1. Relationship building A: Good evening ! M: Good evening ! A: How was your flight ? M: My flight was fine.

Im used to travelling by plane, so the specific conditions such as high atmosphere are not a problem for me. A: I am glad to hear this. Badly, I dont find travelling by place as confortable as you because of my fea of flights. Have you got time to take your lunch ? M: I am afraid i didnt. A: There is a very good restaurant nearby. I would be pleased if you cand join me for lunch. M: Thank you for your invitation, this is a good idea. I have heard a lot about your arab traditional food and i am pleased that i can taste it.

2. Agreeing procedure A: Can we now agree on the overall procedure? M: Certainly. A: First of all i think we should start by looking at the whole situation. Is that OK ? M: Yes, indeed. A: Our main objective is to be the exclusive distributor of your poultry products in the Gulf states. Would you go along with that? M: OK, thats fine with me. A: Our second objective is to determinate the method of distribution. Does that seem acceptable to you? M: Yes, thats fine with me but also i would like to talk about the distribution price along with the payment methods. Does that fit in with your objectives? A: Certainly, this is a very important subject.

3. Exchanging information A: Can you give me the background of your company ?

M: We are a british company, producer of frozen poultry products as chickens, turkeys, duckas and geese. We were founded in 1970 and we are curently located on the east coast of England. We distribute our products through Europe. Currently we are the third largest producer of Europe, with a number of 5000 employees. Last year we reached a turnover of 2 milions $. A: Wow, thats impressive. Congratulations ! M: Thank you. We are now interested in searching new markets for our products and also in sign agreements with the best distribution companies from Middle East, North America and Australia. A: Its very good that youre trying to extend your activity at a global level. M: What about you ? What can you tell me about your company? A: We are based in Kuweit and we were fonded in 1980 and since then we have signed distribution contracts with companies from Europe, America and Middle East. Last year was the best year of our activity when we reached a turnover of 4 milion $ with aproximately 5000 employees. We are one of the oldest and important distribution company from Middle East.

4. Questioning M: Can i just ask you about your payment method ? A: Yes, of course. Most of our suppliers grant payment terms of 90 to 120 days and we accept a bank draft in their favor. Does that sounds good for you? M: Im afraid that does not fit in with our plans. We usually use an irrevocable letter of credit payable at sight with new customers. After a period of trading, we grant 30 days credit and only the very best customers are allowed to trade on open account. M: Can you give me an idea of your price per ton for chickens, turkeys, ducks and geese? A: For chicken, we have a total price of 630 pounds, price per ton, dor turkeys we have a total price of 725 pounds price per ton, for duck 800 pounds price per ton and for geese we have a total price of 830 pounds per ton (factual answer) M: Ok, i understand. Roughly which is the distribution method that you consider the best? A: Well, thats certainy an important question. We find distribution by place the best alternative for your product because of time saving and security. The ideal would be if, after the products arrived ar Stansted Airport, to leave our company to organise the distribution by placing them in trucks with cooling systems. Can you tell me if you envisage a hatchery and production facility to come on stream as soon as posible and preferably within 18 months ? M: Yes, this is a good idea, but i am afraid that 18 months wont be sufficient to develop our joint venture.

5. Options A: Id like to start by suggesting a merge between our companies. M: I think that the main weekness of this is that the cultural differences that may not seem obvious right now might affect the productivity of our employees. So i would rank it as a fairly unattractive option. A: Your reasons are well grounded, we will try another option then. We are also interested in close cooperation, that is why we suggest you another form of cooperation such as joint venture. In this way, the cultural differences bariers could be stopped. M: This is an excelent idea. It seems to me that there are a number of ways we could work together. A: Weve analysed the cost of a possible joint venture and we think that we need a sum of aproximatly 1.6 millions pounds. We expect all costs to be shared 50-50 and we suggest that your company would provide equivalent expertise on the technical side. We will supply senior marketing and sales staff. Doar that fit in your plans? M: Yes, that was exactly what we had in mind. We will provide you 2 managers and 4 top engeneers but i am afraid that we should extend developing time from 18 to 24 months. A: Ok, we will see how the project works and if we will need more time, we will extend the dead-line.

6. Bidding M: We have received an offer from Arabian Poultry Corporation and thay offered us the following prices: for chicken the offered us a total price of 595 pounds per ton, for turkeys 720 pounds per ton, for ducks 745 pounds per ton and for geese 785 pounds per ton. As you can see, there is a difference between our offer and theirs. Therefore, we suggest you to make us an offer with a lower price. A: Oh, i understand. Our last offer will have the following prices: for chicken we offer you a total of 620 (six houndred and twenty) per ton, for turkeys 720 pounds per ton and for geese 800 pounds per ton. But you have to take into account that this is the price without the 10 per cent discount we offer to all our new partners. So, the final price will be smaller thant the one from Arabian Poultry. How does that sounds for you ? M: I totally agree and i think this is one of the best offer we have received. Regarding the payment method, we usually use an irrevocable letter of credit payable at sight with new customers. After a period of trading, we grant 30 days credit and only the very best customers are allowed to trade an open account. Maybe a better solution would be if you could usa an irrevocable letter of credit payable at sight in the forst months of our colaboration. After that we could grant no more than 60 days credit. If our collaboration will be a success, after one year we could allow you to trade an open account. A: Despite the fact that, most of our client grant payment terms of 90 to 120 dys and we accept a bank draft in our favour, we will try to respect your 60 days credit time term.

7. Bargaining A: As you said earlier, you find distribution by place as appropriate as we do. For our company, airfreight is very important because we want to be in the market as soon as posible and to supply our retail food outlets in Kuweit, Oman and Saudi Arabia. Air Kuweit has made us the following offer: if we use flight company they would offer us a price of 137.000 (one houndred and thirty seven thousand) pound including insurance. M: Who will support the extra costs like the transportation from our factory to the London airport and from your airport to retailers? A: In our view, the extra transport that means from your factory to your airport, should be done by your company. Does that seem acceptable to you? M: Let me sum up: if we transport the products from our company to the London airport, you would encharged with the rest of the distribution. A: Yes, thats correct, we will share some of the costs. Do you have any questions? M: No, i think that we discussed all the objectives that we have to fix in the begining of the meeting. A: To sum up, our companies will sign a joint venture contract, we will distribute your product to our retail from Oman, Kuweit and Saudi Arabia by plane and the costs will be shared, the price of the product has been fixed with a 10 per cent discount and the payment method will be through irevocable letter of credit payable at sight for the begining. If there are no other questions, i would like to close this meeting.