DA NANG UNIVERSITY OF ECONOMICS

ESP
BUSINESS ENGLISH

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UNIT ONE: NEW BUSINESS
I. Starting up:
A. What conditions are important for people starting new businesses? Choose the four most
important from this list. Can you think of any others?

- low taxes - good transport links

- skilled staff - training courses
- low interest rates - high unemployment
- cheap rents - a strong currency
- stable economy - government grants

B. Many economies contain a mix of public- and private-sector businesses. Think of

companies you know in the areas below. Which are public-sector companies and which are
private-sector companies?

- post office - rail

- TV / newspaper - water
- cars - telecoms
- airlines - energy

II. Vocabulary: Economic terms

A. Match the economic terms (1-10) with their definitions (a j)

1. interest rate a) total value of goods and services produced in a country

2. exchange rate
3. inflation rate
4. labour force
5. tax incentives
6. government bureaucracy
7. GDP ( gross domestic product)
8. unemployment rate
9. foreign investment
10. balance of trade
b) general increase in prices
c) cost of borrowing money
d) people working
e) price at which one currency can buy another
f) percentage of people without jobs
g) low taxes to encourage business activity
h) money from overseas
i) official rules / regulations / paperwork
j) difference in value between a countrys imports and exports

B. Try to complete this economic profile without looking back at the terms in Exercise A.

The economy is stable following the problems of the past two years. By following a tight
monetary policy the government has reduced the ___________ _________ to 2%. After going up
dramatically, the ___________ ___________ is now down to 8%. The last six month has seen a
slight improvement in the ____________ ___________ against the dollar. The G___________ has
grown to 0.15%. Exports are increasing and the ___________ of ___________ is starting to look
much healthier.
The _____________ __________ continues to be a problem as it is still 16%. In order to
stimulate the economy and attracts ____________ ___________ the government is offering new
__________ __________ as well as making a renewed effort to reduce ___________ __________.

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Finally, a large skilled ___________ __________ means there could be attractive investment
opportunities over the next five years.

C. Listen to the report and check your answers to Exercise B.

D. Write sentences about the economic profile of your country.

III. Listening: Starting new businesses

A. Work in group. Make a list of things that are important to do before you start a new
business.
B. Alan Martin, a young entrepreneur, descibes five important steps for setting up a
business. Listen and complete the chart below. Did you have the same ideas as Alan.

Step 1:

Step 2: .

Step 3: .

Step 4: .

Step 5: .

C. Listen again and answer the questions.

1. What percentage of business ideas fails?

2. Why do they fail?
3. What two questions does your market research need to answer?
4. What two things does a business plan help you to do?
5. What does it usually include? Name three things.
6. Which step does Alan think is the most important? Why?

D. Alans says most businesses fail because people dont understand the market. What other
reasons can you think of?

IV. Reading: The Human Touch

A. Go through the article quickly to find the four elements that a good team needs.
A good team needs:
1. ..
2. ..
3. ..
4. ..

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 HOW TO ADD THE HUMAN TOUCH
By Dough richard
When thinking about how you start your business,
getting the right team together will be the most important and
the most difficult decision you make .
The reason is simple. No one person has all the skills,
experience, contacts or reputation that are recruited to get a
business up and running. So, in order to succeed, you will
have to form a core team of people.
Before that, however, you can only know who else you
need by knowing your strengths and your weaknesses. Having
a great business idea does not mean that you have the skills to
manage others. The hardest of all your decisions may be to let
someone else lead the company you founded.
What, then, does the team need?
First, it needs the ability to sell and in particular the
ability to persuade others to buy into your vision.
Second, the team needs the ability to count. The business is
managed by managing the flow of cash. It may be the accountants job to do your books, but it
is your responsibility to understand them so well that you use them to drive the business.
Third, the team needs experience. There are three types: customer experience, product
experience and start-up experience. If you are going to sell an Internet service to restaurants,
you need experience in the development of Internet services and the experience of running
reastaurants. If your team has only one or the other, you will either know what product to build
or how to build it, but not both.
Fourth, the team needs to have contacts, relationships, a network. Having people who can
help you informally or formally will help your business succeed.
Finally, you and your team must be fully aware that starting a business means giving up two
things- time and money. It frequently means working evenings and weekends and being last in
line for payment. Succeeding with an innovation-based company takes everything: all of your
time, all your great ideaslots of personal sacrifices and it may take all of your money.
There is no magic formula to building a business. It is like putting together the pieces of a
puzzle. But it is worth remembering that the team is the most important piece.
Financial Times

B. Read the article carefully, then decide whether these statements are True or False according to
the article.
1. If you want your new business to succeed, you yourself first need to gain all the necessary
skills and experience.
2. New entrepreneurs sometimes rightly decide to let another person lead the company they
started up.
3. Good cashflow managem,ent is a necessary condition for a business to be successful.
4. An effective team will have experience in three key areas.
5. You need to put in a lot of time and effort before you can enjoy the rewards of owning a
fast-growing start-up.
6. Building the right team is the magic formula to setting up a successful business.

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IV. Language Skill: Socialising
A. Making Contacts:
1. What activities are involved in socialising? Add some more to the following list.

- Introducing visitors
- Greeting visitors

2. You will hear three dialogues about people meeting visitors.Complete the chart.
Dialogue 1 Dialogue 2 Dialogue 3
1. Have the speakers
met before?
2. Is the dialogue
formal or informal?
3. Where are they
meeting?
4. What problems
did the visitors have
during the journey?
5. What are they
doing next?

3. Compete the sentences from the dialogues. Listen if necessary.

1. You __________ be Raj.
2. Its great to _________ meet you in _________ after all our phone calls and emails.
3. I _________ you havent been __________ long.
4. Its a _________ to meet you.
5. How was your __________?
6. Hi, Paul, good to ________ you _____________.
7. Sorry to keep you ____________.
8. Can I ___________ you with your ___________?
9. Would you ____________ taking this?
Which sentences above are used to:
a. Welcome or greet the visitors? (1,2,4,6)
b. Talk about the journey (5)
c. Offer (or ask for) helping with something? (8,9)
d. Apologize for a delay? (3,7)

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B. Talking about weather.
1. Kasia Janiak is accompanying Mr Syms from the airport to his hotel. Look at the
dialogue below. Listen and complete the gaps. What is the topic of their conversation?

Mr Syms: I cant belive its so ___________ here. It makes a nice ________ from England!
Kasia : How was the __________ when you _________?
Mr Syms: It was __________ as usual. This summer has been ___________.
Kasia : Well, weve been very ________ here. The last couple of weeks has been very ______
.Mr Syms: Do you normally _________ _________ summers here?
Kasia : It depends. Ususally we get at least a few _______ days, but sometimems it rains a lot.
Mr Syms: I imagine the winters here must be pretty __________.
Kasia : Oh yes. Sometimes it _________ _________ to minus 15.
Mr Syms: Well, at least it never gets that cold in England. The winter there is usually just grey
and _________. It can be quite depressing!
Kasia : Ugh! Well, Im glad the weather is nice for your visit here.

2. The weather is one of the most popular small-talk topic. It is a topic everybody can
talk about. Put the words below into the right categories.

cloudy cold damp drizzling freezing grey

hazy humid mild overcast pouring rainy
roasting sunny warm

Words describing temperature Words describing the sky Words to do with water

3. Roleplay: Work in pair. Use the profiles below to practise meeting visitors.

. Student A: Christ: You are meeting Catherine Brown, a supplier from Britain, at the
airport in Franfurt. You have never met before but have spoken a lot over the phone.
Catherine is carrying heavy bags. Greet her and ask about the flight. Make some
small talk ( weather, job, company) and take her to your car.

Student B: Catherine: You have just arrived at the airport in Franfurt and have made
arrangements for your business partner, Christ, to pick you up. You have spoken a lot
over the phone but have never met before. You are carrying several heavy bags. Your
flight was fine and you had a DVD to watch.

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C. Entertaining visitor.
1. Bruno and Carlo are entertaining Anna at a local restaurant. Listen to the conversation
and answer the questions below.

1. Have the hosts been ot the restaurant before?

2. Why is Anna hungry?
3. What do we discover about Brunos wife?
4. Who is driving?
5. What do they plan to do later?

2. Match the two halves to make sentences from the dialogues. Listen again if necessary.

1. This looks a. are we having, Carlo?

2. I hope b. to drink?
3. Im absolutely c. followed by the pasta.
4. Im afraid they dont have d. recommend?
5. How many courses e. catch the waiters attention.
6. What do you f. menus in English here.
7. It comes with asparagus g. you like it.
8. Ill have the soup h. starving
9. What would you like i. a really nice place.
10. Lets see if we can j. and small potatoes roasted in the oven.

D. Keeping a conversation going.

1. Anna, Bruno, and Carlo are finishing their meal. Tick the topics they talk about.
he restautant friends
holidays sport
family cultural differences
mutual accquaintances their jobs

2. The answers to the questions below are too short. Make them longer by adding extra
information and a question, as in the example.

1. A: So, do you live near here?

B; Yes, I do.
( only 2 km) Our house is only two kilometres from here.
( you / live?) What about you? Do you live near here.
2. A: And how old is your daughter?
B: Shes six.
( recent started school)
( you / children?)
3. A: What kind of dog do you have?
B: An Alastian.
( fun but needslots of exercise)
( you / pets?)
4. A: So, how long have you been with the company?
B: Six years.
( joined after university)
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 ( you / be with your company long?)
5. A: Have you been to Moscow?
B: Yes, I have.
( three years ago / on business)
( you?)
6. A: And do you do any sports?
B: I play squash
( once a week with friends)
( you / sports?)
7. A: Its so hot today. Is it normally like this in the summer here?
B: No, its not.
( very hot for us / usually 25 degrees)
( weather / where you live?)

3. Commenting on what people say is a good way to keep a conversation going. Match
Bs comments to what A says. Sometimes more than one answer is possible.
A. B.
1. I just got married last year actually. a. That must be very stressful.
2. My husband is a meteorologist. b. Really? Thats an interesting job!
3. Last year I won a prize for one of the c. Oh, congratulations!
products I designed. d. You must be very proud of her.
4. The project deadline is next week and e. That must have been very exciting.
and were not going to make it. f. You must have felt very pleased.
5. My daughter has just got a place at one of g. Oh, Im sorry to hear that. I imagine that
the best universities in the country. was a difficult time for you.
6. Before I got this job I was unemployed for
two years.
7. I went to Peru on holiday last year.

4. Work with a partner to make small talk at a restaurant. Use the information in your
file to ask questions and keep the conversation going.

File A: You are having dinner in a restaurant with an important business partner. (You are
the host). Ask your partner questions to keep the conversation going.
Here are some things your partner mentioned earlier:
He/ She has recently bought a new house.
His / Her partner has a new job.
He / She wants to go to Italy on holiday this year.
Begin by saying something about the food.

File B: You are having dinner in a restaurant with an important business partner. ( You are
the guest). Ask your partner questions to keep the conversation going.
Here are some things your partner mentioned earlier:
He/ She plays badminton in her free time..
He/ She has an adopted son.
His / Her mother is visiting at the moment.
Begin by asking your partner a question about the restaurant.

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UNIT TWO: SALES
A. SELLING ONLINE
I. Starting up
1. What kind of products and services are best sold on the Internet?

2. What are the advantages and disadvantages of shopping online?

II. Vocabulary
1. Choose the correct word to complete each sentence.
1. We ask customers who are not fully satisfied to __________ goods within seven days.
a) discount b) refund c) return
2. In order to get a full ________, customers must send back goods in the original packaging.
a) discount b) refund c) return
3. Goods will be __________ within 24 hours of your order.
a) despatched b) purchased c) exchanged
4. Goods are kept in our __________ until ready for delivery.
a) stock b) storage c) warehouse
5. Products and services offered at a large discount are generally a(n) ________ .
a) sale b) bargain c) offer

2. Combine words from boxes A and B. Make phrases that match the definitions (1-7).
A B
credit-card cooling off money back guarantee stock period
method of interest-free out of credit details payment

1. the time when you can change your mind and cancel an order.
2. the name, number and expiry date on your credit card.
3. the way you choose to buy the goods you want.
4. when you can pay some time after you buy, but at no extra cost.
5. when the goods you require is not available.
6. a promise to give your money back if you are not happy.
III. Listening
1. Work in pairs. Discuss which words from the box you could use to complete the sentences below
about Argos, the UKs largest multi-channel retailer.

channel enquire identical integrated online

order run store telephone website

1. Our experience shows that customers will sometimes buy ., sometimes order
on the ., and sometimes go into the stores to pick up goods. So we need to
understand what our customers want.

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2. Our operations are fully integrated. The prices that we show on the . are
.to the prices that you would pay in the .
3. You can call up a call centre and .about an .that you placed
through any .
4. We dont .operations side by side; we run a truly ..multi-channel
offer.
2. Listen to the interview with Indira Thambiah, Head of E-Commerce at Argos. Check your
answers.
3. Listen to the second part of the interview with Indria Thambid. In her experience, there are some
keys to successful online selling. Complete the notes below.
Keys to successful online selling:
1. Understand or recognise ..
2. Provide ... and
3. Be very clear about ..
4. Be very clear about ..
4. Listen to the last part of the interview. Decide whether the following statements are TRUE or
FALSE.
1. A lot of people research products online and then go to the store to pick that product up.
2. Customers on the high street behave very differently from customers online.
3. A good website is one that is easy to navigate, easy to find, and easy to transact with.
IV. Reading
1. In pairs, discuss positive and negative ways in which online shopping affects the retail business.

2. Match these words and phrases from the article below(1-7) with their meanings

1. the high street a) a situation which you have to make a very difficult choice
2. cut throat b) to go to different shops to compare prices and quality before you buy
something
3. a dilemma c) operating in a building, not on the Internet
4. bricks-and-mortar d) the difference between the cost of buying or producing something
and the price you sell it for
5. dual pricing e) the street in a town where you can find most shops and banks
6. a margin f) setting two different prices online and in shops for the same goods
7. to shop about g) extremely or unfairly competitive

3. Skim the article and find out why some retailers are worried.

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 Worry for retailers as web
shopping clicks into place
________________________________________
By Elizabeth Rigby

For traditional stores, online shopping has become a

cause for concern in a difficult retail environment.
The Internet is accounting for more spending than
ever. In addition, it also makes it easier for
consumers to compare prices across a far bigger
selection of items than a trip to the high street.
7 The way the Internet encourages people to shop about is having a big impact on the
market, says Nick Gladding of Verdict Research, a consultancy. Internet retailers have been able
to offer cut-throat prices because they do not have to bear the cost of running a physical shop.
Price-comparison web-sites such as Kelkoo, where a shopper can compare prices on any
product from DVDs to Prada perfume to get the best deal, make the market even more competitive.
It is a lot more competitive online because you are always just one click away from a rival, says
a CEO.
14 Retailers selling electrical goods have been particularly hit by the Internet as items such as
televisions and DVD players become more common purchases. This creates a dilemma for retailers
who sell products both online and in shops.
Some bricks-and-mortar retailers are adopting a model of dual pricing in order to keep their
position online while maintaining margins in their shops. Mr. Gladding says dual pricing will
become harder to practise as consumers become better at surfing the Internet. In the longer run,
prices must come together, he says.
21 To be successful in operating in the online and offline world, retailers should probably try
to integrate the two as much as possible. Some businesses, for example, have set up their operation
to allow customers to shop online, over the telephone or in stores.
FINANCIAL TIMES

3. Answer these questions about the article.

1. Give two reasons why online shopping makes the market extremely competitive.
2. Why are retailers who sell products both online and in shops in a difficult position?
3. Why is the practice of dual pricing only a short-term solution, according to Mr Gladding?
4. How can retailers make the best of both the online and offline world?

B. ORDERING GOODS
I. Starting up:
What are the steps involved in placing an order for a company?

II. Listening:
1. Jean Duban works as a salesperson for the International telecommunications supplier TEGID in
Lyon. Listen to his phone conversation and complete the notes.

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 Customer Order:
From Junko Hanamur, JapanCom in ___________
Quantity: model # _______ : __________
model # _______ : __________
Delivery by Friday morning to __________
Need to fax ___________ contract

Listen to the call again and complete the sentences below.

1. We _______________________ some USB adapters for our network.
2. Can you ___________________________ to our office in Osaka by Friday morning?
3. So, let me ________________________________. Ive got everything done right.
4. Fine. _______________________ a model contract immediately.

2. Look at the following Order form. Where can you write details about the things in the box?

discount number of goods cost of one item

type of goods cost of packaging and handling

Listen to Peter Sung phoning Atlantic Bikes and complete the order form

Del Mar Sporting Limited

181 Tras Street # 07-177
Singapore 0207
Order No: AB 2371 From: Mr Peter Sung

6 April 2004
Atlantic Bikes
1152 Dalhousie Street
Halifax B3H 3W6
Canada

Quantity Description of goods Unit price Price

Total

Comments :

Authorized by : Grand Total

III. Speaking:
Tel: 65 338 9975 Fax: 65 338 9976 E-mail: DelMar@Sporting.com
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Practise ordering the goods. Ask about prices, discount, available and delivery time. All the
furniture ordered should made of pine. Learner A looks at File A and Learner B looks at File B.
FILE A

Look at this order form. What question would you ask to complete it? Now
ask your partner question to find out the missing information.

Order No:

Quantity Description of goods Unit price Price

150 Chairs ( white)
75 Desks ( beige)
30 Filing cabinets (brown)

Total :

Comments :
Delivery:
Payment:
Discount:

FILE B

Your partner will ask you questions to complete an order form. Here is
the information they need.

Order No: DP 3572

Chairs $120 each

Desks $ 230 each
Filing cabinets $550 each

Quantity discount for more than 100 : 10%

Delivery within 2 weeks
Payment by Letter of Credit

C. PROBLEMS AND COMPLAINTS

I. Warm-up:
Look at the eight people in this office.

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 1. Which person .
1. has received a bill which is too high?
2. is waiting for a delivery?
3. has received the wrong quantity of goods?
4. wants to buy something, but cant?
5. would like to receive a cheque?
6. has an IT problem?
7. is waiting for a call?
8. cant read a document?

2. Now match the responses below to the complaints in the picture.

a. Im sorry about that. Ill check with the transporter. .
b. I do apologise. Ill dispatch the missing items today. .
c. One moment, please. Ill connect you to the Accounts Department.
d. Sorry about that. Ill send it again. ..
e. Yes, Im afraid theres only one person there today. Would you like to fax the
details?
f. Im sorry to hear that. Ill inform the IT support department immediately. .
g. I do apologise. Ill send you a credit note for the difference. .
h. Im sorry about that. Ill ask him to call you immediately.

II. Listening:
1. Two customers are making complaints. Listen to these extracts from the phone calls and
complete the table.

Problem Solution
Call 1

Call 2

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 Match the two parts to make sentences from the dialogues. Then listen again to check your
answers.
1. There seems to be a
2. Sorry, but I need something
3. Can you manage delivery
4. I can confirm that
5.Im afraid that
6. Somebody should have
7. Ill personally get
8. Can you confirm that
a. more specific so I can tell our customers.
b. its still not working correctly.
c. mistake with the shipment.
d. someone will be here by noon?
e. fixed the problem yesterday.
f. by Friday?
g. on to the service unit immediately.
h. youll receive the sensors first thing Friday morning.

2. Complaining effectively.
When making a complaint, it is helpful to use the following three-step approach:
1. Describe the problem.
2. State your request clearly (what, when, how, who).
3. Confirm agreements.
Listen to the phone calls in exercise again. Do speakers follow the three-step approach
when making their complaints?

2. Linda Matthews, a purchaser at Logistics International, is ringing Alena Novak, a sales rep
at Paper 4U in Prague. Listen to their conversation and take notes. What is the problem
and what action will Alena take to fix the problem?

3. Listen again the dialogue and complete the sentences.

1. Right I __________________________________________.
2. I realize this is _____________________ so Ill see to it immediately.
3. __________________ you a few questions first?
4. What ____________________________ by the wrong paper?
5. I ________________________ with Production and arrange a special delivery
6. I ____________________ the shipment is at your location no later than 10 a.m
tomorrow.
7. Ill ________________ make sure you get the right paper tomorrow.

Which of the above sentences can be used to:

a. confirm that you have understood the clients situation?
b. ask for details of the problem?
c. suggest solutions to the problem?
d. help the client by confirming what has been agreed?

IV. Speaking:
Practice making and dealing with a complaint with a partner.
Student A: Look at the information on FILE A
Student B: Look at the information on FILE B

Use the flowchart to make dialogues.

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 Tell supplier what is wrong

Confirm that you have understood. Ask for details.

Give details and state your request.

Suggest a solution.

Agree to the solution and repeat what youve agreed

Confirm

FILE A:
1. You work for Electromart Wholesale. Student B is a customer. Deal with his/her
complaint and correct the information in the order form below. Use you own name.

ELECTROMART WHOLESALE
Customer Order number Date Quantity Item Model
number
City Stores RF5254C May 19 150 Dishwasher DC7309Z

200 Calculators BF6022

2. Change roles. Now you are a customer. Call Electromart and make a complaint. Use
your own name and the information below.

You are calling from Allied Stores. You placed an order on May 16. The order
number is RF5137A. You ordered 80 hairdryers, model number KM3269, but you
only received 60. You also ordered 50 desk lamps, model number 843CX but you
received model number 843CW.

FILE B:
1. Student A deals with customer complaints at Electromart Wholesale. You are a
customer, Call Student A and make a complaint. Use your own name and the
information below.

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 You are calling from City Stores. You placed an order on May 19. The order
number is RF5254C. You ordered 150 dishwashers, model number DC7305Z, but
you only received model number DC7309Z. You also ordered 250 electronic
calculators, model number BF6022 but you received 200.

2. Change roles. Now you work for Electromart Wholesale. Student A is a customer. Deal
with his/her complaint and correct the information in the order form below. Use you own
name.

ELECTROMART WHOLESALE
Customer Order number Date Quantity Item Model
number
Allied Stores RF5137A May 16 60 Hairdryer KM3269

50 Desk lamp 843CW

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UNIT 3: NEGOTIATION
3.1 PROCEDURES OF NEGOTIATION
A. Warm-up:
1. In what circumstances do you have to negotiate in your everyday life or negotiate at
work?
2. What do customer and supplier often negotiate?
3. What skills and qualities do you think a good negotiator has?
4. Do you think people should tell the complete truth when negotiating?

B. Types of Negotiation:
If people negotiate with each other, they talk in order to reach an agreement which is not
their mutual advantage (good for them both). For example:
- customer-supplier negotiations
- merger or takeover negotiations
- wage negotiations
- trade negotiations
Negotiations also take place to settle disputes (decide arguments) such as:
- contract disputes - labour disputes - trade disputes
Match the headlines to the types of negotiations mentioned above:

C. Negotiating scenario:
At the beginning of a negotiation, follow these steps:

1> Arrange these phrases Jose uses at the beginning of the negotiation in the correct order:
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 a. As you all probably know, Mr. Watanabe and I met at Aerospace Trade Fair in
Frankfurt last year and we had a very interesting discussion about the possibility of
our two companies working together.
b. I believe youre flying back on Friday evening, so that gives us three days. I think
two days should be enough to cover all the points. On the third day, Friday, if we
have an agreement, Ill ask our lawyers to finalize conditions for the contract with
you.
c. Mr. Watanabe, good to see you again. How are you? Let me introduce my colleague:
Sandra Lisboa, our chief purchasing officer.
d. Shall we go to the conference room and make a start?
e. Well, weve looked at the potential market for our new plane, and looks as if we will
need 100 engines over the next three years.
f. Would you like some coffee or tea, or would you prefer juice? How was the flight?

2> Discussion: Discuss these questions with other members of your group:
a. Is socializing an important pre-negotiation strategy in your country? What does
this socializing typically consist of?

b. What elements help you in judging whether you wish to negotiate with a
particular person or group of people (e.g. physical appearance, level of responsibility)? Or
do you consider such factors to be irrelevant?

A. Reading
1. You are going to read about negotiating. Before you read, check your understanding of the
words and phrases(1-10) below by matching them with their definitions (a-j)

1. compromise a. a description of a possible event in the future.

2. concession b. a useful piece of information or advice.
3. counter-proposal c. an agreement that settles an argument when people reduce
their demands in order to agree.
4. deal point d. an exchange involving giving up one thing to get something else
5. to leave something hanging e. an individual item or element in a negotiation.
6. parameters f. an offer responding to somebody elses offer
7. scenario g. fixed limits within which something can or must happen or be
done
8. to set something aside h. to delay making (or to forget to make) a decision about
something
9. tip i. to temporarily ignore or not think about a particular fact
10. trade-off j. something which is accepted or given up by one side in
order to end a disagreement.

2. Read the text by Eric J. Adams, which gives advice about negotiating. Which of the negotiating
tips do you think is the most difficult to put into practice?

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 The Art of Bu siness: Lea rn to Love Negotia ting
Business Tips
A few tips.
Be prepared. Before you negotiate, know exactly what you want and be ready
to articulate your position; a negotiating meeting is no place to figure out the terms
that are acceptable to you. You wont get every deal point, but at last youll know in
advance what your parameters are. In fact, it helps to break down your concerns into
three categories: nice to have, like to have, and must have. Walk through several
what if scenarios beforehand. Anticipate counter-proposals and compromises and
think about how you will react to each.
Be inquisitive. Dont be shy about asking questions. Skilful questions can
transform a negotiation from an adversarial conflict into a partnership. By asking
questions, youll also get your client to reveal more. Start with open-ended questions
and move narrower, more direct questions. Once you have asked a question, be quiet
and listen carefully.
Avoid significant early concessions. At the very least, remain neutral to the
customers initial demands until trade-off opportunities emerge or your gentle
attempts at persuasion dont work.
Be prepared for disagreement. There will be disagreement and disappointment
during any negotiation. But how you disagree will affect the outcome and ultimately
affect your relationship with the client. When you disagree, look for the common
ground or set the point aside until later. At the end of your discussions, you may find
you have four or five points of disagreement. You can then exchange deal-point
concessions until all points of contention are dealt with.
Expect the unexpected. Always have a good idea in advance of how youll
respond if things do not work out as you plan.
Finalize all agreements. Dont leave details hanging. It is often amazing how
two people sitting in the same room can have different perspectives concerning what
was agreed upon. To ensure that everyone is clear, summarize the agreement verbally
or shortly afterward in a letter of agreement.

3. Put the following elements of a typical negotiation into a logical order.

a. Listen carefully to what the other side says.
b. Make trade-offs: you concede something they want for something you want.
c. Decide what you want and determine your minimum requirements what you must get if
there is to be an agreement.
d. Think about acceptable compromises in relation to expected counter-proposals, and try to
imagine the counter-proposals the other side will make.
e. Summarize, verbally or in writing, what has been agreed.

2. Which of these things are done before the actual negotiation begins?

20
3.2 NEGOTIATING STYLES
A. Warm-up:
1. A lot of people regard negotiation as a win-lose contest in which there must
always be a winner and a loser. How possible is it for a negotiation to be win-win?
2. Read the suggestions in The guide to tough trading:
a) Is the philosophy a win-lose or a win-win one?
b) Who is each piece of advice for: the buyer, the seller, or both?
c) Are there any rules you would change, or others you would add?

The guide to tough trading

a. No price is fixed, everything b. Never accept anyone's first offer
is negotiable.
c. Be tough, but pleasant. d. Do not be afraid to shock with your first
order.
e. Don't just haggle about the price, f. It's always easier to get
negotiate the whole deal . extra goods than a lower price.
g. Never say how much you h. When selling, pretend not to have
can spend. total authority.
i. Don't be the first to make a j. Never just complain, always try
concession. to get something in return.

B. Reading:
Read the article and then fill each gap below with one word:

CO-OPERATION AND COMPETITION IN NEGOTIATION

Negotiations are complex because
one is dealing with both facts and people.
It is clear that negotiators must above all
have a good understanding of the subject.
They must also be aware of the general
policy of the company or institution in
relation to the issues and they must be
familiar with the organizational structure
and the decision-making process.
However, awareness of these facts
may not necessarily suffice to reach a
successful outcome. Personal, human
factors must be taken into account. The
approach and strategy adopted in
negotiating are influenced by attitude as well as by a cool, clear logical analysis of the facts
and ones interests. The personal needs of the actors in negotiating must therefore be
considered. These can include a need for friendship, goodwill, credibility, recognition of
status and authority, a desire to be appreciated by ones own side and to be promoted and,
finally, an occasional need to get home reasonably early on a Friday evening. It is a well -
21
known fact that meetings scheduled on a Friday evening are shorter than those held at other
times. Timing can pressure people into reaching a decision and personal factors can become
part of the bargaining process.
Researchers who have studied the negotiating process recommend separating the
people from the problem. An analysis of negotiating language shows that, for example,
indirect and impersonal forms are used. This necessity to be hard on the facts and soft on
the people can result in the sometimes complex, almost ritualistic style of negotiating
language.
Language varies according to the negotiating style. In negotiating you can use either
co-operative style or a competitive one. In the co-operative style the basic principle is that
both parties can gain something from the negotiation without harming the interests of the
other. Or in other words that both parties will benefit more in the long run in friendship and
co-operation even if they make some concessions. This type of negotiation is likely to take
place in-house between colleagues and departments, or between companies where there is a
longstanding relationship and common goals are being pursued.
Unfortunately co-operative style negotiations without a trace of competition are rare.
In most negotiating situations there is something to be gained or lost. There can be a danger
in adopting a co-operative mode, as unscrupulous people may take advantage of co-
operative people.
The opposite mode to co-operative negotiating is competitive negotiating. Negotiators
see each other as opponents. Knowledge of the other partys needs is used to develop
strategies to exploit weaknesses rather than to seek a solution satisfactory to both sides.
This type of negotiating may be appropriate in the case of one-off contracts where the aim
is to get the best result possible without considering future relationships or the risk of a
breakdown in negotiations. Needless to say, the language in this type of discussion may
become hostile and threatening even if it remains formal.
In reality most negotiations are a complex blend of co-operative and competitive
mode. Negotiating successfully implies dealing appropriately with the four main
components of any negotiation: facts, people, competition, cooperation.
Skilled negotiators are sensitive to the linguistic signals, as well as the non-verbal
ones of facial expressions, gesture and behaviour, which show the type of negotiating mode
they are in.
Language reflects tactics and therefore a study of the language used in negotiating
brings a greater awareness of the negotiating process.

(Adapted from Negotiate in French and English by Pamela Sheppard and Benedicte Lapeyre)

1. Good negotiators must know their . well and they must know their
companys . But they must also consider factors because they
are dealing with .
2. Negotiators are affected by the participants ., as well as logic.
3. Research has shown that it can help to separate the .. from the .
This can be done by using special negotiating
4. In a .. style of negotiation, the participants try not to harm each others
.... In order to maintain a good long-term . they both make
.............

22
5. In a style of negotiation, the parties are . This style may be
suitable for a .. contract. The language here can become and

6. Most negotiations are a of the two styles. A good negotiator must be aware
of the . and .. signals which show the style being used.
7. The four main factors involved in a negotiation are ..., ..,
. and .

3.3 LANGUAGE SKILL: NEGOTIATING

A. Language of Negotiation:
1. Probing: One way of furthering negotiation is probing (asking the right questions and
listening carefully to the answers). Here are some probing questions:
a. What is the situation on production at your plant at the moment?
b. What sort of quantities are you looking for?
c. What are we looking at in the way of discount?
d. What did you have in mind regarding specifications?
e. What were you thinking of in terms of delivery dates?
f. How important to you is the currency for payment?
Match the replies (1-6) to the probing questions (a-f):
1) Perhaps 100 units per year over five years.
2) We can offer ten per cent if the quantities are right.
3) Wed like to see a ten per cent improvement in performance.
4) Wed prefer US dollars.
5) Well need the first 30 units in six months.
6) Were operating at full capacity.
Practice:
Practise by probing in a negotiation. First check you understand the terms below:
Price : $65 per piece
Credit period : 30 days
Delivery time : 8 weeks
Minimum order: 500 pieces
Discount : 5%
Warranty period: one year

Work with a partner. Take it in turns to be the customer and supplier:

Customer: What price do you have in mind?
Supplier: It's $65 per piece.
Customer: That's rather high.
Supplier: It compares favourably with our competitors.

These phrases will help the supplier to justify his or her position:
I'm afraid it's customary.
it's company policy.
we always insist on this.
2. Proposal and counter-proposal:

23
 Through a series of proposals or offers from one side and counter-proposals or
counter-offers from the other side, the two sides work towards an agreement which
will benefit them both. Here are some ways of making compromise:
If you offer more flexible payment conditions, will be able to + infinitive
As long as engine performance improve by ten per cent, can agree to + infinitive
On condition that you deliver 20 engines by May, then we could consider + V-ing
Supposing that you provide good technical support, may offer + noun
Provided that you supply documentation in Portuguese, might offer to+ infinitive
Providing that this contract works out OK,

1> Use expressions above to complete phrases below, using the correct form of the words
in brackets:
a) If you offer more flexible payment conditions / might / consider / pay / higher price.
b) As long as engine performance improve by ten per cent / may / offer / price/ $550,000 per unit
c) On condition that you deliver 20 engines by May / will/ able / consider / more flexible
/price.
d) Supposing that you provide good technical support / might / agree / work / you / future
e) Provided that you supply documentation in Portuguese / could / consider / send
personnel /you /training.

2> Practise by making more compromises. Here are some cues:

The supplier wants the customer to:
- make their payment in dollars
- pay in cash
- pay a 20% deposit immediately
- pay the balance within 30 days
- accept a penalty clause for cancellation
- place regular monthly order of at least 750 pieces
- recommend them to other potential clients

Supplier: We'd like you to make your payment in dollars.

Customer: If we pay in dollar, will you give us a discount for bulk purchase?
Supplier: Yes, we could accept that. / No, I'm afraid that's not possible.

3. Reaching agreement:
Its important to check the points of an agreement to avoid misunderstandings. You could
say:
- Let me just go / run over the main points. (repeat and summarize)
- On A, we agreed that ..
- As far as B is concerned (in relation to B), we agreed ..
- We still have the question of C to settle.
- And theres still the outstanding issue of D.
- Well send you a written proposal.
- Well draw up a contract based on these points.
- I think that covers everything.
Arrange the phrases Jose uses to close negotiations in the correct order:
1. Let me just run over the main points. On engine quantities,
2. I think that covers everything.
24
 3. If you agree to the proposal, well draw up a contract based on those points.
4. payment to settle, and there is also still the outstanding issue of documentation.
5. we agreed that you would improve the power of the engine by ten per cent.
6. we agreed that you would supply us with 120 units over four years. As far as
performance is concerned,
7. We still have the question of the currency for
8. Well send you a written proposal on these last two issues.
B. Listening:
1. You will hear three parts of a negotiation between Michelle, the manager of a bookstore
chain, and a website designer. Listen to each part and complete the chart.

What the
Negotiating point What Michelle wants What they agree
designer wants
Schedule for
setting up the Two months
website

Payment terms Fixed amount $6,000

Two covers per

Website design
page

2. Listen again to the first two parts of the conversation. After each part, complete the missing
words.

25
3. Listen again to the third part of the negotiation. Note down all the expressions for agreeing and
disagreeing. Decide whether they express a) strong b) polite or c) hesitant agreement or
disagreement.

C. Speaking: Practise negotiating. Learner A look at File A. Learner B look at File B

FILE A
You are a builder and are looking for a supplier of windows for some offices you are
building. This is what you want. When you have finished, fill in what you get.
You want You get
Delivery in two weeks
Warranty 2 years
Price $5,000
Discount 10%
Credit period 60 days

FILE B
You are a supplier of window. This is what you want. When you have finished, fill in
what you get.

You want You get

Delivery in six weeks
Warranty 6 months
Price $10,000
Discount 0%
Credit period 30 days
26
UNIT FOUR: MONEY
I. Starting up:
A. Answer these questions individually. Then compare your answers with a partner.

1. How much cash do you have with you at the 4. If you go for a meal with someone you
moment? Do you: dont know well, do you:
a. know exactly? a. offer to pay the whole bill?
b. know approximately? b. suggest dividing the bill into equal
c. not know at all? parts?
2. Do you normally check: c. offer to pay the whole bill but
a. your change expect them to pay next time?
b. your bank statements and credit card d. try to avoid paying anything?
QUIZ

bills? 5. If you lend your friend a small amount

c. your receipt when shopping? of money and they forget to pay it
d. prices in several shops before you buy back, do you:
something? a. say nothing?
3. Do you: b. remind them that they owe you
a. give money to beggars? money?
b. give money to charities? c. arrange to go for a drink with them
c. give away used items, such as clothing? and say youve forgotten your
wallet or purse?

B. What do your answers to the questions in exercise A say about your attitude to money?
What do they say about your culture.

II. Vocabulary: Financial terms

A. Match the definitions 1 to 6 with the financial terms a to f.
1. Money owed by one person or organization to another a. gross margin
person or organization. b. recession
2. a period of time when business activity decreases because c. shares
the economy is doing badly. d. debt
3. difference between the selling price of a product and the cost e. stock market
of producing it. f. investment
4. a place where the company shares are bought and sold.
5. money which people or organization put into a business to
make a profit.
6. equal parts into which the capital or ownership of a company
is divided.

B. Match the sentences halves.

1. Earnings per share are a. a part of the profits of a company paid to the owners
of shares.
2. A forecast is b. a companys profits divided by the number of its
shares.
3. Bankruptcy is c. a description of what is likely to happen in the
future.
4. A dividend is d. money in which businesses receive from selling
27
 goods or services.
5. Pre-tax profits are e. when a person or organization is unable to pay their
debts.
6. Revenues are f. the money a business makes before payment to the
government

C. Complete this report with the terms from Exercises A and B.

In our home markets it has been another excellent year. 1 are up by 23 million,
and the 2 for the next quarter is equally good. Profits from abroad are down
because of a 3 in Japan. However, our performance overall has been good, and
the 4 have increased to 26.4p and the 5 will be increased to 4.3p
per share, which will please our shareholders.
We plan to issue new 6 in order to finance expansion in Asia. We also plan to
increase our 7 in plant and equipment before entering the Chinese market. We
are particularly pleased with our performance in France and Germany where 8
have increased. As a result of using a new distributor, our costs fell giving us a 9
of 40 percent on our main product line. We will use any extra cash to reduce the level of our
10
.
Our performance in Italy should improve significantly following the 11 of our
biggest competitor. However, we should not become too satisfied with our share price as
economic conditions remain uncertain and the 1 will continue to reflect this.
Share prices will not rise in the short term.

III. Listening: The Profit and Loss Account (P&L)

A. Study the incomplete P&L below. Complete the document with the following headings.

Research and development costs Cost of materials Gross profit

Interest receivable Turnover Dividend

B. Now listen to a presentation of the actual results and complete the missing figures for gaps
a-h.

Consolidated Profit and Loss

For the year ended Dec 31 in $m

Forecast Actual
1
Money in ___________ ___________ (sales revenue) 700 704

Other earnings
Gains on fixed assets and operations 250 244
2
___________ on investments 175 162

Money out __________ Cost of making goods

3 a
___________ and all manufacturing expenses (100) _____
b
Money in minus cost of Salaries and personal costs (200) _____
4 c
making goods__________ ___________ 825 _____
28
Other money out______ Other costs and expenses
Indirect costs and overheads (25) (22)
5 d
___________ (50) _____
Loss on fixed assets (25) (25)
Loss on foreign operations (100) (88)
e
Marketing and distribution costs (100) _____
Gross profit minus other
money out______________ f
Trading / operation profit 525 _____
Money left when
shareholders have been Profit for shareholders (6___________) 95 g
_____
h
paid___________________ Retained profit 430 _____

C. Listen again and answer the following questions

1. Why was gross profit higher than expected?
2. Where did the company decide to have parts made?
3. Which budgets went over the forecast limits?
4. What is expected to happen to the marketing budget in future?
5. How much will shareholders receive per share?
6. What prediction does the speaker make about retained profit?

IV. Reading: Reporting financial success

A. Before you read the articles, decide which of these statements are true.
1. Both Wal-Mart and Target Stores are based in the UK.
2. Wal-Mart is the worlds largest retailer.
3. Target is not a competitor of Wal-Mart.
B. Work in pairs. Student A read Article 1 below and Student B read Article 2. Complete the
parts of the chart which relate to your article.

29
 Wal-Mart Target Wal-Mart Target
4th quarter 4th quarter Full year Full year
Total profit

% increase in profits / earnings

Earning per share

Sales revenues

C. Exchange information with a partner and complete the chart.

D. Read both texts and answer the questions. Which company:
1. feels confident about the future?
2. has developed a more fashionable image?
3. had particularly good results overseas in the last 12 months?
4. is not planning to increase prices?
5. did better than the American stock market forecast?
6. feels its success is due to the variety of its goods?
E. Match the words to make word partnerships from the text.
1. consumer a. division
2. tax b. pressure
3. international c. refunds
4. quarterly d. spending
5. price e. earnings
F. Read the articles again and check your answers. Match the word partnerships in exercise E
to their definitions.
1. the money people spend on goods and services
30
 2. money given back at the end of the financial year
3. company profit for a three-month period
4. part of a company which deals with or is located overseas
5. decreasing or freezing the price of goods and services in order to gain an advantage
over competitors.
V. Language Skill: Giving presentations
I. Opening a presentation
1. Listen to the opening sentences of the three presentations and complete the table. Which
presentations are formal and which less formal?

Presentation 1 Presentation 2 Presentation 3

Presenters name
Presenters position / function
Topic of presentation
Who is the presenter for?

2. Listen to the openings again and complete the sentences.

Presentation 1
a. , let me thank you all for being here today.
b. Let me myself. My name is
c. Im here today to our new semi-automatic shelving system.
d. My talk is relevant to those of you who for the different parts
we supply.
Presentation 2
a. Im happy that so many of you could today at such
short
b. As you can see on the , our today is project
documentation.
c. This is extremely .for all of us who are directly
.. in international project management, right?
Presentation 3
d. Im .. that you all have very tight ..,
so I appreciate you taking the time to come here to day.
e. As you know, my name is Im the new manager here at
Weston Ltd.
f. Todays topic will be very important for you as .. since
your help to evaluate and select candidates for training.
3. Put the sentences from above in the correct category (a-d)
a. Saying what the topic is: ..
b. Welcoming the audience: ..
c. Saying who you are: ..
d. Saying why the topic is relevant for the audience: ..
Now put a-d in the order you would use to start a presentation. .. ..
.. ..

31
II. Structuring a presentation
1. The project manager of a construction company is giving a presentation to his colleague.
Put the sentences in the right order. Then listen and check.

a. This morning Id like to update you on the current status of work at the construction
site. The information I give you today should help you with planning your next steps.
b. For those of you who dont know me, my name is Gordon Selfridge. Let me just write
that down for you. OK. Im the project manager in charge of the Bak Tower building
project in Dubai.
c. Ive divided my presentation into three parts.
d. Hello, every one.
e. Then Ill move on to the problems were facing with our local suppliers.
f. First of all, let me thank you for coming here today. Im aware that youre all busy
preparing for the annual meeting this week, so I really appreciate you taking the time to
be here.
g. Ill start off by showing you some photos of the building site and discussing the
progress weve made since January.
h. My talk should take about 30 minutes. Please feel free to interrupt me at any time with
questions.
i. Ill end with some ideas for reducing labor costs that weve been looking into.
j. Oh, and dont worry about taking notes. Ill be handing out copies of the PowerPoint
slides.

2. Complete the sentences with the prepositions in the box.

about at for into of on to with

a. Thank you coming all this way.
b. Ive divided my presentation three parts.
c. First of all, Ill give you an overview our financial situation.
d. First, well be looking the companys sales in the last two quarters.
e. In the first part of my presentation Ill focus the current project status.
f. Point one deals APGs new regulations for Internet use.
g. Secondly, Ill talk our investment in office technology.
h. After that Ill move on the next point.

III. Referring to visual aids

1. What are these visuals called in English? Match the numbers to the descriptions.
a. bar chart c. technical drawing e. map g. pie chart
b. table d. flow chart f. graph h. organizational chart

Which of these visuals would you use to describe:

a. your companys market share?
b. the steps to be followed from order placement to delivery of a product?
c. your company new organizational structure?

32
2. Listen to excerpts from these presentations and say what visuals are used.
Presentation 1: ____________ Presentation 1: ____________ Presentation 1:
___________
Now listen again and complete the sentences.
Presentation 1
1. The next _________ shows the _________ by age in our company.
2. You can see that the biggest _________ () indicates the _________ of employees in
the age group 30 to 50.
Presentation 2
3. Lets now _________ at the sales figures over the past five years.
4. The key in the bottom _________ corner shows you which colour _________ which
area.
5. OK, so Id like to first _________ your attention t the sales figures for France thats
the blue line here.
Presentation 3

33
 6. Now Id like you to _________ at this next _________ which shows how the cost of
living developed in Europe between 2003 and 2007.
7. If you look at the _________ on the _________, you will see that the highest increase
was in 2001 with a rise of 2 _________.
3. Match the two parts to make sentences used to talk about visuals.
1. On the next page a. from this picture, the design is absolutely new.
2. My next slide shows b. you can see the specifications for the TP model.
3. As you can see c. customers have complained about the service.
4. Let me just show you some d. how much the market has changed.
5. To illustrate this e. Ill show you our latest poster.
6. Lets now have a look f. attention to the figures in the left-hand column.
7. Here we can see how many g. at the figures on the next page.
8. I have a slide h. which shows the market development in 2005.
9. Id like to draw your i. interesting details.
10. In the upper right hand corner j. how you will see a photo of the new XTK model.
IV. Closing a presentation
1. Look at these sentences and put them in the correct category in the table.
1. Ill just run through the three different options
2. Wes suggest
3. Now Ill be happy to answer any questions you may have.
4. Wed therefore recommend that we
5. Before I stop, let me go through my main points again.
6. Well, this brings me to the end of my presentation.
CONCLUSION OF A PRESENTATION
Signalling the end of the presentation
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
Summarizing the main points
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
Recommending and suggesting something
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
Inviting questions
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
2. Add the following phrases to the table above.
a. Thank you all for listening. f. Are there any questions?
b. In my opinion, we should g. Id like to run through my main points again
c. We just have time for a few questions. h. As a final point, Id like to
d. To sum up then, we i. Im now nearing the end of my talk
e. OK, I think thats everything I wanted j. Just to summarize the main points of my talk
to say k. What Id like to suggest is

34