Vocabulary

To evaluate sth: To comment on the value of sth., i.e., whether it is good or

bad. “It’s important to evaluate the position carefully before drawing any

conclusions.”

To (not be able to) budge from a position: To not be able to move even a little

bit from a point. “After he said he’d reached his bottom line, he didn’t budge.”

To part with sth. (for a price): To sell something (often unwillingly). “He will only

part with his favorite car for a very high price.”

To be an absolute minimum: To be the very lowest (price or number, etc.).

“That’s an absolute minimum – I can’t go lower than that.”

To be going nowhere but up: To have potential. To be growing or expanding.

“This business is going nowhere but up.”

To have tremendous value (for/to s/o): To be extremely valuable. “My

experience in the army has tremendous value for me.”

Business plan: A detailed strategy for conducting business. “We drew up a

business plan before we went to investors to get money.”

To do due diligence (on sth.): To research carefully (especially a large purchase)

“It’s essential to do thourough due diligence before any merger.”

To be very firm on/about sth.: To be very sure about sth.; to be committed to a

position. “They are very firm on price, so we’re going to have to look for

concessions elsewhere.”

To insist on sth.: To continue to ask for or believe in sth., even when other people

oppose it. “I must insist on early delivery, even if it will increase your production costs.

To tie up loose ends: Refers to taking care of minor details. “Everything looks

good – there are just a few minor loose ends to tie up.”

To leave a lot to be desired: Negative evaluation; means to fall short of

expectations. “I thought her presentation left a lot to be desired.”

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Successful Negotiations

Debrief

Maxine has statedher position andjustifiedher point of view. Meanwhile, Peter

has been careful to confirmthat hecorrectly understandsher stance. Both

Maxine and Peter evaluatethe other side’s demands. Although they have a

disagreement, Maxine and Peter are communicating clearly. Let’s take a close

look at the language they use to create a frank discussion.

The dialog begins with Maxine making a very clear statement of her position:

Maxine: So in short, we’ve thought about it a lot, and we really can’tbudge

from our position.

Maxine opens by saying, “We’ve thought about it a lot…” This both shows Peter

that she has seriously considered his offer and indicates that she is very firm.

Can’t budge meanscan’t move, even a little bit. So, Maxine means she is

holding on to her position.

At this stage in the negotiation, making clear statements of our position can help

save time and avoid misunderstanding.

Let’s look at some more examples.

First, let’s study language for making a strongstatement:

 Frankly, I must say that we have to be very firmon this point.

 We have to insist onour point of view.

To be very firm on something andto insist on something are both ways of

stronglystating your position.

But what if you need to be more careful?

 At first sight, this appears to be an untenable position for us.

 It seems to me that this is an area where it would be very helpful for you to

make a concession.

 I would not like you to think that we are being inflexible.

To make a concession means to give up something in return for something else.

Meanwhile, to be flexible means to be able to change your position. Soinflexible

is the opposite – to be very firm.

How does the conversation between Peter and Maxine continue? At this point,

Peter makes sure that he has completely understood Maxine’s point of view.

Peter: So if I’m getting you right, you won’t be willing to part with Gamester for

less than €15 million, right?

“So if I’m getting you right” is a way of clarifying the other party’s position. Peter

wants to confirm that Maxine won’t be able to part with, or sell, her company for

less than 15 million.

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business englishpod

It’s always important to clarify the other party’s position, but never more so

when we disagree. Misunderstandings can cost lots of money because they may

cause us to miss opportunities to solve the problem.

Let’s study more clarifying language.

 If I understand the position correctly, you are looking for better credit terms,

am I correct?

 As we see it, this is the position at the moment:

 How do you see our objectives?

 Can I just summarize our positions as I see them?

So, Peter has confirmed that Maxine will not sell for less than €15 million. How

does she reply?

Maxine: Yes, that’s an absolute minimum. Let me go over my reasons again.

Peter: Go ahead.

Maxine: For one, this market is going nowhere but up.

Peter:Yes, I take your point.

Maxine says that €15 million is an absolute minimum– she is signaling that this

is her bottom line, or lowest possible selling price. Then she offers togo over or

review her reasons. The first reason is that the” market is going nowhere but

up.” In other words, the market is continuing to expand, and the future looks

bright.

In negotiation we often need to give good reasons to justify or explain how we

reached our position. The more convincing our reasons our, the easier it will be

to get the other side to make concessions.

What are some other phrases we can use to give reasons?

 Let me explain why we have reached this conclusion,

 I also have to take into account many other factors.

 There are several aspects to this situation.

 I’d just like to briefly run through seven points that explain our position on

this.

Next, Maxine continues to discuss her reasons for staying firm on 15 million.

Maxine: For another, we’ve got tremendous value here – you’ve seen the

figures: good people, good products, and a solid business plan.

Peter: I agree. I’ve done months of due diligence, and I’m convinced of the

value.

Maxine: I know you are, but we need a fair price for our business.

In this passage, Maxine is evaluating–judging the value of– her business. She

says she’s got “tremendous value here” as well as “good people, good products,

and a solid business plan.” Peter agrees – he has done “months of due diligence”

© 2009 All rights reserved: www.business englishpod.com 51

Successful Negotiations

and is “convinced of the value.” To do due diligence on somethingmeans to do

careful research.

Remember, the ultimate goal of negotiation is to create value. Therefore,

evaluation– that is,appraisingwhether an offer or position is good or bad –

plays a central role in every discussion.

Can you think of other language that can be used to evaluate a position? First,

let’s go over some examples of positive evaluations:

 Despite a couple points of minor disagreement, the arrangement under

discussion obviously has a lot to offer both sides.

 Though there are still a couple of loose ends to tie up, we feel

overwhelmingly positive about the compromise that we’ve reached.

 This is a good offer – no doubt about it.

To tie up loose ends refers to taking care of minor details.

That’s all for positive evaluations. Now what can we say if we wish to negatively

evaluate something?

 Honestly, this offer leaves a lot to be desired, in our point of view.

 We’ve looked at the figures closely, and I can’t say that we currently have a

very high appraisal of this deal.

 At this point, I think it’s really tough to see where the value is for our side.

To leave a lot to be desired is a bad evaluation … it meansto fall short of

expectations.

As the dialog finishes, Maxine acknowledges that Peter is convinced of the value

of a merger, but she says she needs a “fair price for her business.” We hear

from the tone of Peter’s reply that he is not yet ready to increase his offer. In

the next episode, Declining an Offer, we’ll be returning to this dialog to see how

Maxine and Peter’s conversation develops.

Now, let’s practice the skills and language that we have covered today.

First, let’s practice stating and clarifying positions. Imagine you are in talks with

the owner of a company that you’d like to buy. First, you will hear a cue

outlining your position and telling you whether you should state it strongly or

carefully. After the beep, use the cue to make a sentence with the language we

have studied in this episode.

For example, if you hear…

Example cue: Pay no more than $15 million,strong. <beep>

You can say something like…

Example learner – statement: Frankly, I must say that we have tobe very

firmon our offer of $15 million.

Next, the other side will reply, his or her statement is not completely clear. After

the beep, use one of the phrases we have learned to clarify.

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For instance, if you hear…

Example reply: Honestly, this offer leaves a lot to be desired.<beep>

You can say…

Example learner – clarification: So you’re saying you can’t accept $15

million, right?

Other language you can use for clarifying includes… “So if I’m getting you

right….” “So If I understand correctly…” or “So as I see it, this is the position at

the moment.”

Are you ready? Give it a try:

Cue 1:You should make a concession,careful

Learner 1 – statement:

Reply 1:Well, at this point, we’re just not prepared to change our position.

Learner 1 – clarification:

Cue 2:Complete the deal before the end of the year,strong

Learner 2 – statement:

Reply 2:Though there are still a couple of loose ends to tie up, that’s a definite

possibility.

Learner 2 – clarification:

How’d that go? Let’s now listen to some example answers. Keep in mind,

though, there are many possible correct responses.

Cue 1:You should make a concession,careful

Learner 1 – statement:It seems to me that it might very helpful if you made

a concession.

Reply 1:Well, at this point, we’re just not prepared to change our position.

Learner 1 – clarification:So, if I understand correctly, you’re not prepared to

make any concessions, right?

Cue 2:Complete the deal before the end of the year, strong

Learner 2 – statement:From our side, we must insist on finishing the deal

before the end of the year.

Reply 2:Though there are still a couple of loose ends to tie up, that’s a definite

possibility.

Learner 2 – clarification:So, if I’m getting you right, you feel that it’s possible

to complete the deal before the end of the year.

© 2009 All rights reserved: www.business englishpod.com 53

Successful Negotiations

Okay, now let’s practice useful collocations. You’ll hear a series of sentences with

a word blanked out or replaced with abeep. Repeat the whole sentence, but say

the missing word.

For example, if you hear…

Example cue: We have to<beep> on our point of view.

You will say …

Example answer:We have toinsiston our point of view.

We’ll play an example answer after each exercise.

Are you ready? Let’s begin.

Cue 1:Frankly, I must say that we have to be very<beep> on this point.

Learner 1:

Cue 2:At first sight, this appears to be an<beep> position for us.

Learner 2:

Cue 3:Let me explain why we have<beep> this conclusion.

Learner 3:

Cue 4:I also have to take into<beep> many other factors.

Learner 4:

Cue 5:There are still a couple of loose ends to<beep> up.

Learner 5:

Cue 6:Honestly, this offer leaves a lot to be<beep> , in our point of view.

Learner 6:

Answer 1:Frankly, I must say that we have to be veryfirmon this point.

Answer 2:At first sight, this appears to be anuntenableposition for us.

Answer 3:Let me explain why we havereachedthis conclusion.

Answer 4:I also have to take intoaccountmany other factors.

Answer 5:There are still a couple of loose ends totieup.

Answer 6:Honestly, this offer leaves a lot to bedesired, in our point of view.

That’s all for this episode. We’ve studied statingour position,justifyingour stance

with reasons,clarifyingthe other side’s point of view, andevaluatingthe offer.

Study Strategy

Play the “clarifying game” with a friend, colleague, or learning partner. Take

turns reading aloud passages from a report or a newspaper. When you come to

numbers or important details, whisper so that your partner cannot hear you

clearly. He or she should interrupt and clarify.

© 2009 All rights reserved: www.business englishpod.com 54

business englishpod

Language Review

A. Useful Language

Review useful language by filling in the blanks with words from the box.

appraisal

desired

tough

good

loose

see

summarize

discussion

objectives

correctly

Clarifying positions

1. If I understand the position ___________, you are looking for better credit

terms, am I correct?

2. As we ___________it, this is the position at the moment:

3. How do you see our ___________?

4. Can I just _____________our positions as I see them?

Evaluating the position:

Positive

5. Despite a couple points of minor disagreement, the arrangement under

____________obviously has a lot to offer both sides.

6. Though there are still a couple of ____________ends to tie up, we feel

overwhelmingly positive about the compromise that we’ve reached.

7. This is a _____________offer – no doubt about it.

Negative

8. Honestly, this offer leaves a lot to be _____________, in our point of view.

9. We’ve looked at the figures closely, and I can’t say that we currently have a

very high ____________of this deal.

10.At this point, I think it’s really ___________to see where the value is for our

side.

B. Giving Reasons

Put the jumbled sentences in order to practice useful phrases for giving reasons.

Write the correct responses in the gaps below the jumbled words.

1. we me let why conclusion have reached explain this

2. I have also other to into take account factors many