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People often try to postpone a decision. They might politely break off from the negotiation and say something like:
'I’ll have to think about it' or ‘I’ll have to consult my boss or my department head', etc. On the whole, however, people
expect that agreement will be reached or else you'll do business with another company. Normally both parties are inter-
ested in reaching an agreement in which both sides take away something positive from the deal. This is called a 'win-
win situation'.
However, conflict can occur in business negotiations and relationships. Naturally, we all try to avoid this because
this is where only one side can win and the other will lose. Situations which might lead to such negotiations could be
late delivery, poor performance of a product, component failure or the need to make compensation payments. In a situa-
tion where one side is clearly in the wrong, the outcome is clear: either the conflict continues until the dispute is re-
solved or it goes to court.
The final important point about negotiating in the business world is the law of contract. It is generally enforceable
in the courts. The position is more complicated in international business negotiations because of differences in laws and
assumed liabilities. But, nevertheless, the courts are a source for remedies if contracts are broken. Suing defaulting con-
tractors is quite common. A sound knowledge of contract law is therefore essential for negotiators drawing up an
agreement at the end of a deal. However, this is the point at which the experts will usually have to be called in and so is
not dealt with further here.
T a s k 26. Answer these questions:
1. When do you use expressions in the form of if ..., then ...?
2. When do you suggest some of the things you might be prepared to trade?
3. Why should you be patient and listen to the other side's proposals?
4. When do you work out what you want and which are the main priorities?
5. What should you not forget to do in a negotiation?
6. What sort of questions should you use in the early phases?
7. Why do you think that is?
8. In what phase do you suggest things you are ready to trade?
T a s k 27. Read and comment on the following extracts
Never begin a deal, a battle or love affair if the fear of losing overshadows the prospect of winning. Aristotle On-
assis, shipping tycoon.
William Ury is co-author of the world's most famous book on negotiating, Getting to Yes. Read the following ex-
tract from his best-selling sequel, Getting Past No. Which of the situations remind you of something that's happened to
you?
Daily life is full of negotiations that can drive you crazy. Over breakfast you get into an argument with your
spouse about buying a new car. You think it's time, but your spouse says: 'Don't be ridiculous! You know we can't af-
ford it right now'.
A morning meeting with your boss. You present him with a carefully prepared proposal for a new project, but he
interrupts you after a minute and says: 'We already tried that and it didn't work. Next item.'
During your lunch hour you try to return a defective toaster-oven, but the salesperson refused to refund your
money because you don't have the sales slip: 'It's store policy.'
In the evening you need to return some phone calls, but the line tied up by your thirteen-year-old daughter. Exas-
perated, you ask her to get off the phone. She yells: 'Why don't you get me my own phone line? All my friends have
them.'
T a s k 1 Answer the following questions:
a) In order to give the person in the article advice, what else would you
need to know about each situation?
b) What would you say in response to each of the people in the text?
Compare your ideas with a partner.
T a s k 2 Complete the following sentences in not more than five words:
'A good negotiator ... .
Compare sentences with other people in the class.
T a s k 3 Listen to four business people sharing their views on how to negotiate and answer the questions below.
a) Put the following stages in a negotiation into the order Speaker 1 mentions them.
have lunch create rapport
agree on a procedure set out proposals
bargain agree terms
close celebrate
listen and take notes make counter-proposals
b) Speaker 2 refers to the following acronyms. What do they mean?
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