chindialeading negotiations in chindia - 3a ed
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SMM
Trend School
Center for Business Communication
Leading Negotiations in ChindiaThird Edition
[LEADING NEGOTIATIONS
IN CHINDIATEACHERS GUIDE]In business, you dont get what you deserve, you get what you negotiate.
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SMM Skills for Management and Multiculture
Welcome to SMM Skills for Management and Multiculture Program. The objective of
this module is to prepare the participant to identify and do business in international
markets through the development of management skills in English, especially related to
Presentations and Negotiations, as well as the acquisition of multicultural knowledge in
emerging markets.
The curriculum encompasses the following elements to ensure that all components of
business communication are integrated:
1. Topic2. Business Communication Concepts3. Business Communication Skills4. Communication Tools5. Case Study6. MBC Multicultural Business Communication7. Trend Life8. Self Assessment Quiz9. Communication Tips
Trend Life is a virtual Business Communication environment aimed at gathering people in
an interactive space, where real life business applications are presented on a daily basis.
The concept is a unique and innovative way of bringing executives together in a learning
atmosphere, and at the same time, connecting cultural and business experiences from
around the world.
It is positioned as part of an integrated solution specially designed to give continuity and
enhancement to the classroom program. This combination will empower participants to
achieve outstanding results and motivate them in a daily learning process.
[TREND SCHOOLCENTER FOR BUSINESS COMMUNICATION
SMS SKILLS FOR MANAGEMENT & MULTICULTURE]
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Teachers Guide: LEADING NEGOTIATIONS IN CHINDIA
INDEX
In Classroom
Syllabus 04
Unit 1: Introduction to China 06
Unit 2: Introduction to India 17
Unit 3: Negotiating in Chindia 30
Unit 4: Language of Negotiations 39
Beyond the Classroom
Self Assessment 43
Trend Life 52
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SMM SKILLS FOR MANAGEMENT & MULTICULTURE
You are exposed to a variety of topics within business communication so as to provide you
with opportunities to discuss issues, concepts, and all interrelated subjects.
Here you will work with a specific business communication concept in order to enhance
your management skills and provide you with tools for effective communication.
The focus of these business communication skills is to practice oral communication skills
(listening and speaking).
This section encompasses the language skills that are necessary to communicate with
accuracy. You will review grammar concepts, expand your vocabulary, and practice your
reading and writing skills.
The case studies throughout the book provide you with an overview of multinational
companies, global markets, business situations and current global and business issues.
TOPIC
BUSINESS COMMUNICATION CONCEPT
BUSINESS COMMUNICATION SKILLS
COMMUNICATION TOOLS
CASE STUDY
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Multicultural business communication is essential to companies which are entering the
global market where diversity and cultural awareness play an important role in doing
business. Here, you will work with cultural awareness and how diversity affects
businesses.
Trend Life is an integrated multimedia website that provides you with all the tools to
improve your communication skills. More than that, Trend Life is a way of making business
communication a lifestyle that empowers you to be an effective communicator.
There is a self assessment quiz at the communication tools section so that you can see
which areas of communicative competence require further practice.
Here you will find tips on how to improve your communication skills within business
communication as well as the areas of language acquisition that require further practice.
MBC MULTICULTURAL BUSINESS COMMUNICATION
TREND LIFE
SELF ASSESSMENT QUIZ
COMMUNICATION TIPS
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SMM
LEADING NEGOTIATIONS
IN CHINDIA
UNIT 1 INTRODUCTION TO CHINA
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Warm-up
1. What is the first word that comes to mindwhen you think of business in China?
2.
Have you ever done business in China? Ifso, describe your experience.
3. What important aspects do you knowabout China and the Chinese culture?
Information on China
A. Read this information. Discuss most relevant points.
Capital: Beijing
Largest city: Shanghai
Official languages: Standard Mandarin (spoken), Simplified Chinese (spoken)
Population:
1,330,044,544 (Jul.08 est.)
Population growth rate:
0.629% (2008 est.)
GDP (purchasing power
parity):
$7.89 trillion (2008 est.)
GDP (nominal):
$4.222 trillion (Total) 3rd
GDP - real growth rate:
11.9% (2007 est.)
GDP - per capita:
$5,943 (2008 est.)
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Major Ports
Dalian, Guangzhou, Ningbo,
Qingdao, Qinhuangdao,
Shanghai, Shenzhen, Tianjin
Industrial production growth
rate:
13.4% (2007 est.)
Exports:
$1.22 trillion f.o.b. (2007 est.)
Exports - commodities:
Machinery, electrical products,
data processing equipment,apparel, textile, steel, mobile
phones
Imports:
$904.6 billion f.o.b. (2007 est.)
Imports - commodities:
Machinery and equipment, oil
and mineral fuels, plastics, LED
screens, data processing
equipment, optical and medical
equipment, organic chemicals,steel, copper
China Income Per Capita
In 2007, the government speeded up efforts in its Go West program to spread industrializationto the more rural West of China and to promote infrastructure development outside the Eastern
coastal areas. The new goal came in an announcement of top official in Beijing on October 12,
2008.
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Teachers Note: This section is optional. However, it is important for students to understand the
historical aspects of China and not only the business aspects of Chinese culture.
China has one of the world's oldest people and continuous civilizations, consisting of states and
cultures dating back more than six millennia. It has the world's longest continuously used written
language system, and is the source of such major inventions as what the British scholar and
biochemist Joseph Needham called the "four great inventions of Ancient China": paper, the
compass, gunpowder, and printing. Historically China's cultural sphere has been very influential in
East Asia as a whole, with Chinese religion, customs, and writing system being adopted, to varying
degrees, by its neighbors Japan, Korea, and Vietnam.
For 4,000 years, China's political system was based on hereditary monarchies (also known as
dynasties). The first of these dynasties was the Xia but it was later the Qin Dynasty who first
unified China in 221 BC. The last dynasty, the Qing, ended in 1911 with the founding of the
Republic of China (ROC) by the Nationalist Kuomintang (KMT). The first half of the 20th century
saw China plunged into a period of disunity and civil wars that divided the country into two main
political camps the Kuomintang (KMT) and the Communists. Major hostilities ended in 1949,
when the People's Republic of China (PRC) was established in mainland China by the victoriousCommunists. The KMT-led Republic of China government retreated to Taipei, its jurisdiction now
limited to Taiwan and several outlying islands. As of today, the PRC is still involved in disputes with
the ROC over issues of sovereignty and the political status of Taiwan.
Li River in Guangxi Tibetan Plateau in Southwest China Farmlands in East China
China's importance in the world today is reflected through its role as the world's third largest
economy nominally (or second largest by PPP) and a permanent member of the UN Security
Council as well as being a member of several other multilateral organizations including the WTO,
APEC, East Asia Summit, and Shanghai Cooperation Organization. In addition, it is a nuclear state
and has the world's largest standing army with the second largest defense budget. Since the
introduction of market-based economic reforms in 1978, China has become one of the world's
fastest growing economies and the world's second largest exporter and the third largest importer
of goods. Rapid industrialization has reduced its poverty rate from 53% in 1981 to 8% in 2001.However, the PRC is now faced with a number of other problems including a rapidly aging
population due to the one-child policy, a widening rural-urban income gap, and environmental
degradation.
(PPP Purchasing Power Parity; APECAsian Pacific Economic Cooperation; WTO World Trade
Organization).
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Reading - How to negotiate in China and other Chinese business practices
1. What are the challenges of negotiating in a country with such a contrastingcultural background?
2. Read the text below and underline all advice you consider important.3. Compare/discuss with your colleagues or teacher.
Relationships in China are based on mutual
trust and respect; equality, commitment and
common goals, communication and
compromise. It takes time and effort to build
relationships, which Western companies
(Motorola, Vodaphone, Intel to name a few)
have found to be the case.
Below are insights that successful expatriate
managing directors; leaders of global teams,
and explorers of business opportunities follow
to build business in China.
Communication Strategies
Persuasion - There may be sensible
and intellectual discussions, but
individuals know their place in the
team or organization (hierarchy), e.g.,
contributing or deciding role. They
know when to stop or when pushing
too hard may be offensive or
counterproductive.
Feedback - Chinese generally do not
volunteer information or give
feedback. If you want feedback, ask
persistently and politely. Remember
that Chinese are not comfortable
giving praise.
Self-glorification or Promotion -
Expressing one's attributes or
accomplishments runs contrary toChinese values of modesty and
humility. The norm is to be self-
deprecating. Sending a company a
letter ahead of your meeting that
gives bio data with accomplishments
(academic titles, positions held, major
deals or projects completed) of the
visiting team members is appropriate.
Confrontation - Chinese avoid
confrontation altogether. This is done
to save face and preserve group
harmony (as confronting can translate
to there being a winner and a loser).Individuals should discuss different
viewpoints and try to build consensus.
This holistic culture does not
compartmentalize work and personal
feelings. Its important to note
everything is personal.
Negotiation Strategies
Chinese Negotiating Style - While
Westerners are generally results-
oriented (focusing on tasks at hand,
specific terms and conditions, and
time efficiency) Chinese are
relationship-oriented. They focus on
harmony and flexibility, and are
patient in getting the job done.
They do all they can to avoid 'tong
chuan yi meng' which translates to
'same bed, different dreams'. Chinese
are known to be tough negotiators.
Building Trust - Begin to build trust
based on mutual respect, modesty,
equality and harmony. Chinese are notcomfortable being rushed, or jumping
right into business discussions without
proper introduction. They believe
getting to know each other and
building trust is necessary in
negotiations.
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Rationale - Chinese take time to
understand the reason, logic and
motivating factors in a holistic manner
- connecting the dots. They must be
convinced there's a win-win deal to be
made.
Cultural Priorities - In negotiations,
Chinese cultural priorities are
relationship first followed by
rationale, and legal. Check your
cultural assumptions in relation to
these priorities - they may be in
reverse order.
Style - Chinese listen more than they
talk. They may appear to be delaying,
but they are gathering pertinent
details on issues and personalities.
The indirect, unemotional styleaccompanied by vagueness allows
room for maneuverability and outs.
Silence is constructive ambiguity'. It is
rude to interrupt. To build a
productive relationship each side must
accept different styles of team
building and group dynamics.
Compromise - Chinese know what
they want and are willing to
compromise. Give and take' is a
means to achieve harmony in Chineseculture. As such, compromise is not
considered weak or giving in.
Revisiting agreed items or terms - It is
not unusual for Chinese to revisit
items previously discussed and agreed
upon, and try to renegotiate. If this
happens, graciously enter into talks,
be flexible and well prepared for what
you are willing and unwilling to do,
and prepare your organization that
there may have to be changes.
Subtleties Matter
Attitude matters and yours will be
constantly read by the Chinese. Your
patience, professionalism, and
courtesy are sending messages of your
personal integrity. Understand that
you must take many small steps
before taking larger steps. Focus on
developing a consensus.
Know and stick to your company's
policy on ethics.
Listen empathetically and observe.
Pay attention to details. Note Chinese
body language and hidden meanings.
Understand cross-cultural
communication barriers such as
cultural frames, traditions, etiquette,
time and place, status and power,
English comprehension level.
Always bring your own interpreter,
even when the Chinese offer to
provide one for you.
The one who speaks least in a meeting
may actually be the most powerful. Be
sure to know the position of thoseyou're dealing with.
Don't rush to give your opinion or
advice. Take the time to diagnose and
understand the problem first. Respect
viewpoints of others.
Make your self' easy to understand.
Speak clearly, concisely, and slowly.
Avoid asking or' questions (you may
get a both' answer). Ask questions
and clarify politely.
Focus on issues. Take the blame out ofdiscussions. Don't insist you are right
even if you are. Leave room for outs'
(face-saving maneuvers).
1. Avoid saying no. A direct and bluntno may be perceived as a slap in the
face. Use wording such as like "It's
very difficult for me to.....", "It's really
not possible to...."
Try not to overuse the word you';
instead use the third person one'.
Pronouns aren't used as much in
Mandarin as in English, and as thelistener, hearing you' could be taken
personally. For example, instead of
"You should not jump to conclusions
without all of the facts...", say, "One
should not jump to conclusions..."
Err on the side of being more formal in
meetings. Sit straight and be attentive.
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Slouching and relaxing postures are
considered bad manners. It's impolite
to cause disruptions such as standing
up to stretch and walking around the
room. Do not interrupt unless the
presenter or the leader makes a point
to allow so. Asking questions during a
presentation is considered
interrupting and rude. Whenever
possible, use laser pointers. Avoid
pointing with any one finger; use
whole-hand gestures instead.
However your meetings go with your Chinese
counterparts, focus on building the
relationship for the long term, and extending
your guan-xi network. Patience, politeness and
persistence will bring opportunities for you
and your Chinese customers, suppliers or
coworkers.
Recognize that social-personal relationships
drive business culture in a holistic way. They're
cultivated over time. Remember, relationships
first and results will follow.
.Published on VentureOutsource.com (http://www.ventureoutsource.com)
Business Communication Concept: Guanxi
1. What does the text above say about Guanxi and relationships?2. Have you understood the concept? Explain using your own words.Video 1: Western - Chinese Culture Part 1
http://www.youtube.com/watch?v=qingy5JAt8w Western-Chinese Business You could already be in too deep
1. Does the speakers definition of Guanxi match your own?2. Does this concept exist in your country? If not, are there any similarities?Video 2: Western - Chinese Culture Part 2
http://www.youtube.com/watch?v=Ul4WWhMZpj8 Western-Chinese BusinessWhy Westerners Do Not Get It
A. Watch the video once.
B. Choose the best option
1. Westerners tend to:a) see everything from their own perspectiveb) accept other perspectivesc) see China from a different perspective
2. Westerners are defined as being from:a) North America, Canada and Australia, mainlyb) All of America and Oceaniac) Europe, North America, Canada and Australia, mainly
3. Westerners.a) Share and understand many culturesb) Are comprised of many culturesc) Share only one culture
http://www.ventureoutsource.com/http://www.ventureoutsource.com/http://www.ventureoutsource.com/http://www.youtube.com/watch?v=qingy5JAt8whttp://www.youtube.com/watch?v=qingy5JAt8whttp://www.youtube.com/watch?v=Ul4WWhMZpj8http://www.youtube.com/watch?v=Ul4WWhMZpj8http://www.youtube.com/watch?v=Ul4WWhMZpj8http://www.youtube.com/watch?v=qingy5JAt8whttp://www.ventureoutsource.com/ -
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4. Westerners tend to thinka) There is a better way to do thingsb) There is only one way to do thingsc) There are many ways to do things
5. Europeans havea) an advantageb) a disadvantagec) more benefits
6. Becausea) They are more adaptableb) They are better preparedc) Both a and b
7. The main requirement to negotiate with Chinese executives isa) to understand the differencesb) to understand the similaritiesc) to understand the right way to do things
8. In summary, executives must learn toa) respectb) understandc) both a and b
About the Speaker
Greg Bissky is Managing Director of Treasure Mountain Consultants in Victoria, Canada, Shanghai
and Taipei. Greg Bissky is Canadian, 53, with an MA, University of British Columbia (modern
Chinese politics), BA, University of Victoria (Chinese studies and modern Chinese politics). He lived
in Taiwan from 1985 to 1998 and, in 1990, founded a management consulting and training firm
that is currently active throughout the region. His strengths are sales and marketing, project and
team leadership, cross-cultural understanding and communication, product and service
development. He conducts speeches, seminars and workshops for both Western and Chinesemanagers (in English or Chinese). He also is active leading Chinese teams in major reengineering
and performance management projects for Western and Chinese firms. Author of Wearing
Chinese Glasses, 2007.
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Communication Tools: Supposed/Expected/Meant to
Teachers note: Tell students that supposed has other meanings which are out of context in this
unit. For more information, they should consult their grammar books.
Suppose is similar in meaning to think:
I suppose we should be leaving. Its getting late.
We use mean to to say we intend to do something:
I meant to meet you as we agreed, but I was delayed.
We use be supposed to, be expected to and be meant to to describe something someone else
thinks we should / shouldnt do:
Youre not supposed to park here.
Youre expected to arrive by 9.00 for the interview.
When talking about the past we use was/were supposed to/expected to/meant to in place ofshould have done to criticize someones behavior:
Youre late! You were supposed to be here an hour ago.
You were expected to wear a suit for the meeting.
We use was/were supposed toto say that events didnt happen the way we expected:
We were supposed to stop somewhere nice for lunch. (but we didnt)
A. Underline the correct option
1 Visitors suppose / are supposedto see the famous London sights.
2 Lunch should / was supposed to be in a typical English restaurant, but it wasnt.
3 I was meant / meant to send you a card for your birthday, but I forgot.
4 According to the invitation, what time do we expect / are we expected to arrive?
5 A famous actor meant / was meant to open this restaurant.
6 Youre not suppose to / supposed to walk on the grass.
7 The result wasnt what it was expected / expected to be.
8 We supposed / were supposed to have a meeting.
B. Tick the correct sentence in each pair.
1a. You expected to dress smartly for a wedding.
1b. You are expected to dress smartly for a wedding.
2a. Cars meant to make our lives easier.
2b. Cars are meant to make our lives easier.
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C. Write 10 sentences using meant to, supposed to and expected to based on past experience
with foreign/Asian executives. Read the sentences to your teacher for feedback and corrections.
Teachers Note: Students may need some help with this exercise. Allow them to make up some
sentences first, and write them on the board. For example, In China, you are supposed to leave
your shoes at the door, but I did not.In India, you are expected to know certain customs.
Negotiations went better than expected.
Quiz: Business in China
Based on your experience and the information studied in this unit, complete the following quiz.
1. Aggressive negotiation tactics are recommended.a) trueb) false
2. Is it acceptable to answer phone calls in meetings.a) trueb) false
3. Who would you expect to make decision from negotiations and meetings?a) The negotiation team through consensusb) Most senior ranking attendeec) Your director counterpart
4.
Which of these should you do when negotiating in China?a) Inflate your pricesb) Pretend to reject demandsc) Concede easily to demands for concessions
5. Which of these should you try and have on your business cards?a) Titleb) Age
6. How should one receive business cards?a) Both hands
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b) Right handsc) With left hand propped by right
7. Which of these should you not do during a business meeting?a) Address anyone but the head of the Chinese contingencyb) Show emotion
8. Gifts within the business context are seen as bribes.a) Trueb) False
9. A handshake in China should bea) Limp and briefb) Strong and lengthyc) Firm but brief
10.The Chinese prefer business communication by which of these methods?a) Phoneb) Face to Facec) Writing
Video 3: Western - Chinese Culture Part 3http://www.youtube.com/watch?v=T7GKa57mwqY- Western-Chinese Business Doing Business in Asia
Teachers Note: This video is optional. It provides better understanding of the Chinese mind frame
and is purely informative for students who show interest of this subject.
Video 4: This is China (optional)http://www.youtube.com/watch?v=2TRs2s-22tg&feature=related
Teachers Note: To wind down, play the video, This is China. I strongly suggest you play the entire
8 minutes.
http://www.youtube.com/watch?v=T7GKa57mwqYhttp://www.youtube.com/watch?v=T7GKa57mwqYhttp://www.youtube.com/watch?v=2TRs2s-22tg&feature=relatedhttp://www.youtube.com/watch?v=2TRs2s-22tg&feature=relatedhttp://www.youtube.com/watch?v=2TRs2s-22tg&feature=relatedhttp://www.youtube.com/watch?v=T7GKa57mwqY -
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SMM
LEADING
NEGOTIATIONS INCHINDIA
UNIT 2 INTRODUCTION TO INDIA
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Warm-up
1. What do you know about India and Indianculture?
2.
What do you think is the greatest challenge ofdoing business in India?
3. Name the biggest difference between India andBrazil.
Information on India
A. Read this information. Discuss most relevant points.
India's total area is 3.29 million squarekilometers. Size is slightly more than one-
third the size of the US.
Capital: New Delhi
Government: Federal republic
Languages spoken: English is the preferred
business language. Hindi is the national
language and primary tongue of 30% of the
people.
Population:
1,129,866,154 (July 2007 est.)
GDP (purchasing power
parity):
$4.042 trillion (2006 est.)
GDP (official exchange rate):
$796.1 billion
GDP - real growth rate:
8.5%
GDP - per capita (PPP):
$3,700
Labor force:
509.3 million
Inflation rate (consumer
prices):
5.3%
Industrial production growth
rate:
7.5%
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Exports:
$112 billion f.o.b.
Exports - commodities:
textile goods, gems and jewelry,engineering goods, chemicals,
leather manufactures
Imports:
$187.9 billion f.o.b.
Imports - commodities:
crude oil, machinery, gems,
fertilizer, chemicals
Export and import growth (%)
Exports Imports
2002 20.3 14.5
2003 23.3 24.12004 28.5 48.6
2005 23.4 32.0
2006 20.0 26.2
2007 16.0 20.0
2008 15.0 19.2
Sources: Reserve Bank of India
India, officially the Republic of India is a
country in South Asia. It is the seventh-
largest country by geographical area, the
second-most populous country, and the
most populous democracy in the world. It is
bordered by Pakistan to the west; People's
Republic of China (PRC), Nepal, and Bhutan
to the north; and Bangladesh and Myanmar
to the east.
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Four major world religions, Hinduism,
Buddhism, Jainism and Sikhism originated
there, while Zoroastrianism, Judaism,
Christianity and Islam arrived in the first
millennium CE and shaped the region's
diverse culture. Gradually annexed by the
British East India Company from the early
eighteenth century and colonized by the
United Kingdom from the mid-nineteenth
century, India became an independent
nation in 1947 after a struggle for
independence that was marked by
widespread nonviolent resistance.
Delhi
India is a republic consisting of 28 states and
seven union territories with a parliamentary
system of democracy. It has the world's
twelfth largest economy at market exchange
rates and the fourth largest in purchasingpower. Economic reforms since 1991 have
transformed it into one of the fastest
growing economies; however, it still suffers
from high levels of poverty, illiteracy, and
malnutrition. A pluralistic, multilingual, and
multiethnic society, India is also home to a
diversity of wildlife in a variety of protected
habitats.
Tso Kiagar Lake at Ladakh on the Himalayas
In the 20th century, a nationwide struggle for
independence was launched by the Indian
National Congress and other political
organizations. Indian leader Mahatma
Gandhi led millions of people in national
campaigns of non-violent civil disobedience.
On 15 August 1947, India gained
independence from British rule, but at the
same time Muslim-majority areas were
partitioned to form a separate state of
Pakistan.[3 On 26 January 1950, India became
a republic and a new constitution came into
effect.
Topographic map of India.
Since independence, India has faced
challenges from religious violence, casteism,naxalism, terrorism and regional separatist
insurgencies. Since the 1990s terrorist
attacks have affected many Indian cities.
India has unresolved territorial disputes with
P. R. China, which in 1962 escalated into the
Sino-Indian War; and with Pakistan, which
resulted in wars in 1947, 1965, 1971 and
1999. India is a founding member of the
United Nations (as British India) and the Non-
Aligned Movement. In 1974, India conducted
an underground nuclear test and five moretests in 1998, making India a nuclear state.
Beginning in 1991, significant economic
reforms have transformed India into one of
the fastest-growing economies in the world,
increasing its global clout.
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10)(Embarrass) If I said anything as stupid as he did in front of a thousand people, I'd feelreally __________________ .
11)(Disgust) The kitchen hadn't been cleaned for ages. It was really __________________12)(Excite) I'm starting a new job next week. I'm quite __________________ about it.13)(Bore) The lecture was __________________ I fell asleep.14)(Embarrass) It's sometimes __________________ when you have to ask people for
money.
Key
1. confused
2. frightening
3. interested
4. irritating
5. surprised
6. depressed
7. relaxing
8. bored
9. annoyed
10. embarrassed
11. disgusting
12. excited
13. boring
14. embarrassing
B. Give your opinion about the information on pages 18, 19 and 20. Use some of the following
structures and the words in the box below.
I found the information on imports very..
I was .. to see that..
The GDP figures were very
The facts on population seemed..
shock amaze interest bore
confuse alarm encourage amuse
Which other words can you think of?Annoy, concern, embarrass, energize, humiliate, entertain, exhaust, frustrate, intrigue, overwhelm,
please, perplex, relax, satisfy, terrify, surprise, and tire.
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Video 5Indias Global Influence
An interview with Minister of Commerce, Kamal Nath
A. Watch the video and discuss the answers to the following questions with your classmates.
1. Why are we seeing all these Indian companies making acquisitions outside of India?
2. Why is foreign investment increasing substantially in India?
3. What are the difficulties of doing business in India?
4. What is Mr. Kammal Nath doing to make it easier to do business in India?
5. What does he mean by There is a paradigm shift in the way India is looking at the
economy?
6. What is the message to the American CEOs attending the Fortune Global Forum?
7. Why did he choose the slogan Incredible India?
Video 6Interview with Kamal Nath
http://www.youtube.com/watch?v=1WCQVCgGnTg- Erin Burnett in India - Interviewing Kamal Nath
A. Watch the video once.
B. Choose the bestoption to complete the statements. All answers should be based on the
video.
1. Erin Burnet wants to know if India is really . to become an economic superpower.a. poisedb. posedc. positioned
2. The main concern regarding business in India is.a. infrastructureb. structurec. information
3. In addition to airports and railways, the challenge includesa. real roadsb. rural roadsc. urban roads
4. People need access to drinking water and medicala. facilitiesb. servicesc. establishments
5. The trillion dollar investment on infrastructure will be . in five years.a. employedb. deployedc. enjoyed
6. Roads will assure rural ..a. collectivityb. connectivityc. complexity
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7. The only closed and controlled sector in India is..a. outsourcingb. wholesalec. retail
8. Investments in ports, airports and roads are:a. on the handleb. on the anglec. on the tangent
9. Investment has risen dramatically in the past four years due to:a. labelisationb. globalizationc. innovation
10. India has been self-sufficient regarding.a. foodb. edible oilsc. minerals
11.Self-sufficiency may only be hindered in the case of . failurea. monsoonb. month-longc. Munson
12.China has a . growth story, while India is a growth storya. export market-driven/domestic market-drivenb. domestic market-driven/export market-drivenc. none of the above
13.Both countries have their own.a. geniusesb. geniusc. ingenious
14.Relations between India and France are.a. ambiguous
b. friendlyc. close
15. India is considered the biggest market on earth becausea. it is equal to Chinab. it is larger than the USc. it has a larger middle class
C. Watch the video again to check your answers.
Teachers Note:
Labelisation accreditation
On the angle occurring, on the rise
Trade commerce (tell students that the word Trade is often used to refer to Commerce)
Monsoon - A wind from the southwest or south that brings heavy rainfall to southern Asia in the
summer.
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Task
Teachers Note: This section contains a huge amount of text. Students should only scan the text,
look up new words and prepare the outline without your interaction. Not all titles need to becovered in the questions and answers. Make sure questions (Student B) are complex and
interesting. They should avoid silly questions like, How do I say, Hello? and ask complex questions
like, What are the rules for greetings between men and women?
When both students/ groups are ready, initiate the 20 Questions session. Incorrect answers
should be included during feedback, so make sure you know the text.
Student A/Group A
You are an expert on India. Read the information below and take notes. Underline all important
information and use the headings as guidelines to prepare a short guide to business in India.
Student B/Group B
You are visiting India next week on business. Read the information below and prepare 20
questions. Use the headings as guidelines. Remember, you are not supposedto know the answers!
Reading
In India business life and home life are largely fused into synthetic cooperation, work and
play. The private and the corporate are often brought together in the common thread of
the day-to-day. The following is cultural and practical information that should aid you in
your business and personal interactions.
Culture and BusinessCultural life in India can be described as aconstant negotiation between strongly held
traditional values and emerging modern
business and personal practices. While this
dynamic may sometimes cause frustration to
foreigners doing business in India, it is also
the means by which India has been defining
itself in relation to the global market,
protecting its own resources, and attempting
to positively benefit Indian interests as much
as possible while becoming a formidable
player. After India's independence in 1947,
the Indian government enacted a number of
protectionist laws that made India relatively
isolated from the larger free-market global
Business Transactions and ProtocolIn the U.S., the virtues of good business
include efficiency, adhering to deadlines,
streamlined communications, and a host of
similar matters. In India, however, many of
these virtues are underplayed or absent. In
their place are unique sets of issues that help
define business culture in India. Below we
review those we think are most essential in
seeing to the success of your personal
interactions in India.
Not all of the items listed below may apply to
all companies and industries in India. In
many cases, the larger industries or those
companies well-versed in foreign business
are often closer to their Western
counterparts. For example, the IT industry in
India is thoroughly multinational and, as a
result, is an exceptionally efficient industry in
terms of international trade and business
practice.
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Timing - In general, the workday is from 9am
to 5pm, though most inter-business matters
are conducted between 11am and 4pm.
Most businesses have a one-hour lunch. The
work week is generally six days long, with
Sundays off. Some businesses give their
employees every other Saturday off, or make
a shorter work day on Saturday. Business is
not conducted during the numerous
government and religious holidays. Different
holidays are observed throughout the many
regions and states of India.
Delays - Indians appreciate punctuality but
don't always practice it themselves. Keep
your schedule flexible enough for last-minute
rescheduling of meetings. In India delays are
inevitable, particularly when dealing withgovernment bureaucracy. The Indian
government is well-known for moving at a
slow pace, and communication within the
country can sometimes be a challenge.
The Indian Company Family - In many
companies in India, strict hierarchies are
adhered to, and the CEO of a company takes
on the mantle of a father figure. Depending
on your position within this hierarchy, you
may have to play a variety of roles. Emphasisin the workplace is often placed on protocol,
manners, and obligations. The chain of
command is often strictly enforced, and
breaching this chain can have adverse
effects. For example, an employee will
always call his or her superior "Sir" or
"Madam," and an employee will rarely
expect to do tasks outside of their job
description unless specifically asked to do so
by a superior. Furthermore, one should first
approach the senior-most person in an
organization, even though a subordinate maybe delegated the work requested.
Business Dress - Formal business attire is
normal for the workplace in India unless
otherwise made explicit. For men suits and
ties are appropriate. However, in very warm
weather (April-June usually), men may opt
for an Indian safari suit, which is a
comfortable suit made of lightweight cotton
consisting of a button-down, untucked shirt,
and matching pants. For casual wear, short-
sleeved shirts and long pants are preferred
for men. Shorts are acceptable for men only
when exercising; women who jog should
wear track pants.
Businesswomen should wear conservative
dresses or pant suits. Dresses should not
reveal too much of the legs. Pants for
women are also acceptable. Sandals or
chappals are an alternative during the hot
months and the monsoon.
Special occasions require a sari, if desired.
Your hosts will interpret it as a gesture of
good will and equality if you make the effort
to wear an Indian outfit. For men duringcultural ceremonies, a well-made kurta and
pajama is appropriate. This consists of a long
thin shirt, usually made of silk, and thin
matching pants. Women often wear a similar
outfit called a salwar kamiz.
Mens formal attire Salwar kamiz
Names & Titles - There is a reverence for
titles in India. Whenever you can, use
professional titles such as Professor and
Doctor. For those without professional titles,
use courtesy titles such as Mr., Mrs., or Miss.
Wait to be invited before addressing
someone by his or her first name.
Interpersonal Relationships and Corporate
Politeness - The hierarchical nature of Indian
society demands that the boss be recognized
as the highest individual in authority. In
some offices, employees rise each time the
boss enters the room to acknowledge
respect. Employees also tend to follow the
lead of their superiors in other actions and
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aspects of the work environment. Even if an
employee may think that the boss is wrong,
he/she would often find it inappropriate to
disagree. The boss makes all of the decisions
and accepts all of the responsibility.
Consequently, you'll often find that
subordinates are reluctant to accept
responsibility. In general, subordinates will
be able to meet only with a subordinate and
bosses with bosses. In a group discussion,
only the most senior person might speak, but
that does not mean that the others agree
with him.
Similar to a family, many smaller businesses
function on handshakes, verbal agreements,
and trust. While it should be obvious that
one should not base an international
business transaction simply on trust, oneshould take the time to get to know one's
business contacts individually in order to
develop professional trust. Professional trust
can move mountains, especially mountains
of stalled paperwork.
Talking about your friends and family is an
important part of establishing a relationship
with those involved in the business process.
Many Indian businesses are run by families.
Within family-run businesses, business affairs
are often restricted within the family andthere is a distrust of outsiders. All
transactions are conducted by the head of
the family, in his/her presence.
Interpersonal skills such as the ability to form
friendships are sometimes considered more
important than professional competence and
experience. Nevertheless, there is
admiration for accomplishment, such as
previous successful business ventures or an
individual's university degrees.
Saying No - Many Indians are generally toopolite to directly answer no. Equivocal
answers are considered more polite, rather
than a straightforward refusal. For example,
when declining an invitation, an Indian may
be more likely to answer, "I'll try," rather
than "No, I can't."
An Indian who hesitates to say no may
actually be trying to convey that he is willing
to try, but it may also indicate a negative
response.
Criticism and Aggressiveness - While
moderate aggressiveness is often revered in
the Western workplace as a sign of
confidence and ingenuity, in the Indian
context it can be seen as a sign of disrespect,
particularly if it is from a subordinate or from
someone unfamiliar.
Gender and the Workplace. As is the case in
Western societies, women in India are
finding themselves more comfortable in the
workplace, but equality between the sexes
by no means has been achieved. Men stilldominate the working world in India, as in
the U.S., but times are changing, especially in
new economy sectors. Both Indian and
foreign women feel safe and are able to
adapt to a corporate work environment.
However, it is necessary to bear in mind the
conservative dress codes and modest gender
interactions.
Food and Business
Food Taboos - Keep in mind that mostHindus do not eat beef, and most Muslims
do not eat pork. For Muslims, other types of
meat must be ritually slaughtered. Most
Jains do not eat meat, honey, or many kinds
of vegetables. Some Indians are strict
vegetarians so take this into account when
Indian executives visit your country.
As is well known, the left hand in India has
particular connotations of uncleanliness and
inauspiciousness. When dining, be sure to
eat, if possible, with your right hand.
Serving Alcohol - Although Islam prohibits
drinking and the Sikh religion prohibits
drinking and smoking, not everyone is strict
in these observances. Traditional Indian
women, regardless of their religion, do not
smoke or drink, but Indian women of a
certain social position sometimes do.
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Among those who drink alcohol, the fine
liquors are appreciated, especially whiskey,
ideally imported. Some of the many brands
of Indian beer are good. One can find good
Indian wines, especially in the state of
Maharashtra.
It is better to ask your guest: "What would
you like to drink?" rather than "Can I get you
a beer?" Even guests who are drinkers will
not drink alcohol on certain occasions such
as religious festivals or if there is an older,
respected individual present (such as one's
boss). Always have juice and soft drinks
available for the non-drinkers.
Entertaining for Business - In India, the host-
guest relationship is quite important, and it is
normal for business contacts to invite you totheir homes and indulge in personal talk
often. All this is very much a part of business.
One is expected to accept the invitation
gracefully. Taking a box of sweets, chocolates
or a simple bouquet of flowers would be a
welcome gesture.
Businesswomen can take Indian
businessmen out for a meal without causing
awkwardness or embarrassment to the men.
Lamb, chicken, and fish are the meats eaten
by all Indians who are not vegetarians.During events, the food at the buffet table
should be clearly labeled so everyone finds it
easy to decide what they can eat. Ensure
that you have plenty of vegetarian dishes.
When you are hosting a social event, every
guest should be contacted personally by
phone, even if you have already sent a
printed invitation. Phone calls should be
placed closer to the party day.
Husbands or wives should be invited to bring
their spouses to a social function, though it is
not uncommon that the spouse will notattend. Some guests bring their own guests,
so be prepared for a larger number than
expected.
Business Lunches/Dinners - Many of your
business interactions will not be as formal as
hosting an event or attending one. As in the
West, much business takes place over a meal
at a restaurant. One note on tipping may be
in order: over-tipping is discouraged. In
better restaurants, 10-15% is a sufficient tip,
if the service charge hasn't been added to
the bill. When in doubt, you may certainly
ask your dinner companion what would be
appropriate.
A common dish - thali.
Day-to-day concerns
Exchanging Gifts - Gifts, in general, are not
opened in the presence of the giver. If you
receive a wrapped gift, set it aside until the
giver leaves. Don't wrap gifts in black or
white, which are considered unlucky colors.
Instead, use green, red, and yellow, since
they are considered lucky colors. When
invited to an Indian's home for dinner, bring
a small gift of imported chocolates or
flowers. If you are staying with a family, feelfree to ask them what they would like.
Images of dogs are considered unacceptable
to Muslims, so never give toy dogs or gifts
with pictures of dogs to Indian Muslim
friends. Many Hindus do not use products
that are made from cattle. Consequently,
most leather products may not be
appropriate gifts for Hindu friends.
Daily Etiquette - In India public intimacy is
not common. Indians of all ethnic groupsdisapprove of public displays of affection
between people of the opposite sex. Refrain
from greeting people with hugs or kisses.
Outside of the work setting, if you are male it
is prudent to avoid talking to a woman who
is alone.
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Westernized Indians will shake hands with
the opposite sex. If you are unsure of
whether to offer your hand, the best policy is
to follow your counterpart's lead. Western
women should not, however, initiate
handshaking with Indian men. The traditional
Hindu greeting and farewell is "namaste." To
perform the "namaste," hold the palms of
your hands together (as if praying) below the
chin, nod or bow slightly, and say "namaste"
(nah-mas-tay).
Pointing with your finger is considered rude;
Indians prefer to point with the chin. Feet
are considered unclean, so never point your
feet at another person. You will be expected
to apologize whenever your shoes or feet
touch another person. Whistling under any
circumstances is considered rude andunacceptable.
Gratuity & Alms - If you want to tip a taxi
driver, simply round up the fare. Tipping for
taxis, however, is wholly optional, unlike at a
restaurant where it is expected. When
making purchases at a store, your change is
often simply placed in your hand without
explanation of the amount. Keep plenty of
small change on hand, as street merchants
and taxi drivers will often claim that they
don't have change.
The average visitor to India will not only
marvel at the beauty and complexity of its
culture, but also at the depth of the poverty
it holds. If you are moved to give money to
the poor, it is our recommendation that you
do so by donating funds to a known and
reputable charity, rather than distributing
change to beggars on the street. Often
children who beg have a "manager" who will
take the money from them. If you want togive directly to the poor on the street, we
suggest you give food.
http://asnic.utexas.edu
Video 7I am Indiahttp://www.youtube.com/watch?v=F2qZEiZMgWs&feature=related
Teachers Note: To wind down after a tough day, play the video I am India. The music is relaxing
;)
This film is a journey through emerging India," the fastest growing free market democracy
in the world". It celebrates the relentless spirit of the people of India, who through their
karma give it a place amongst the leading economic nations of the world.
Conceived and produced by Bharatbala Productions (BBP) for India Band Equity Foundation (IBEF).
http://asnic.utexas.edu/http://asnic.utexas.edu/http://www.youtube.com/watch?v=F2qZEiZMgWs&feature=relatedhttp://www.youtube.com/watch?v=F2qZEiZMgWs&feature=relatedhttp://www.youtube.com/watch?v=F2qZEiZMgWs&feature=relatedhttp://asnic.utexas.edu/ -
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SMM
LEADING
NEGOTIATIONS INCHINDIA
UNIT 3 NEGOTIATING IN CHINDIA
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A. Watch the video once.
B. Check true or false for the following statements. Correct all false statements.
1) China and India are looking for advice from other countries (true/false)2) Business relations between China, India and Europe are based on reciprocity (true/false)3) Joint ventures in India comprise high domestic participation (true/false)4) CRH buys small to mid-sized companies in the same areas (true/false)5) India has less similarities with Ireland (the British Isles) than China (true/false)6) Rules of law in China, India and Ireland are based on similar concepts (true/false)7) They is too much red-tape in India due to the civil-service mentality (true/false)8) The Chinese way of doing business is more dynamic than the Indian way of business
(true/false)
9) CRH is interested in acquiring stakes in a large Chinese textile company (true/false)Its acement company.
10)Liam OMahoney believes that the company employees are their greatest asset(true/false)
C. What is the secret of CRHs success in India and China, in particular?
Communication Skills Studying cultural clashes
A study of cultural clashes can be very helpful before initiating a cross-cultural negotiation.
Some of the topics to consider are:
Introduction
IndividualismUncertainty Avoidance
Non-verbal communication
Business Etiquette
The study should compare your own country with the country of interest, and contain a conclusion
regarding the most relevant differences between both cultures.
Teachers Note: Uncertainty Avoidance - Acceptance of assumed causes or explanations of a
situation as facts to escape the discomfort associated with ambiguity or uncertainty.
Specify some sub-topics for each of the topics above. Fill in the chart below/overleaf.
Teachers Note: Students will need help with this activity = Brainstorm. Some ideas are provided.
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Introduction Country Overview (population, languages, religion, etc.)
IndividualismIndividualism vs. Collectivism, whether family/business/resultsoriented
Pitfalls
Uncertainty AvoidanceCredit Index, the influence of religious beliefs in decision-making
(karma, etc.), national economic situation (indexes, etc.)
Non-verbal communication Eye contact, prohibited gestures, personal space
Business EtiquetteGreetings (use of titles, handshake, interaction between men and
women, Meetings (punctuality, duration, etc.)
ConclusionMany points and differences to take into consideration (more/less
personal space, strict punctuality, less/more eye contact, etc.
Video 9Asian Business Culture Saying No
http://www.youtube.com/watch?v=z4HB1aUE4p4
1. Is it common to simply say, no during a negotiation in your country?2. What other ways are there for saying, no?3. Is it polite to say no in most Asian countries?4. How do you know when a Chinese executive is saying, no?
A. Watch and listen to a very interesting situation told by Greg Bissky.
1. What is one method the Chinese use to say, no? (They use objections)2. How does Mr. Smith interpret these objections? (He thinks Mr., Chan needs more
convincing, more information)3. How does Mr. Smith interpret Mr. Chans silence? (He thinks it means agreement)4. What does Mr. Chans silence actually mean? (That X should not be done)5. How can these misinterpretations be clarified? (Confirm agreement)6. Are these misinterpretations common? (Yes, in Asian)7. Why? (Rules of communication are different)8. What is Greg Bisskys advice? (Two objections means disagreement)
http://www.youtube.com/watch?v=z4HB1aUE4p4http://www.youtube.com/watch?v=z4HB1aUE4p4http://www.youtube.com/watch?v=z4HB1aUE4p4 -
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ReadingCultural Notes: India and the meaning of Yes
Indians have founded more engineering and
technology companies in the U.S. during the
past decade than immigrants from Britain,
China, Taiwan and Japan combined. Theentrepreneurial abilities of Indians in general
have amazed business people around the
world for years. It seems that Indian culture
produces an uncommon blend of innovative
thinking, business-minded aggression, and
comfort with numbers. But there is another
ingredientIn India, every transaction
EVERY transaction is negotiated.
Merchandise, cab fare, restaurant bills,
wedding dowries the list is endless.
Hotmail founder Sabeer Bhatia credited the
bargaining skills he learned in vegetable
markets at home for getting Microsoft to
push its acquisition price for his company
from $160 million to $400 million.
Stepping on Trust
Trust and relationships take time to build,
and Indians take that all too seriously! They
also consider it rude to question the client.
Rather than express their inability to
understand, they prefer to solve the problem
"among themselves, through discussions."
The general belief is, "Let's at least give it a
shot; if we can't do it, we'll learn that later."
According to the founder of a leading
venture capital firm, Indian programmers
have always had the tendency to say they
are adhering to the schedules, but when the
delivery time arrives, they admit to not
completing the same. This puts the entireplanned agenda of the client in jeopardy --
and, of course, the long-term relationship.
Competing? Yes or Maybe No?
The outsourcing industry faces similar
problems across Asia. The Thai language hasno word for "No"! In China, a "Yes" can be
translated as, "We can take the talks to a
more concrete level." The same is true for
Indonesia. Not willing to be impolite or
embarrass, Indonesians end up conveying
exactly the opposite of what they actually
mean. The native language Bahasa
Indonesian -- has 12 words that say, "Yes,"
but actually mean, "No." Translations in
English fail to capture the intent!
Evidently, phrases such as, "I understand,"
"We will see," "Yes, but" are just polite
versions of "No" in the Asian culture. It's
imperative that the client be able to decipher
these phrases appropriately, as they may not
necessarily indicate agreement.
To avoid any pitfalls, you must ensure that
the service providers have a complete
understanding of the quality and time of
deliverables. Clearly state all the
requirements in the contracts and try to
evolve effective communication channels.
In a nutshell:
The Indian mindset is that clients are
always right.
Indian vendors may agree to the
most unreasonable demands in the
hope of building relationships.
Indians have always maintained that
it is better to say, "There is a
possibility" than refuse.
You'll find similar trends across Asia.
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Summary of differences
There are a number of differences between Competitive and Collaborative negotiation, which are
summarized in the following table:
Characteristic Competitive approach Collaborative approach
Relationship Temporary Long-term
Consideration Self Both parties
Atmosphere Distrust Trust
Focus Positions Interest
Aim to gain Advantage, concession Fair agreement
Information Concealed, power Shared, open
Strategy End justifies means Objective and fair rules
Tactics Coercion, tricks Stick to principlesOutcome Win-lose Win-win
4. Balanced negotiation: Walking between collaborative and competitive negotiation.
It is in this gray zone between black and white where many real-life negotiations tread, as the
participants struggle between the need to achieve their more immediate substantive goals whilst
also keeping within social norms and personal values.
Task - Preparation
A. In groups or pairs
1. Think of all the information you have gathered in Units 1, 2 and 3.2. Prepare a chart (see page 35) with all important information from India or China.3. Provide conclusions based on a comparison with your country.4. Decide on the negotiation style you should adopt, based on this information.5. Think back to the last negotiation you participated in (domestic or overseas companies).
This experience will be the backdrop to your task. Write a short pre-negotiation objectivesmemorandum. The memo should include:
a. Defined goals and objectivesb. Anticipation of the goals of the opposition (based on information from units)c. Alternative to main objectives
Teachers Note: Students may role-play the entire negotiation or only one aspect (pricing, delivery,
contract terms, etc.). This is a pre-activity for the final role-play in the next unit.
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Introduction
Individualism
Uncertainty Avoidance
Non-verbal communication
Business Etiquette
Conclusion
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Teachers Note: This is a sample Pre-Negotiation Memorandum. Students can use their own
formats, with less information, or write on this page directly. Obviously, most information can be
omitted but the terminology of the memorandum can be useful.
PRE-NEGOTIATION MEMORANDUM (PM) FORMAT
1. Grantee Contracting Activity ___________________________________ 2. Date ____________
3. RFP/IFB or Contract Number _____________________________________________________
4. Modification Number ___________________________________________________________
5. This acquisition is being accomplished by (check one)
Full and Open Competition _____________
Other than Full and Open Competition _____
State reasons for other than full and open competition.
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
6. Contract Type _________________________________________________________________
7. Offeror's (Name, Address)
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
8. Business Size and Type (Small, Large, WOB) ________________________________________
9. Offeror's Proposed Amount ______________________________________________________
10. Procurement Description (briefly describe the procurement)
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
11. Pricing Structure
Cost
Fee/Profit ______%)
Total Price
Pre-negotiation Objective
$_______________
$_______________
$_______________12. Delivery of Performance Period ___________________________________________________
13. Points of Contact for this Document (name and phone number)
a. Contracts___________________________________________
b. Technical___________________________________________
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SMM
LEADING
NEGOTIATIONSIN CHINDIA
UNIT 4 LANGUAGE OF
NEGOTIATIONS
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Introduction
When negotiating with foreign executives in
English, remember that structures should be
kept simple. Avoid phrasal verbs, colloquialisms,
complex jargon or slang. Jokes, sarcasm andirony should also be avoided to prevent
misinterpretation. This is one of the main
differences between negotiating in your own
language or with native English speakers. Can
you think of any other important differences?
This unit will present and provide practice for basic language you will need during your negotiation
task. Before we start, lets practice some vocabulary.
Vocabulary of Negotiations
Teachers Note:
Use the vocabulary cards (provided with this course book) for this activity. This activity can be a
quiz in which students must match the words with the correct definition and then make up a
sentence with the corresponding word. The best/correct/first sentence gets a point.
The Art of Negotiation - Overview
Skilful negotiators are flexible. They do not "lock themselves" into a position so that they will lose
face if they have to compromise. They have a range of objectives,- thus allowing themselves to
make concessions, for example, "I aim to buy this machine for 2,000" and not "I must buy it for2,000". Poor negotiators have limited objectives, and may not even work out a "fall-back"
position.
Successful negotiators do not want a negotiation to, break down, If problems arise, they suggest
ways of resolving them. The best negotiators are persuasive, articulate people, who select a few
key arguments and repeat them. This suggests that tenacity is an important quality.
Finally, it is essential to be a good listener and to check frequently that everything has been
understood by both parties.(from Business Class: David Cotton, Sue Robbins. Pearson Education)
In summary
Good negotiators try to create a harmonious atmosphere at the start of a negotiation.
Good negotiators try to reach an agreement which meets the interests of both sides.
Skillful negotiators are flexible
Successful negotiators do not want a negotiation to break down.
It is essential to be a good listener.
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Always keep in mind that a negotiation...
Involves more than one person
Bargaining
Solving Problems
Agreement and disagreementClosing the deal
The secrets of good negotiators
Planning & Preparation
The more you do, the better
Know your negotiation limits
Set your goals at the planning stage
Research
Do as much as possible
Technique
Establish a good rapport by confirm your negotiation theme, listening carefully,
avoiding conflict, summarizing, agreeing, and confirming.
Ask for more than you expect to get.
Put yourself in the other partys shoes.
Negotiate the package not just the price.
Never give without asking for something in return.
Language
Soften your language
Use negative questions: That seems rather high Isnt that a little low?
Not very + positive adjective: The hotel was dirtyThe hotel was not very clean.
Be clear to avoid misunderstandings
What exactly do you mean?
When did you say you can do that/When can do you that?
Im sorry, I dont quite understand
Ask (direct) questions
Can you tell me about your terms of payment?
What sort of discount would you give?
What kind of discount were you looking for?
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What exactly did you have in mind?
Make proposals and concessions
We normally only offer these conditions to regular customers, but we can do this
for you.
Thats a little short for us, but we could deliver in a month.
If you deliver in four weeks, we will place an order. Can you do that?
If we order in bulk, what sort of price could you give us?
Use word you know well
Use different ways of saying, no
Ill see what I can do
Ill let you know
Maybe
Only use phrases like, No, Im afraid not, when you can provide a clear reason.
Stages of Negotiation
Negotiations usually comprise the following stages:
In the following pages, we will discuss the correct language for these stages.
Teachers Note: To make this section more dynamic, ask students to provide their own sentences
(see below). Write them on the board and make sure they use them all during their role-play
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Preparation
Preparation generally includes the following:
Introduction
Opening the negotiation
Clarifying proposals
Check the language next to each heading and underline which option you would be most
likely to use in your own language. Some topics can be omitted altogether.
Introduction Welcoming:
On behalf of ... I would like to welcomeyou to ...
It's my pleasure to welcome you to ...
Good morning/afternoon and welcome to ...
Introducing:I would like to introduce ..
Firstly, allow me to introduce.
Opening Suggesting a procedure:
I would like to begin now by suggestingthe following procedure (agenda).
To start with, I think we should establish the overall procedure.
As our first order of business, can we agree on a procedure?
Checking for agreement:
Does that seem acceptable to you?
Is there anything you'd like to change?
Is this okay with you?
Giving the discussion leadership to a colleague:
I will now hand you over to Mr. Brown___ , who is ...I will now hand the floor over to Mr. Adams , who is ...
Now let me hand the meeting over to my colleague, Ms. Jones , who
Clarifying
proposals
General outline of a proposal:
May I please ask what your proposal is in connection with our company?
What, in general terms, are you looking for here?
Putting forward future possibilities:
We foresee ...
We predict ...
We see ...
Defining a proposal more specifically:
It involves ...
It covers ...It includes ...
It leaves out ...
Seeking clarification: Could you clarify one point for me?
I'm not sure I fully understand yourpoint.
What exactly do you mean by ... ?
Could you be more specific?
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Bargaining
The bargaining stage involves a variety of issues. Check which phrases you would use in each
situation.
Signaling the start of bargaining
We've looked at what you have proposed, and we are ready to respond.After serious consideration, we are prepared to respond to your proposal
Responding to a proposal
Regarding your proposal, our position is ...
Our basic position is ...
As far as your proposal is concerned, we think that ...
Making and qualifying concessions
We would be willing to ..., provided, ofcourse, that ...
We'd be prepared to.... However, there would be one condition.
Making counter proposals
May we offer an alternative? Wepropose that ...
We'd like to make an alternative proposal. We propose that ...
From where we stand, a better solution might be ...
Identifying obstacles
The main obstacle to progress at the moment seems to be ...
The main thing that bothers us is ...
One big problem we have is ...
Analyzing an obstacle
What exactly is the underlying problem here?
Let's take a closer look at this problem.
I would like to analyze this situation and get to the bottom of the problem.
Asking for concessions
In return for this, would you be willingto ...?
We feel there has to be a trade off here
Declining an offer
I'm afraid your offer doesn't go far enough.
Unfortunately, we must decline your offer for the following reason(s).
I'm sorry, but we must respectfully decline your offer.
Asking for further information
Would you like to elaborate on that?
Could you go into more detail on that?
Agreement and understanding on a point
I agree with you on that point.
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So what you're saying is that you...
In other words, you feel that...
You have a strong point there.
I think we can both agree that...
Objection to a point or offer
I'm prepared to compromise, but...
The way I look at it...
The way I see things...
I'm afraid I had something different in mind.
That's not exactly how I look at it.
From my perspective...
I'd have to disagree with you there.
I'm afraid that doesn't work for me.
Is that your best offer?
Closing and Commitment
Checking
Let's just confirm the details, then.
Let's make sure we agree on these figures (dates/ etc).
Can we check these points one last time?
DelayingWe would have to study this. Can we getback to you on this later?
We'll have to consult with our colleagues back in the office.
We'd like to get back to you on it.
I'd like to stop and think about this for a little while.
Let's meet again once we've had some time to think.
AcceptingWe are happy to accept this agreement.
This agreement is acceptable to us.
I believe we have an agreement.
Commitment
I think we both agree to these terms.
I think we should get this in writing.
Would you be willing to sign a contract right now?
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Task Negotiation
(Continued from the task in Unit 3).
Teachers Note:
You must provide all the instructions for this activity based on number of students, fluency, etc.
Students should maintain the same team, group or pair of the previous task (Unit 3).
This task requires your active participation or the participation of an outsider (another teacher or
student that speaks fluent English). You, or this person, must play the role of Indian or Chinese
negotiator. If you have enough students, you can also ask one of the students from Group A to play
to role of foreign negotiator for Group B, and vice versa. This assures tough negotiating practice as
the foreign negotiator will not cooperate with the opposing team.
This activity should be a competition. Students should compete to produce the best negotiation
styles, language and results. This will also force students to perform better and speak more during
negotiations.
The outsider, or neutral party, should choose the best team and give reasons for this choice
(confidence, richness of vocabulary and phrases, etc.).
If there is time, show students DVD 1 Trend Life Activity (see page 52) and, ask them to do the
Self-Assessment, which contains lots of useful grammar and structures.
Based on the preparation task in Unit 3, plan a detailed negotiation outline. You must use all
phrases you selected in this unit, and go through all the negotiation stages. Remember you are
negotiating with executives from China or India. Think about how you would alter your negotiating
style, technique and language accordingly.
Your teacher will give you instructions for the role-play activity. Good Luck!
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Self Assessment
Part I - Forming Questions
Fill in the crossword puzzle with the missing words in the clue-sentences below. Write phrases
with more than one word as one word, e.g. how much = howmuch.
1
2
3 4
5 6
7
8 9
10
11
12
Across
4. _HAVE__ you had a look at the samples weve
sent you?
5. _HOW MANY_ tons of soy meal would you
like?
7. _ARE_ you absolutely sure that's the best price
you can find?
8. You wouldn't mind receiving the buns in
cardboard boxes of 40, _WOULD_
you?
10. _IS__ the suggested supplier ISO 9001
certified?
11. _DID__ we discuss prices on the phone?
12. _CAN__ we deal with technical details later?
Down
1. _WHERE_ do you manufacture the gearboxes?
2. _WHY_ is your product 30% more expensive
than your competitors?
3. _DO_ you want the first shipment next week?
5. _HOW_ can we proceed from here?
6. _WOULDNT_ you agree that this solution is
exactly what you need?
9. You handled the shipment to Ultrafert
yesterday, _DIDNT_ you?
12. _COULD_ you tell me about your quality
control system?
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Part II - Forming Questions
A. Form questions by putting the words in the correct order.
1)history / tell / you / us / could / about / your / something / companys
_Could you tell us something about your companys history_____?
2) would / a month / how / of / powder/ you / tons / need / egg yolk / many
__How many tons of egg yolk powder would you need a month____?
3)production / your / a month / maximum / Whats / capacity
__Whats your maximum production capacity a month__________?
4) and / system / drawing / have / smart boards / for / the / writing / does
__Does the system have smart boards for drawing and writing_____?
5) turbines / eight / and / install / 200 / be able/ in / less than / to build / would /months /you
__Would you be able to build and install 200 turbines in less than 8 months__?
6)be able / give / think / do / youd / when / to / us / a firm / you / order
__When do you think youd be able to give us a firm order_________?
7) standard / are / the / and / between / what / versions / differences / Enterprise
__What are the differences between the standard and enterprise versions__?
8) was / what / I / finish / I / could / saying / just
__Could I just finish what I was saying______?
9) be impossible / it / is /that / what / would / saying / youre/ to give a discount /so,
__So, what youre saying is that it would be impossible to give a discount___?
10)by / what / mean / you / low quality product / exactly / do
__What do you mean exactly by low quality product_?
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Part III
A. Fill in the blanks with the words in the box.
1) Unless you __COME UP WITH_ some better conditions, we __WONT_ do any business with
you.
2) If you __CANT AGREE__ to paragraph 2 in the contract, _WELL_ have to call it a day.
3) We __CANT SIGN__ the contract, if you __WONT__ change the terms of delivery.
4) I __CANT ACCEPT__ this quality, unless you _REDUCE_ the price substantially.
5) If we __DONT RECEIVE_ the first shipment on the 16th, __WELL_ cancel the contract.
B. Use the form in exercise 1A (If, or unless) to exert pressure in the following situations.
Example:
(Supplier to company) Accept our standard contract / get our standard discount.
Unless you accept our standard contract, you wont get our standard discount.
You wont get our standard discount, if you dont accept our standard contract.
1) (Negotiator to other negotiator) Call it a day / a concession.
__UNLESS YOU MAKE A CONCESSION, WELL CALL IT A DAY._________
2) (Company to ISP (Internet Service Provider)) Cancel your services / reduce your fees.___IF YOU DONT REDUCE YOUR FEES, WELL CANCEL YOUR SERVICES._____
3) (Purchaser to supplier) Choose another supplier / better offer.
__UNLESS YOU MAKE A BETTER OFFER, WELL CHOOSE ANOTHER SUPPLIER._______
wont cant sign well dont receive come up with
wont reduce cant agree well cant accept
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4) (Employee to boss) Find another job / better salary.
__IF I DONT GET A BETTER SALARY, ILL FIND ANOTHER JOB.______
5) (Boss to employee) Stop pressuring / get fired.
__UNLESS YOU STOP PRESSURING, YOULL GETFIRED._______
C. Attaching Conditions - Fill in the blanks with the words in the box.
1) We __WOULD OFFER__ you one per cent, if you __AGREED__to payment within fifteen days.
3) On the one condition you __CHANGED__ that in the contract, __WED AGREE__ to the rest.4) I _WOULD WRITE__ a check right away, provided that you _OFFERED/GUARANTEED__ a five
per cent discount.
4) __ID ACCEPT__ this quality as long as you __REDUCED__ the price substantially.
5) We __WOULD WANT___ to hire your services, if you __AGREED____ to maintaining our website as well.
D. Make offers and attach conditions.
Example:
Offer: renew the contract
Condition: a two per cent discount
We could renew the contract on the condition that you offered us a two percent discount.
offered guaranteed wed agree reduced would want
Idaccept changed would offer agreed would write
accept
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Offer/Condition
1. Offer: be our sole distributorCondition: sign distributor agreement
__________________________________________________________________________
____________________________________________________________________________________________________________________________________________________
2. Offer: new notebook computersCondition: reach sales targets
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
3. Offer: free internet accessCondition: give a firm order now
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
4. Offer: get a raise and some perksCondition: work hard the next two months
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
5. Offer: position on the boardCondition: agree to work in Argentina
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
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About China
The following videos give you good glimpses of doing business in China.
Business Ethics in China
9. Why is Guanxi important to business in China?10.Regarding business attire, what are some observations that men and women must
pay attention to in China?
11.Mianzi is a very important part of the Chinese culture. Can we trust the facialexpressions of people from other countries like Brazil and the U.S.? Are they as
transparent?
12.In negotiating in China, how should we interpret: possibly, maybe or Ill thinkabout it?13.The Chinese are very skilled negotiators, what are some tips you must know?
Modern Business in China
1. Could a wrong handshake for example, jeopardize a business negotiation in China?2. Has modern business principals in China changed drastically over the years?3. What are some tips that were presented that can help during a meeting in China?4. During a presentation in China, what are some things you must do?5. Is it easy building business relationships in China? How is it different from Brazil
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