Negotiating

'In business you dont get what you deserve,

you get what you negotiate.'

-- Dr. Chester Karras, negotiating expert

1. Negotiating styles
Consider the difference between the three negotiating styles in the pictures below.

Study the table on the following table to find out about basic features of the three main
negotiating styles. Match the pictures above with labels a-c on page 2.

Handout 9, Poslovni engleski jezik 2 1

a. Adversarial b. Principled c. Creative
negotiation negotiation negotiation
negotiate to win look for common look for agreement
benefits

make demands make concessions accept what is on

offer

fighter negotiator for creative negotiator

independent and
mutual advantages

win/lose win/win agree

Similar or different?

Think about whether the phrases in each pair/group of words have a similar of different
meaning. Explain your choice.

1. make demands make concessions

2. adversarial positive
3. independent advantage common benefits
mutually beneficial
4. soft style hard style
5. objective outcome advantage
6. beat the other side into submission opponents
counterparts

Handout 9, Poslovni engleski jezik 2 2

 2. Reading: The Art of Negotiating
Insert the missing words in the two paragraphs below:
musts balance submission
expand the pie lock yourself beneficial
give and take win-lose orientation poison

The art of negotiating involves finding a (1) __________ between

achieving the best possible result while at the same time
establishing a mutually (2) __________working relationship with
your counterparts. Much negotiation literature emphasizes the
value of inventing options for mutual gain rather than
negotiating on a win-lose basis. The former tries to (3)
____________ by discovering new options, while the latter sees
negotiations as a fixed pie where the more one side wins, the
more the other side loses. The idea behind the first approach is
that it is unproductive to (4) _____________ into a fixed position
because that will prevent us from finding alternatives that will
be mutually beneficial.

Another problem with fixed positions and a (5) _______ is that

most business relations involve long-term cooperation.
Naturally, you want to achieve the best possible results for your
company, but at the same time you do not want to (6) ___________
an ongoing business relationship on which your future success
depends. Negotiations are a case of (7) ________ , and good
negotiators are sensitive to the priorities and (8) __________ of
the other side. Beating the other side into (9) ________ is certainly
not the way to establish the atmosphere of mutual
understanding necessary for an ongoing business relationship.

Handout 9, Poslovni engleski jezik 2 3

2.1. Some tips for negotiating success
Consider the list of common tips to be observed while negotiating.

a. Establish Interests and Not Positions

b. Do Not Underestimate the Importance of Socializing
and Protocol
c. Be Prepared
d. Take the Other Sides Position Seriously
e. Depersonalize and Focus on Substance
f. Listen and Observe Actively
g. Periodically Summarize Agreement As You Are Going
Along
h. Know Your Limits
i. Establish a Feeling of Fairness by Using Objective
Criteria
j. Document Your Position and Present It Logically
k. Emphasize the Positive
l. Establish a Positive Mindset Before Entering the
Negotiations
m. Be Aware of Tactics and Tricks

Decide which of the provided subheadings fits each of the passages 1-7 below:

Depersonalize and Focus on Substance

Establish a Positive Mindset Before Entering the Negotiations

1. Establishing good chemistry among negotiators is

important since you will be involved in a long-term
relationship where problems will most likely arise. A
good working relationship can thus serve as a basis
for dealing with eventual problems. Moreover, you

Handout 9, Poslovni engleski jezik 2 4

 must avoid taking disagreements personally.
Emotional responses and personal attacks will
destroy a working relationship faster than anything.

Listen and Observe Actively

Be Prepared

2. Your counterparts will be sending you verbal and non-

verbal signals constantly, and you must perceive and
acknowledge them to arrive at a mutually satisfying
agreement. Sending them a message that you are
honestly trying to understand their position helps
establish a sense of mutuality which is the basis of
negotiations geared at reaching a satisfying
agreement. Listening attentively is extremely
important in international negotiations. In high-
context cultures, for example, in which the words
meanings have to be interpreted from the social
context in which they are spoken and verbal
communication is imprecise, body language, pauses
etc. can be more communicative than words.

Establish a Feeling of Fairness by Using Objective Criteria

Document Your Position and Present It Logically

3. Your position will be more convincing if you have the

facts to support it. Do your homework so as to be able
to use statistics, figures and examples from similar
negotiation. Emphasize the consequences for both
sides, appealing to fairness and commonly accepted
good business practices.

Establish a Positive Mindset Before Entering the Negotiations

Depersonalize and Focus on Substance

4. Do not look at your counterpart as someone who is

out to cheat you or someone whom you are going to
manipulate to your own advantage. Enter
negotiations with a positive attitude. The protocol of
introductions, complimenting your counterparts and
their company, showing due respect for senior
members, are all part of establishing the right tone.

Handout 9, Poslovni engleski jezik 2 5

 Emphasizing the mutual benefits that can be achieved
early in the negotiations is also a means of
expressing a positive attitude toward the result of the
negotiations.

Know Your Limits

Periodically Summarize Agreement As You Are Going Along

5. Before the negotiations, set your opening offer and

your resistance point the point you would resist
going beyond. Factor into your resistance point the
concessions you would require to move beyond that
point. Finally, set your bottom line the limit you are
willing to go to before breaking off negotiations.
When approaching that point, in the last attempt to
save the negotiations, you might add: It looks as if
further negotiations seem pointless or mention the
advantage of achieving an agreement based on
mutual gain: We had hoped to achieve a mutually
satisfying agreement and still do, but you will have to
be willing to meet us half way.

Periodically Summarize Agreement As You Are Going Along

Be prepared

6. Assess the balance of power and get as clear a

picture as possible of how much you need what their
team can offer you and what your alternatives are
and how much they need you and what their
alternatives are.Furthermore, gain an understanding
of your counterparts culture and its impact on their
approach to negotiations.

Periodically Summarize Agreement As You Are Going Along

Be Aware of Tactics and Tricks

7. Both sides still wish to achieve the best possible

agreement for themselves. Negotiating is a tightrope

Handout 9, Poslovni engleski jezik 2 6

 act between mutuality and individual gain. Thus
tactics and tricks will be involved. If your
counterparts feel that you are vulnerable to their
tactics or tricks, they will naturally be tempted to use
them. What you must do is to be aware of the kinds of
tactics they may use and show them you know what
tactic they are trying. In doing so at the outset, your
counterparts will be less tempted to try to manipulate
you, and negotiations can move on to the next level
where mutually satisfying solutions can be achieved.

2.1.1. Sentence completion and translation

Use the items in the table below to complete the sentences. There is one odd item.
Translate the complete sentences into Croatian.

established beyond homework counterparts

balance tightrope geared factor

a. Negotiating is a _______________ act between mutuality and

individual gain.

b. . Assess the _______________ of power and get as clear a picture

as possible of how much you need what their team can offer you
and what your alternatives are and how much they need you
and what their alternatives are.

c. Do your _________________ so as to be able to use statistics,

figures and examples from similar negotiation.

d. ______________ into your resistance point the concessions you

would require to move beyond your resistance point the point
you would resist going __________________.

e. Sending your ________________a message that you are honestly

trying to understand their position helps establish a sense of

Handout 9, Poslovni engleski jezik 2 7

 mutuality which is the basis of negotiations ______________ at
reaching a satisfying agreement.

Source: Rodgers, D. (1997). English for international negotiations: a cross-cultural case study
approach. Cambridge University Press.

3. Cultural awareness in international negotiations

Before you read
Can you translate / explain the meaning of words and phrases below:

a. culturally determined factors

b. your counterparts from another culture

c. to sour the climate of the negotiations

d. failure to arrive at an agreement

e. deal orientation versus a relationship-establishing

orientation

f. punctuality

g. disruptive effect

Handout 9, Poslovni engleski jezik 2 8

 h. written, binding contract

i. a breach of contract

j. to bring something to court

k. a statement of principles

l. placement of negotiators

m.interpreted as a personal affront

n. excessive ego involvement

o. to make concessions

p. leeway in making concessions

q. to have a final say in something

r. to appear confrontational

s. to benefit at the other's expense

t. to weather a conflict

a. International negotiations: Introduction

Negotiation is a complicated process that involves a number of factors,
many of which are culturally determined. You must never assume that
your counterparts from another culture think like you do because that
can lead to misunderstanding, frustration, and distrust, which may sour
the climate of the negotiations and even lead to failure to arrive at an
agreement. Classic examples are:

Handout 9, Poslovni engleski jezik 2 9

 (1) The question of time

(2) Disagreement on the importance of protocol

(3) Conflicts arising from a deal orientation versus a

relationship-establishing orientation in negotiation meetings.

Choose which of the two provided options in CAPITALS is correct in each case:

The question of time can create frustration and

misunderstanding between a culture emphasizing punctuality,
SUCH AS GERMANY / SUCH AS IN LATIN CULTURES, and one
where punctuality is of less importance, SUCH AS GERMANY /
SUCH AS IN LATIN CULTURES. Disagreement on the importance
of protocol between FORMAL CULTURES / INFORMAL CULTURES,
such as Japan, and FORMAL CULTURES / INFORMAL CULTURES,
such as the United States, can be equally disruptive.
Furthermore, the goal of the negotiations process may be totally
different for the two teams. SAUDI NEGOTIATORS / U.S.
NEGOTIATORS are traditionally deal-oriented, and the purpose
of their negotiations is to arrive at the written, binding contract.
SAUDI NEGOTIATORS / U.S. NEGOTIATORS, on the other hand,
are more relationship-oriented, and their goal is to form
friendship which will be the basis of a long-lasting business
relationship.

You should learn:

(1) that not everyone thinks and negotiates like you do;

(2) to develop sensitivity to different meaning attached to

different gestures, means of different gestures, means of
expression, concepts of time etc.

expression, concepts of time etc.

Handout 9, Poslovni engleski jezik 2 10
b. International negotiations: Time
American negotiators are sometimes IMPATIENT OR PUSHY /
FRUSTRATED when meetings dont start on time, because they
believe time is money. Unlike the Arabs, who have a tendency
to want to establish friendship before negotiations can really
begin, Americans are very FRUSTRATED / GOAL-ORIENTED, set
up time schedules, and hope to conclude negotiations within
those time frames. They can appear to be IMPATIENT OR PUSHY /
PERFECTLY ACCEPTABLE. Whereas a Chinese negotiator must
convince his superior that he has fully explored the limits OF HIS
COUNTERPARTS POSITION / BY MAKING A QUICK DEAL, an
American negotiator may want to prove his efficiency by making
a quick deal.

Another conflict may arise due to differing perceptions of time.

Some cultures such as North American, British, and ARAB /
GERMANIC function under MONOCHRONIC TIME / POLYCHRONIC
TIME which allows people to concentrate on one thing at the
time. Thus, negotiations should proceed and should not be
interrupted. Other cultures, notably ARAB / GERMANIC, function
under MONOCHRONIC TIME / POLYCHRONIC TIME, where many
things can occur at the same time. For example, a telephone call
or a secretarys interruptions are perfectly acceptable in a
MONOCHRONIC TIME / POLYCHRONIC TIME culture, whereas they
would be considered impolite and frustrating for a member of a
MONOCHRONIC TIME / POLYCHRONIC TIME culture.

Handout 9, Poslovni engleski jezik 2 11

c. International negotiations: Contract
ORIENTAL NEGOTIATORS / AMERICANS look at negotiations as a
means of reaching a contract and stress legality and the binding
nature of a written document. Other cultures look at
negotiations as a means of establishing a relationship that will
be the basis of future business. For Americans a contract is a
sign of CLOSING A DEAL / A LACK OF TRUST, while for some other
cultures it INDICATES A LACK OF TRUST / BEGINS A
RELATIONSHIP. The emphasis on a binding legal document may
be interpreted by other cultures as a sign of CLOSING A DEAL / A
LACK OF TRUST.

The legalist interprets changes in a contract as a breach of

contract, which can be brought to court. Many ORIENTAL
NEGOTIATORS / AMERICANS feel that if situation changes, the
agreement should change, and that the original agreement was
a statement of principles that can be worked out over time if the
relationship between the two sides is good. It is almost
contradictory that Americans, who are extremely social, often
place so little emphasis on REACHING A CONTRACT /
RELATIONSHIP-BUILDING in international negotiations.

d. International negotiations: Protocol

Protocol concerns the importance of the FORMAL ASPECTS OF
NEGOTIATIONS / CULTURE OF ONE'S COUNTERPARTS. It includes
aspects such as how to address people, use of titles, dress, gift
giving, the respect of age, the placement of negotiators etc.
Americans are informal and have a tendency to overlook the
importance of protocol, which can be interpreted as CULTURE OF
ONE'S COUNTERPARTS / IMPOLITENESS. Protocol functions to
establish a relationship, and those who overlook the importance
of relationship may overlook the importance of protocol. It helps
to establish GAME / RESPECT through gift giving and businnes

Handout 9, Poslovni engleski jezik 2 12

card exchange, and respect for culturally determined rules of
the RESPECT / GAME. Failure to consider protocol can be
interpreted as both a personal affront and an affront to the
IMPOLITENESS / CULTURE OF ONE'S COUNTERPARTS.

e. International negotiations: Decision making

Making decisions can be individual or consensus-based.
American teams usually make INDIVIDUAL DECISIONS /
EXCESSIVE EGO INVOLVEMENT, while in other cultures this is not
often the case. Individual decison making is faster than group
decision making by consensus, but it also has some drawbacks.
For instance, it overlooks the importance of establishing
relationships, which can lead to INDIVIDUAL DECISIONS /
EXCESSIVE EGO INVOLVEMENT. An individual versus consensus
approach will also have impact on the concession process. An
individual approach will allow for MORE FLEXIBILITY / ATTITUDE
TOWARD COMPROMISE in concession making. American teams
tend to begin with an ideal contract and then make concessions
until a compromise is reached. However, consensus-oriented
teams have very little leeway in making concessions due to the
difficulty they have in reaching consensus in their group. The
consensus approach makes concessions difficult for the
Japanese. In negotiating with other cultures, we must
understand their negotiating approach, their ATTITUDE TOWARD
COMPROMISE / INDIVIDUAL DECISIONS and who has the final say
in accepting an agreement.

Handout 9, Poslovni engleski jezik 2 13

f. International negotiations: Conflict
Conflict is not seen as NECESSARILY NEGATIVE / NEGOTIATING
ACROSS A TABLE by American negotiators and is often seen as
part of the negotiating process. American negotiators can
therefore appear more confrontational than some of their Asian
counterparts. Certain aspects of conflict are: stating that you
disagree, making threats in terms of 'if you do not accept this,
we will...', including threats of NECESSARILY NEGATIVE /
BREAKING OFF negotiations, using the word 'no' and
interrupting.

Apart from these classic differences between Western European

and Japanese negotiators, the following should be mentioned:
the Japanese learn at an early age how to avoid social conflict,
they don't like IN DETAIL / NEGOTIATING ACROSS A TABLE, they
use formal meetings to present areas of agreement and they
question their counterparts IN DETAIL / BREAKING OFF looking
for areas of agreement on which to build consensus.

g. International negotiations: Win-win vs. Win-lose

Win-win is when both sides win, and win-lose when one side
benefits at the other's expense. Cultures that emphasize the
EVENTUAL CONFLICTS / IMPORTANCE OF RELATIONSHIPS will
most likely emphasize win-win relationships, the idea being that
a good business relationships will allow the partners to weather
EVENTUAL CONFLICTS / MAKING GAINS and establish a mutually
beneficial partnership. The win-win approach emphasizes
FINDING INTERESTS / MAKING GAINS that both sides have in
common and developing them. The win-lose approach

Handout 9, Poslovni engleski jezik 2 14

 emphasizes FINDING INTERESTS / MAKING GAINS at the other
party's expense, which creates a competitive rather than a
cooperative atmosphere.

Source: Rodgers, D. (1997). English for international negotiations: a cross-cultural case study approach.
Cambridge University Press.

4. Language of negotiations

4.1. Talking about negotiating

For each item in A/C, find a corresponding item in B/D.
A B
TOS (the other side) a. reservation price or walkaway
price
identify stumbling blocks b. competitive (claiming value)
vs. collaborative (creating
value) bargaining
(BATNA) c. potential common ground
best alternative to a between two negotiating
negotiated agreement parties
establishing the balance of d. establish a mutually
power beneficial relationship

win-win vs. win-lose e. your counterparts

negotiations
f. leave open the opportunity
talks reached an impasse for future cooperation

g. How much do you need what

remove obstacles to they can offer you? How much
agreement do they need you? What are
your alternatives?

Handout 9, Poslovni engleski jezik 2 15

(ZOPA) zone of possible
agreement h. break the deadlock and
restart talks

maintaining goodwill i. explore alternatives and

move towards agreement
arrive at a mutually satisfying
agreement j. lock yourself into a fixed
position

C D
making a bid a. unsettle the other side
reach a compromise b. making offers and counter-
offers
pick up a signal / hint c. swap concessions and reach a
deal
make concessions d. cede to the mounting
pressure
drive a hard bargain e. wining & dining
tactics and tricks f. coinciding interests
yield to pressure g. getting what you want & not
getting what you dont want
getting from the negotiating h. add pressure
table to dinner table

Handout 9, Poslovni engleski jezik 2 16

bluffing/misrepresentation
minimizing the possible loss
while maximizing the potential
gain
i. awareness of your
counterparts verbal and non-
verbal communication
j. e.g. Good Cop, Bad Cop /
Home Field Advantage /
Wearing you out / Two bites
of the apple

4.2. Collocations used in negotiating

Each of the words in A. can be used with both items in a particular box
in B. There is one odd box in B!

A.
terms pressure a breakthrough
the agreement provisions of the a deal
agreement
time out a deadlock options

B.
reach negotiate
break agree

Handout 9, Poslovni engleski jezik 2 17

look for apply
make give in to
comply with to chair
(fully) observe to reschedule
cut violation of
clinch breach of
call generate
take weigh up

4.3. Sales negotiations: Being diplomatic

Make the direct remarks below more diplomatic using the words in brackets to help you.

a. This is too expensive. (unfortunately / would)

b. It will be difficult to sell the idea to my boss.

(unfortunately/may/very easy)

c. We should be near a decision by now. (shouldn't /a bit

nearer)

d. I won't make any promises. (not/position/this stage)

e. This is difficult for us to accept. (would / a little/the

moment)

f. We hoped you would provide after-sales service.

(honest/hoping)

g. We had aimed to get further than this this morning.

(aiming/slightly)

KEY:
The art of negotiating

The art of negotiating involves finding a balance between achieving the best possible result while
at the same time establishing a mutually beneficial working relationship with your counterparts.
Much negotiation literature emphasizes the value of inventing options for mutual gain rather
than negotiating on a win-lose basis. The former tries to expand the pie by discovering new
options, while the latter sees negotiations as a fixed pie where the more one side wins, the more

Handout 9, Poslovni engleski jezik 2 18

the other side loses. The idea behind the first approach is that it is unproductive to lock yourself
into a fixed position because that will prevent us from finding alternatives that will be mutually
beneficial.

Another problem with fixed positions and a win-lose orientation is that most business relations
involve long-term cooperation. Naturally, you want to achieve the best possible results for your
company, but at the same time you do not want to poison an ongoing business relationship on
which your future success depends. Negotiations are a case of give and take, and good
negotiators are sensitive to the priorities and musts of the other side. Beating the other side into
submission is certainly not the way to establish the atmosphere of mutual understanding
necessary for an ongoing business relationship.

Some tips for successful negotiating

1. Depersonalize and Focus on Substance

Establishing good chemistry among negotiators is important since you will be involved in a long-
term relationship where problems will most likely arise. A good working relationship can thus
serve as a basis for dealing with eventual problems. Moreover, you must avoid taking
disagreements personally. Emotional responses and personal attacks will destroy a working
relationship faster than anything.

2. Listen and Observe Actively

Your counterparts will be sending you verbal and non-verbal signals constantly, and you must
perceive and acknowledge them to arrive at a mutually satisfying agreement. Sending them a
message that you are honestly trying to understand their position helps establish a sense of
mutuality which is the basis of negotiations geared at reaching a satisfying agreement. Listening
attentively is extremely important in international negotiations. In high-context cultures, for
example, in which the words meanings have to be interpreted from the social context in which
they are spoken and verbal communication is imprecise, body language, pauses etc. can be more
communicative than words.

3. Document Your Position and Present It Logically

Your position will be more convincing if you have the facts to support it. Do your homework so as
to be able to use statistics, figures and examples from similar negotiation. Emphasize the
consequences for both sides, appealing to fairness and commonly accepted good business
practices.

4. Establish a Positive Mindset Before Entering the Negotiations

Do not look at your counterpart as someone who is out to cheat you or someone whom you are
going to manipulate to your own advantage. Enter negotiations with a positive attitude. The
protocol of introductions, complimenting your counterparts and their company, showing due
respect for senior members, are all part of establishing the right tone. Emphasizing the mutual
benefits that can be achieved early in the negotiations is also a means of expressing a positive
attitude toward the result of the negotiations.

5. Know Your Limits

Before the negotiations, set your opening offer and your resistance point the point you would
resist going beyond. Factor into your resistance point the concessions you would require to move
beyond that point. Finally, set your bottom line the limit you are willing to go to before breaking
off negotiations. When approaching that point, in the last attempt to save the negotiations, you
might add: It looks as if further negotiations seem pointless or mention the advantage of
achieving an agreement based on mutual gain: We had hoped to achieve a mutually satisfying
agreement and still do, but you will have to be willing to meet us half way.

6. Be Prepared
Assess the balance of power and get as clear a picture as possible of how much you need what
their team can offer you and what their alternatives are and how much they need you and what
your alternatives are. Furthermore, gain an understanding of your counterparts culture and its
impact on their approach to negotiations.

7. Be Aware of Tactics and Tricks

Handout 9, Poslovni engleski jezik 2 19

Both sides still wish to achieve the best possible agreement for themselves. Negotiating is a
tightrope act between mutuality and individual gain. Thus tactics and tricks will be involved. If
your counterparts feel that you are vulnerable to their tactics or tricks, they will naturally be
tempted to use them. What you must do is to be aware of the kinds of tactics they may use and
show them you know what tactic they are trying. In doing so at the outset, your counterparts will
be less tempted to try to manipulate you, and negotiations can move on to the next level where
mutually satisfying solutions can be achieved.

Cultural awareness in international negotiations

Time

American negotiators are sometimes FRUSTRATED when meetings dont start on time, because
they believe time is money. Unlike the Arabs, who have a tendency to want to establish
friendship before negotiations can really begin, Americans are very GOAL-ORIENTED, set up time
schedules, and hope to conclude negotiations within those time frames. They can appear to be
IMPATIENT OR PUSHY. Whereas a Chinese negotiator must convince his superior that he has fully
explored the limits OF HIS COUNTERPARTS POSITION, an American negotiator may want to prove
his efficiency by making a quick deal.

Another conflict may arise due to differing perceptions of time. Some cultures such as North
American, British, and GERMANIC function under MONOCHRONIC TIME which allows people to
concentrate on one thing at the time. Thus, negotiations should proceed and should not be
interrupted. Other cultures, notably ARAB, function under POLYCHRONIC TIME, where many
things can occur at the same time. For example, a telephone call or a secretarys interruptions
are perfectly acceptable in a POLYCHRONIC TIME culture, whereas they would be considered
impolite and frustrating for a member of a MONOCHRONIC TIME culture.

Contract

AMERICANS look at negotiations as a means of reaching a contract and stress legality and the
binding nature of a written document. Other cultures look at negotiations as a means of
establishing a relationship that will be the basis of future business. For Americans a contract is a
sign of CLOSING A DEAL, while for some other cultures it BEGINS A RELATIONSHIP. The emphasis
on a binding legal document may be interpreted by other cultures as a sign of A LACK OF TRUST.

The legalist interprets changes in a contract as a breach of contract, which can be brought to
court. Many ORIENTAL NEGOTIATORS feel that if situation changes, the agreement should
change, and that the original agreement was a statement of principles that can be worked out
over time if the relationship between the two sides is good. It is almost contradictory that
Americans, who are extremely social, often place so little emphasis on RELATIONSHIP-BUILDING
in international negotiations.

Protocol

Handout 9, Poslovni engleski jezik 2 20

Protocol concerns the importance of the formal aspects of negotiations. It includes
aspects such as how to address people, use of titles, dress, gift giving, the respect of
age, the placement of negotiators etc. Americans are informal and have a tendency to
overlook the importance of protocol, which can be interpreted as impoliteness. Protocol
functions to establish a relationship, and those who overlook the importance of
relationship may overlook the importance of protocol. It helps to establish respect
through gift giving and businnes card exchange, and respect for culturally determined
rules of the game. Failure to consider protocol can be interpreted as both a personal
affront and an affront to the culture of one's counterparts.

Decision making

Making decisions can be individual or consensus-based. American teams usually make

individual decisions, while in other cultures this is not often the case. Individual decison
making is faster than group decision making by consensus, but it also has some
drawbacks. For instance, it overlooks the importance of establishing relationships,
which can lead to excessive ego involvement. An individual versus consensus
approach will also have impact on the concession process. An individual approach will
allow for more flexibility in concession making. American teams tend to begin with an
ideal contract and then make concessions until a compromise is reached. However,
consensus-oriented teams have very little leeway in making concessions due to the
difficulty they have in reaching consensus in their group. The consensus approach
makes concessions difficult for the Japanese. In negotiating with other cultures, we
must understand their negotiating approach, their attitude toward compromise and
who has the final say in accepting an agreement.

Conflict

Conflict is not seen as necessarily negative by American negotiators and is often seen
as part of the negotiating process. American negotiators can therefore appear more
confrontational than some of their Asian counterparts. Certain aspects of conflict are:
stating that you disagree, making threats in terms of 'if you do not accept this, we
will...', including threats of breaking off negotiations, using the word 'no' and
interrupting. Apart from these classic differences between Western European and
Japanese negotiators, the following should be mentioned: the Japanese learn at an
early age how to avoid social conflict, they don't like negotiating across a table, they
use formal meetings to present areas of agreement and they question their
counterparts in detail looking for areas of agreement on which to build consensus.

Win-win vs. Win-lose

Win-win is when both sides win, and win-lose when one side benefits at the other's
expense. Cultures that emphasize the importance of relationships will most likely
emphasize win-win relationships, the idea being that a good business relationships will
allow the partners to weather eventual conflicts and establish a mutually beneficial

Handout 9, Poslovni engleski jezik 2 21

partnership. The win-win approach emphasizes making gains that both sides have in
common and developing them. The win-lose approach emphasizes finding interests at
the other party's expense, which creates a competitive rather than a cooperative
atmosphere.

Language of negotiating

4.1. Collocations

reach / break a deadlock

negotiate / agree terms
look for / make a breakthrough
apply / give in to pressure
comply with / observe provisions of the agreement
chair / reschedule a meeting
cut/clinch a deal
violation of / breach of the agreement
call / take time out
generate / weigh up options

4.2. Phrases that go together

TOS (the other side)

your counterparts

identify stumbling blocks

explore alternatives and move towards agreement

(BATNA) best alternative to a negotiated agreement

reservation price or walkaway price

establishing the balance of power

How much do you need what they can offer you? How much do they need you? What are your
alternatives?

win-win vs. win-losenegotiations

competitive (claiming value) vs. collaborative (creating value) bargaining

talks reached an impasse

lock yourself into a fixed position

remove obstacles to agreement

break the deadlock and restart talks

(ZOPA) zone of possible agreement

potential common ground between two negotiating parties

maintaining goodwill
leave open the opportunity for future cooperation

Handout 9, Poslovni engleski jezik 2 22

making a bid
making offers and counter-offers

reach a compromise
coinciding interests

pick up a signal / hint

awareness of your counterparts verbal and non-verbal communication

make concessions
swap concessions and reach a deal

tactics and tricks

e.g. Good Cop, Bad Cop / Home Field Advantage / Wearing you out / Two bites of the apple

drive a hard bargain

add pressure

yield to pressure
cede to the mounting pressure

getting from the negotiating table to dinner table

wining & dining

minimizing the possible loss while maximizing the potential gain

getting what you want & not getting what you dont want

bluffing/misrepresentation
unsettle the other side

arrive at a mutually satisfying agreement

establish a mutually beneficial relationship

4.3. Being diplomatic

>> Unfortunately, we would need something cheaper.

>> Unfortunately, it may not be very easy to sell the idea to my boss.
>> Shouldnt we be a bit nearer a decision by now?
>> I am not in a position to make any promises at this stage.
>> We would find this a bit difficult to accept at the moment.
>> To be honest, we were hoping you would provide after-sales service.
>> We were aiming to get slightly further than this this morning.

Handout 9, Poslovni engleski jezik 2 23