Text 6.

Read the text and do the assignments. While reading, find words and expressions in the text that mean: исследование/исследователь; прилагать усилия; делать уступки; давать совет по ведению переговоров; общепринятое заблуждение; личные связи; телефонный звонок; обращать внимание на что-либо; доверительные отношения; надоедать, докучать; иметь что-либо общее, объединять; напоминать кому-либо о чем-либо; приводить к проблемам.

Negotiation Strategy

There has been a great deal of research into the art of negotiation. One point most researchers seem to agree on is that good negotiators try to create a harmonious atmosphere at the start of a negotiation. They make an effort to establish a good rapport with their partner, so that there will be willingness – on both sides – to make concessions, if this should prove necessary.

An expert who works in a consulting firm helping Western companies manage successfully in Russia gives some tips on negotiating:

First I’d like to debunk a common misconception. Having a Russian partner is no guarantee of success in negotiating. True if you have an influential Russian partner, he could make things go smoother for both of you, but the question is, does he want to? Does he like you enough? Does he trust you enough to use his personal connections to get things moving? Or has he been put off by something that Westerners would not even notice: a phone call you forgot to return, an e-mail you didn’t respond to, a joke you didn’t mention later on as good. Pay attention to the little things. If possible, take a long-term view of negotiations.

The main goal for the first year should be to build a trusting relationship with a person you are negotiating with, so he doesn’t take everything you say and do in a negative way. You want to make sure he sees that you like working with him and will help him out if he needs it.

When you actually get into negotiations, consider these steps:

1. Put all your worries aside. When a Russian senses you aren’t happy, he might think it has something to do with him. Russians are very sensitive to emotions, so before you start, think what is bothering you. If you can fix it right away, do so. If not, forget it until after the negotiating session is done.

2. Personalize and be positive. Ask a lot of questions. This helps you to find out what the two of you have in common. Also, think of all the positive steps you and your partner have made up to this point. Start the session by casually reminding him of them. Order your discussion points from the most positive down. Think about what you can give him other than money. There is always something else that your partner is interested in. Always keep it in mind once you know what it is. Follow the business motives of the other side --- such as security in his job, and looking good in front of his boss or you --- and if you could help with those. Demonetizing the relationship will pay big dividends.

3. Don’t allow anything to get by that you don’t understand. It will lead to problems later. Triple clarify everything.

Exercise 6-1. Decide if these statements are true or false according to the text. Change any which are false.

1. According to some researches, harmonious atmosphere is one of the key elements of successful negotiations.

2. While negotiating, one never makes concessions.

3. If you have a Russian partner you are sure to succeed in negotiating.

4. A trusting relationship is a major factor in running business.

5. You shouldn’t worry about anything when you get into negotiations.

6. While negotiating, it’s very important to find out what you and your partner have in common.

7. Western people usually take offence if their partners forget to respond to an e-mail.

8. Emotions don’t matter if you negotiate in Russia but they matter very much when you do it abroad.

Exercise 6- 2. Answer the questions.

1. What can an influential Russian partner do for you?

2. Why must Westerners pay attention to the little things such as a phone call or an e-mail?

3. What is the main goal for the first stage of negotiations?

4. About what would it be better to forget during the negotiating session?

5. While negotiating, what can lead to problems?

6. Is it necessary to ask a lot of questions? Why?

Exercise 6-3. Translate the sentences from Russian into English paying attention to the words and phrases underlined.

1. Внезапный телефонный звонок прервал наши переговоры.

2. Существует общепринятое заблуждение, что личные отношения мешают работе.

3. Пожалуйста, напомните мне, чтобы я ответил на это электронное письмо.

4. Не давайте советов своему партнеру, иначе это может привести к большим проблемам.

5. Хорошо, если деловые партнеры имеют много общего.

6. Не надоедай мне сейчас с этим вопросом, я очень занят. Давай решим это позднее.

7. Во время переговоров все обратили внимание на их доверительные отношения.

8. Мне пришлось приложить усилия, чтобы выучить эти слова. Среди них было много сложных терминов.

Exercise 6-4. In your own words.

1. Have you ever negotiated? Tell your fellow students about it.

2. Is it difficult to negotiate? Give your reasons.

Text 7.

Read the text and do the assignments. While reading, find words and expressions in the text that mean: производитель (2); вынуждать, заставлять; объем производства; совет директоров; среднее качество; оборот; убытки; производственное оборудование; брать/сдавать в аренду; быть осторожным; перенасыщенный рынок; на рынке безалкогольных напитков; таможня; конкурировать; сталкиваться с; торговая марка; вытеснять с рынка.

Foreign firms to make juice locally

Foreign juice manufacturers have returned to Moscow. The fierce Russian customs regime has forced the German company Glocken Gold and Latvian producer Gutta to spend a combined $ 10 million to build their own juice and fruit nectar factories outside Moscow.

Gutta sold well in Russia until August 1998, when the collapse of the ruble forced the company out of the market. At the time Gutta had just completed the construction of a factory with an output of 72 million liters per year, costing the company about $8 million. Gutta’s board of directors next year must decide whether to sell the factory to outside investor or to independently develop production.

“Even if we adopt the decision to sell the factory, Gutta juice will come into the market from Ukraine. We and the Germans have good chances – local producers’ goods are still of an average quality and it is quite simple to produce your product here,” said Gutta’s marketing director.

There are about 10 juice producers in Moscow: the Lianozovsky, Ramensky and Tsaritsinsky factories of the Wimm-Bill-Dann group, the Ostankinsky and Ochakovsky dairy plants and five smaller producers. Together they produce about 100 million liters of juice per year.

Glocken Gold produces tea as well as juice. The company’s turnover for 1999 was DM50 million. In Fryazin, a town just outside Moscow, Glocken Gold will next week begin assembling its production equipment. “If a project is developed successfully, Glocken plans to construct additional production facilities,” said Glocken Gold’s director for Eastern Europe. The company will lease production space and the cost of the project will be about $3 million. Initially Glocken Gold will sell its juice under its German brand name. But is considering introducing Russian brands in the near future. Glocken Gold will be priced in the middle of the market. Latvia’s Gutta is also set to appear on the Moscow market before the end of the year.

Directors of Russian companies that will compete with the foreign firms were rather cautious in their reaction to the news. “It’s always good when foreigners come here. It will be interesting for us to compete with them, but whether they have the experience and understanding of the Russian consumers is a different matter,” said general director of the Ostankinsky dairy factory.

Tatyana Polovko, head of Wild, one of the biggest concentrated juice distributors on the Russian market, suggests that the newcomers will face an over-saturated market.

“The tendency on the nonalcoholic drink market has already changed considerably this year. People are turning more and more from juice to mineral water, so it is impossible to speak of new projects’ guaranteed success,” Polovko said.