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Part 4. Making an opening statement.

Exercise 1. Most formal negotiations begin with an opening statement from each side. What do you think an opening statement should include? Write down your ideas.

Exercise 2. Read the conversation between a small Singaporean software company called LP Associates and a possible partner, Kee Ltd. You will read part of an opening statement from Stella Wang, the Production Manager at LP Associates.

Tick (*) four of the eight statements given below the text which best represent what she says. (Students should identify four broad objectives of the negotiation).

Well, thank you for coming here today. As you know, we have a busy agenda. May I begin by outlining some basic thoughts that we have on this meeting? First of all, we see it very much as a first meeting, a preliminary negotiation to identify areas in which we can perhaps work together on certain products- prototype products – that we have developed. There are two, possibly three, ways in which we might go forward. I’d like to summarise these under three headings. First, development projects, second license agreements. The third is the possibility of some kind of consultancy relationship. Is everyone happy if I say a few words about these to begin with? Right, well. First of all, joint development projects. This is …

  1. LP Associates want to reach a final agreement in this negotiation.

  2. These are preliminary talks.

  3. The two parties want to resolve a conflict.

  4. They want to agree on a name for the joint venture.

  5. LP Associates would like to consider joint product development.

  6. They would also consider license agreements.

  7. LP Associates want to agree a complete sale of their ideas.

  8. They want to consider working on a consultancy basis.

DISCUSSION.

Exercise 3. Compare Stella Wang’s opening statement with the suggestions you made at the beginning of this section.

a) What did she include that you also suggested?

b) What other things did she include?

Unit 12

Exercise 4. Suggest phrases for each of the following at the start of a negotiation.

a) Welcome the other side.

b) Develop small talk (trip, weather).

c) Mention plans for lunch – make your visitors feel welcome (see city centre/local restaurant).

d) Suggest you start talking about the main subject of your meeting.

e) Introduce a colleague (Luke Fox, Marketing Department).

f) Explain general aim or purpose of the meeting (preliminary/exploratory).

g) Say what your side wants from the meeting (establish beginnings of a partnership /learn about supply systems /price variations and supply costs)

Exercise 5. Try to bring together many of the phrases above in a single opening statement.

Exercise 6. Choose one of the following situations to prepare an opening statement in a negotiation. Remember to include welcoming remarks and some general comments on your expectations for a successful meeting and an agreement which leads to a lasting partnership.

Situation 1.

Your company, Ultra Compo, is meeting representatives of OHTA Inc. from Tokyo. OHTA Inc. wants to set up an agency in your country to distribute its electronic components.

Objective.

Exploratory talks to:

    1. know more about the products;

    2. find out about OHTA’s existing international distribution network;

    3. discuss in general the terms under which the two companies could cooperate.

Independent objective: to internationalise your own company’s activity and extend your product range.

Unit 12

Situation 2.

You are interested in buying some land in a suburb of Lima in Peru, where you want to establish a distribution warehouse to serve the Andean region of Latin America. You have a meeting with the lawyers acting for the landowner, PuertosCallao S.A., a port authority in Lima.

Objective.

Exploratory talks to find out:

  1. more about the land, its exact location relative to the port, airport, city centre, etc.;

  2. the cost of a land;

  3. the present condition of the land – existing buildings, etc.

Independent objective: to secure the land on the lowest possible terms, either by buying it now for cash, or getting a deal spreading costs over a longer term at low interest, or leasing the land.