'What's your proposal?' – Language of negotiations part 1 | Business of English #12 | ABC Australia

Summary

This transcript focuses on a business negotiation between Lin Chan, a sales manager, and Victor Tang, along with their associates. The meeting starts with casual introductions and 'small talk' to set a friendly tone. Lin outlines her offer, aiming for a mutually beneficial deal, while Victor clarifies that the meeting is exploratory, with decisions needing board approval. As the conversation progresses, the importance of clear communication, understanding the other party's position, and making concessions is emphasized. The script also highlights effective negotiation strategies and how to create a positive atmosphere for business discussions.

Takeaways

• 😀 Begin negotiations with introductions and small talk to establish a friendly atmosphere.
• 😀 Use opening statements to clearly communicate your goals for the meeting.
• 😀 Phrases like 'testing the water' indicate an exploratory approach to negotiations.
• 😀 It's important to understand that some negotiations may not result in agreements on the first meeting.
• 😀 Use inclusive language ('we', 'our') when representing your company in negotiations.
• 😀 Be mindful of cultural differences in negotiation styles, balancing friendliness and urgency.
• 😀 Make sure to listen carefully to the other party's position before responding.
• 😀 Negotiation success often requires making concessions from both sides.
• 😀 Avoid pushing for immediate agreements if the other side needs time to consult their board.
• 😀 Keep the negotiation process open by prioritizing flexibility and clear communication.
• 😀 Understanding the role of each participant (e.g., legal adviser, sales manager) helps keep negotiations on track.

Q & A

What is the first step in starting a negotiation according to the script?

The first step is to begin with introductions and informal talk, often referred to as 'small talk', to create a relaxed and friendly atmosphere before getting down to business.

Why is it important to make an opening statement in a negotiation?

An opening statement helps to clarify what each party expects from the meeting and sets the tone for the negotiation. It signals the goals and intentions of the person making the statement.

How do Victor and Sue express their intention not to reach an agreement during this meeting?

Victor and Sue state that they are not intending to reach any agreements at this meeting and will need to 'run it past their board' before making a final decision.

What does the phrase 'testing the water' mean in this context?

'Testing the water' means exploring or gauging the other party’s interest or the viability of a proposal before making any firm decisions.

What is meant by 'running it past the board' in business negotiations?

'Running it past the board' refers to presenting a proposal or decision to the company's board of directors for review and approval before proceeding further.

How does Lin respond to Victor and Sue's position about needing more time to consider the proposal?

Lin acknowledges the need for time to consider the offer, and emphasizes that her first priority is to keep the negotiations open, signaling flexibility and willingness to continue discussions.

What role does the language of negotiation play according to the script?

The language used in a negotiation is crucial as it can affect how the message is received. It’s important to use language that doesn’t put undue pressure on the other side and allows for clear, open communication.

What is the importance of making concessions during negotiations?

Making concessions is important because it helps move the negotiation forward. Without concessions, negotiations can stall, and both sides might fail to reach an agreement.

What does it mean to make a 'conciliatory statement' in negotiations?

A conciliatory statement is one that acknowledges the other party's position and tries to ease tensions. It often involves backing down from a rigid stance to find a middle ground.

What role does 'small talk' play in setting the tone for a negotiation?

Small talk helps to break the ice and make the environment more friendly and less formal. It can set the stage for more productive and cooperative discussions by reducing any initial tension.