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DIALOGUE. AT THE COMPANY OFFICE

Mr. Klimenko is at the office of Continental Equipment. He is having an appointment with the managers of this company.

- Good morning, gentlemen! How are you?

- Fine, thanks. And how are you getting on?

- Very well, thank you.

- Let me tell you about our company. As you know, Mr. Klimenko, we produce processing equipment. Our firm consists of 6 departments: Production, Sales, Export, Financial, Personnel and Research & Development. The last one is the newest at the company. It was created five years ago... We are managed by the Meeting of Shareholders and the Board of Directors. Earlier the Chairman of the Company was one of the senior partners, but now it is Mr. Rogers, as you know. Currently we employ about 1600 people. Our turnover is more than $300 million.

- You will work with our Export Department. We export our equipment to 5 cou-tries. We also have two subsidiary companies in Holland and Germany with headquarters in those countries.

- Are they your subsidiaries or branches?

- They are our subsidiaries. Each company trades under its own name. We are looking for new partners in Eastern Europe as well, as we would like to expand our activities. That's why Mr. Cartwright went to Kyiv to establish personal contacts with your company. Have you read all our correspondence with your Director?

- Yes, I think so. We investigated your business proposal thoroughly.

- Have you got our price-lists and catalogues with you now or shall I ask Miss Elliot to bring a copy?

- Thank you, but 1 have them with me as well as copies of your letters. I expect to make the Draft Contract here, maybe by the end of this week, and to conclude the Contract with you after discussing it with my Director by phone.

- All right. Let us get down to business. Today and tomorrow we were going to talk about terms of payment and delivery.

- Right. And the day after tomorrow we'll be talking about packing and transportation.

- Then I plan to go to London, for three days. As you know, there will be an exhibition. Will you join me?

- Yes, with pleasure. It would be very helpful for the purpose of my visit.

- I hope so. And after that you'll have enough time for a visit to our factory and to go sight-seeing.

- That suits me fine. I expect to submit the Draft contract to my Director by fax not later than next Wednesday.

III. Post-reading stage:

3. Translate the following word-combinations:

To produce processing equipment To be managed by the meeting of shareholders The board of directors The senior partners To talk about packing and transportation To submit the Draft contract to smb by fax To expand activities To establish personal contacts To investigate smb's business proposal To make the Draft Contract To talk about terms of payment and delivery The purpose of smb's visit

4. Complete the sentences as in the text:

1. As you know, we produce ....

2. Our firm consists of 6 departments: Production, Sales ....

3. We are managed by ... .

4. Our turnover is more than ....

5. We have two subsidiary companies in ... .

6. We are looking for new partners in ....

7.1 expect to make the Draft contract by ... .

8. Today and tomorrow we were going to talk about....

9.And the day after tomorrow we'll be talking about....

10. I expect to submit the ... to my... by fax not later than ....

5. Answer the following questions:

1. What does the company produce?

2. What departments does the company consist of?

3. Who is the Chairman of the Company?

4. In what countries do they have subsidiary companies?

5. When do they plan to make the Draft contract?

IV. Practice Drills:

1. , .

, .

1. How many departments are there at the company?

2. How many managers work at the company?

3. What is in your opinion the most important department?

4. Are there any overseas branches?

 

2. ' :

Planning Directing

Organizing Controlling

Staffing

쳺? , .

General education Punctuality

Flexibility Foreign languages

Communication skill Ability to make decisions

Motivation to work Fantasy

Can cope under the pressure

3. Use this chart for describing the structure of a typical company.

Organization chart: Rossomon Company

 

UNIT 2.4. NEGOTIATIONS

(ij . . ,

, )

: . ij . . . .

:

- , , ' ;

. , .

. Pre-reading stage:

-1) Have you ever negotiated?

2) What phrases are used at the negotiating table?

1. Read and translate the following words and word-combinations:

1. to resolve conflicts -

2. to handle differences -

3. to come to an agreement -

4. a bargain - ; to bargain -

5. achievable - ,

6. reasonable -

7. to express thoughts verbally -

8. listening skills -

9. integrity -

10. to persuade somebody -

11. patience -

12. decisiveness -

II. While-reading stage:

Read and translate the text.

AT THE NEGOTIATING TABLE

Negotiation is an essential part of the every-day business life. It is the process for resolving conflict between two or more parties to achieve an acceptable compromise. Negotiations take place to handle differences or conflicts of:

Interests (wages, hours, work conditions, prices).

Rights (different interpretations of an agreement).

The aim of a negotiation is to come to an agreement that is acceptable to both sides. There are four main stages of, negotiations:

1. preparing objectives, information, strategy

2. discussing (argue)

3. propose and bargain

4. close and agree.

The objectives are classified as follows:

Like - ideal

Intend - achievable

Must - real.

80 % of the negotiating time is spent arguing. There are two kinds of arguing:

reasonable and constructive - debates, discussions;

unreasonable and destructive - emotional quarrels.

A negotiator should be constructive in arguments and try to get information by asking open questions. It is important to state only ideals at first.

Another very important point of negotiations is proposing and bargaining. Proposals should be realistic.

The final step is closing and agreeing. The aim of closing is to get the opposition to stop bargaining and to make an agreement. The final thing to do is to write down the agreement and agree what is written down.

To be an effective negotiator one should have such characteristics as:

preparation and planning skills;

knowledge of the subject matter being negotiated;

ability to think dearly under pressure;

ability to express thoughts verbally;

listening skills;

judgement and general intelligence;

integrity;

ability to persuade others;

patience;

decisiveness.

In order to be a success at the negotiating table, one should have negotiation skills as well as atheoretical knowledge. But without a practical experience it is hard to negotiate effectively.

III. Post-reading stage:

3. Give the Ukrainian equivalents to the following words and word-combinations:

I An essential part Preparing objectives To get information

Resolving conflict Arguing To ask open

questions

An acceptable compromise Propose and bargain To state ideals

To handle differences Negotiating time The final step

Work conditions Debates To make an

agreement

To be acceptable Emotional quarrels An effective

negotiation

4. Answer the following questions:

1. Whatis negotiation?

2. What is the aim of negotiation?

3. What are the main stages of negotiation?

4. What characteristics are necessary to be an effective negotiator?

5. Read and learn the negotiating expressions:

To make a deal
To sign a contract
To meet a deadline
To reach an agreement
To resolve one's differences
To propose a solution
To consider a proposal
To reject an idea

6. Translate the following sentences into Ukrainian:

1. May Isuggest that we table this discussion until tomorrow?

2. We must figure a way to resolve our differences.

3. Let's consider this new proposal.

4. Can wereach an agreement in time to meet the deadline? 5.1 do not know if this will solve our problems.

6. The president will reject any opposing ideas.

7. Perhaps you can propose a solution to this problem.

8. Let's make a deal!

7. Read and learn the verbs of negotiation:

1. to suggest -

2. to recommend -

3. to propose -

4. to offer -

5. to bargain - ,

6. to compromise -

7. tosettle -

8. to resolve -

8. Translate the following sentences into Ukrainian:

1.1 would like to recommend a 10 percent pay cut. 2.1 propose a $104 per share tender offer on this stock. 3.1 suggest we redesign the equipment. 4.1 am offering a 6 percent commission on the sale.

5. We need to bargain with our competitors and make a deal.

6. Let's settle our disagreements before progressing further.

7. Can we compromise here? give a little, you give a little; maybe wecan reach an agreement.

8. We need to resolve our problems first, then we can talk about contracts.

9. Read and learn the sentences with conceding, downplaying, and exploring other possibilities:

I see your point. .
I'll go along with that. , .
I'll buy that. .
This is a minor point. .
This is of little (no) importance. .
Only (or just). .
What would happen if ...? , ...?
Is it possible that...? , ... ?
Do you have any other ideas? ?
Perhaps (maybe). .

10. Translate the sentences into Ukrainian:

1. The cost is of little importance if we can't sell the product.

2. The design is a minor point here; what matters is how much it costs.

3. It's only a design; it's a nice feature, but it's not the most important thing.

4. It's just another software program among thousands; why is it so special?

5. What would happen if our company bought fewer machines at a higher price? Would that work for you?

6. Is it possible to redesign the software for us?

7. Do you have any other ideas about solving this problem?

8. Perhaps you need to give this some additional thought before deciding

11. Give the equivalent verb for :

concession offer

proposal settlement

agreement negotiation

suggestion

12. Match the expressions on the left with those on the right that have a similar meaning:

1. I'll buy that a) a bargain
2. A minor point b) worry
3. Maybe c) perhaps
4. To settle d) I agree
5. A good price e) Reassurance
6. To propose f) Nevertheless
7. No cause for concern g) To suggest
8. In any case h) To resolve
9. Concern i) Of little importance

13. Write sentences using the following expressions:

1. make a deal

2. reach a compromise

3. reject an idea (or point of view)

4. propose a solution

5. make a concession

DIALOGUE 1 I. Pre-reading stage:

1) What do sides usually consider during the negotiations?

2) What is Letterof Credit?

/. Study the following words and word combinations:

1. on the whole -

2. condition -

3. competitive -

4. somewhat high -

5. per cent -

6. to increase -

7. to give a discount -

8. to settle a problem -

9. parcel - (, )

10. a lot - ()

11. remaining - ,

12. as regards - ,

13. shipping documents -

14. aletter of credit

II. While-reading stage:

2. Read and translate the dialogue.

DISCUSSING A CONTRACT

The export department of Goldman & Co. sent their offer of compressors. When Mr. Bunin came back from Edinburgh, he and Mr. Zotov considered the prices, the terms of payment and delivery and the technical information of the offer. They found that their compressors were the latest design. So Bunin decided to meet Mr. Lipman again to discuss the offer.

Bunin: Good afternoon, Mr. Lipman.

Lipman: Good afternoon, Mr. Bunin. Will you take a seat? Have a cigarette, please.

Bunin: Thank you.

Lipman: Did you enjoy your trip to Edinburgh?

Bunin: Yes, it was pleasant, indeed. I also had a good opportunity to contact businessmen of different British companies.

Lipman: I see. Now, Mr. Bunin, what do you say to your offer?

Bunin On the whole your terms and conditions are acceptable to us. But I'm afraid your prices are not quite competitive. They are somewhat higher then the prices of other firms. Could you reduce your price by 7 per cent?

Lipman: I say, Mr. Bunin, we've sold our compressors at the price of $2000 each. They are the best on the world market at this price. However, if you increase your

order, we'll give you a discount of 5 per cent.

Bunin: I believe we can buy 15 more compressors.

Lipman: Fine. That will settle the price problem.

Bunin: Quite so. Now there is another point, Mr. Lipman. Your delivery

dates don't suit us. We require the first parcel of 20 compressors a

month after we sign the contract.

Lipman: So I understand that we are to ship the first parcel in December. And what about the remaining goods?

Bunin: We can accept them in March.

Lipman: Very good. Well, Mr. Bunin, as regards the terms of payment I hope you'll pay against shipping documents by a Letter of Credit. You are to open it with the London Bank after our fax that the goods are ready for shipment.

Bunin: Quite right. I'll be glad to sign the contract when you get it ready. Lipman: We can sign it tomorrow. I'll be glad, Mr. Bunin, if you and Mr. Zotov join our Sales Manager and me for lunch after we sign the contract.

Bunin: Thank you.

Lipman: So we hope to see you at our office at 12 tomorrow.

Bunin: Good. See you tomorrow.

III. Post-reading stage:

3. Consult a dictionary, read and translate the following words:

to consider offer to increase shipment

to discuss order to reduce Letter of Credit

to accept discount to sign term

4. Match the expressions on the left with those on the right that have a similar meaning:

a) to sign a contract )

b) to settle the price problem )

c) to increase the order )

d) acceptable conditions )

e) competitive prices )

f) to be ready for shipment )

g) to give a discount )

h) to pay by a Letter of Credit )

) to consider the prices )

5. Complete the dialogue.

A: Good afternoon Mr. Lake.

B: ____________________________________

A: Will you sit down, please?

B: ____________________________________

A: What can I do for you, Mr. Lake?

B: You see, Mr.Pospelov, my firm is interested in your boilers.

A: What do you say to our offer?

B: ____________________________________

A: You want a discount, don't you?

B: __________________________Could you reduce price_________________?

A: Surely, if you _____________________________________________, we'll

 

B. Fine. That will settle the price problem.

6. Fill in with the prepositions and make up a dialogue on the basis of the text:

I work ... "Avantis". A lot... foreign firms are interested ... doing business ... us. We have made some contracts ... boilers ... latest design lately. Our boilers are ... a great demand now, and we sell them ... high prices.

The other day Mr.Gray ... Roberts &Co. came ... Kherson to negotiate ... us. As soon as he came ... Kherson he phoned our secretary and made an appointment ... us ... the next day.

He came to see us ... half ... nine. We discussed a lot ... different questions. Our terms ... payment and delivery were acceptable ... him. When the negotiations were over we asked Mr. Gray to have dinner ... us ... Saturday.

DIALOGUE 2 I. Pre reading stage: 1. Read and learn the new words and set expressions:

1. transaction -

2. we were inclined to consider the prices -

3. power consumption -

4. reliability -

5. trouble-free performance -

6. to assure -

7. we won't let you down -

8. the Release Note for Shipment - , ,

9. to submit - ,

10. our good will -

11. discount -

12. the amount of the Contract -

13. concession -

14. profit -

15. currency -

16. terms of payment -

17. cash -

18. Letter of Credit -

19. Telex Transfer -

20. Certified Check -

21. Invoice - -

22. a Packing List -

23. a Certificate of Origin -

24. a Certificate of Quality -

25. an Insurance Policy -

26. cargo -

27. shipment -

2. Learn the terms of contracts:

CIF (Cost, insurance, freight) - Ѳ - , , .

FOB (Free on board) - - , ( ).

FOB Airport - - , , , , ( ). , ' , . .

FAS (Free alongside Ship) - , , :

, ;

;

;

.

, ' , .

:

;

;

.

, .

II. While reading stage:

3. Read, translate and act the dialogue:

DISCUSSING A CONTRACT

Mr. Rogers: Good afternoon, Mr. Bunin. I am happy to come back from the Exhibition.

Mr. Bunin: Didn't you enjoy it, Mr. Rogers?

Mr. Rogers: Not really. It was tiring. I don't like traveling, you know.

Mr. Bunin: Let's discuss the commercial side of our transaction. We were inclined to

consider the prices today. Mr. Rogers: You find them attractive, don't you? Mr. Bunin: Unfortunately, no. Comparing them with those of your competitors, they are

5 - 10 % higher. Mr. Rogers: I'm afraid I can't agree with you there. Don't you know that we've made

some modifications and reduced the power consumption of our equipment? Mr. Bunin: Sure, I know that, but you can't say that the power consumption of your

equipment is very low. However, our main requirements are reliability and

trouble-free performance of the equipment. It involves the problem of Test

and Guarantee. Mr. Rogers: We can assure you, Mr. Bunin, that we won't let you down. On our part, we

expect the Release Note for Shipment to be signed immediately after the

tests are carried out and the Test Report is submitted Mr. Bunin: I see, but as we are in close touch with the market now we are informed that

other companies can quote lower prices. We expect understanding of our

good will and of the fact that our company is rather new and intends to have

long-term relations with yours. Mr. Rogers: Right, but business is business. What are your reasons for the discount? Mr. Bunin: I've already mentioned your competitors' prices. Besides your price must

depend on the amount of the Contract. Mr. Rogers: Well, if you increase your order to ?500 000 we will be able to give you a 2 % discount.

Mr Bunin: It's better, but we expected at least a 4 % discount.

Mr. Rogers: Let us make some calculations.... 3 % and no more, Mr. Bunin. Even this concession leaves only a very small profit for us. This price is final. CIF Odessa, isn't it? Now the terms of payment. We accept: Cash, Letter of Credit, Telex Transfer, Certified Check.

Mr. Bunin: Unfortunately, cash is out of question. It isn't allowed in our country for foreign trade. The Letter of Credit appears to be the most acceptable.

Mr. Rogers: All right. What currency can you pay in: Euro or dollars? We insist on Euro.

Mr. Bunin: It's possible. But we need a Bill of Lading, an Invoice, a Packing List, a Certificate of Origin, a Certificate of Quality and an Insurance Policy to be faxed within 2 days after the cargo is ready for shipment.

Mr. Rogers: Good. We could meet tomorrow. What time could you come here again Mr. Bunin?

Mr. Bunin: I suppose I can make it only after two.

Mr. Rogers: Then see you at 3. Good buy.

III. Post reading stage:

4. Match theequivalents in two columns:

1. transaction

2.competitor______________________________________________

3.requirement____________________________________________

4.Test and Guarantee___________________ _______________

5.discount____________________________ ___________

6.Letter of Credit_________________________________________1

7.Certified Check__________________________________________

8.Cash_______________________________________________

9.Certificate of Quality_____________________________________

10.Insurance Policy_______________________________________I

11.cargo______________________________ ___________

5. Answer to thequestions while readingthe dialogue:

1. What was the subject of negotiations between Mr. Bunin and Mr. Rogers?

2. Who was the Seller?

3. Who was the Buyer?

4. What were the reasons for the discount asked by Mr. Bunin?

5. Did the parties reach agreement as to the discount?

6. What amount of discount did Mr. Bunin insist on?

7. What did the parties agree as to the terms of contract?

Terms of payment;

Terms of delivery;

Documents required;

8. How do you think were these negotiations successful?

9. Who was the most successful negotiator? Why do you think so?

6. Complete the following statements:

1.Let's discuss the commercial side of_____________________________.

2. We were inclined_______________________________________today.

3. Comparing prices with those of your____________they are 5 - 10 % higher.

4. We can assure you, Mr. Bunin, that_______________________________.

5.1 see, but as we are in close touch with the market now we are informed that other companies____________________________________.

6. We expect understanding of________________________and of the fact that our

company is rather new and intends to have_________________________.

7. Right, but business is_______________. What are your___________for the

discount?

8. Well, if you__________________________to ?500 000 we will be able to give

you a 2 %_____________________.

9. The Letter of Credit appears to be the most__________________________.

7. Add question-tags to the following statements:

1. Mr. Black came to London on business,...?

2. Both parties agreed to a 5 % discount,...?

3. The Buyers didn't receive the goods at the agreed time, ...?

4. The manager made a correct decision, ... ?

5. Last year your customs' tariffs were too high,...?

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