Part 2 preparing to negotiate

Exercise 1. Read the following two texts and decide whether they are about the same topic or different. Compare them according to the following characteristics. Write down your answers as a small report in space below.

1) logical arrangement

2) the number of specialized words – terminology

3) style

4) tone

5) who the story directed at

6) arouse interest, worth reading?

Story 1, written by John Rix, an expert in business communication.

Before negotiations begin, preparing and planning are very important.

a) Get as much information as possible about the situation. If dealing with people from another culture, find out about its etiquette and negotiating styles: the way people negotiate what they consider to be acceptable and unacceptable behaviour, and so on. (See «Culture Page»).

b) Work out your initial bargaining position: what are your needs and objectives (the things that you want to achieve)? Decide your priorities (the most important objectives).

c) Try to estimate the needs and objectives of the other side.

d) Prepare a fallback position: conditions that you will accept if your original

objectives are not met..

d) Perhaps you are in a position to influence the choice of venue: the place where

you are going to meet. If so, would you prefer to:

Ø be on your own ground/on home ground (in your own offices)?

Ø go to see the other side on their ground (in their offices)?

Ø meet on neutral ground, for example in a hotel?

e) If you are negotiating as part of a negotiating team, consult your colleagues

about points a) to e), and allocate roles and responsibilities.

Story 2, presented by Diana Ferry, a management communications Consultant.

I would have to say that one needs to be very prepared. I mean to know what you want from a negotiation, what’s your purpose, your aims and objectives. Without clear aims, you can’t have clear thinking, so aims are vital, to have a clear purpose. What do you want? A contract? You want a firm agreement – or just to find out a few things?

Then, you have to know what the minimum deal is. Decide what is the least – the lowest offer you can accept for a deal –an agreement.

Then you have to know where you can give way – or make concessions. So fixing concessions – and targets – is important. Without that you end up agreeing to

something and later thinking «Oh no that’s a bad deal!» = or you miss out on what seemed a bad deal at the time but was in fact not bad anyway.

Another area – is to know your strengths and your weaknesses. If we take the classic marketing SWOT analysis – you have to understand your own strengths and weaknesses as well as the opportunities and threats or dangers that exist outside, from competitors for example.

So, know the market, know your strengths know about prices and other possibilities. If you do this, you can see the negotiation in its proper context.

Then you need to prepare all support information. Figures, numbers, pictures, whatever. It could be anything –but the most important thing is that you can support what you say. It helps you to be clear.

Next, the team is to be well prepared, well managed. If it’s a team you have, everyone needs a clear role, clear responsibilities –to have roles.

Finally, your opening remarks. Prepare what to say. Begin in general terms what you hope to achieve – the general intention, what you’re looking for. The opening statement sets up the right atmosphere, the right expectations; it helps things to be clear between the two sides.

My report.

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