You're listening to Business English Pod, the Business English podcast for professionals on the move.
Hello, and welcome back to Business English Pod.
My name's Edwin, and I'll be your host for today's lesson on strategic negotiations.
In a negotiation, things don't always work out the way we hope.
Sometimes we face obstacles that just can't be overcome.
In this situation, you're faced with a choice.
Do you walk away or do you think outside the box and try to save the relationship?
After all, in a strategic negotiation, it's the relationship you build between the parties that is really important.
In this back and forth of overcoming obstacles, there are several techniques you can use.
We'll learn how to present a problem and how to introduce a different opportunity.
We'll also look at giving evidence for a proposition and narrowing the focus of the proposition.
And finally, we'll cover how to request more time to think about things.
In the dialogue, we'll hear Mike, who works for an auto parts company called Sigma.
Mike is talking with Lisa, the lead negotiator for MVP, a Japanese distributor.
Sigma and MVP were trying to negotiate a partnership to distribute Sigma's products in East Asia.
The key to that deal was Sigma getting out of an existing arrangement with a Chinese distributor called Wuhan Auto.
Today, we'll hear Mike and Lisa try to overcome that obstacle.
As you listen to the dialogue, try to answer the following questions.
One, what new opportunity does Mike present to Lisa?
Two, what evidence from the World Bank does Mike use to back up his idea?
Three, Mike narrows the focus of his idea.
What product market does he propose partnering in?
So, Mike, what have you got for me?
You spoke with your colleagues at Wuhan Auto?
Yes, I did.
And, well, uh, I've got a bit of bad news.
It turns out they absolutely refuse to budge.
Seriously?
So, looks like we've hit a wall with this.
Yes well, I did the groundwork to feel them out before I broached this idea, but since then they've really hardened their attitude.
And legal thinks we'd be really exposed if we went down this path without their consent.
Well, I must say this is a huge disappointment, Mike.
So, where does this leave us now?
Okay, well... I've been racking my brain to figure something out.
I mean, it would be a real shame to throw out all the hard work we've done to get to this point.
And you know...
Maybe the real opportunity here is for us to collaborate in a different market.
Hmm, I don't see how, Mike.
Like I said before, without China in the mix, there's no deal.
Yes, I realize that.
But hear me out.
I'm talking about India.
The whole subcontinent has enormous potential.
Yes, it does, and we've got some people out there already, but...
Anyways, what do you have in mind?
Well, I've been digging around the commercial vehicle market and the numbers are truly staggering.
15% growth last year.
This quarter it's going to be something like 20 and the World Bank is saying 15-20 sustained growth over the next 5 years.
It's like China in the 90s.
Right.
I'm familiar with the numbers.
We're there for a reason.
But the competition is really fierce.
Yeah, I get that.
But I'm talking specifically about commercial trucks.
The foreign competition really isn't up to speed there yet.
And if you look at our product line, there's some big gaps separately.
But stick them all together and there's almost no overlap.
Together our offerings would be second to none.
Hmm.
You might just have something there, Mike.
Believe me, this could be even bigger than China.
Okay, let's not get ahead of ourselves here.
Sure, but I don't think we should throw in the towel just because we've hit a snag in China.
Well, it will be a tough sell to the board, to be honest.
It's a bit of a long shot, but send me the numbers and if they make sense, I'm willing to go out on a limb and pitch the idea.
But in any event, I'll need a couple of weeks on this.
There's a lot to work out.
Of course, whatever you need.
Now let's go through the dialogue again and look at the language and techniques Mike and Lisa used to recover from their setback.
So, Mike, what have you got for me?
You spoke with your colleagues at Wuhan Auto?
Yes, I did.
And, well, I've got a bit of bad news.
It turns out they absolutely refused to budge.
Lisa starts off by asking Mike about Sigma's relationship with Wuhan Auto.
You can hear the hesitation in Mike's voice before he says, I've got a bit of bad news.
That tells Lisa that he is about to present a problem.
And you'll notice that he says a bit of bad news.
It's really not a bit at all, but we often minimize problems in sensitive situations.
As Mike explains, it turns out that Wuhan won't budge or change their minds.
We use it turns out to explain how something has developed.
In this case, it helps to emphasize that Mike tried his best to deal with Wuhan Auto.
Problems like this sometimes happen in strategic negotiations, and it's a good idea to present them carefully, as Mike has done.
Let's practice some more ways of presenting a problem in a negotiation.
Notice how we minimize the problem with words like it seems or a bit and use modals like might and could to make the statements less direct.
Unfortunately, the arrangement might not work as planned.
I'm sorry to say that something has come up that could affect our partnership.
It turns out that this venture might not be possible after all.
Let's hear how Lisa reacts to the bad news.
Seriously?
So, looks like we've hit a wall with this?
Yes well, I did the groundwork to feel them out before I broached this idea, but since then they've really hardened their attitude.
And legal thinks we'd be really exposed if we went down this path without their consent.
Lisa immediately responds by saying they've hit a wall, which means they can't continue.
In this way, she is repeating MVP's previous stance that without China, there's no deal.
Mike knows this, but still feels he should explain the situation.
He says he did the groundwork or research to feel them out or figure out what Wuhan's position would be.
Mike also explains that legally, Sigma would be exposed or in a risky position if they didn't have Wuhan's cooperation.
Why does he explain all of this?
Well, although negotiations have hit an obstacle, there's still a relationship to maintain and hopefully develop.
Let's get back to the dialogue to see if they can overcome this obstacle.
Well, I must say this is a huge disappointment, Mike.
So, where does this leave us now?
Okay, well, I've been racking my brain to figure something out.
I mean, it would be a real shame to throw out all the hard work we've done to get to this point.
And you know, maybe the real opportunity here is for us to collaborate in a different market.
Lisa asks, where does this leave us?
Which basically means, what should we do now?
This opens the door for Mike to pitch a new idea.
Notice how he leads into this new idea.
He emphasizes the hard work they've already done in the negotiation before saying maybe the real opportunity is to collaborate or partner in a different market.
This is a kind of indirect suggestion.
We say maybe or perhaps and then state an idea, then wait for the person to respond.
And notice that by saying the real opportunity, Mikey's making this new idea sound even better than the original one.
What are some other ways of introducing a strategic opportunity?
Let's run through some examples.
Remember, we can use maybe or perhaps for indirect suggestions, or we can use regular suggestion language like what, if or how about?
Maybe what we could do instead is package our services together.
Well, here's another idea.
What if we do some joint marketing in Asia?
You know, perhaps a better idea is to combine your hardware with our operating system.
How about matching our manufacturing expertise and your sales force?
Let's get back to the dialogue and hear how Mike tries to sell his new idea.
Hmm, I don't see how, Mike.
Like I said before, without China in the mix, there's no deal.
Yes, I realize that.
But hear me out.
I'm talking about India.
The whole subcontinent has enormous potential.
Yes, it does, and we've got some people out there already, but... Anyways, what do you have in mind?
Lisa once again emphasizes that without China in the mix or in the arrangement, there's no deal.
But Mike doesn't want to give up, asking that Lisa hear him out or listen to his idea.
Then he pitches the general idea of partnering in India, which he says has enormous potential or possibilities.
It appears that Mike's approach is working because Lisa agrees and wants to know what Mike has in mind or is thinking about more specifically.
Mike has pitched the basic idea, but he needs more than just an idea.
He needs evidence to support his idea.
Let's listen as he explains.
Well, I've been digging around the commercial vehicle market and the numbers are truly staggering.
15% growth last year.
This quarter it's going to be something like 20 and the World Bank is saying 15-20 sustained growth over the next 5 years.
It's like China in the 90s.
Mike says he's been digging around the market in India.
That means he's been doing research, which is a good idea if you want someone to accept your proposition.
And he's found some great evidence, which he summarizes briefly, providing impressive growth numbers for last year, this quarter and a prediction for future growth.
By giving these kinds of numbers, Mike is hoping to convince Lisa his idea is worth pursuing.
Clearly, if you're going to propose a business partnership, you'd better have the evidence to back it up.
And often that evidence comes in the form of numbers.
Let's try some more ways of giving evidence for a proposition.
A recent report showed that consumers prefer bundled services over separate ones.
The target market is estimated at 45 million people in North America alone.
By my calculations, we'd both see cost savings of about half a million dollars.
The industry grew by 17% last year and existing companies can't keep up.
So, is Lisa impressed by the evidence?
Right, I'm familiar with the numbers.
We're there for a reason.
But the competition is really fierce.
Yeah, I get that.
But I'm talking specifically about commercial trucks.
Lisa is already familiar with the growth numbers in India and she mentions that the competition is fierce, meaning really tough.
She doesn't want to jump too quickly at Mike's idea.
She wants to hold back and sound a bit hesitant.
At this point, Mike needs to get more specific.
He's talked about India and its amazing economic growth in general in order to set up his idea.
And that idea is all about the commercial truck market.
You'll notice he sets it up with a yes-but structure.
He gets or understands Lisa's point, but he has a response to it.
And, just like when he's pitched the idea of India, he introduces the specific idea with.
I'm talking about
It's a good direct way to present an idea.
As we've seen, we can pitch an idea by going from general to specific.
So what are some other ways of narrowing the focus or getting specific?
Let's practice a few more.
Okay then, let's limit this to just the European market.
So just to be clear, we're talking about mobile phones only.
Let's forget about all the project management stuff and focus on accounting software.
I think we should talk specifically about medical equipment.
Let's listen as Mike gives some evidence for the specific market he's proposing.
The foreign competition really isn't up to speed there yet.
And if you look at our product line, there's some big gaps separately, but stick them all together and there's almost no overlap.
Together, our offerings would be second to none.
By mentioning that the foreign competition isn't up to speed on commercial trucks, Mike is directly addressing one of Lisa's concerns the fierce competition.
Then he emphasizes how strong their product line or list of goods is by saying it would be second to none, which is another way of saying the best.
He's trying to show Lisa how together, Sigma and MVP could really excel, which is what a strategic partnership should be all about.
And how does Lisa respond?
Hmm, you might just have something there, Mike.
Believe me, this could be even bigger than China.
Okay, let's not get ahead of ourselves here.
Sure, but I don't think we should throw in the towel just because we've hit a snag in China.
Lisa says you might just have something, to mean that it's possibly a good idea.
She sounds open, but she's still careful not to get too excited.
Mike has laid out his basic idea and now emphasizes that he doesn't want to throw in the towel or give up just because the original idea won't work.
Once again, he's trying hard to save the relationship and find a way to cooperate.
So what does Lisa want to do?
Well, it will be a tough sell to the board, to be honest.
It's a bit of a long shot, but send me the numbers and if they make sense, I'm willing to go out on a limb and pitch the idea.
But in any event, I'll need a couple of weeks on this.
There's a lot to work out.
By saying that it's a tough sell and a long shot.
Lisa is saying that there's a good chance that it won't work.
But she's not totally pessimistic.
She says she'll go out on a limb or take a chance to try to convince the board at MVP.
But what she needs is time.
And she asks for that by saying, I'll need a couple of weeks on this.
Yes, partnerships and business deals take time.
And you can't always just agree to something in a telephone conversation.
Sometimes you need to request time for deliberations, as Lisa has done.
And when we request time, we often say what we need or have to do.
Informally, we can also say, give me more time.
Let's run through some more of these ways of requesting time during negotiations.
I'll have to take this back to the board and give them time to discuss this.
Let me talk it over with my partner and I'll get back to you.
We'll have to do some research so I'll be in touch next week about this.
Give me a week or so to discuss this with my team.
Great.
Now let's hear the last words from Mike.
Of course.
Whatever you need.
Mike is happy to give Lisa the time she needs to try to make a deal in India happen.
They've encountered a setback, but Mike has worked hard to lay out a new opportunity that Lisa and MVP can get behind.
Will they be able to forge a partnership?
We'll have to wait until our next lesson to find out.
Now, let's practice some of the language we learned in today's lesson.
We're going to start with a role play practice.
Imagine you work for a computer company that's negotiating a partnership with a software firm.
Unfortunately, you've encountered an obstacle.
You'll start by presenting the problem, then you'll propose a different idea, give some evidence and narrow the focus.
At each step, you'll hear a prompt spoken by the other person.
Then I'll give you some suggestions for the language you can use.
We'll guide you through each step in the practice and play an example answer for each response.
Ready?
Let's give it a go.
So, is everything okay with our plan then?
Start by telling your counterpart that unfortunately, you can't include their word processing software.
Answer.
Well, unfortunately we won't be able to include your word processing software.
Oh, really?
Then I don't see how this can work.
Now say that a better idea might be to include their media software.
Answer.
Well, maybe a better idea will be to include your media software.
Do you really think that would be appealing to customers?
Now, say that a majority of your customers are using your computers for creative work.
Answer.
Yes, in fact, a majority of our customers use our computers for creative work.
Is that right?
Well, this might just be worth considering.
Now, narrow the focus by saying that you're talking about your high-end desktop computers.
Yes, and just to be clear, I'm talking about our high-end desktop computers.
Now, let's practice some of the vocabulary and collocations we've covered in this lesson.
In a moment, you'll hear a series of sentences with a word replaced with a beep.
Repeat each sentence, including the missing word.
For example, if you hear, You can say, After six months of negotiation, we hit a wall and couldn't make a deal.
After each response, we'll provide the correct answer.
Let's begin.
Well, Paula, it would be a real... to do all this work and not come to an agreement.
Answer Well, Paula, it would be a real shame to do all this work and not come to an agreement.
Economists are hopeful that Brazil will see sustained for the next two years.
Answer Economists are hopeful that Brazil will see sustained growth for the next two years.
New salespeople have to go through training to get up to on our product line.
Answer new salespeople have to go through training to get up to speed on our product line.
After only two years in the canadian market, target has decided to throw in the.
After only two years in the Canadian market, Target has decided to throw in the towel.
We've reached the end of this lesson, the fifth in our series on strategic negotiations.
We've learned how to present a problem and introduce an opportunity.
We've also learned how to provide evidence, narrow the focus, and request time for deliberation.
In the next lesson, we'll find out if Sigma and MVP finally managed to negotiate a partnership.
Thanks for listening, and see you again soon.
