English for International Business 2020-II

Business negotiations

Market Entry
1) Writing: Using the10 words written below formulate a text of how business negotiation is defined. /10

agreement strategic reach resolves interests

persuade compromise dialogue Back-and-forth process

 Negotiation is a dialogue Back-and-forth process in which the parties involved, combining

mechanisms of influence and persuasion, through the compromise dialogue, seek to reach an
agreement that resolve and equitably satisfy their respective interests with strategic reach.

2) Listen to the videos and answer the questions below /20

Video 1: https://www.youtube.com/watch?v=QCT1BWZByko

a) What happens when people receive an emphatic “no”?

Negotiators around the world fail in negotiations when they don't know what to do when they receive

an emphatic no.

b) How does Jeanne convert a “no” into a “yes”?

She turns an emphatic no into a yes, when she truly understands her own interests and the interests of

the other party.

c) Describe what BATNA is and give an example.

BATNA means BEST ALTERNATIVE TO NEGOCIATED AGREEMENT

d) What were the 3 options Jeanne had to change the “no” into a “yes” for pumpkins in France?

First option: it was to offer her more money.

Second option: It could have been asking her how many pumpkins she could sell her.

Third option: she asked her why not couldn't sell her all the pumpkins there.
 e) What was the outcome of the negotiation?

She applied win to win, she did her got all the seeds and she got all the pumpkins.

Video 2: https://www.youtube.com/watch?v=Y-mNcEctZQY
a) What percentage of people are happy with their current salary?

b) What is the first step mentioned? What advice is given re the salary amount?

NUMBER ONE :

Under no circumstances should you give them the amount you want to earn. It is rude to do

this.

c) What should you say if the prospective employer asks you to justify your salary expectations?

The best answer to this question would be: the value of my work in my working life, which would be

reflected in training, growth opportunities, career path within the organization, etc. But giving a fixed

number or rank to what I want to win is rude at the time.

d) Why shouldn’t you just walk away from negotiations if you don’t initially get what you ask
for?

Because It´s better to just talk about how you want to look at the entire opportunity and that

compensation is one part.

English for International Business 2020-II

3) Reading comprehension: /21

Seven Elements of Negotiations

Unfortunately, most people are not natural-born negotiators. The good news is that research
consistently shows that most people can significantly improve their negotiation skills through
education, preparation, and practice.
The Seven Elements framework describes the essential tools needed to identify our goals,
prepare effectively to minimize surprises, and take advantage of opportunities as they arise
in negotiation, writes Patton in The Handbook of Dispute Resolution.
Here, we overview the seven elements:
1. Interests. Interests are “the fundamental drivers of negotiation,” according to Patton—our basic
needs, wants, and motivations. Often hidden and unspoken, our interests nonetheless guide what we
do and say. Experienced negotiators probe their counterparts’ stated positions to better understand
their underlying interests.

Underlying interests tend to make negotiations more difficult. Why is that so and how can you
remediate any problems caused?
Participants in a negotiation should see themselves as engaged in shoulder-to-shoulder work,
attacking the problem, and not They must overcome the drawbacks of concentrating on
declared positions of people when the object of the negotiation is satisfy your underlying
interests. Often a bargaining position it obscures what is really wanted. Reach a compromise
between positions,will probably not produce an agreement that effectively takes into account
the human needs that led people to adopt these positions. The solution to this will be to focus
on interests, not positions.

2. Legitimacy. The quest for a legitimate, or fair, deal drives many of our decisions in negotiations. If you
feel the other party is taking advantage of you, you are likely to reject their offer, even if it would leave
you objectively better off. To succeed in negotiation, we need to put forth proposals that others will
view as legitimate and fair.

What part does legitimacy play in negotiations?

Knowing that legitimacy refers to certain objective criteria, through which they define whether
the interests proclaimed by both parties are fair, compared to an external and impartial
reference standard. The use of legitimacy makes the negotiation be carried out in a friendly and
efficient way, that is, persuasive, and the established relationship is further strengthened.
Legitimacy is not negotiated.

3. Relationships. Whether you have an ongoing connection with a counterpart or don’t think you’ll ever
see her again, you need to effectively manage your relationship as your negotiation unfolds.
Relationship dynamics become all the more important when you have an ongoing connection: future
business, your reputation, and your relationships with others may hang in the balance. You can
strengthen the relationship by taking time to build rapport and by meeting your own high ethical
standards throughout the process.

How does rapport help in negotiations?

The most common mistake that entrepreneurs make when negotiating is to confuse empathy
with sympathy, concepts that, although intertwined, are completely different: while the former
starts from the basis of “putting yourself in the other's shoes”, listen, be non-judgmental and
understand the other person; sympathy is just an affective inclination that exists between two or
more people depending on the way they act. Therefore, when one of the parties transmits
information for emotional reasons, the other person is more likely to fall into manipulation and is
committed to finding a solution. These types of behaviors are the ones that must be eliminated or
transformed into empathy. In my opinion, an empathic person is much more likely to obtain a
positive result in a negotiation than a nice one.

4. Alternatives and BATNA. Even as we take part in negotiations, we are aware of our alternatives
away from the table—what we will do if the current deal doesn’t pan out. Negotiation preparation
should include an analysis of your BATNA, or best alternative to a negotiated agreement, according
to Getting to Yes. For example, a job candidate may determine that she will start applying to grad
schools if a particular job negotiation falls apart.

Why should you go into a negotiation with a BATN already in place?

 When asked what to do if there is no agreement, you have to have a good answer. And this is
not improvised. The answer must be defined before starting the negotiation by means of our
best alternative to a negotiated agreement.
And it is that the power of negotiation is related, to a large extent, with how unattractive it may
be not to reach an agreement.
If a party believes that the lack of agreement is extremely negative, it will do everything
possible to prevent this from happening. Then, you will feel pressured to accept conditions
that prevent the failure of the negotiation. Through this decision-making process, the parties
must be able to identify a
option that all of them can support. This should be the ideal result of a management process
conflict - reach agreement through consensus. The degree to which interests are
satisfied determines how strong the deal will be. An agreement that everyone can support has
better chances of staying.

5. Options. In negotiations, options refer to any available choices parties might consider to satisfy their
interests, including conditions, contingencies, and trades. Because options tend to capitalize on
parties’ similarities and differences, they can create value in negotiation and improve parties’
satisfaction.

How and when could you employ your options in a negotiation?

When the negotiation should turn into a win based on the interests of each of the members is
when one must use techniques that generate integrative options (integrate common interests).

the parties need to reassess whether their interests will be well served
measured by any of the options, or combinations of options that were developed
through the collaborative approach. The assessment is intended to help the disputing parties
to move from a potentially long list of options to realistic agreements with which will commit.
For this to happen, it is necessary to take the following steps:develop mutually acceptable
criteria for evaluating options; evaluate options based on these criteria;confirm agreed options
on the part of a broader base; effect a psychological closure, if necessary.

English for International Business 2020-II

6. Commitments. In negotiations, a commitment can be defined as an agreement, demand, offer, or

promise made by one or more party. A commitment can range from an agreement to meet at a
particular time and place to a formal proposal to a signed contract.

What ranges of commitment are talked about in the preceding section?

The final agreement usually consists of three ranges:
-An introduction and background presenting the stakeholder groups and the central themes
that have been negotiated;
-An outline of the resolutions that the groups created for each of the topics;
-An implementation, monitoring and evaluation plan.
The agreement should be verified with honesty, desire for acceptance and operability.
In the case of what is described in the previous paragraph, we are talking about the first range of
agreement.

7. Communication. Whether you are negotiating online, via phone, or in person, you will take part in a
communication process with the other party or parties. The success of your negotiation can hinge on
 your communication choices, such as whether you threaten or acquiesce, brainstorm jointly or make
firm demands, make silent assumptions about interests or ask questions to probe them more deeply.

What do you believe is the best method to initiate and maintain communication when
negotiating?

The negotiations must change their focus, moving from individual positions, to advance
towards
the underlying needs and interests. The parties further examine these interests and
then they try to reach an agreement in areas where interests are common. Interests
Common goals can be used to set common goals. Once they have agreed Goals will help
provide
both direction and goals for the negotiations.

4) Speaking: In pairs prepare and record a 3-minute dialogue based on the following
scenario: /20

Student A: Employee You work at a bank. When you started working there, you
worked the standard 40 hours a week. However, the boss has been slowly giving you
more and more work. As a result, you’ve been doing more and more overtime.
There are two issues: there overtime is unpaid and you have too much work. Discuss the
issue with your boss.
Student B: Boss You are a manager at a bank. Business is difficult nowadays because
of the weak economy. Everyone needs to work hard in order for the bank to succeed.
Today, one of your employees asks to speak with you about an issue.

Both students must upload the video to their individual aula virtual accounts with this
worksheet.
Marks will be given based on individual participation