” This meeting was extremely fruitful… Today’s negotiation was very useful… So to end our class…. Today’s class________ (stimulant). Todays class ________ (help)

159. Feedback Any questions???? Visit my office anytime: #M615B email Office Hours: Monday 13:10 – 15:20 Thursday 15:20 – 17:10

160. Questions?

161. Business Negotiations (FinalExam) Negotiation Simulation

162. Final Negotiation Simulation Goal: Successful Agreement “Mutually Beneficial” Outline Introduction Establishing Positions Clarifying – Understanding Needs Proposals & Counter Proposals Bargaining Final Agreement & Conclusion Class & Professor will Evaluate (50%/50%) Use of Structure Language Focus Effective Listening & Feedback =>creativesolutions 5 Minute Maximum Group X-> N 1) Class Score Sheet (1 Min) 2) Negotiation (5 Mins) 3) Complete Sheet (3 Mins) 4) Turn-In to Prof. (1 Min)

163. Next Session: Final Exam Goal: Successful Agreement “Mutually Beneficial” Outline Introduction Establishing Positions Clarifying Proposals & Counter Proposals Bargaining Final Agreement & Conclusion Class & Professor will Evaluate (50%/50%) Use of Structure, Language Focus, Effective Listening & Feedback…creative solutions Individual Grade’s Everyone must Speak Live Negotiation – No Reading a script, Give your own words/language Graded based on Score Sheet # Times correct use of language focus & structure Video Taped.

164. Negotiation Context - Training Services Contract Suppliers: 100 Days / Year Potential Daily Costs $600 management / $500 sales Discounts not Common Willing to offer 10% for 100 days and 5% for 80 days Customers: Want Volume Discount for 100 days Cant guarantee the exact number of days Think rates should be cut by $100 Can pay early for a good discount (15 days instead of 30 or 60 days)

165. Break

166. Congratulations…you are 50% there! Next Semester: Effective Presentations by Jeremy Comfort More focus on: Your Language Use – (Language Focus) Your Volume and Image on Stage Persuasion Skills Organization & PowerPoint Reading Assignment: Chapter 1 & 2 – Video Transcript & Negotiation Groups 1 & 2 -- do First Question of Chapter & Present Writing Assignment: Make one sentence using the Language focus phrases from each Chapter in the Effective Presentations textbook – Turn in to Prof.

167. Your comments please… Please Return Evaluations…. ...he Office - Salary Negotiation Vol 2.flv They help me learn to make better courses…

168. Final Thought What 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

169. That’s All Folks!

170. www.docstoc.com