Nego a on skills.

Lesson Objec ves

• Cri que a nego a on example
• Learn speci c language and phrases for nego a ons
• Role Play a nego a on scenario using newly acquired language

Ac vity 1: Discuss/Brainstorm

What is a nego a on?

When would you need to nego ate in everyday life?
Tell your group about a successful nego a on situa on from your own experience.
What makes a successful nego a on?
Do you think that there is a cultural dimension to nego a on?
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Watch the video of a nego a on. What techniques could you see?

The Michael Sco Method of Nego a on - The O ce

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 1Ques ons:
1. What is the ini al o er made to Michael?
A. $12,000
B. $60,000
C. $100,000
D. $1,000

2. Why does Michael reject the ini al o er?

A. It is too low.
B. He wants to hear the rst o er.
C. He doesn't like the person making the o er.
D. He wants to nego ate for a higher amount.

3. What does Michael know about the company making the o er?
A. It is very pro table.
B. It is losing clients.
C. It is a well-established business.
D. It has been in opera on for many years.

4. What does Michael do to counter the o er?

A. He raises the o er to $100,000.
B. He threatens to leave the nego a ons.
C. He points out the other company's weaknesses.
D. He accepts the o er.

5. What is the nal outcome of the nego a ons?

A. Michael accepts the ini al o er.
B. The other company agrees to Michael's demands.
C. Michael and the other company agree on a compromise.
D. The nego a ons break down and no deal is made.

6. What is Michael's a tude towards money and business?

A. He values money above all else.
B. He believes business is not about money.
C. He is indi erent to money.
D. He thinks money is important but not the most important thing.

7. What is the signi cance of the phrase "our balls are in your court"?
A. It means Michael and his team are con dent in their demands.
B. It means Michael and his team are threatening the other company.
C. It means Michael and his team are willing to compromise.
D. It means Michael and his team are unsure about their demands.
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 Ac vity 3: The language of nego a on

The following tac cs are o en used in nego a ons to be more diploma c and less direct. Give an
example of each:

Provide examples for the following situa ons:

Checking and summarising

Sugges ng a break

Sta ng objec ves

Making o ers

Responding to o ers

Asking for informa on

Talking about closing the deal

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 GETTING TO YES: Orange Quarrel (short version)

Ac vity 4:

Vocabulary Buyer vs seller nego a on List: Translate from French to English the Phrases
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 Ac vity 5: Role Play

EUROPEAN LORRY/TRUCK DEAL GROUPS OF 4

For this simula on, one of you is a Junior Salesperson represen ng OVNI TRUCKS of Breda in
Holland. The other is a Junior Purchaser represen ng MERRY Ltd. which has depots in Glasgow,
Newcastle and Birmingham.

OVNI is a truck manufacturer making around 200 trucks a year. MERRY Ltd. is a food distribu on
rm working in the UK and Ireland with a eet of 60 lorries at the moment.
Your bosses have concluded a long nego a on for an uncon rmed order of 6 lorries. Today you are
not nego a ng the quan ty or the basic price. This has already been done by the bosses. You're
going to ' dy up' the deal.

The order is for 6 ar culated lorries at a cost of £600,000 (i.e. 6 lorries @ £100,000 each). In euros,
this translates to about €700,000.

What you are going to nego ate is 4 things:

1. the colour of the lorries
2. the delivery date
3. the geographical place of delivery
4. a poten al discount

Don't worry about the rest; your brief is to nego ate those four elements.

(See Roles cards: Buyer and Seller: Choose one)

PART 1: PREPARATION:

Get into a group with students who will play the same role as you (junior salesperson or junior
purchaser).

With your partner(s), prepare your strategy for the nego a on.

⇒ What order to discuss points? (Is it important?)

⇒ Who starts? What to ask for? What minimums are acceptable?
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 ⇒ Are any points linked? What suppor ng arguments to use?
⇒ What concessions are you prepared to make? What 'alterna ves' could you propose?
⇒ An cipate his/her arguments and prepare counter-arguments

You know which points you want to nego ate. What items do you think he/she wishes to discuss?
How can you nd out?

Arguments for OVNI (seller): Arguments for MERRY (Buyer):

1. 1.
2. 2.
3. 3.
4. 4.
5. 5.
6. 6.

Opening moves:
a) Is there any way in which you can make it appear that you've already made shown greater co-
opera on than your opponent (and therefore deserve a concession in return)?
b) Will you begin with a demand/ a concession/ or will you propose an exchange?
Strategy:
a) Instead of having a concrete plan, have you considered wai ng to see what your opponent asks
for and reac ng accordingly?
b) Consider possible strategies.

5 minutes of "small talk":

This applies to every nego a on. People talk about the weather, business in general, their journey,
the economy, their clothes, the sports results, the hotel, their families etc. By doing this, you
create a climate of co-opera on which will facilitate making a deal.

Respect:
You are represen ng your company. This is not a personal argument. Listen to what the other party
says. Let him/her nish. Be polite at all mes and use polite language. Do not o end or use
disrespec ul language. Remember, you may have to work together again in the future.
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Further reading: “Nego a on Skills” from Harvard Law School.
Subscribe to Harvard Law School and receive free documents on nego a ons and other skills.
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