Exercise 6. Do at sight translation of the text below.

You may have to negotiate with another businessman in order to sell your business. At the onset of your enterprise, you may have to negotiate with venture capitalists and other investors for your capital. The possible reasons for having to enter into a business negotiation are infinite.

Whatever the reason, if you’re starting a business, you need to learn the skills of a good negotiator together with learning the basics of running a business. Fortunately for you, they are easily identified and can be learned quickly with time and practice.

First, a good negotiator is a good listener. When you’re negotiating with your potential partner or investor, it is best to let the other side talk first. Let them finish laying out their issues or their concerns about investing in your company, so you can compose an answer along the way. Remember, butting in while the other party is still talking can result to a debate not a negotiation.

Another quality of a good business negotiator is realism. When putting forth your sales pitch, be realistic about your figures. Weigh the realism of your proposition by having data to backup your claim as you make the pitch. Of course, if you think the deal will not work out despite your best efforts to close it, then you should have the realism to back out quietly and not get discouraged. Remember, there are a plethora of choices when it comes to potential partners and one failed negotiation is not good reason enough to lose the nerve.

Being realistic would mean that you should be willing to accept a compromise. Most of the times when negotiating, interested parties would want to negotiate for a lower price. Listen to their reasoning and their backing claims; they might be able to offer a better deal despite the lowered value they are asking for.

Last and the most important, you should always be prepared when heading over to the negotiating table. This means that you should prepare all the data and the documents that you need in order to present an organized and informed sales pitch in front of your potential buyers or partners. Never come to a meeting unprepared; you might get a question that you cannot answer and with that alone you’ve blown the deal before it was even approached.

J Business Mix

Slang and idioms

I. a) Read the dialogues “overheard” during and after the meetings. Translate them.

B) Work in pairs. Rephrase the dialogues.

C) Work in groups. Continue the dialogue and make a longer conversation.

1)

– To show good will, we are prepared to reduce the price by 5 percent.

- That still sound a bit much, I’m afraid. Let’s put the cards on the table, we can go to the 9.000 and not a penny more!

2)

- We have to face the facts, our company doesn’t have enough money to consider such an expensive project at the moment, I suggest that we hold over the discussion of it until the next fiscal year.

- I see you are still playing for time. But it’s the thin end of the wedge, I’m afraid it will be difficult to take up these negotiations later on.

3)

– Prices obviously play a role, but they are not the only factor …

– If I may ask a blunt question, how much do you want, Mr X?

4)

– Are you ready to meet us halfway in the matter of price?

– That’s a bit of a loaded question, I’m afraid.

5)

– I hear your contact is in the bag. I imagine you must have gone through a hoop to get it. Why don’t we wet a good bargain?

– I’m not celebrating until I see it in writing. I want to have everything signed and sealed.

6)

– I see you are trying to get one jump ahead of me, but I’ve already told you this point is just not negotiable!

– Oh, come on, Mr X. I’m sure we could stretch a point … after all, I think we are on the same wavelength.

II. Complete the idioms below with the words from the box:

  wall contention deal table ice time heat point cheque situation board sleeve  

a) above ….. g) bring nothing to the …….

b) have an ace up your ….. h) clinch a ……….

c) back to the ….. i) turn up/on the ………

d) bide your ……. j) skate on thin ……….

e) to give someone a blank …… k) sticking ……..

f) bone of …… l) take stock of the ………..

III. Match the idioms in Exercise II to these definitions.

1) a controversial issue that causes an interruption or blocks progress in discussions or negotiations

2) to assess all the aspects in order to form an opinion

3) to put pressure on them in order to obtain what you want

4) to do or say something that could cause disagreement or trouble

5) to reach agreement on a proposal or offer

6) open, honest and legal business negotiations

7) to have something in reserve with which you can gain an advantage

8) to be in serious difficulty

9) to have nothing of interest to offer the other side

10) a matter or a subject about which there is a lot of disagreement

11) to authorize someone to do what they think is best in a difficult situation

12) to wait for a good opportunity to do something

IV. Complete the sentences with the idioms from Exercise II in the correct form.

1. Paul's final argument enabled us __________________.

2. We'll never reach an agreement if we don't all _____________________.

3. The salaries have been agreed on, but opening on Sundays is still __________.

4. Tom was __________________ and told to negotiate the best deal possible.

5. He's not hesitating, he's just _____________, waiting for the price to drop.

6. With his _________________, the supplier had to accept the deal.

7. I'm well prepared for the negotiations. I've ______________________.

8. There are not secret negotiations. Our dealings have always _____________.

9. If the goods are not delivered this week, we’II have to _______________.

10. He took time to __________________ before making a suggestion.

11. The choice of distributor was __________________ in the negotiations.

12. Don't mention that subject during the negotiations or you could be _________________.

V. Study the following idioms and make up your own sentences with them.

1) hold all the aces - to have all the advantages during the negotiation process

Honestly, they hold all the aces. They have the needed money, a large market share, and a great growth potential.

To go for broke - to risk everything in hopes of getting something. It can also mean to try very hard or exert much effort

The farmers went for broke during the trial. Fortunately, the law sided with them and granted them absolute rights to their lands.

3) beggars can’t be choosers - this expression means that you should not reject an offer if it is the only possibility you have. You have no choice

4) to get down to the nitty-gritty -begin to discuss the most important points or the practical details

I was interested in the project, but we didn't get down to the nitty-gritty until his partner arrived.

5) to leave the door open -behave in such a way as to allow the possibility of further action.

Both parties left the door open for further negotiations.

Talking Point

I. Role Simulation

A Spanish manufacturer has produced a new range of expensive leather briefcases. A Swiss retailer is considering placing an order for 300 of each design. The Sales Manager and Chief Buyer negotiate the contract.

The Sales Manager

You are the Sales Manager for the Spanish briefcase manufacturer. You want the retailer to agree the following:

Delivery time: Four weeks after receiving order

Place of delivery: The retailer’s main warehouses in Zurich and Geneva

Price: Top-of-the range briefcase: € 550

Medium-priced briefcase: € 320

Colours: Black and brown

Payment: By bank transfer when goods have been dispatched

Discount: 4% for orders over 100

Returns: Medium-priced brief-cases (easier to resell)

The Chief Buyer

You are the Chief Buyer for the Swiss retailer. You want the manufacturer to agree the following:

Delivery time: Two weeks after receiving order

Place of delivery: Individual retail outlets (16 around the country)

Price: Top-of-the range briefcase: € 550

Medium-priced briefcase: € 270

Colours: Black, brown, maroon, pink

Payment: Two months after delivery

Discount: 10% for orders over 200

Returns: All unsold briefcases returnable up to one year after order

II. Comment on the following quotations

1. “When a man says he approves something in principal, it means he hasn’t the slightest intention of putting it in practice.”

Otto von Bismarck

2. “You’re in a much better position to talk with people when they approach you than when you approach them.”

Pilgrim, Peace

3. “In business, you don’t get what you deserve, you get what you negotiate.”

Karrass, Chester L.

4. “A negotiator should observe everything. You must be part Sherlock Holmes, part Sigmund Freud.”

Victor Kiam

5. “Negotiating means getting the best of your opponent.”

Marvin Gaye

DIPLOMATIC NEGOTIATIONS

Starting up

A 1. What do you think is in common between diplomatic and business negotiations, in what way are they different?

2. How would you define “diplomatic negotiations”?

3. How are the rules of business negotiations applicable to diplomatic negotiations?

READING

a) Read the paragraph below. What is the aim of diplomatic negotiation?

Diplomatic negotiation is defined as a process in which divergent values are combined into an agreed decision, and it is based on the idea that there are appropriate stages, sequences, behaviors, and tactics that can be identified and used to improve the conduct of negotiations and better the chances of success.

Diplomatic negotiations between states may encompass a great number of political, economic and technological issues such as energy, food, raw material, resources, trade and technology transfer. These issues have been part of domestic affairs, but now they belong to international and diplomatic concerns. In the past, political affairs were called “high politics”. Other affairs, such as trade, etc., were called “low politics”. Now diplomacy serves development objectives, and is used to alleviate internal problems in such fields as attracting investments and fundraising.

b) Scan the paragraph below. What elements are essential to conclude any diplomatic negotiations?

There are two elements essential to concluding any diplomatic negotiations. There should be:

a- Common interests

b- Issues of conflict

Although common interests are one of the logical conditions for negotiation, some governments may go into negotiations even if they were convinced that a base of immediate common interests did not exist. They may realize that its failure to negotiate will probably harm it politically at home, may make it seem inflexible by the international or regional public opinion, may embarrass its allies, antagonize neutral states, or infuriate member states of a regional organization, of which it is a member. Issues of conflict are essential for negotiation, because without such issues there are no need for negotiation

C) Skim the paragraph below and highlight the purpose of convincing, bargaining and concessions in the process of diplomatic negotiations

There are some concepts that should be clear in the negotiator’s mind, such as “convincing” and “bargaining”. Convincing is the effort exerted by the negotiator to make the other party understand why his demands are of great importance. At the same time, a negotiator may show that the counterpart’s demands are exaggerated, and are impossible to accept, and that logic and reason, not passion or enthusiasm should prevail. Bargaining on the other hand is characterized by concessions and conditioned offers, and perhaps by using incentives or disincentives, or the carrot and the baton. Also the linkage strategy can be used, to encourage the other party to be moderate, by convincing him that reaching a solution of the negotiated dispute will determine the privileges or disadvantages in other important issues.

As for concessions, one should be aware that there are variations in the seriousness in granting concessions. There are some concessions that if given, cannot be drawn back later on. Other concessions offered by the counterpart can be withdrawn, and in that case they lose much of their value in bargaining. Possible violations of an agreement, should be discussed, to see if they can be detected in time, and if they have to be included in the text of the agreement or in an annex.

D) Scan the paragraph below and highlight the main difference between types of negotiations

Bilateral negotiations are easier to deal with than multilateral ones, especially if there is no cultural homogeneity between negotiators representing different countries. The same difficulty exists if there are preconditions or dogmas that have to be dealt with. Multilateralism requires that negotiators are well vested of all details of the conflict, and all other parties’ needs and demands. The language and tactics used in bilateral negotiations are different of the ones used in multilateral negotiations. The latter, for instance should consider the interests of all parties concerned which may constitute an obstacle to reach a consensus, unless concessions are granted to each party.

Diplomatic negotiation requires an agenda that is agreed upon by all parties. Striking a balance between threats and real power is essential. It is preferable not to resort to the use of threats in such a way that loses its impact, making the counterpart immune against them. It is preferable to have a deterrence, in case the counterpart insists on his stance, without enough justification, and also in case negotiations are about to be unilaterally and abruptly terminated by the counterpart.

E) Read the paragraph below and identify the skills which are essential for an effective negotiator

There are some generalities of the qualities and skills which a good negotiator should possess. He or she should have a clear vision of his mission and what he has to achieve, a deep devotion to the public interest, and he should be a good defender of his country. He has to believe that his country’s interests and national security supercede personal interests and ambitions. It is in the interest of the negotiator to sincerely foster feelings of trust, since discovery of false deadlines and bad faith destroys the element he needs to draw a sharp bargain. The more a negotiator wants to bluff, the more he needs to appear trustworthy in order to carry off his deception he needs when its moment comes. If the negotiator is caught in a bluff it will damage his credibility and impair his credentials in future negotiations with the same party. On that basis, a diplomat can be selected as a negotiator by studying his C/V that shows his personality traits and attitude traits, his experiences, and his achievements. To be able to run negotiations for the settlement of disputes, a negotiator should acquire a theoretical knowledge of the nature of negotiation, the characteristics of negotiators, different kinds of new subjects of negotiation that may affect the nature of the negotiations themselves, how to prepare for their conclusion, and how to provide negotiators with all the documents, evidences, and arguments that help them in the negotiation process.

Exercise 1. Answer the following questions.

1) What is diplomatic negotiation?

2) What issues do diplomatic negotiations encompass?

3) What do “convincing” and “bargaining” imply to?

4) What are bilateral/multilateral negotiations?

5) Which criteria help to select a diplomat as a negotiator?

Negotiation is the most important aspect of Diplomacy, but is the hardest to master. Great negotiation skill comes from experience.

Before opening negotiations, be sure to have a plan for yourself, as well as a plan for the power or powers with whom you are negotiating. Without a plan, negotiation does nothing except damage your reputation when you are unable to live up to the promises you made.

Negotiation is divided into these categories:

1. Attack a power

Attacking any power requires assistance. Show the advantages, and make sure that you divide pretty equally between the country's supply centers. It's pretty safe to be generous with another power's supply centers. However, be generous to a degree - be too generous, and you soon will see yourself as everyone's ally, creating suspicion.

2. Non-aggression pact

If two powers have an unhelpful stalemate line, they can sign a non-aggression pact to clear that stalemate line or not to attack each other when either has an enemy to deal with. Beware though, somebody can still stab you seeing that you are empty.

3. Prevent certain alliances

If playing Turkey, the last thing that it needs is a strong Austro-Russian alliance, as it could crush Turkey's chance. If playing Austria, you should do everything to stop at least two countries to attack you in the first few years. As England, a Franco-German alliance would be disaster. This way, preventing certain alliances is necessary to live - even alliances on the other side of the board can hurt later in the game. A common method is to create distrust between two countries that seem to have an alliance. If Austria wants to break the alliance between Russia and Turkey, then Austria could tell Russia what Turkey might do to stab Russia, and vice versa. After enough of this, Turkey and Russia will not be so willing to help each other, which will be better for Austria.

4. Prepare for a stab

If you have a very loyal ally, you can negotiate so he completely empties of units the supply centers closest to your territory, while you prepare to take them. This means that a short time span you can take his supply centers and cripple him before he can react.

Furthermore, try to make it so your stab has immediate results. You should be able to take at least a supply center or two in the next fall. Unless he is much stronger then you are, this gives you the advantage over him, and means you might be able to avoid a counter-attack.

The Art of Negotiation in Diplomacy

By Lewis Pulsipher

Telling someone how to negotiate well is a difficult task. A person’s attitudes toward life have a strong, immeasurable, and probably unalterable effect on how, and how well, he or she negotiates in any wargame. There are, however, certain principles and common failings which can be described, and which no player can ignore.

The advice below applies to any well-played Diplomacy game, but it is necessary to recognize the differences between face-to-face (FTF) and postal play. When you play FTF with people you don’t know you will often encounter attitudes and conventions very different from your own. In the extreme, what you think is perfectly commonplace might be, to them, cheating. In postal play with experienced opponents you’ll en counter fewer “strange” notions. Incompetent players can be found in any game, of course. Postal games suffer from failure of players to submit orders before the adjudication deadline—”missed moves”. A failure to move at a crucial time usually causes significant if not decisive changes in the flow of play. Both FTF and postal games suffer from “dropouts”—people who quit playing before their countries are eliminated. Part of a good player’s range of skills is the ability to keep his allies (and his enemy’s enemies) from dropping out. In a top-class game none of these difficulties occur.

In FTF play it is easier to coordinate routine attacks, and to form coalitions to stop the largest country from winning—communication is more rapid and more frequent than by mail. More elaborate and brilliant tactical play is found in postal games because each player has hours, if he desires, to look for the very best moves. Time- pressure often causes tactical mistakes in FTF games. Finally, dogged persistence of argument is valuable in FTF, where a weak player often does whatever he was most recently told to do. In postal play, persistence (via numerous letters and long distance phone calls) is valuable, but written negotiation requires a more careful, more logical approach than oral negotiation. Every player has time to think things through, to notice holes in arguments, to hear from every player—no one can monopolize his time. For that reason a top-class postal game probably requires greater skill than a top-class FTF game.

When you begin a game you must first learn something about each of your opponents. Sometimes you will know quite a bit to begin with, but you can also ask people who know the opponent better than you do. You want to know if your opponent is generally reliable or not, what his objective is, whether he is a classical or romantic player, and whether or not he is good at negotiations, strategy, and tactics. (This is a controversial point, insofar as some players —usually the notoriously erratic and unreliable—say that a player’s previous record should have no effect on the game. However, the more you know about another player the better you’ll be able to predict his actions. It would require a peculiar view of life for a player to knowingly ally with someone who has never abided by an agreement in 20 games! Nor would you offer to draw with a player who would “rather die than draw”.

However much some players wish to pretend that they are really government leaders and that World War I is happening just this once, most Diplomacy players recognize that it is primarily a somewhat abstract game of skill, and act accordingly.)

Let’s consider each point you’re trying to learn about, beginning with reliability. Novice players, urged on by the rulebook introduction, usually believe that the winner will be the player who lies, cheats, and backstabs most effectively. Perhaps if you never play more than once with the same people and never acquire a reputation this would be true. But in the long run players learn to treat liars and backstabbers as enemies. Why invite disaster in an already difficult game? Obviously, for one person to do well in a game with six others some cooperation is necessary, and cooperation is easier and more effective between those who can rely upon one another to some extent. An expert player rarely lies, and then only because the lie is likely to radically improve his position. He prefers to say nothing, to change the subject, to speak of inconsequentials, rather than lie. When he agrees to an alliance of some kind he usually abides by the agreement. By specifying a limited duration—until 190x or until X country is eliminated or reduced to one supply center—he won’t back himself into a corner which would require him to break one agreement or another. When he backstabs (attacks an ally) he stabs to virtually destroy a country, not merely to gain a few centers. The stab leads directly to accomplishing his goal, not merely to increasing his supply center total. He wants to be known as a reliable player because this will make other players more willing to cooperate with him.

Some players say that only mutual self-interest should determine whether an agreement is kept, or a lie told. When the agreement is no longer in one player’s interest he should break it. In the short term this might be true, though a lie or backstab early in a game can be remembered later in the game to the detriment of the perpetrator. The expert player looks at the long term, since few people play just one Diplomacy game. It is in his interest to maintain an agreement, to avoid lying, in order to establish and maintain a reputation for reliability. There is no altruism involved. (Incidentally, the reliable player is less often on the receiving end of an emotional barrage of anger from a disappointed player—no small gain.)

Though it is surprising to some, not every player wants to accomplish the same thing. Some play for excitement, not caring if they win or lose as long as the game is full of wild incidents. Most play to win the game, but there the ways part. Many players (the “drawers”) believe that, failing to win, a draw is the next best result, while anything else is a loss. At the extreme, even a 7-way draw is better than second place. Others (the “placers”) believe that to survive in second place while someone else wins is better than a draw. At the extreme are those who would “rather die than draw”. (I should say that I am an extreme drawer, and find the placers’ view intellectually and emotionally incomprehensible, but surveys show that a large minority of postal players are partial or wholehearted placers.) Such a fundamental disagreement in objectives can have a decisive effect on a game. If you propose a plan to establish a 3-way draw a placer won’t be interested. If you offer to help a player of a weak country to attain second place if he helps you win, you’ll get nowhere if he’s a drawer but a placer would be favorably impressed. Placers make better “pup pets”, but drawers can be just as good as allies. In some situations they are better, for they won’t abandon you (when they feel they can’t win) in order to try for second place instead of a draw. When you’re winning you’re better off with a placer ally, who is a little less likely to attack you than a drawer would be.

Whether a player’s style is ‘‘classical’’ or “romantic” is hard to define. Briefly, the classical player carefully maximizes his minimum gain. He pays attention to detail and prefers to patiently let the other players lose by making mistakes, rather than try to force them to make mistakes. He tends to like a relatively stable alliance and conflict structure in the game. He tends to be reliable and good at tactics. The romantic is more flamboyant, taking calculated risks to force his enemies to make mistakes, trying to defeat them psychologically before they are defeated physically on the board. (Many players give up playable positions because they’re convinced that they’ve lost.) He tends to try to maximize his maximum gain, though theoretically this is less effective than the classical player’s method. He can be unpredictable, relying on surprise and the Great Stab for victory. Tending to be an unreliable ally and a sometimes sloppy tactician, he likes a fluid, rapidly changing alliance and conflict structure.

Finally, it’s useful to know whether your opponent is a poor, average, or good player, and what facets of the game he is better at. You can risk a one- on-one war with a poor tactician but not with a good one. An alliance of limited duration with a player who is deficient in strategy can leave you in a much better position as you outmaneuver him in dealing with the players on the other side of the board. Some players like to eliminate inferior players early in the game, while others try to use the poor players to eliminate strong opponents.

To reemphasize the point of this “sizing up”, the more you know about your opponent’s tendencies the better you can predict his reaction to a given stimulus. As you negotiate you should attempt to learn more about his preferences. In the extreme case you can try to make yourself appear to be a particular kind of player in order to gain the respect or sympathy of your opponent, but this is hard to do. Even if you begin a game with six unknown quantities you should be able to learn something about their styles before you write your spring 1901 orders. If necessary, talk about yourself and your own views in order to draw out the other players.

There are five other principles of negotiation beyond “know your opponents”: 1) talk with everybody, 2) be flexible, 3) never give up, 4) explain plans thoroughly, and 5) be positive.

1) At the beginning of the game, and periodically throughout, talk with all other players, even your enemy. Someone on the other side of the board may know something of interest to you. Trade information, when possible, with those who haven’t an immediate stake in what you do next. Don’t be too free with the information you obtain or it may get back to your source, who will decide he can’t trust you with more. As will be explained in the upcoming article on strategy, an expert player takes account of, and tries to control the actions of, every player in the game—and he can’t do that if he doesn’t talk with them.

2) Be flexible. If you expect everyone to play the way you do you’ll surely lose. Don’t get emotional, though it isn’t necessarily bad to simulate some emotion in order to change an opponent’s behavior. It is only a game, and stabbing is a part of it. If you are stabbed, or someone lies to you, anger will do you no good. What you can do is make sure your antagonist regrets his action, with the idea that next time he’ll remember and won’t do it again. (The advocates of “short-term” Diplomacy go even further. They would say, forget about the stab—what is in your interest now? You could find that you should ally with the person who just betrayed you.) When you are at war, always think about possible deals with your enemy—especially if he has the upper hand! No rule says you must fight him to the bitter end. You might both fare better by doing something else, such as jointly attacking a

third country or separately attacking third and fourth countries. Always have an alternative plan in case things go wrong. Humans, especially Diplomacy players, can be an erratic lot.

3) Never give up. Keep negotiating with your enemy even as he wipes you out. You may be more useful to him as a minor ally than as an enemy. As long as you have a unit you can affect the course of the game. There have been postal games in which a player reduced to two supply centers later won, and in FTF games even one-center countries have come back to win. In the fluid conditions of many games dramatic reversals of fortune are common.

4) Explain plans thoroughly. When you’ve sized up your opponents and selected your strategy, make your approach. Explain in detail and at length what you expect both you and your potential ally to accomplish. If he can’t see any advantage in what you propose he won’t accept—or more likely, he’ll pretend to agree and then backstab. Some players prefer to be noncommittal, to get the feel of things during the first season or first game-year. Others like to form solid alliances as soon as possible. Whichever you prefer, be sure you put effort into your attempts to come to agreements with others; even if you intend to break them, give plausible reasoning. If things go wrong you may find yourself relying on an agreement you intended to break. If you don’t seem interested in the agreement when you propose it, the other player won’t believe you. For example, when you propose an offensive alliance don’t merely say “Let’s you and me get him”. This isn’t negotiation, this is an invitation to be treated as an inferior player. Instead, talk about why it is in the interest of both your countries to eliminate country X, how it can be accomplished (tactics), what other countries will probably be doing (strategy), how the spoils will be divided, and what each of you can do afterward to avoid fighting each other. If the attack doesn’t give both of you prospects for a win your potential ally will be suspicious—especially if the alliance appears to favor him, not you.

5) Be positive. Convince the other fellow, don’t tamely hope that his ideas coincide with yours. Negotiation is a strange mixture of aggressive per suasion and attempts to seem innocuous, to avoid drawing too much attention to oneself. People who are good at it in postal games may have difficulties FTF, or vice versa. However you go about it, don’t be discouraged by initial failures, and analyze why you succeed or fail. There’s no substitute for experience.

UNIT 3

ORAL PRESENTATION GUIDE

Presentations: Style, Vocabulary and Manner guide.

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