You're listening to Business English Pod, the Business English podcast for professionals on the move.
Hello, my name's Edwin and I'll be your host for this episode on clarifying and evaluating positions, which is part of our ongoing series on negotiation skills.
An important part of any discussion is making our position clear.
At the same time, we must make sure we understand the other side's point of view.
Achieving mutual understanding can help us save money by avoiding missed opportunities.
In addition, the ultimate goal of any negotiation is to create value.
Therefore evaluation, determining whether an offer or position is good or bad, plays an important role.
So in this show, we'll study stating, clarifying, and evaluating positions.
Peter is the owner of mobile phone Ringtone and game provider Textacular.
He is attempting to roll up or buy other small companies like his in an effort to increase the value of his company.
Eventually, he wants to sell his business to a larger regional service provider for a profit.
In the listening, he is meeting with Maxine, owner of Gamester, to discuss a possible merger.
As you listen, pay attention to how they clarify and evaluate each other's positions, and try to answer the following listening questions.
The answers will be posted in a few days on our website, www.businessenglishpod.com.
1.
What's the basic source of disagreement between Maxine and Peter?
2.
What are Maxine's reasons for insisting on her price?
3.
What does Peter mean when he says he has done months of due diligence?
So, in short, we've thought about it a lot, and we really can't budge from our position.
So, if I'm getting you right, you won't be willing to part with Gamester for less than 15 million, right?
Yes, that's an absolute minimum.
Let me go over my reasons again.
Go ahead.
For one, this market is going nowhere but up.
Yes, I take your point.
For another, we've got tremendous value here.
You've seen the figures.
Good people, good products and a solid business plan.
I agree.
I've done months of due diligence and I'm convinced of the value of a merger.
I know you are, but we need a fair price for our business.
On my side though, we must take into account redundancies in our business operations and factor in the volatility in the market.
Maxine has stated her position and justified her point of view.
Meanwhile, Peter has been careful to confirm that he correctly understands her stance.
Both Maxine and Peter evaluate the 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 dialogue begins with Maxine making a very clear statement of her position.
So in short, we've thought about it a lot and we really can't budge from our position.
Maxine opens by saying, we 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 means can't move even a little bit.
So Maxine means she is holding 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 strong statement.
We have to insist on our point of view.
To be very firm on something and to insist on something are both ways of strongly stating 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 could 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.
So inflexible 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.
So, if I'm getting you right, you won't be willing to part with Gainster 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.
It's always important to clarify the other party's position, but never more so than 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 summarise our positions as I see them?
So Peter has confirmed that Maxine will not sell for less than 15 million euros.
How does she reply?
Yes, that's an absolute minimum.
Let me go over my reasons again.
Go ahead.
For one, this market is going nowhere but up.
Yes, I take your point.
Maxine says 15 million euros is an absolute minimum.
She is signaling that this is her bottom line, or lowest possible selling price.
Then she offers to go over to 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 are, 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 would just like to briefly run through several points that explain our position on this.
Next, Maxine continues to discuss her reasons for staying firm on $15 million.
For another, we've got tremendous value here.
You've seen the figures.
Good people, good products and a solid business plan.
I agree.
I've done months of due diligence and I'm convinced of the value of a merger.
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 and is convinced of the value.
To do due diligence on something means to do careful research.
Remember, the ultimate goal of negotiation is to create value.
Therefore evaluation, that is, appraising whether 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 from 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 means to fall short of expectations.
As the dialogue 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 dialogue to see how Maxine and Peter's conversation develops.
Now let's practice the skills and language that we've 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'll 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... You can say something like...
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.
For instance, if you hear, Honestly, this offer leaves a lot to be desired.
You can say, 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.
Make a concession.
Carefully.
Well, at this point we're just not prepared to change our position.
Complete the deal before the end of the year.
Strong.
Though there are still a couple of loose ends to tie up, that's a definite possibility.
How did that go?
Let's now listen to some example answers.
Bear in mind though, there are many possible correct responses.
Make a concession.
Carefully.
It seems to me that it might be very helpful if you made a concession.
Well, at this point we're just not prepared to change our position.
So, if I understand correctly, you're not prepared to make any concessions, right?
Complete the deal before the end of the year.
Strong.
From our side, we must insist on finishing the deal before the end of the year.
Though there are still a couple of loose ends to tie up, that's a definite possibility.
So, if I'm getting you right, you feel that it's possible to complete the deal before the end of the year.
Okay, now let's practice useful collocations.
You'll hear a series of sentences with a word blanked out or replaced with a beep.
Repeat the whole sentence, but say the missing word.
For example, if you hear, We have to on our point of view.
You will say, We have to insist on our point of view.
We'll play an example answer after each exercise.
Are you ready?
Let's begin.
Frankly, I must say that we have to be very... on this point.
Answer.
Frankly, I must say that we have to be very firm on this point.
At first sight, this appears to be an position for us.
At first sight, this appears to be an untenable position for us.
Let me explain why we have this conclusion.
Answer.
Let me explain why we have reached this conclusion.
I also have to take into many other factors.
Answer.
I also have to take into account many other factors.
There are still a couple of loose ends to up.
Answer.
There are still a couple of loose ends to tie up.
Honestly, this offer leaves a lot to be from our point of view?
Honestly, this offer leaves a lot to be desired from our point of view.
That's all for this episode.
We've studied, stating our position, justifying our stance with reasons, clarifying the other side's point of view and evaluating the offer.
There you'll find full transcripts, vocabulary explanations, review exercises and study strategies.
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All that's at www.businessenglishpod.com.
Thanks for listening.
See you next time.
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