OXFORD BUSINESS ENGLISH SKILLS

TEACHER'S BOOK

Ieremy Comfort t.t~~·~

with YORK ASSOCIATES '1'

/ ' .

OXFORD UNIVERSITY PRESS 1998

Oxford University PressGreat Clarendon Street, Oxford OX2 6DP

Oxford New YorkAthens Auckland Bangkok BogotaBuenos Aires Calcutta Cape Town ChennaiDar es Salaam Delhi Florence Hong KongIstanbul Karachi KualaLumpur MadridMelbourne MexicoCity Mumbai NairobiParis Sao Paolo Singapore Taipei TokyoToronto Warsaw

and associated companies inBerlin Ibadan

Oxfordand OxfordEnglishare trade marks of Oxford University Press

[ SB N 0 [9 457248 x© Oxford University Press 1998

No unauthorized photocopying

All right s reserved. No part of thispublication may be reproduced, stored in aretrieval system, or transmitted, in any formor by any mean s, electronic , mechanical,photocopying, recording or otherwise,without the pr ior written perm ission ofOxford University Press.

This book is sold subject to the conditionthat it shall not, by way of trade or otherwise,be lent , resold, hired out , or oth erwisecirculated without the publisher's pr iorconsent in any form of binding or coverother than that in which it is publi shed andwithout a similar condition including thiscondition being impo sed on the subsequentpurchaser.

Typeset in ITC Franklin Gothicand Adobe Minion

Printed in Portugal

Contents

Introduction

1 Preparing the ground

2 Setting the agenda

3 Establishing positions

4 Clarifying positions

5 Managing conflict

6 Making and responding to proposals

7 Bargaining

8 Conclusion and agreement

Negotiating practice extension activities

page4

9

13

16

19

23

26

29

32

36

4 INTRODUCTION

Introduction

Introduction to the courseNegotiating is a key communication skill for all learners ofBusinessEnglish . Although many may not be involved in high-poweredinternational negotiations, most learners will have to negotiate with theircolleagues, bosses, customers, or suppliers at some stage in their careers.Completing a negotiation successfully holds significant rewards: the rightdeal for the company, a salary rise, a budget increase - even just a day offwork.

Because it requires learners to be competent in all key communication andlanguage skills, and often to maintain their performance under pressure,negotiating is arguably the most demanding and the most sophisticated ofthe core Business English skills. In addition, the skilled negotiator must beaware of the potential difficulties arising from cultural differences whichmay undermine the effectiveness of their negotiating tactics, even if theirlanguage and communication skills are highly developed. What areconsidered good negotiating tactics in one part of the world may beentirely inappropriate in another - with potentially disastrousconsequences.

The overall objective of Effective Negotiatingis to enable learners to developtheir own personal style ofnegotiating. The materials and tasks aredesigned firstly to make learners aware of a range of styles and approaches,and secondly to give them an opportunity to build confidence andcompetence in the relevant communication and language skills.

The course is divided into eight units which deal progressively with the keystages and features ofa negotiation between two companies, a supplier anda customer. The learner is taken through a variety of scenarios focusing onkey communication skills, starting with preparation and opening, throughestablishing positions, clarifying and dealing with conflict, and finishingwith bargaining and concluding. At the same time, each unit addresses akey cultural issue which can affect the success ofa negotiation. Learners areasked to reflect on the variety of negotiating styles that they may encounter,and to be aware of the impact a particular approach can have. Havingraised awareness ofthe underlying cultural considerations, each unit goeson to develop language knowledge and key vocabulary. Finally, bothcommunication skills and language knowledge are consolidated by meansof a series of realistic practice activities.

This Teacher's Book is intended as a guide to help you handle the differentcomponents of the course successfully. It provides suggestions for further

The approach

exploitation in the classroom and self-study time, and contains extra,photocopiable materials for further negotiating practice (see pages 36

to 61).

Course componentsIn addition to this Teacher's Book, the course consists of three othercomponents: a video, a Student's Book, and an audio cassette.

The videoThe video, which lasts approximately thirty minutes, is the centralcomponent ofthe course, and acts as a springboard for all the activities inthe Student's Book. Based around a negotiation between a Belgium-basedmultinational and a British IT company, it illustrates key moments from atypical business negotiation, both internally within each team, andbetween the two teams.

The Student's BookThe Student's Book consists of eight units which correspond to those in thevideo. Each unit is divided into four sections: Communication skills,Cultureand tactics, Language knowledge, and Negotiatingpractice.

The Communication skills section identifies and practises key negotiatingskills which are illustrated in the video, and involves the learner in a processof feedback, evaluation, and development. The Cultureand tactics sectionraises a number of key cultural issues which may lead to misunderstanding,conflict, or communication breakdown, and looks at ways in which suchproblems might be avoided. The Language knowledge section, supported bythe audio cassette, expands the learner's knowledge in key functional andlexical areas. The Negotiatingpractice section gives the learner theopportunity to put communication skills, cultural awareness, andlanguage into practice using a variety ofrole-plays and simulations.

The audio cassetteThis lasts approximately 50 minutes, and consists of extracts from a widerange of negotiations. It forms the basis of the listening activities in theLanguage knowledge section of the Student's Book.

Using the courseIn each unit the video first shows a poor model ofnegotiating practice inorder to demonstrate what can go wrong at any stage ofa negotiation, howand why (Version 1). It then goes on to look at a good model in which thenegotiators communicate with maximum effectiveness (Version 2). Thevideo is essential as the starting point for each unit.

The approach is designed to develop learners' abilities in three main areas.

Communication skillsThe course develops the key skills which contribute to a successfulnegotiation. It aims to build the learner's confidence in their ability to deal

INTRODUCTION 5

Methodology

6 INTRODUCTION

with all stages ofthe negotiating process. Skills such as opening thenegotiation, establishing your position, dealing with conflict, makingproposals, and bargaining are demonstrated on the video. These are thenanalysed and discussed. Learners are encouraged to reflect on and developtheir own personal negotiating styles, based on an awareness of theirparticular strengths and weaknesses.

Culture and tactics

This section aims to enhance the learner's awareness of how culturalbackground can affect negotiating style and tactics. Certain keycommunication styles are highlighted and contrasted, including, forexample, task-orientation versus people-orientation, and direct versusindirect communication. The video demonstrates the problems arisingwhen opposing cultural styles clash, whilst the follow-up tasks guide thelearner into an analysis of the communication styles fostered by their ownbusiness culture. These concepts are then used to develop the learner'sflexibility in dealing with negotiating partners from different cultures.

Language knowledge

Functional language areas such as sequencing, asking questions, makingsuggestions, exerting pressure, and making conditions are presented andpractised in the Student's Book. The audio cassette is used to introduce arange of expression as well as to develop listening skills with new language.The exercises at the end of the section provide an opportunity for learnersto practise key language functions and structures and to activate anddevelop their negotiating vocabulary.

All sections ofthe course (except Negotiating practice) are designed to workeither as classroom material or for self-study.

In the classroom

Each unit will take you through the following steps, with further guidancefrom the unit notes.

ObjectivesThese clearly identify the aims ofeach unit in the four key areas:

Communication skillsCulture and tacticsLanguage knowledgeNegotiating practice

Communication skillsPre-viewingViewing is usually preceded by a question which is designed to makelearners reflect on their own experience and also to anticipate the focus ofthe unit which follows.

Before watching, always make sure your students are fully aware ofwhatthey are going to see. The Video Negotiating Context section providesbriefing on the content ofeach extract. The Who's who section of theStudent's Book gives background information about the characters andtheir companies.

ViewingThe first time your students watch a section of the video, play the sequenceall the way through. This will give them a chance to adapt to the contentand the pace ofdelivery. For more detailed analysis and questions, you canthen play shorter extracts.

You may like to play some sections with the sound down. This will giveyour students a chance to focus on the body language ofthe characters - inmany cases, this will communicate as much as the words they speak!

Use the pause button to stop the extracts at key moments. Encourage yourstudents to anticipate what will happen next.

The on -screen clock is useful for easy reference to specific sections.

The Video transcript at the back of the Student's Book is essential for moredetailed analysis and practice ofspecific language features.

Post-viewingIn this section, there will be a chance to relate the focus ofthe unit to yourstudents' own experience.

Culture and tacticsIn each unit, this section focuses on areas ofpotential cultural difficulty.Differences ofstyle and approach are explained and illustrated withreference to the characters in the video. There is then a task (such as adiscussion, a questionnaire, etc.) which encourages students to relate theparticular cultural issue to their own attitudes and experiences.

Language knowledgeThis section is supported by additional extracts from negotiationsrecorded on the audio cassette. It has three main parts.

ListeningpracticeThe recorded extracts are designed to widen your students' exposure to avariety of negotiating styles and types - internal and external, formal andinformal, business and personal, one-to-one and group negotiations. Theexercises will help learners to improve their listening skills, and to add newlanguage to their own repertoire.

Language focusThis section provides comprehensive checklists of functional language andvocabulary contained in the listening exercises.

Language exercisesThis section provides a variety ofcontrolled tasks to activate theexpressions and vocabulary presented in the Language focus.

Negotiating practiceThis section provides a variety ofrole-plays for pairs or small groups toperform. When you set up the role-plays in class, make sure that you setstudents a clear communicative objective - for example, to open thenegotiation, to deal with conflict, or to come to agreement about aparticular issue. In terms oflanguage use, make it clear to the studentswhether you are looking for accuracy (the correct use ofspecific phrases)or fluency (no hesitation, confident use of the language). Sometimes it mayhelp to audio- or video-record these practice activities so that students

INTRODUCTION 7

8 INTRODUCTION

have the opportunity to evaluate their own performance, and you can givemore detailed feedback.

Self-studyThe video-based activities focusing on communication skills have beendeveloped with the classroom in mind. However, most of the questionshave answers in the Answer Key, and individuals can easily use the video ona self-access basis. The Culture and tactics section usually provides somereading input, followed by questions for discussion , self-assessment, orjust food for thought. The Languageknowledgesection is ideally suited forself-study.Students can refer to the Answer Key for feedback on theexercises. The Negotiatingpractice section involves pair or group work,although preparation for these activities could also be done during self­study time .

Preparing the ground

Pre-viewing

ObjectivesThis opening unit focuses on the importance ofpreparing for thenegotiation - thinking beforehand about who you are going to meet, whatis to be discussed, and what will be the best approach . Good preparationhas an immediate impact on the opening stages of a negotiation, which setthe tone for the rest of the meeting. The Culture and tacticssection looks ata key dimension in business culture, task-orientation versus people ­orientation. Th e Language knowledgesection aims to remind students ofkey phrases for welcomi ng and introductions, and to start the pro cess ofbuilding vocabulary.

Communication skills1 It's important to spend tim e establishingwhat type of negotiations your

students participate in, or plan to participate in. These could be eitherinternal or extern al, long or short, formal or informal. Ask them:- who they negotiate with- what they negotiate about- why they negotiate- where they negotiate- how long they negotiate for.

Discuss what is meant by 'a negotiation'. The Answer Keysuggests that anegotiation is a meeting in which both parties need each other's agreementto reach a specific objective. For those students with little or no experienceof negotiating, focus on everyday negotiations such as, for example, buyinga car. Stress that negotiations are very mu ch part of working and home life.

2 You could ask students to discuss the question of how to prepare for anegotiation in pairs and repo rt back to the group. Ask them what kind ofthings the y themselves do when the y are preparing for a negotiation andwhat issues they would expect to discuss. The essenti al prep aration areasare firstly, to ensure that everyon e in the team is clear what the objectives ofthe negotiation are, and secondly, to establish the role that each individualis expected to play in achieving those objectives.

3 Make sure your students are familiar with the context before watching. Itmay be helpful to also look at the Who'swho section on page 7 of theStudent's Book.

UNIT ONE 9

Viewing

Post-viewing

10 UNIT ONE

4 Play the whole of Version 1. If you want to give your students more time towarm up to the context, play it first with the sound down and ask themwhat they can understand from the body language. Many ofthe keymessages about how the two teams are feeling can be picked up from theway they stand and move. They maintain distance from each other, havelittle physical or eye contact (at one point Karen actually turns her back onAndrew), and often have aggressive, 'closed' body postures (Karen hugs herfile defensively). After you have played it with the sound up, ask thestudents what problems they foresee with the negotiation to come.

S The first part ofVersion 1 focuses on how inadequately Karen and Andrewhave prepared for the negotiation. Make sure the students notice how, asindividuals, they have different agendas and priorities, the result ofnothaving communicated effectively before the meeting. Karen wants to talkabout strategy and is frustrated by Andrew's dismissive attitude towardsher concerns. Andrew is more interested in personalities.

6 The 'welcome' scene illustrates how poor preparation can immediatelylead to problems. As the host, Francoise would normally be expected totake the initiative in making introductions, but she seems unsure ofherrole and holds back. Sean has a more proactive approach, but he can'tremember much about Andrew, and Andrew neglects to introduce Karento Francoise. We also see that Sean is impatient and not inclined to dwellon social chit-chat. Ask your students how important they think it is tospend time building social relationships with their business colleagues.(See the Cultureand tactics section for more on this.)

7 Again, you could show Version 2 with the sound down to focus first on themore positive body language. The fact that both teams are more relaxed isconveyed in their 'open' body postures and increased physical and eyecontact. The group stands closer together during the introductions, anddoes not divide into two camps as it does in the first version. The tone is setby Andrew and Karen working as a team and being well prepared. Theyhave obviously agreed on a strategy and what their respective roles will be.Francoise and Sean seem similarly to be more aware of the importance ofthis opening phase and to function better as a team when making theintroductions.

8 Francoise involves everyone in the introductions by greeting Karen herselffirst, and then letting Sean introduce Andrew. Having watched this versionthrough once, you could do so a second time, stopping the videofrequently, and asking students to anticipate what will be said next. Analysehow the 'welcome' session is handled - then put your students in groups offour and ask them to act out a similar welcome and introductions.

9 Ask students to brainstorm their ideas about preparing for a negotiation inpairs or small groups. They should use the headings to help them identifythe kind ofquestions negotiators should ask themselves before a meeting,and draw up their own checklists. The groups should compare checklistsbefore looking at the one given in the Answer Key.

Culture and tacticsBefore you look at the texts, ask your students tu think about the impact ofculture.- Does culture affect the way people negotiate?- If so, how does it affect the way people negotiate?

For the reading exercise, get the class to work in pairs. One partner shouldread the 'task-oriented' text, the other the 'people-oriented' text. Eachshould then present a summa ry ofwhat they have read to their partner.After they have had sufficient time to do this in pairs, you could ask forvolunteers to present their summaries to the group as a whole, who couldoffer their comments and criticisms. The questionnaire could be done inpairs and the results collected and compared for the whole group.

Language knowledge1 Focus on the four different types ofmeeting and ask your students what

sort of differences in language they expect. Play the four extracts all the waythrough for global comprehension and get students to identify whethereach meeting is formal or informal. If they need to, let them listen to theextracts all the way through a second time to identifywhich meeting iswhich.

2 Thi s second listening provides an opportunity to focus on some keylanguage stru ctures. You could also draw the students' att ention to changesin register since som e of the introductions are more formal than others.Use the tapescripts for further reinforcement and practise of intonation.

3 This final listening is an opportunity to focus on how people switch fromthe opening small talk phase to business. The students have to identify thelanguage structures used. You could again point out how the register ofspeech often changes (becomes more formal ) when the speakers get downto business.

4 This short activity is an opportunity for students to model language onboth the video and audio extracts. The exercise will soon reveal anyproblems your students have in going th rough these initi al steps ofanegotiation. It is important for you to be able to monitor their language, soask the groups to perform in front of the class. Give feedback and thenrepeat the steps to improve fluency.

5 This exercise provides some additional speaking pract ice in response tolistening prompts. It could be done as a whole class activity.

6 All the units include some vocabulary work and it is very important toestablish a consistent approach to vocabulary building. There are a numberof questions you should discuss with your students.- Passive versus active vocabulary: identify those words which they want

to be able to produce (often idiomatic expressions are better left forreceptive purposes).

- Vocabulary storing: discuss the best ways for recording and stor ingvocabulary so that it is easier to learn, e.g. alphabetically, grouped byarea, with translation.

UNIT ONE 11

12 UNIT ONE

- Vocabulary recycling: make sure that key words and phrases areconstantly recycled in every lesson .

- Vocabulary learning: ensure that students understand that this is anactive process. Try to vary your approach to vocabulary learning in class,e.g. repetition, putting words in context, the use of games.

a Replay the video to see how these expressions are used in context. Askyour students to guess the meaning from the context. In pairs , ask themto carry out the matching exercise.

b Individually or in pairs, get them to complete the gap fill. Finally, if youfeel it would help, ask your students to use these phrases in their ownsentences.

Negotiating practice

Pair work

The situations given are deliberately everyday, rather than specificallybusiness-oriented. Make sure that students are clear about their objectivesand spend time preparing, using the negotiation preparation checklist tohelp them. In the first two situations, the seller may have to invent somesupplementary details about the car and computer. The actualnegotiations could be simulated as a phone call (sitting back to back). Toprovide feedback on this type of exercise, you could appoint an observerfor each pair (i.e. divide the class into groups of three) . The observershould give feedback using the checklist from page 68 ofthe Student'sBook.

Group work 1 (groups of4)For these situations, students should prepare in pairs for each negotiation.Again, it is important that they use the negotiation preparation checklist tohelp set clear objectives and roles before they start negotiating. You couldappoint a fifth member of each group to act as an observer, to give feedbackto the pairs on the preparation and negotiation.

Group work 2 (groups of4 or 6)

The emphasis here is on use oflanguage and creating a positive tone at thebeginning ofa negotiation. Make sure students understand that theyshould go through the three stages ofhosts welcoming the visitors, makingintroductions, and then a little polite small talk and offers of refreshment.It will be easier for them if they have some props (business cards, coffee tooffer, etc.) and stand up to act out the scene.

Setting the agenda

Pre-viewing

Viewing

ObjectivesThis unit looks at the process of structuring and controlling a negotiation.From a communication point of view, it focuses on the role of thechairperson and the importance ofsetting an agenda and a procedure forthe meeting. The Cultureand tactics section aims to raise awareness aboutpossible different approaches to structuring a negotiation. The Languageknowledge section concentrates on the language needed for the openingphases of a negotiation, plus some more vocabulary building. TheNegotiatingpractice section provides the opportunity for students toactivate and transfer skills in two practice negotiations.

Communication skills1 It may not be appropriate for informal negotiations to have a rigidly

imposed agenda. In an informal negotiation, there may only be one fairlysimple point under discussion. However, all negotiations need to have asense of direction - a clear picture of objectives and the best way to achievethem. The role of the chairperson is vital in maintaining this sense ofdirection, albeit unobtrusively. Usually the host company should beresponsible for chairing or controlling the negotiation.

2 Make sure your students are familiar with the video context. It may behelpful to also look at the Who's who section on page 7 ofthe Student'sBook.

3 Before you play Version 1, ask your students what they would expect tohappen in the first stage of the negotiation. Then play it all the way throughand ask them what goes wrong. They should be able to see that thenegotiation starts off on a negative footing because Francoise immediatelyfocuses in on the problematic staffing question, without giving Karen andAndrew a chance to present their proposal. There is a tendency forinexperienced negotiators to jump in feet first in this way and attack whatthey see as the main issue. This is not a good tactic. It is better to clarifyobjectives and establish positions before tackling the sticking points.

4 When you play Version 1 again, ask half the group to focus on the Levienteam (Francoise and Sean) and the other half on the Okus team (Andrewand Karen). Tell the observers of the Levien team to evaluate how

UNIT TWO 13

Post-viewing

14 UNIT TWO

Francoise deals with the critical issue of staffing. How could she improveher performance? The observers of the Okus team should look at Andrewand Karen's reaction to Sean. What is the best way to handle the aggressiveposition he immediately adopts? If students find it difficult to come upwith any answers regarding Sean, you could suggest that a key factor mightbe to avoid showing any strong emotional response to Sean's aggressiveattitude, as he is likely to regard this as a weakness.

5 Watch Version 2 all the way through. Ask the students what they think ofFrancoise's performance. They should be able to see that she has clearlyprepared well and knows where she is going.

6 Asyou watch Version 2 through again, stop the video to anticipate whatFrancoise is going to say next. Focus on the steps she goes through:

clarification of the position of Okus versus the competition- statement of objectives- introduction of agenda- check on roles

check on timing/end of day.

7 Get the students to work in pairs or small groups to develop theirchecklists. Ask them to compare with other groups. Then check theirmatching against the Answer Keyon page 71 of the Student's Book.

Culture and tactics1 An effective way to raise awareness here is to ask students to work in pairs.

They should identify their place on the continuum from chaotic toinflexible. Ask them to consider what the advantages and disadvantages ofbeing methodical or creative could be. What are the difficulties ofworkingwith people who are much more or much less systematic than yourself?

2 This is a lead-in to encourage students to think about company cultures. Ifyou have experience ofworking in companies, talk about your impressionsof company culture and style ofworking. Ask them to consider the fourcompanies. Are they similar to any company they have worked for?

3 The objective ofthe session should be to get them to describe their workingculture. If there are a lot of procedures, systems, and rules, then theirculture is universalist and highly systematic. If there are rules but peoplebreak them when necessary, then the culture is particularist.

Language knowledge1 The six extracts present the full range of styles and language for opening a

negotiation. Let the students listen to the whole thing all the way throughonce for global comprehension and general identification purposes. Thenplay the extracts one by one, checking to see which elements they include.When you have finished concentrating on the global content of eachextract, go back and focus on the specific language used to introduce eachelement. Stop the tape frequently and ask students to match the phrasesthey hear against the Language focussection. Use the tapescript for moredetailed study.

2 Let the students try and answer as many of the comprehension questions asthey can from memory. Then play the extracts through again for them tocheck their answers.

3 The main difficulty with this type oflanguage is to activate the verb usage.After they have completed the gap fills, ask your students to create similarsentences, prompting them with just the verbs.

4 For this speaking practice exercise, divide the class into three groups andthen allocate each group one of the task scenarios. Allow the groups tenminutes to prepare together (they should refer back to the preparationchecklist) Ask one member ofeach group to act out their opening scenario.If time, repeat with another student taking the active role. Alternatively,you could ask them to work in pairs and act out all three scenarios.

5 Balancing the issues for negotiation is an important rhetorical feature ofthe opening to a negotiation, especially when the host sets the scene. Thisexercise provides some discrete practice in presenting two sides of anargument. Remind students to try to use the sequencing and linkingstructures given in the Language focus section when they make theirpresentations.

6 Your students may be able to work out the meaning of these 'groundidioms' without the exercise. Try reading the idioms out first and askingstudents to write down an equivalent phrase or definition. Then go on tothe matching exercise. Get students to compare their original definitionswith the ones they choose in the exercise.

7 This exercise could be done in pairs. One member ofeach pair should readout the situation; the other should try to remember an expression thatmatches the situation.

Negotiating practice

Group work (groups of4)

Divide the class into groups offour. Then assign one ofthe role-plays­Negotiation 1 or Negotiation 2 - to each group. The groups should then bebroken down into two pairs and have roles assigned. Allow five minutes toprepare for the actual opening of the negotiation.

As with all these negotiation practice activities, the feedback is the mostimportant stage ofthe lesson. Clarify before the negotiation what you aregoing to be watching for (e.g. a structured opening). If possible audio- orvideo-record the opening and then play back for analysis and feedback.Encourage the students themselves to give feedback on their ownperformance and that oftheir colleagues.

UNIT TWO 15

Establishing positions

Pre-viewing

Viewing

16 UNIT THREE

ObjectivesThe primary focu s of this unit is on presenting your position and makingsure you develop two-way communication as you do so. Cultureand tacticslooks at the differences between an explicit and direct communicationstyle, and a more implicit and indirect style. The Language knowledgesection develops a range ofexpression for presenting and obtainingfeedback. The Negotiatingpracticesection develops the skill of presentingin an interact ive way.

Communication skills1 Thi s question raises the possible contradiction in negotiating strategy: on

the one hand, you want to be po sitive and ope n; on the other, you may feelthat it is better not to present the whole picture. Students need to separatetheir com munication skills from thei r tactics. It's important to giveyourself some roo m for manoeuvre later on , so it would be unwi se, forexample, to present your best offer immediately. However, alth ough youmay decide not to reveal everything for tactical reasons, this does not meanyou should not engage the other team in a full discussion ofyour po sition.

2 The question of how to get effective feedback is the focus ofthis unit. Howdo you find out how the other team feel about your offer or position? Wh atare the most effective ways to get feedba ck when you are speaking?Students should be made aware of the imp ortance of constantlymonitoring their audience, checking that they understand, and that theirinterest is being held. They can only expect to get feedback if they ask for it.There sho uld be plenty of opportunities for the audience to comment onand ask questions abo ut what is being said.

3 Make sure students have understood the main issues for negotiation ,particularly the differen ce between Level A and Level Bsupport work.

4 You could show Version 1with the sound down first. Ask your students tocomment on the body language ofboth present er and audience. Andrewdisplays many of the faults of a poor presenter -lack of eye contact, over­reliance on his equ ipment, lack of flexibility, etc. His audience's restlessnessand inatt ention is also clearly indi cated by their body language. When you

Post-viewing

play the extract a second time with the sound up, get the students to focuson Andrew and the characteristics of his presentation style.

S Asyou watch Version 1 for the second time, stop the video frequently 'md

ask your students what Andrew should and should not do in order to makehis presentation more responsive to his audience.

6 You could also show Version 2 with the sound down the first time and askstudents to look at Andrew's different body language. Then play it with thesound up and identify the changes in his presentation style.- He interacts more with the audience.- He maintains more eye-contact.- He allows time for questions.- He checks understanding/agreement and is flexible about addressing

issues that the audience want to know about.

7 Stop the video frequently to focus on the moments when Andrew bringsthe audience into the session and makes sure he achieves two-waycommunication.

8 This is an initial opportunity to model short presentations on Andrew'smore interactive style in Version 2. The subjects have been chosen so that aminimum ofcontent preparation is necessary. Give feedback on howinteractive your students' presentations are.

Culture and tacticsAsk your students to read the introductory text about direct and indirectstyle. Discuss the characters in the video. What sort of style do they have?What style do your students like?What style do they try to adopt?

Then ask them to work on the two short tasks. They could do this in pairsor individually. Compare their answers and then take a look at the AnswerKey.

Language knowledge1 Play the first extract and then check whether your students think the

presenter is talking at or talking with the audience. Ask them what madethem decide one or the other. (They should focus on things like interactionwith the audience, not making assumptions, asking and answeringquestions, etc.) Continue in the same way with the other extracts.

2 Play the extracts through, stopping frequently so that the students can pickout both the language functions and the actual language used to performthem for each different meeting. You can refer to the Language focussection to reinforce the expressions. Use the tapescript for further support.

3 You might like to explain to students that directly stating what you want inEnglish can sound abrupt and discourteous. It is more polite to state whatyou want in a more indirect way, i.e. by deferring, or appearing to defer toyour partner's wishes and opinions. (This refers back to the Cultureandtactics topic of indirectness and directness.) Thus, Is it OK togo now?, Don'tyou think we shouldgo now?, Do you mind ifI go now?, which all seem to be

UNIT THREE 17

18 UNIT THREE

inviting a response, are politer ways of saying I want togo now. This activit yis a tr an sformation exercise where studen ts have to alter sentences so th atthey are more inclusive, i.e. seem to be invit ing a response. Students couldwork in pai rs to change the sentences and then go round the classcomparing th eir versions.

4 This is another transformation exercise which works on the same principleas the previous one . Proposals or suggestions, using we are more acceptablethan direct statements using 1.Remind students to refer to the Languagefocussection for help with st ructures for making suggestions andproposals.

5 Students should work in pairs, taking it in turns to make briefintroductions to th e given negotiating situa tio ns. The second partnershould listen , respond when appropriate, and offer criticism at the end.Emphasize the importance ofpreparing the introductions properly - andset aside time for the students to do this - before you allow them to startthe speaking part of the exercise. After everyone has had time to practise,ask one student to make one ofthe introductions in front of the wholeclass.

Negotiating practice

Group work 1

Students sho uld be motivated by th e opportunity to talk about th eir owncompanies. Discuss with them th e m ost useful way to do this exercise.They might like to choo se a particular topic or aspect of their company,and specify th e type of audience for th e presentat ion th ey want to give (e.g,customers, suppliers, colleagues, etc.). It is im po rtant to keep the audience(the other students) focused on their role as well, so give them time tothink ofth ree qu estions which , in th eir role as suppliers or customers, theywould want to ask the presenter.

Group work 2You can add an edge to this activity by m aking it competitive. For example,if they choose the topic 'holiday destination', m ake sure each member ofthe group presents a different destination or type of holiday. The audiencecan try to ask difficult questions to keep the presenter on his/her toe s. Atthe end, get th e class to vote on which hol iday th ey would prefer.

Clarifying positions

Pre-viewing

Viewing

ObjectivesUnit 4 follows on from the work in the last un it on interactivecommunication. Having presented your position , the next imp ortantphase is clarifying - making sure that both sides understand each other. Interms ofcommunica tion skills, this translates into good listen ing andeffective question ing. The Cultureand tacticssectio n looks atindividu alistic versus team-oriented styles of negotiating. Th e work onlistening and question ing is consolidated in the Language knowledgesection, and the unit finishes with practice tasks which transfer bo th skillsand language.

Communication skills1 It is important that you establish that this is a problem area - most ofus

don't listen very well. We tend to enter discussions with pre-formed ideasand just wait for an opportunity to express them. When others are talking,we have often already made up our minds to disagree with or ignore whatthey are saying. So, active listeni ng is a state ofmind when you allowyourse lf to genuinely try and understand an other point of view. Theadvantages oflistenin g well are obvious:you un derstand the other party'snegot iating position better and will be able to develop arguments thatrespond to their needs. Showing genuine interest also encourages respect.Your partner will respond by listening to you and the chances of reallyeffective communicatio n are increased.

2 There are techniques for listening effectively but it is, above all, a state ofmind in which you allow yourself to be open to what's being said.Encouragi ng others to listen to you involves checking, pausing, andallowing people to ask questions and make com ments.

3 Make sure students have understood the main issues for negotiation, andparticularly that they understand the offers on the table and the differencebetween Level A and Level B support work.

4 Version 1 illustrates everybody following their own agenda ra ther thansha ring a commo n sense of direction. It raises the question ofthe role of achairp erson again - sho uld Francoise take more responsibility for the

UN I T F OU R 19

Post-viewing

20 UN IT FOU R

direction of the meeting? Karen is frustrated because she is unable tosustain the group's attention sufficientl y to get her message across. The ykeep sidetracking her with quest ions oftheir own which are not relevant towhat she is saying. She needs to develop better skills in keeping on trackand handling awkward interruption s, such as those from Sean.

S As you watch Version 1again, stop the video at each interruption anddiscuss how Karen could have reacted better and got her message acrossmore effectively.

6 When watching Version 2 for the first time, focus on Francoise and thetype ofquestion s she asks. They are more reflective questions which showthat Francoise is genuinely listening to Karen and trying to interpret whatshe is saying. Reflective questions like this help to clarify for everyone whatis being said, and facilitate effective communication.

7 For the second viewing of Version 2, focus on Karen, and in particular howshe handles Scan's inte rruptions. She keeps control of the situation andmaintains the direction she wants to go in. Andrew backs her up in this andthey function well as a team, which further supports posi tivecommunication.

8 We have estab lished that good listening is mainl y the result ofan open stateofmind . This questionnaire aims to get students to think about theirbehaviour when listening. Depending on your group, you may like tomention the results of most research in this area which show that womenare mu ch better listeners tha n men!Students should complete thequestionnaire as individuals, but then compare results with a partner. Youcould ask students to suggest three ways, based on the results of theirpartner's questionnaire, in which they feel their partner could improve hisor her listening skills.

Culture and tacticsBefore looking at this section in the Student's Book, ask your students whatthey think of the teamwork in the video. Hopefully,they will have noticedthat, whilst in the bad versions neither side works as a team, in the goodversions the successful communication usua lly comes about as a result ofteamwork.

1 Ask students to go through the contrasted statements in pai rs and decidewhether their working culture is more individualist or more collectivist .Compare the results with the rest of the class.

2 Ask students to discuss the statements in sma ll groups. After ten minutes,ask a spokesman from each group to give feedback to the rest of the class.

3 Finally, ask the groups to come up with some key advice for inexperiencednegotiators .

Language knowledge1 Play the first extract and then check whether your students think it's an

example ofgood or bad listening. Ask them what made them decide one

way or the other. (They should focus on things like questions asked on thesubject, interest shown, questions asked off the subject, etc.) Continue inthe same way with the other extracts.

2 Stop the cassette to identify the moments when there are pauses,opportunities to intervene, questions, checking, and encouragement. Ifnecessary, use the tapescript to study exactly how the speakers go throughthese steps.

3 This is an opportunity for students to practise formulating general enquiryquestions. If you feel they need time to practise, play the cassette throughonce and allow students to write their responses down. When you play thecassette a second time, ask students to cover their written answers andrespond orally.

4 Follow the same steps as for exercise 3 above. If students are confidentenough, they should try responding orally immediately, without firstpreparing a written answer.

S This exercise is more challenging, so you could give the students some timeto work on the questions in pairs. Then ask for volunteers to read out theirquestions to compare with the rest of the class and the solutions in theAnswer Key.

6 This is an exercise designed to make it more natural and automatic forstudents to use these encouraging remarks in their own speech. Before youstart, refer the students to the appropriate part of the Language focussection, where the remarks are listed. Demonstrate the appropriate'positive' intonation and give students some time to practise. Then play thecassette and let students respond orally to what they hear.

7 This activity will take ten minutes to prepare. Put all the Student As in agroup together and all the Student Bs in another group. The Student Asneed to decide what their requirements are (e.g. date, time, number ofguests, food, drink, entertainment). The Student Bs need to specify whatthey can offer (e.g. catering, music, and any other attractions, plus costsand availability). When both sides are ready, the students should get intopairs and carry out the negotiation. They could be audio- recorded forfeedback and correction. In this case, students may prefer to practise thedialogue before recording it.

8 You could try and elicit some of this vocabulary from your students. Askthem to cover up the box with the words in it and just look at the sentences.Can they think of synonyms for the words in italics? When they have doneas much as they can, let them uncover the box and try matching.

9 This exercise provides an opportunity to practise new vocabulary from theprevious exercise. When students are confident about the meaning andusage ofthe given vocabulary, look at other forms of the words - forexample to bill, a charge. You could also look at opposites - rough/accurate,discountedprice/full price, etc. Ask your students to talk about the fees,prices, payment conditions, and so on in their companies.

UNIT FOUR 21

2.2 U NIT FOUR

Negotiating practice

Pair work

Before you start, quickly revise the techniques for encourag ing others tolisten (checking, pausing, allowing tim e for questions and comments) andfor how to listen well (maintaining an open state of mind, clarifyingmeaning by asking reflective 'positive' question s). Give the pair s time tochoose the situation they would prefer to talk about. During the activity,monitor the perform ance of the students for evidence ofgood listeningpractice. Get the listening partners to summarize before they swap roles tobecome the speaking partner. At the end, ask one pair to give theirpresentation and summary in front of the class.

Group work (groups of4)

This is an exercise in efficient exchange of information facilitated by goodlistening. The two teams will need about twenty minutes to prepare th eirbackground information . It will probably be helpful to set a strict timelimit, so that everyone has to be ready to negotiate when time is up. Youshould also set a time limit (fifteen to twenty minutes) for the negotiationitself. The pressure of time should, in both cases, encoura ge students tomaximize effectiveness of communication.

The negot iation would probably take place on the client's premises and,therefore, Baylor and Sons should host the meeting. Followin g thenegotiation , only allow five minutes or so for the Human Potenti al team toproduce the proposal for a contract. The object of this is to test theeffectiveness of the com munication that has taken place. Thi s can bejudged by the extent to which the proposal fulfils or does not fulfil theneeds of Baylor and Sons. The Baylor and Sons team can decide whether ornot th e proposal is acceptable, and if any major points have beenmisunderstood or forgotten.

Managing conflict

Pre-viewing

Viewing

ObjectivesThis unit deals with the heart of a negotiation, the stage where it can all gowrong. Negotiating across cultures can often come unstuck because ofcritical misunderstandings. An inability to criticize in a con structive way isfrequently at the root ofthe se breakdowns. Criticisms are too often takenpersonally and trust begins to be eroded. The unit looks at how to handlecriti cism constru ctively and the role of conflict in negotiations . From alanguage point of view, it looks at how language can be modified to tonedown the message. Finally, there are some practice negotiations to helpstudents to learn to handle conflict through role-play.

Communication skills1 The benefits of conflict could include its potential as a dynamic force,

which moves the negoti ation forward more quickly and decisively. Conflictreveals the differences which need to be resolved in a negotiation, and cantherefore promote a greater understanding of the positions of the partiesinvolved. On the other hand, the consequences ofconflict are oftendestructive. Conflict raises levels of stress, which could have a negativeeffect on the deal under discussion. If one or both parti es take personaloffence, this can lead to a total breakdown in communication.

2 Some people cannot cope with conflict and will avoid it at all costs. Othersrelish some conflict and see it in a positive light as a tool to help themachieve their aims. It is therefore important to identify the pros and cons.

3 The breakdown in trust develops out of the need to identi fy what type ofwork the IT team are carrying out. Make sure your students understandthe distinction between support work and project work.

4 In the first part of Version 1we see conflict arising over the issue ofloggingsupport work. The conflict then becomes personalized as Andrew takesoffence at Sean's remark about inexperience. Karen wants to defuse thesituation by taking some time out.

5 After the Okus team have left, we see in the second part of Version 1 thatFrancoise and Sean are not operating as a team. They have different stylesofnegotiating and different att itudes towards the use ofconflict.

UNIT FIVE 23

Post-viewing

24 U N IT F IVE

6 In Version 2 we see Sean adapting his tactics to the style of his negot iatingpartners. There is a mom ent when Andrew could take offence. Seanrecognizes this mom ent and ton es down the message. However, he stillconfro nts the issue. We can conclude that, altho ugh avoiding personalcriti cism is vital, it does not mean that you have to avoid important issues.

7 When we see Francoise and Sean alon e in Version 2, they are again talkingtactic s, but now they are working as a team. As you watch this tim e, stopthe video and focus on Sean's app roach. He and Prancoise use the tim e outconstruc tively to assess progress and identi fy their con cern s. They decidenot to pu t any more pressure on th e Okus team with regard to the loggingquestion , but to wait for Okus to make a proposal.

8 Th is activity brings us back to consider the issues discussed in the openingquestions. Now that they have watched the video, it is an opp ortunity forstudents to modify or confirm thei r atti tudes towards conflict. Theimportant point is that they appreciate the consequences of taking aconflict ual approach. Students should discuss the statements in pairs.Then, ask them to draw up thr ee statements which summarize their ownatt itude towards the issues of conflict and building relationships.

Culture and tacticsThe objective of this section is to fur ther develop the students' own stylesofnegotiating.

The first task allows th em to consid er some stereotypical negotiators. Askthem to work in pair s deciding which one they most identify with , if any.Then ask each pair to explain who they have chosen and why.

2 You could ask your studen ts to bri efly present their atti tudes towards theissues listed, or alterna tively,you could ask them to wr ite a thumbnailsketch of their own style. Discuss with the class any major differences inapproach which the task identifies.

Language knowledgePlay the first extract and check if all the class agree whether it isconfrontational or collabo rative. Ask them what made them decide oneway or the other. Continue in the same way with the other extracts. As thelistening continues, your students will recognize that one ofthe speakers isconfrontational in the first two extracts. All the other speakers have a morecollaborative approach.

2 Play the four extracts again, stopping frequently to give the students theopportunity to identify the struc tures in the exercise and to compl ete thegap- fill exercise.

3 This exercise consolidates some of the techniques for modifying and, at thesame tim e, provides some pattern practice in intonation . It might bebeneficial for students to adopt a two-step approach. First, they shouldidentify the language feature(s ) that need to be modified. Then, withreference to the LanguageJOCllS section, they can decide how they sho uld be

modified. They should realize that, in many cases, there is more than oneway in which this can be done - for example, I'm afraidcan be added tomost ofthe sentences.

4 Again, a two-step approach could be most effective for this exercise. Firstfind the opposites and then consider how the sentences need to be changedto keep the same message.

S With the students in pairs, you could start them off by getting them tosuggest ways ofmaking the first sentence in the dialogue lessconfrontational (e.g. Yourfigures for lastyear don't looksogood). Then givethem some time to modify the whole dialogue. When each pair hasrecorded their version of the dialogue, and had a chance to listen to it, playthe pre-recorded versions and compare them. If it is not possible to audio­record the dialogue, get students to perform it in front ofclass.

6 This exercise provides further practice for students in downtoning theirlanguage in order to defuse a conflictual situation. Read the introductionas a class, and make sure the students understand the implications ofthesituation, for example that both departments feel that the other is to blamefor the surplus. Then ask the students to work in pairs to write the dialoguein suitable 'modified' language. If they have trouble beginning, you couldsuggest a suitable first line: Therearerathera lotofelectrical componentsinthe warehouse. When they are satisfied with their own versions, ask them tocompare with the version in the Answer Key. They should practise actingout their dialogue using the appropriate intonation.

Negotiating practiceConflict is inherent in both these situations. In terms of their language,your students should think about the difference between internal andexternal negotiations. One would expect the conflict to be more visible inthe internal one.

Group work 1 (groups of5)Discuss the situation with your students, making sure they fullyunderstand the implications. The object of the negotiation is to avoidhaving the company taken to court, and possibly prosecuted, for breakingthe equal opportunities laws. The team should decide on an alternativecourse of action which meets the approval ofall parties concerned. Whenyou have allocated the roles, give the groups ten minutes to preparethemselves. Allow a maximum ofthirty minutes for the meeting.

Group work 2 (groups of4)After reading through the introduction, take time to clarify the problem.Again, the object of the meeting is to safeguard the agreement - thatNamaste contract Atali's sales team - and to find some kind ofcompromiseposition or course of action that all parties are happy with. The meetingplace could be either company's premises. Clearly, this will make adifference as to who hosts, and therefore probably chairs, the meeting.After you have allocated roles, allow the groups ten minutes to prepare.The meeting should last between twenty and thirty minutes.

UNIT FIVE 25

Making and responding toproposals

Pre-viewing

Viewing

26 UNIT SIX

ObjectivesOnce negotiating positions have been established and clarified, the gapbetween these positions has to be closed. Proposals and counter-proposalsare the usual way ofachieving this. This unit deals with thecommunication skills and language involved in making proposalspersuasively and exerting pressure. The Culture and tactics section focuseson emotional versus neutral styles of communication.

Communication skills1 Youcould illustrate this stage of a negotiation by reminding students of the

situation in the video and the problem of the two levels of support - neitherofwhich satisfies Levien. Which side should now make a new proposal?Normally, the supplier (in this case Okus) would be expected to start thisprocess. The customer then has the advantage because they do not have toreveal anything about their position until they have heard the supplier'sproposal. However, making a proposal first may also have its tacticaladvantages. The team that makes the first proposal sets the parameters forthe discussion, and ensures that the negotiation will start out in thedirection that interests them.

2 Make sure that the students are familiar with the context of thisnegotiation, and in particular the details of the problem ofthe two levelsof support.

3 Play Version 1 for the first time with the sound down. Find out what yourstudents think is happening. Then watch it with the sound up. Sean ismaintaining his conflictual style, trying to force the Okus team into givinghim what he wants. He does not even giveOkus a chance to make theirproposal.

4 As you watch Version 1 for the second time, ask half the class toconcentrate on Sean, the other halfon Andrew and Karen. Sean's approachis direct and confrontational. He is following his win-lose philosophy ofnegotiation: if Okus are not prepared to give him exactly what he wants,there will be no deal. Whilst Karen is disconcerted, Andrew responds atfirst pompously and then sarcastically.

Post-viewing

5 In Version 2, Karen is able to present the Okus proposal. Sean's response isdirect, but he is more polite and less aggressive than in Version 1. Francoiseresponds positively and helps by suggesting ways in which the proposalcould be modified to meet Sean's concerns.

6 During the second viewing ofVersion 2, stop the video and focus on theexchange between Karen and Francoise. Their approach to negotiating isconstructive because it avoids negative feedback, and works through aprocess of making proposals and asking questions. Karen sees a problem,Francoise proposes a possible solution. Karen and Andrew then ask howthis solution would work in practice. Francoise makes another proposal,Karen questions, and Francoise clarifies. Finally, Karen responds positively.

7 This is designed as a short pair work exercise to practise proposal andcounter-proposal. Give the students the example scenario ofnegotiatingwho is going to pay the bill in a restaurant. For example:

Let me pay this time.No, that's not fair. I'm sure it's my turn.Why don't we split it, then?

Give them the first two lines of this exchange, and ask for suggestions as tohow it might continue. When you think they have got the idea, ask them toget into pairs and work through the scenarios in the exercise in the sameway.

Culture and tactics1 Give students time to read the text and decide whether their own particular

styles are more neutral or emotional. Then ask them for feedback, so thatthey can compare styles as a group. Encourage them to share anyexperiences ofclashes in situations where they have had to work withsomeone with a different negotiating style, e.g. loss of temper, frustration,taking offence. What was the effect of having to reconcile the twoapproaches?

2 Students should discuss the scenarios in pairs, and decide how they thinkthey would feel in these situations and what their reactions would be. Theemotional responses may differ greatly from student to student and cover awide range of feelings - e.g. surprise, shock, embarrassment, anger,outrage. The essential question, however, is to what extent the individualchooses to reveal their feelings.

Language knowledge1 Check that students understand the situation and know what they are

listening for. Play the extract through once, and let students try andcomplete the comprehension task. If necessary, let them listen a secondtime to check their answers.

2 Play the extract again and get students to try and write down the languagestructures used to make the proposals. They can use the tapescript to checktheir answers.

UNIT SIX 27

28 UNIT SIX

3 Before you begin this exercise, make sure that students are familiar with thesection on responding to proposals in the Languagefocus. For the exercise,work as a whole class. Stop the cassette after each proposal and choose astudent to make a response.

4 This is a written exercise which provides more practice ofthe languagestructures for proposals. Point out that the proposals vary in context andthat students will therefore have to choose between formal and less formalways of making proposals.

5 This speaking exercise provides more practice for students in making andresponding to proposals and counter-proposals. After the pairs havedeveloped their dialogues, you could ask for volunteers to perform them infront of the class.

Negotiating practice

Group work (groups of4)

First, make sure that everyone understands the situation. The object ofthenegotiation is for the council and the community to reach agreementabout the conditions under which the building is to proceed. Allocate rolesand allow time to prepare (ten minutes). Monitor the negotiation for thetechniques used in making and responding to proposals.

Pair workBefore the students divide into pairs, discuss the situation and the roles as aclass. Decide who has called the meeting and in whose office it takes place.Ask students to draw up a plan for the best procedure for the meeting. Forexample:1 clarification of the need for redundancieslretirement2 proposed candidates3 objections and counter-proposals4 decision.

The object of the negotiation is to come to some sort of an agreementabout the proposed staffcuts.

Bargaining

Pre-viewing

Viewing

ObjectivesOnce the negotiators have exchanged proposals and counter-proposals,there usually follows a period ofbargaining to hammer out the basis foragreement. It is easy for this to quickly descend into a polarized bargainingsession. This unit looks at how to maintain positive communication in abargaining situation. The Language knowledge section focuses on makingconditions and concessions whilst the Cultureand tactics section contrastshigh-context and low-context cultures, where the degree ofexplicitcommunication differs greatly.

Communication skills1 There are a variety ofreasonswhy negotiations fail. Personalities or styles

ofnegotiating clash, competitors elsewhere offer a better deal, or problemsjust seem too difficult to solve. The tone ofthe meeting is not the mostcritical factor, but it will certainly help to maintain positivecommunication in the essential bargaining stage which precedes reachingan agreement.

2 Make sure your students are familiar with the video negotiating context. Itis important that they understand that in an outsourcing contract, thecontractor employs the staffwho work on the client's premises.

3 Watch Version 1 and then discuss why it goes wrong. The discussionquickly becomes polarized as Karen and Andrew keep saying 'no' to thepoints raised by Sean and Francoise, thereby putting up barriers againstfurther progress. Ask your students how they would have handled thissituation. IfKaren and Andrew had been able to keep the overall objectivein mind, instead of getting bogged down in negative details, they wouldhave found it easier to maintain a positive tone.

4 Watch Version 1 again, stopping the tape each time Karen or Andrew saysomething. Their way ofresisting the pressure from Levien is to focus onwhat they cannot do and what is not possible. In each case, ask yourstudents how the Okus team could have been more positive in theirresponses. They should put more emphasis on what they do have to offerand what they can do.

UNIT SEVEN 29

Post-viewing

10 UNIT SEVEN

5 In Version 2, the Okus team are much more successful at maintainingpositive communication for a number of reasons. A crucial advantage forKaren and Andrew is that they have prepared better - they have aconcession up their sleeves which breaks the deadlock. Karen avoids aconsistent negative response by emphasizing the overall objective right atthe beginning and making sure it remains visible: Our main priority is togivegoodquality, value-far-moneyservice. She is very clear about whatOkus can and cannot do, and she expresses their position positively.

6 As you watch Version 2 for the second time, focus on how Karen handlesthe session. She uses the concession ofemploying a third member ofstaffto maintain a positive approach, whilst at the same time ruling out thepossibility of taking on all of the existing Levien team. The impact of this ­at a critical moment in the bargaining process, when it seemed possiblethat the teams might have reached a deadlock - is considerable. It clears theway for the teams to reach a final agreement.

7 This short group work activity provides practice in maintaining positivecommunication in a situation where there is a conflict of interests. Theobjective of the exercise is to negotiate a solution to the problem. When theroles have been allocated, you should allow a short time for individuals toprepare how they are going to present their case, and for the group to agreeon an agenda for the meeting. You might like to set a time limit for themeeting (ten to fifteen minutes) in order to help students focus andmaximize the effectiveness of their communication. You could also appointa fourth member for each group to observe how the situation is resolved,and to what extent positive communication is maintained.

Culture and tacticsYour students probably have experience ofboth types ofculture describedin the text. Encourage them to relate anecdotes which illustrate thecultures. The American need for very lengthy legal contracts coveringevery eventuality clearly illustrates a low-context culture. In parts ofAsia, aWesterner will need to read between the lines and rely on intuition as muchas explicit exposition.

The situations are designed to draw out different attitudes to time,business relationships, and contracts. They can be discussed in pairs,groups, or as a class. Encourage students to tell you about other similarexperiences which they may have had.

Language knowledgePlay the first extract twice to enable students to identify the concession andcondition. Let the group compare their answers and give feedback beforeplaying the other three extracts. Tell the students that in some extractsthere are primary and secondary concessions and conditions, but theyshould focus on the primary issues.

2 Now play the extracts again, this time focusin g on the langu age. Make surethat you give students enough time to write down the language structuresthat they hear. They can use the tap escript to check their answers.

3 Thi s exercise provides the opportunity for students to practise formingand manipulating conditional structures. You may find it useful to revisethe formation of conditional structures in class before they attempt it.

4 This is an opportunity to develop a feeling for th e difference between themore direct and more hypothetical conditional sentences. Ask students tocompare the effect of changing the tenses for each sentence. For example:

We can offeryou {l twoper cent discount if you guarantee the orders.We could/would be able to offeryou {l twoper cent discoulit ifyouguaranteed the orders.

5 After the students have completed the dialogue, further intonation practicecould be given by asking them to read it out loud.

6 This short speaking exercise provides an opportunity for freer practice ofbargaining and makin g conditions, using the structures above. Whenstudents have scripted their dialogues, they could audio-record them orperform them in front of the class.

7 Youcould ask on e student to read out the text, while the oth ers follow inthei r books. Then, individually or in pairs, carry out the vocabulary­mat ching task.

S When you have given feedback on the matching task, ask the students to dothe gap-fill exercise individually. As a follow-up to this exercise, you couldchoo se some current news of deals from the bu siness press and ask yourstudents to talk about them.

Negotiating practice

Pair work

Check that the students understand the situation and the objectives of thenegoti ation. The customer and the supplier have to negotiate the actualterms of an IT service contract so that both parties are satisfied. Once theroles have been allocated , allow the students ten minutes to prepare.Remind them to keep sight ofthe objectives. They will also need to decidewhere the meeting takes place, and which partner undertakes the duties ofhost.

Group work (groups of4)

Again , the objective of this negotiation is to negot iate the actual terms of acontract, this time for the provision of management and sales training.Follow the same steps as above, but give the students more preparationtime since they have more issues to discuss.

UN I T S EV EN 3 1

Conclusion and agreement

Pre-viewing

Viewing

32 UNIT EIGHT

ObjectivesThe gains ofa successful negotiation can diminish if the negotiation is notconcluded effectively. This final unit aims to raise awareness of the issuesthat need to be covered when concluding a negotiation, and to equipstudents with the skills and language to do so competently and confidently.The Languagefocussection looks at vocabulary and structures forsummarizing and agreeing follow-up actio n - two important steps in theeffective conclusion ofa meeting. The Cultureand tactics section isconcerned with two very different common negotiating philosophies. Onesees the negotia tion as an end in itself, the other treats negotiations as thestarting point for a lon ger-term relationship between supplier andcustomer.

Communication skills1 Discuss with your students what normally happens at the end of a

negotiation. This should help to raise their awareness of the importance ofconcluding properly. It is essential to summarize and confirm what hasbeen achieved . Nothing must remain ambiguous, and all decisions shouldbe documented as proofofwhat you have agreed.

2 Make sure your students are familiar with the video context. They shouldbe aware of the differing expectations the individual negotiators have forthis last stage of the meeting.

3 As you watch Version 1 for the first time, focus on Francoise. She is in ahurry to leave because her person al aim s have been achieved - Okus hasagreed to employ all her staff-and she has a dinner engagement to go to. Inher rush to leave, she does not conclude the meeting properly. She shouldsummarize what has been achieved, be prepared to clarify outstandingpoints, and identify future action. Ideally, she should also set a date for thenext meeting.

4 For the second viewing ofVersion 1, focus on Karen and Andrew. Andrewis also in a hurry to leave what he sees as a scene ofdefeat. He is no longeracting as a team member and fails to back Karen up as she presses forconclusion on some final issues. He is afraid that they will end up byconceding even more if they stay longer. Karen is frustrated by Andrew's

Post-viewing

attitude and disappointed that she has been unable to clarify the issues shewanted to discuss further.

5 As you watch Version 2 for the first time, focus on Francoise again. Ask the

students to make a list of ways in which she handles the closing differentlyfrom in Version 1. Although she is still anxious to wind up the meetingquickly, she is both polite and business-like. She summarizes, clarifies, andplans the next steps. The date for the next meeting is set, and Karen knowsthat the issues she still wants to address can be discussed then.

6 For the second viewing ofVersion 2, stop the video so that your studentscan identify the key moments, and make a note of the language thatFrancoise uses.- She summarizes: So, we haveagreed an initial one-yearcontract.. .- She agrees action: Wewill meet againhereto interview . . .- She apologizes for leaving quickly: I'm afraidI have togo now. I'm sorryI

haveto leave soabruptly.

7 The students work in pairs or small groups to draw up their end -of­negotiation checklists. When they have drawn up their checklist andcompared it with the one given in the Answer Key, students should take alook back at the opening checklists developed in Units 1and 2. Together,these three checklists should provide the basis for the whole negotiation.

Culture and tacticsAfter the students have finished summarizing the two parts of the text inpairs, ask one pair to give their summaries in front ofthe class. Studentscan then discuss the tactics section in groups, and you could round offwitha whole-class discussion of the issues that arise. Nowadays the win -winphilosophy ofnegotiating tends to dominate most business practice.However, the business world remains extremely competitive and for everysuccessful deal there are many more failures. It is important not to get toocarried away with the win-win ethos. Negotiators need to recognize theright moment to pull out as well as when to concede in order to get thedeal. Win-win does not mean avoiding tough negotiations.

Language knowledge1 Play the first extract and ask your students whether they thought it was an

effective ending. Did it include all the elements listed in the task? Workthrough the other extracts in the same way.The students should tick off thestages that they go through in the table in the Student's Book. Ask them tocompare the differences in style and context.

2 Play the extracts again, stopping the tape to allow students to pick out thelanguage used for particular functions. Students can use the tapescript tocheck their answers, and can refer to the Language focussection forreinforcement.

3 Ask students to try this vocabulary exercise without looking back at theLanguagefocusfirst. Let them refer to the Language focusafterwards toconfirm or correct their answers.

UNIT EIGHT 33

34 U N IT EIGHT

4 This exercise provid es practice for students in making po sitive feedbackremarks. Ask th e students to do the voca bulary work in pairs and th encheck th e results as a class. Discuss th e di fference of degree indicated by themodifiers, and ask th em if they can think ofany ot hers. Then go on to th elistening and responding. Making such positive remarks often seemsunnatural to many students, so emphasize th at it's a necessary step topractise such phrases before transferring them to th e real wo rld.

S This gap- fill exercise enco urages students to act ivate some of th evocabulary they have learnt in thi s unit. When they have completed th escript, it would help them to then speak it out loud, trying to useappropriate intonation.

6 The intention ofthis short speaking exercise is to provide students with th eopportunity to close a meeting. Working in pairs, the students should takeit in turns to chai r the meeting, going through the appropriate step s wh ilstthe other partner listens and responds. Do not get too involved in th econtext here. The main objective is for th em to str ing a series ofclosingremarks togeth er.

Negotiating practice

Group work (groups of4)

This simulat ion pr actises a series of complete negoti ations but th eemphasis in each case should be on th e closing phase (however, you can'thave a closing ph ase unless you've gone through someth ing substantialbefore). In all th ree negoti ations, Student A has th e dominant role - so youcould expand th e roles so th at he/she has an assistant who shares th eresponsibili ty for negotiating.

After th e roles have been distributed , allow th e students a short time toprepare, to decide where each meeting is to be held, and who will have theduties ofhost. It m ay help students to focus if a st r ict time limit is set foreach meeting, and if Students B, C, and D know that they must pres enttheir proposals, and make them sound as att ractive as possible within thetime allowed. Tell students to be particularly careful to go through all th eappropriate steps for concluding each negoti at ion. They can refer to thechecklist on page 81 of the Student's Book to help th em. At th e end,Student A can anno unce which hotel he/she has dec ided to use and saywhy.

Negotiating practiceextension activities

Introduction

The following pages contain additional cases and role-plays for furthernegotiating practice. All these negot iations can be done in pairs , or in twoteams with two or three students in each team. At the end of eachnegotiation, there are suggested roles. If students are working in a team,the y can decide which roles they want to play. It is very important that the yspend time preparing for each meeting by identifying the issues andestablishing their positions.

Each negotiation should involve these steps.

1 Preparation

Having selected a negotiation (see Contents), students should read thebackground information to get an overview ofth e context.

2 Opening the negotiationIf the negotiation is internal, the students must decide who is going tochair the meeting and therefore open the negotiation. If the negotiation isexternal, the students must decide where the meeting will take place.Normally the ho stts) will open the negotiation.

3 Establishing and clarifying positions

Each side should be given time to present their position and allow time forclarification.

4 Proposals and counter-proposalsHaving identified the gap between the two sides, they now need to makeconstructive proposals which close thi s gap.

5 BargainingIn some cases, th is will involve negotiating over price. In others, it may beconditions and concessions about people, systems, etc. which are the focusfor bargaining.

6 Closing the negotiationAll negotiations, whether they are successfully concluded or not, need tobe closed effectively.

Thesepagesmay bephotocopied.

Contents

Unit Title ExternaV Business focus PageInternal

1 The cost of external Human Resources / Training 38expatriation

2 The IT project internal IT / Marketing / Project 40

3 Sponsorship external Marketing / Purchasing 42

4 Promotional offer external Purchasing / Training 44

5 Loyalty versus price external Purchasing / Administration 46

6 Budget crisis internal General Management 48

7 Salary increase internal Production / Human Resources 50

8 The new buyer external Purchasing / Sales 52

9 The best person for external Sales / Distribution 54the job

10 After-sales support external Customer Service 56contract

11 Free beer and internal Industrial Relations 58productivity

12 A manager's role internal General Management 60

Negotiation 1AThe cost of expatriation

II!

.

BackgroundBeaubourg Hygiene, based in Paris, have recently acquired an Americancompany, Pitcairn Freezers. They decided to appoint one of their topFrench managers, Thierry Menton, to take overall responsibility for thecompany. To prepare for his posting, Thierry was put in touch with aconsultancy company called International Assignments. They put togethera three-week intensive programme oflanguage and cross-culturaltraining, two weeks of which were based in the US. At the end ofthetraining, a report was written stating that Thierry was now ready for hisassignment. Thierry took up the job four months ago. The first couple ofweeks went well, but since then, Thierry has had major problems with thelocal management and shop floor workers. Last week he contacted his bossin France and asked to be replaced. Beaubourg Hygiene have asked for anurgent meeting with International Assignments.

Beaubourg HygieneYou feelvery disappointed. You understood that Thierry Menton wasready for the assignment. According to local managers, Thierry's Englishwas not good enough and he didn't make any effort to get to know his staff.Naturally, following the acquisition, there is a lot of anxiety in the plantabout job losses, and it seems that Thierry was not able to deal with theseanxieties. There are now threats of strikes, and Thierry has contacted youto ask for his old job back in France. This job is no longer available. Hiswife and children were just about to move to America, but Thierry hasnow cancelled these arrangements. Thierry's training programme withInternational Assignments cost over $9,000, including expenses. Youwould like an explanation from them about what went wrong. Youwouldalso like them to offer some free on-the-ground support for Thierry.Further language and cross-cultural training would seem to be necessary.

Possible roles

Human Resources ManagerTraining Manager

38 Photocopiable © OXFORD UNIVERSITY PRESS

Negotiation 18The cost of expatriation

BackgroundBeaubourg Hygiene, based in Paris, have recently acquired an Americancompany, Pitcairn Freezers. They decided to appoint one of their topFrench managers, Thierry Menton, to take overall responsibility for thecompany. To prepare for his posting, Thierrywas put in touch with aconsultancy company called International Assignments. They puttogether a three-week intensive programme oflanguage and cross­cultural training, two weeks of which were based in the us. At the end ofthe training, a report was written stating that Thierry was now ready forhis assignment. Thierry took up the job four months ago. The first coupleofweeks went well, but since then, Thierry has had major problems withthe local management and shop floor workers. Last week he contacted hisboss in France and asked to be replaced. Beaubourg Hygiene have askedfor an urgent meeting with International Assignments.

International AssignmentsBeaubourg Hygiene is a new client ofyours. Your first contract was toprepare one oftheir French managers for the job of General Manager ofPitcairn Freezers in the us. Thierry Menton followed a three-weekintensive programme. At the end ofthe programme his trainers wrote areport stating that they felt his English was good enough to manage in theus. Apparently, the assignment has gone badly and Beauborg have askedfor this meeting to see what can be done about it. Thierry has run into alot of industrial relations problems and is finding it difficult to cope. Yourcompany was not warned of the possibility of industrial relationsproblems - if you had been, you could have prepared Thierry specificallyfor this. As far as his English is concerned, you doubt that it is the realproblem. In your experience, expatriations usually go wrong for familyreasons. Youwonder whether Thierry's family has joined him yet. Youcould get one of your consultants to visit him in the us and try to get tothe bottom ofthings. If Beaubourg want further training, then that is anoption, but you do not feel under any obligation to offer anything for free.

Possible roles

ConsultantSalesand Marketing Manager

Photocopiable © OXFORD UNIVERSITY PRESS 39

Negotiation 2AThe IT project

BackgroundMarton Pharmaceuticals, a specialist manufacturer of medical products,has grown rapidly in recent years. One oftheir major internal needs isnow for better information systems throughout the company. There is asmall IT department which is gradually upgrading existing informationsystems, but manpower is limited and progress has been slow. The ITManager has just heard that the Marketing Department has contacted anexternal computer consultant to start work on a new customer database.

Marketing DepartmentYour department has been waiting for three years for a better customerdatabase system. This is absolutely vital for the work of the department.Customers and prospects have grown rapidly, and you need an up-to­date system to manage and take full advantage of customer contacts andopportunities. Two years ago, the company formed its own IT team andyou assumed that your needs would be given priority. However, despitefrequent requests, nothing has happened. In frustration, the MarketingDirector has decided to invite an outside consultant to makerecommendations, and has arranged for an old university friend, whoruns his own consultancy company, to come in for an initial meeting nextMonday. Fees haven't been discussed yet, but it is planned that any workshould be funded from the IT budget.

Possible roles

Marketing ManagerMarketing AssistantMarketing Research Assistant

40 Photocopiable © OXFORD UNIVERSITY PRESS

Negotiation 28The IT project

BackgroundMarton Pharmaceuticals, a specialist manufacturer of medical products,has grown rapidly in recent years. One of their major internal needs isnow for better information systems throughout the company. There is asmall IT department which is gradually upgrading existing informationsystems, but manpower is limited and progress has been slow. The ITManager has just heard that the Marketing Department has contacted anexternal computer consultant to start work on a new customer database.

IT DepartmentThis department was set up two years ago with a clear brief to upgradeand maintain IT systems throughout the company. So far you haveinstalled a new network, provided Internet access for all departments,and developed an order processing and invoicing system. Youhave asmall team who work very hard to support all the staff in the company.Youhave kept them informed of your IT development plan whichincludes work on a customer database for the Marketing Departmentearly next year.

Youare very upset that the Marketing Department has bypassed you andgone straight to an outside consultant. There is no procedure whichallows for this, and no agreed budget. Youcan understand the frustrationof the Marketing Department, but there are several other sections withinthe company which have equally pressing needs. Youare prepared tooffer to start some preliminary research into customer database solutionsin the next few weeks, but you cannot bring forward the projectimplementation date. Youcertainly are not prepared to fund outsideconsultants from your own IT budget.

Possible roles

IT ManagerProject Manager(s)

Photocopiable © OXFORD UNIVERSITY PRESS 41

Negotiation 3ASponsorship

Background[ames Alien Music is th e main store supplying musical instruments andsheet music for th e local city community.Once a year, Iames Alien Musicorgani zes a char ity youth concer t in the local city hall, followed by aneven ing reception. Usually lames Alien Music will spo nsor the who le day,cover ing the cost ofadvertising and promotion, transport for local choirsand orchestras, hiring the city hall, and - most expensively - providingfood and drink for th e evening reception . However, the dir ectors oflam es Alien Music have decided that th e event has grow n too large forjust one sponsor to fund it. They are therefore looking for otherbusinesses to help sup port it. One such business is Gresham Pianos,lames Allen Music's exclusive supplier of pianos.

James Alien MusicYou have arranged to meet the directors ofGresham Pianos to persuadethem to contribute to th e event fund. The total cost of the event is£95,000. You would like to suggest that Gresham Pianos is a majorspo nso r, contributing at least £10,000. You kn ow that every year you sellabout forty Gresham pianos at an average cost of£4,000 per piano, soyou think it is not unreasonable to ask for a contribution of thi s size.Gresham Pianos would be one ofthe named sponsors on all the publicitymateriaL If you cannot persuade Gresham Pianos to make a majorcontribution, th en you might start to look for altern ative suppliers ofpianos.

Possible roles

Mr/MsAllen (owner)Store Manager

42 Photocopiable © OX F O R D U NI V ERSITY PR ES S

Negotiation 38Sponsorship

Backgroundlames Allen Mu sic is the main store supplying musical instruments andsheet music for th e local city community. Once a year, lames Allen Musicorganizes a charity youth concert in the local city hall, followed by anevening reception. Usually lames Allen Music will spo nsor the whole day,covering the cost ofadverti sing and promotion, transport for local choirsand orchestras, hiring th e city hall , and - mo st expensively - providingfood and drink for th e evening reception. However, the directors oflames Allen Music have decided th at the event has grown too large forjust one spo nsor to fund it. They are th erefore looking for otherbu sinesses to help support it. One such business is Gresham Pianos,lame s Allen Music's exclusive supplier of pianos.

Gresham PianosYou have been supplying piano s for sale by lames Allen Music for tenyears. They sell around forty ofyour piano s every year. The average salepri ce is £4,000, ofwhich [am es Allen Music take around £1,000. Your netprofit on each piano is aro und £400. You have been approa ched by lamesAllen Music to help provid e sponsorship for the annual charity youthconcert. You feel you would be happy to offer £ I,000 towards the cost ofprize money, and ideally would like to sponsor th e under-IS pianocompetition. You expect lames Allen Music to ask for more, but you feelthat they are a far more profitable business than yours. Also, you haverecently been offered a much better deal by another music store in thecity, a branch ofa nationwide chain, which would nearly double yourprofit per piano. ..

Possible roles

Mr/Ms Gresham (owner)Sales Manager

Photocopiable © OXFORD U NIV ERSITY PRESS 43

Negotiation 4APromotional offer

BackgroundWestfields is a national garden centre chain. They are about to implementa large-scale staff training programme. This will involve on -site customerservice training for all shop staff, personnel management training forsupervisory staff, and financial control training for management. For thefinancial control training, they plan to use a company called Mancon.Mancon provide three-day residential courses for financial managers.The final terms of the package have not yet been agreed, but Westfieldsshould put about twenty managers through the programme next year.They have recently appointed a new manager for one oftheir gardencentres who needs this training urgently.

WestfieldsAlicia Shepherd has just been appointed to manage one of your largestgarden centres. She is the right person for the job - she is a trainedhorticulturalist, and has excellent management skills. However, she lackstraining in financial and accounting systems. Youwould like to put herthough the Mancon residential course as soon as possible. The fulltraining programme does not start till next year, so you have no budgetfor it this year. Youwould therefore like Mancon to provide this coursefree in view ofthe volume of training you are promising them next year.The advertised price is £1,500 plus £800 for accommodation and food.Youare not in a position to confirm the training order for next year, butobviously you will be even more inclined to give Mancon the contract ifthey do you this favour.

Possible roles

Training Manager / Human Resources ManagerPurchasing Manager

44 Photocopiable © OXFORD UNIVERSITY PRESS

Negotiation 48Promotional offer

BackgroundWestfields is a national garden centre chain. They are abo ut to implementa large-scale staff training programme. This will involve on-site customerservice training for all shop staff, personnel management training forsupervisory staff, and finan cial control training for management. For thefinancial control tr aining, they plan to use a company called Mancon.Mancon provide three-day residential courses for finan cial managers.The final terms of the package have not yet been agreed, but Westfieldsshould put abo ut twenty managers th rou gh the programme next year.They have recently appoi nted a new manager for one of their gardencentres who needs this trainin g urgently.

ManconWestfields have approached you abo ut the financi al contro l trainingpackage you offer to managers. They have talked abo ut sending fort yman agers on the course next year. If they do this, you would expect to beable to offer them a sizeable discount for a bulk booking (up to 15%).They have asked for a meeting now to discuss sending one manager onthe next course. You un derstand that they have budgetary problems thisyear and may well ask you to provide this course free. Your policy is not tooffer promotional courses, but you are prepared to discount it heavily.Youhave been caught before by companies promising lots of business butfailing to deliver!

Possible roles

Sales / Marketing ManagerKey Account Manager

Photocopiable © O X F O R D U NI VE R S I T Y PRESS 45

Negotiation SALoyalty versus price

BackgroundManor High School has been cleaned by a private contractor for manyyears. New local government regulations, however, require that theschool puts the contract out to competitive tender. They have receivedoffers from two new cleaning companies, but if possible, they would liketo continue with their existing contractor, Benjamin Cleaners.

Manor High SchoolBenjamin Cleaners have always done a very professional job. They arecompletely trustworthy, which is vital as they have access to some veryvaluable technical equipment. Their current weekly fee is £690. To do thecleaning they use very efficient local people who have worked at theschool for many years. The school provides some of the cleaningequipment, but it is getting a bit old and unreliable. Youneed BenjaminCleaners to make an offer which is closer to the ones from its twocompetitors (see below). If they can do this, the local education authoritywill probably allow you to continue the existing contract.

Cleaneasy Pyramid Industrial Cleaners

Manor High School contract Manor High School contractTotal price - £540 per week Total price - £620 per week30 hours cleaning per week 30 hours cleaning per week

(six days a week) (six days a week)All equipment provided All cleaning material providedSupervisor to do nightly check

on quality

Possible roles

Head of AdministrationBursar

46 Photocopiable © OXFORD UNIVERSITY PRESS

Negotiation 58Loyalty versus price

BackgroundManor High School has been cleaned by a private contractor for manyyears. New local government regulations, however, require that thescho ol puts the contract out to competitive tender. They have receivedoffers from two new cleaning companies, but if possible, they would liketo continue with their existing contractor, Benjamin Cleaners.

Benjamin CleanersYou are really shocked that Manor High School could consider changingtheir cleaning contractor. You have done the job for more than twentyyears and have an excellent relationship with the bursar. You use onlylocal people to do the cleaning. You are very surprised that the school iscon sidering usin g outsiders like Cleaneasy or Pyramid, as you know theyboth have a poor reputation for reliability and honesty. You pay yourclean ers a competitive hourly rate. You don't see how you could pay themless, or that the y could work fewer hours and continue to do a good job.You might be able to start using your own equipment, but thi s wouldhave to be spread over the next six months as some new equipmentwould have to purchased.

Possible rolesMr Benjamin (owner)Andrew Benjamin (owner's son)

Photo copiable © O X FOR D UN I VE RS IT Y PRE S S 47

Negotiation 6Budget crisis

BackgroundFielding Electronics are a medium-sized business supplying speciali stcomponents to the auto mo tive industry. At the beginning ofeach yearthey agree a budget for the company based on a detai led sales forecast.However, in the middle of this year, one of their main customers wastaken over, followed by the closure of one of th eir plants. This has led to asudden downturn in sales.

Managing DirectorTh e drop in sales amounts to 10% of the company's forecast turnover.You therefore need to make a 10% cut in depar tmental budgets acro ss th ecompany. You need to protect the gross profit figure because of th edividend expectations ofyour shareholders. You wou ld like agreementon this by the end ofthe meeting.

Finance DirectorYou know that it will be difficult for Production to cut its budget by 10%.Many oftheir costs are fixed. You feel th at the 'suppo rt' departments likeHuman Resources, Marketing, and Finance, need to make bigger cuts inorder to reduce tota l costs by the requ ired 10%. You are prepared to makea 15% cut by freezing investment in a new accounting software package,and by not renewing the contract ofone temporary member ofstaff.

Production DirectorYou have calcu lated th at you can make a 6% cut in variable costs (i.e. rawmaterials and some labo ur costs), bu t it is impossible to make a 10% cutat this stage of the year. It will mean not taking on any part-time worker sover the summer, and the existing workforce will have to be flexibleabo ut holidays.

48 Photocopiable © OXF ORD UN IVE R S I T Y PR E S S

Marketing DirectorYou see it as your job to replace the lost business as soon as possible. Thismeans investing more in trade fairs, prospecting, and PR opportunities.Therefore, you would like approval to increase your budget by 5%.

Human Resources DirectorYou are willing to make a 10% cut in your budget. This will meanrunning fewer training courses and freezing new recruitment. You feelany more ofa cut would be disastrous for the morale of the workforce.

Budget figures (OOOs)

Existing budget

Total sales 15,410

Production costs

Raw materials 3,200Labour 4,100Fixed costs 3,400

Marketing & sales 650

Finance 740

Human resources 820

Gross profit 2,500

Revised budget

13,860

Photocopiable © OXFORD UNIVERSITY PRESS 49

Negotiation 7ASalary increase

BackgroundThe Barton Corporation's business has just started to pick up after a verytough few years in the export market. During this time a lot ofjobs havebeen lost, and for the last two years there has been a salary freeze. Barton'scompetitive prices are beginning to win back market share, but the BoardofDirectors wants to keep salaries low to maintain their competitiveedge.

However, there is growing pressure from the workforce for salaryincreases. They can see that business is picking up, and they have had totighten their belts for long enough. In particular, the Production Directorwould like to reward some ofhis stafffor being very flexible over the lastfew years. They have either worked long hours without claimingovertime or, during some periods oflow demand, have agreed to workshort weeks and reduce their earnings.

Human Resources DepartmentIt is your role to maintain morale in the workforce, while at the sametime keeping control ofsalaries. You know that the production staffhavebeen very flexible over the last few years, but then so has everyone in thecompany - and at least they kept their jobs. It has been agreed with theBoard ofDirectors that total labour costs can rise by a maximum of2%this year. In addition, there will be a productivity bonus payable at theend ofthe year, but the amount will depend on the level ofprofitabilityachieved. The bonus will be payable across the company. You think it islikely to be worth about an extra two weeks' salary per employee.

Possible roles

Managing Director (chair)Financial DirectorHuman Resources DirectorProduction Director

50 Photocopiable © OXFORD UNIVERSITY PRESS

Negotiation 78Salary increase

BackgroundThe Barton Corporation's business has just started to pick up after a verytough few years in the export market. During this time a lot ofjobs havebeen lost, and for the last two years there has been a salary freeze. Barton'scompetitive prices are beginning to win back market share, but the BoardofDirectors wants to keep salaries low to maintain their competitiveedge.

However, there is growing pressure from the workforce for salaryincreases. They can see that business is picking up, and they have had totighten their belts for long enough. In particular, the Production Directorwould like to reward some ofhis staff for being very flexible over the lastfew years. They have either worked long hours without claimingovertime or, during some periods oflow demand, have agreed to workshort weeks and reduce their earnings.

Production DepartmentIt is your department which has ensured that the company has survivedover the last three years. You have kept costs to a minimum - this is howthe company has stayed in business, and has now regained its competitiveedge. If your highly-skilled team are not rewarded now, they are going tostart to look for new and better-paid jobs elsewhere. You have heard thatthe company is going to offer a 2% pay rise across the board. You thinkthat your team should get at least SOlo - even though this would mean thatthe rest of the workforce would have to accept only 1%.

Possible roles

Managing Director (chair)Financial DirectorHuman Resources DirectorProduction Director

Photocopiable © OXFORD UNIVERSITY PRESS 51

Negotiation SAThe new buyer

BackgroundThe exclusive wine retailer, Grafton Fine Wines, is famous for the rangeand quality of its wines. Grafton has for years bought most of its winethrough a wholesaler called Dufrais. Until recently the owner, AlastairGrafton, has always dealt with the orders himself. He has now appointeda Wine Buyer who will be responsible for all future purchases. One of thefirst things the new buyer did was to look in detail at the existing stockand forthcoming orders. He/She has discovered that Grafton has beenpaying much too high a price for many oftheir wines, and in addition,have been holding too much wine in stock.

Grafton Fine WinesThe Wine Buyer intends to get a much better deal from Dufrais. The totalannual spend last year was $345,000, and it appears that Grafton waspaying an average of30% above the vineyard price. Wholesale margins inthe wine business are between 15% and 30%. At these wholesale prices,Grafton's retail margin is only 20%. It should be at least 30%.

Dufrais have been insisting on a minimum order oftwo cases (twenty­four bottles) ofany particular wine. As a result, Grafton's stock levels areunusually high. The Wine Buyer intends to negotiate a much lowerminimum order (six bottles). If the right deal is not negotiable, there areother wholesalers who are likely to be interested. Alternatively, Graftoncould start buying direct from the vineyards. In this case, prices would bemuch lower but minimum orders would be much higher (probablytwelve cases).

Possible roles

Wine BuyerGeneral Manager (one ofthe Grafton family)

52 Photocopiable © OXFORD UNIVERSITY PRESS

Negotiation 8BThe new buyer

BackgroundThe exclusive wine retailer, Grafton Fine Wines, is famous for the rangeand quality of its wines. Grafton has for years bought most of its winethrough a wholesaler called Dufrais. Until recently the owner, AlastairGrafton, has always dealt with the orders himself. He has now appointeda Wine Buyer who will be responsible for all future purchases. One ofthefirst things the new buyer did was to look in detail at the existing stockand forthcoming orders. He/She has discovered that Grafton has beenpaying much too high a price for many oftheir wines, and in addition,have been holding too much wine in stock.

DufraisYou have been supplying wine to Grafton for twenty years. You havealways dealt directly with the owner, Alastair Grafton. You have justheard that they have recruited a Wine Buyer and that he/she wants tomeet you. You expect that this means Grafton will be looking for a muchmore competitive deal. You have been marking up the vineyard price by30-35% for Grafton orders. Typical margins with most customers arebetween 20 and 25%. The lowest margin is with a large supermarketchain, only 14%.

If Grafton wants much better prices it will be necessary to agree to anannual contract. Last year the company spent $345,000, but most of theorders were on a weekly basis and for just a few cases - your minimumorder is two cases, or twenty-four bottles. You have been looking throughtheir order history and there are around ten wines ofwhich they orderover 200 cases a year. IfGrafton is willing to guarantee an annual order,you could offer a much better price on these particular wines - around20% above vineyard prices.

Possible roles

Sales ManagerCustomer Relations Manager

Photocopiable © OXFORD UNIVERSITY PRESS 53

Negotiation 9AThe best person for the job

BackgroundBBS (British Building Supplies, Ltd.) is a nationwide chain ofhypermarkets, supplying equipment and materials to both DIYcustomers and the building industry. It has recently acquired aEuropean-based building and plumbing supplies company, SNP, in orderto gain a presence in the expanding European market. A key job in BBS'shome operations is that ofDistribution Manager. SNP does not have thisposition, so the new owners would like to send one of their best managersto SNP's head office to take over this role. SNP management feels thatthis job is already done by their Sales Department, and that there is noneed for a new Distribution Manager. If it is necessary to create this newposition, they have a young Sales Manager who would do the job verywell.

BBSYou think your new acquisition - SNP - is very traditional in its approachto managing the business. One ofthe reasons it was available to buy isbecause ofpoor results and loss of market share. Your analysis shows thatSNP has failed to deliver on the distribution side, which is critical for thefuture success ofthe business. SNP has an extensive chain ofsupplydepots, but the company has a bad reputation for delivery times andstock levels. Patrick Donahan is one ofyour best graduate managers. Hehas recently worked on the distribution side ofthe business, but he alsohas experience ofall the key functions. He speaks the local language, andis keen to move to SNP. You feel that this is the only way you are going totransform SNP into a dynamic, forward-looking company. However, youwould prefer not to impose your candidate on SNP, but hope to convincethem ofhis value. You are prepared to negotiate about the terms of thejob and would like to train local staff to take more responsibility for thisarea in the medium term.

Possible roles

Managing DirectorSales & Distribution DirectorHuman Resources Manager

54 Photocopiable © OXFORD UNIVERSITY PRESS

Negotiation 98The best person for the job

BackgroundBBS (British Building Supplies, Ltd.) is a nationwide chain ofhypermarkets, supplying equipment and materials to both DIYcustomers and the building industry. It has recently acquired aEuropean-based building and plumbing supplies company, SNP, in orderto gain a presence in the expanding European market. A key job in BBS'shome operations is that ofDistribution Manager. SNP does not have thisposition, so the new owners would like to send one oftheir best managersto SNP's head office to take over this role. SNP management feels thatthis job is already done by their Sales Department, and that there is noneed for a new Distribution Manager. If it is necessary to create this newposition, they have a young Sales Manager who would do the job verywell.

SNPWhen you were taken over by BBS,you understood that SNP wouldmaintain its independence. You know it's vital to regain market share, butnow that you have new money in the business, you feel SNP can invest ina better network ofdepots and supply lines. The problem is that thecompany has been starved ofinvestment over the last five years, and thatthis has led to a gradual decline in the quality ofservice. Themanagement team is very professional, and with new investment youthink you can turn the company around. The last thing you need is a BBSmanager coming over to run the distribution side ofyour business. Youhave a sales team who can do this very competently. If there is a need for anew position, then Suzanne Pinot, who is already responsible fordistribution, could do the job very welL She knows the local market, thesuppliers, and the depot managers. A new man or woman from BBSwould take at least six months to become familiar with the market, andmay cause resentment amongst your staff. The answer may be for BBStosend someone across for a few months to see how SNP operates, and toreassure BBSthat you have the right team to improve the business.

Possible roles

Managing DirectorSales Director

Photocopiable © OXFORD UNIVERSITY PRESS 55

Negotiation lOAAfter-sales support contract

BackgroundModular HiFi, Ltd. sell customized sound systems to discerningcustomers at the top end ofthe market. All their products come with athree- or five-year guarantee. Last year, Modular contracted CustomerCare PLC to look after their after-sales and customer supportprogramme. Customer Care provide a Monday-to- Friday helpline plus arepair call-out service. Over the last few months there has been a suddenincrease in the number of calls and repairs. Six months ago Modularlaunched an aggressive marketing campaign and won a lot ofnewcustomers. But whereas most oftheir previous customers had been hi-fienthusiasts, most new customers have no interest in the technology­they have bought Modular systems because they are sophisticated andnon-standard. Because ofthe increased workload, Customer Care havecalled for a meeting to renegotiate the terms of the contract.

Modular HiFi, Ltd.Until recently, you have only sold your sound systems to hi-fi enthusiasts.Now your market has expanded, and you have a new type of customer­wealthy but not remotely interested in the technology. Customer CarePLC took over all your customer support and repair work last year - amajor relief to the company. You agreed to pay a fixed rate per supportcall ($3.50) and per repair call-out ($45.00). It was estimated that therewould be about twenty telephone calls per week, and maybe two repaircall-outs per week. You understand that they have asked for this meetingbecause the support telephone calls are requiring much longer thanexpected, and the repair call-outs are more frequent and more complexthan anticipated. There is six months to run on the existing contract andyou don't want to modify it. However, you understand that there may bea need to do so for next year. You certainly want to keep Customer Careworking for you, as you don't have the staff to do the after-sales work,especially now that sales have increased so dramatically. Perhaps theanswer is to renegotiate the package for next year, building in moreflexibility in the charging rates.

Possible roles

Sales ManagerFinance Manager

56 Photocopiable © OXFORD UNIVERSITY PRESS

Negotiation lOBAfter-sales support contract

BackgroundModular HiFi, Ltd. sell customized sound systems to discerningcustomers at the top end of the market. All their products come with athree- or five-year guarantee. Last year, Modular contracted CustomerCare PLC to look after their after-sales and customer supportprogramme. Customer Care provide a Monday-to-Friday helpline plus arepair call-out service. Over the last few months there has been a suddenincrease in the number ofcalls and repairs. Six months ago Modularlaunched an aggressive marketing campaign and won a lot of newcustomers. But whereas mo st oftheir previous customers had been hi-fienthusiasts, most new customers have no interest in the technology­the y have bought Modular systems because they are sophisticated andnon-standard. Because of the increased workload, Customer Care havecalled for a meeting to renegotiate the terms of the contract.

Customer Care PLCModular HiFi, Ltd. is quite a small client for you. Youprovide an after­sales service for them consisting of two elements: (1) a telephone helplinefor installation and technical problems, and (2) repair call-out forproblems which cannot be solved over the phone. Based on yourexperience with similar clients, you charge Modular $3.50 per supportcall and $45.00 per repair call-out. Following a very successful marketingcampaign, Modular has gained a lot ofnew customers who need a highlevel of technical support, and both telephone calls and repair call-cutsare taking twice as long as you expected. You calculate that your costs are35% higher than forecast. Youhave signed a one-year contract and legallyhave no right to change it. However, you know that Modular were veryrelieved to hand over after-sales care to you, and you feel they should beflexible this year if they want to sign another contract next year. Youcould propose a two-level support charging system . For longer telephonecalls or call-outs you would charge more, enough to cover your highercosts. If you don't get agreement on this, you may not want to continueworking with Modular.

Possible roles

Client Relations ManagerSound System Advisor

Photocopiable © OXFORD UNIV ERSI TY PRESS 57

Negotiation 11AFree beer and productivity

BackgroundMappington Breweries is a producer oftraditional beers, based in thenorth ofEngland. The management ofMappington's have always pridedthemselves on good labour relations. Some employees are members ofthe Brewing Trade Union, but many are not. Every year, one employee iselected to sit on the Board of Directors to represent the interests oftheworkforce. Last week there was a Workers' Council Meeting, at whichtwo major issues were raised:

1 The ending of the tradition ofproviding a free barrel ofbeer(twenty-four litres) every month to every employee.

2 The introduction of a productivity bonus as part of the annual wagesettlement - in effect, performance-related pay.

The directorsThe provision of the free barrel of beer was stopped because it wasdiscovered that some employees were selling their barrels to local clubs.This is beginning to disrupt the normal supply ofbeer in the region.Instead ofthe free barrel ofbeer, you have introduced a productivitybonus linked to each employee's performance targets. For someemployees this could mean an additional 5% on their annual salary.

The company's annual salary rise was in line with inflation. You feel thatsince the employees can buy half-price beer in the company social club,there is no longer a justification for continuing to give away free beer. Inany case, many younger employees would prefer to take any bonus in theform of more money or time off. The productivity bonus is a much betterway to reward hard work and loyalty to the company.

Possible roles

Human Resources DirectorFinance DirectorManaging Director

58 Photocopiable © OXFORD UNIVERSITY PRESS

Negotiation 11BFree beer and productivity

BackgroundMappington Breweries is a producer oftraditional beers, based in thenorth ofEngland. The management ofMappington's have always pridedthemselves on good labour relations. Some employees are members ofthe Brewing Trade Union, but many are not. Every year, one employee iselected to sit on the Board ofDirectors to represent the interests of theworkforce. Last week there was a Workers' Council Meeting, at whichtwo major issues were raised:

The ending ofthe tradition of providing a free barrel ofbeer(twenty-four litres) every month to every employee.

2 The introduction ofa productivity bonus as part of the annual wagesettlement - in effect, performance-related pay.

Employee representativesMany employees are very upset by the removal of this 'fringe benefit'. Itwas part of the tradition of the brewery. It may be true that someemployees have been selling beer at halfprice, but that can easily bestopped by talking to the local clubs, and in any case, you don't believe itis a significant problem.

The employees do not like the idea ofa productivity bonus which onlysome workers would be eligible to receive. Salary rises and bonuses havealways been given to all employees. If there is extra money available, theemployees would like a higher overall salary increase. Alternatively, aproductivity bonus payable at the end of the year and spread equallyamong the whole workforce would be acceptable.

Possible roles

Employee Board memberStaff representatives

Photocopiable © OXFORD UNIVERSITY PRESS 59

Negotiation 12AA manager's role

BackgroundLast year, Sarah Atkinson was promoted to KeyAccount Manager atPosthlethwaite, Kinnear, and Baldry (PKB), a medium-sized advertisingagency. She had previously worked on the creative side of the business.Her new job means looking after one particular client, Cooper Lilley,ahealthcare company. She works mainly with Cooper Lilley's AdvertisingManager - her job is to build the business and ensure that Cooper Lilleyis completely satisfied with the campaigns that PKB designs for them.

Over the last six months, the Cooper Lilley account has grown and clientsatisfaction has been high. However, within PKB, Sarah has caused a lotofunrest. She is meant to leave the creative side of the Cooper Lilleycampaigns to the Creative Director and his team. In fact, she has beenworking closely with Cooper Lilley's Advertising Manager on all aspectsof the account, but particularly on the creative side. PKB's CreativeDirector thinks she is not doing her job. She is meant to handle thebusiness side ofthis account (billing, costing, new projects, etc.) and notthe creative side.A meeting has been called to discuss the situation and totry and reach an acceptable solution.

Sarah AtkinsonYou have always enjoyed the creative side ofadvertising. You wereconcerned that, when you were promoted to KeyAccount Manager, youwould have to leave that side to the agency's Creative Department.However, you have formed a very good relationship with the AdvertisingManager at Cooper Lilley,who has welcomed your input on the creativeside. You know that your main task is to build the business, and to ensurethat existing business is well-managed, but you feel you are doing this inan indirect way. You leave a lot of the administration ofthe account, suchas billing, to your secretary. You really can't see what the problem is.

Possible rolesSarah Atkinson's boss

60 Photocopiable © OXFORD UNIVERSITY PRESS

Negotiation 128A manager's role

BackgroundLast year, Sarah Atkinson was promoted to KeyAccount Manager atPosthlethwaite, Kinnear, and Baldry (PKB), a medium-sized advertisingagency. She had previously worked on the creative side ofthe business.Her new job means looking after one particular client, Cooper Lilley,ahealthcare company. She works mainly with Cooper Lilley's AdvertisingManager - her job is to build the business and ensure that Cooper Lilleyis completely satisfied with the campaigns that PKB designs for them.

Over the last six months, the Cooper Lilleyaccount has grown and clientsatisfaction has been high. However, within PKB, Sarah has caused a lotof unrest. She is meant to leave the creative side of the Cooper Lilleycampaigns to the Creative Director and his team. In fact, she has beenworking closely with Cooper Lilley's Advertising Manager on all aspectsof the account, but particularly on the creative side. PKB's CreativeDirector thinks she is not doing her job. She is meant to handle thebusiness side of this account (billing, costing, new projects, etc.) and notthe creative side.A meeting has been called to discuss the situation and totry and reach an acceptable solution.

Creative DirectorYou find that Sarah has become rather arrogant since she took on hernew job. Above all, you feel that her client, Cooper Lilley, is only gettingthe creative input from one member ofthe agency - Sarah. They shouldbe getting the full support and creative work ofyour team. You realizethat Sarah has a good relationship with the client's Advertising Manager,and that is good for business at the moment. However, in yourexperience, people move on, and then the future ofthe account dependsnot on personal relationships, but the quality of the campaigns and theresults they achieve. You feel that Sarah does not have enough experienceto realize this. You have also heard Sarah's secretary complain that she isdoing much ofSarah's job for her.

Possible rolesCreative Director's boss

Photocopiable © OXFORD UNIVERSITY PRESS 61