2010年ESL之商务英语 23 Negotiating a Business Deal

23 Negotiating 1 a Business Deal

GLOSSARY 2

negotiation 3 – the process of trying to reach an agreement with another personor organization where each side is willing to give up a little bit of something tomeet the other side’s needs* They found a house they’d like to buy, but now they’re in negotiations 4 over whowill pay for the new roof.

deal – an agreement, especially involving a sale or exchange of goods orservices* Did you get a good deal on the new car?

to put the finishing touches on (something) – to make the last smalladjustments or changes to finish something well, when most of the work hasalready been done* They’ve almost finished remodeling their kitchen, and now they’re just puttingthe finishing touches on it by painting the walls and changing the handles on thecupboards.

to hold out – to delay agreeing to something because one is waiting until onereceives something else* We’re almost ready to accept their offer, but we’re still holding out for a littlemore money.

concession 5 – something that one agrees to let another person have or do inorder to reach an agreement or end an argument* The company can be flexible with your vacation time, but we simply cannotmake concessions 6 on salary.

demand – something that one insists on having; something that one says onemust have or do in order for something else to happen* They’ll never agree to your demands for such a large expense account.

to give in – to agree to do something that another person wants, even thoughone doesn’t really want to; to let another person win* If we’re persistent 7, at some point they’ll give in just because they’re tired ofarguing with us.

to counter – to make a proposal in response to another person’s proposal* Randy initially 8 offered just $200 for our boat, but we countered with $300.

to have (someone) over a barrel – to be in a situation where someone is in avery difficult, uncomfortable, or impossible situation and one can take advantageof that, knowing that one will win* The landlord raised the rent again and the apartment is too expensive for usnow, but he has us over a barrel, because we don’t have anywhere else to go.

to walk away – to end discussions and stop negotiations because one is nolonger interested in something, usually because the other side is asking for toomuch* Don’t be too greedy! If you keep asking for more and more, they might justwalk away and leave you with nothing.

at the table – in discussions; continuing to participate in negotiations* They spent many hours at the table before they agreed on the terms of themerger.

to cave – to give in; to give up; to agree to the other side’s demands just to reachan agreement, usually because one is tired of arguing or negotiating* The Jamisons were so desperate to find renters for their home that they cavedand agreed to let the new tenants 9 have pets in the home, even though they reallydon’t like the idea.

touch-and-go – fragile 10 and hesitant; something that could fall apart or fail at anymoment* The business is touch-and-go right now, and if the economy doesn’t improve, itwill probably have to close.

to characterize 11 (something) – to describe something in a particular way* How would you characterize the play? Is it a comedy or a tragedy?

duly noted 12 – a phrase used to show that one has heard and understood whatanother person has said and will think about it, especially when one needs tomake a decision* Your complaints have been duly noted and we will share them with the storemanager.

COMPREHENSION QUESTIONS1. What does Logan mean when he says, “we’re still at the table”?

a) We’re eating while talking.

b) We’re still discussing things.

c) We’re ready to sign the documents.

2. What does Gia mean when she says everything is “touch-and-go”?

a) They’re waiting for a final handshake.

b) The negotiations may or may not succeed.

c) The parties aren’t allowed to touch each other.

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WHAT ELSE DOES IT MEAN?

demandThe word “demand,” in this podcast, means something that one insists on having,or something that one says one must have or do in order for something else tohappen: “Management will never agree to the workers’ demands for cheaperhealth insurance.” In economics 13, the word “demand” refers to how much of agood or service people want to have at a particular price: “For most products andservices, demand increases as the price decreases.” The phrase “on demand”

means whenever someone wants something, without having a set schedule:

“Lynn often pays a few extra dollars to watch her favorite movies on demand,instead of waiting for them to appear on the TV schedule.” Finally, the phrase“due to popular demand” means happening because many people have askedfor something: “The chef is putting apple pie back on the menu due to populardemand.”

to walk awayIn this podcast, the phrase “to walk away” means to end discussions and stopnegotiations because one is no longer interested in something, usually becausethe other side is asking for too much: “If they won’t lower the price, we canalways walk away.” The phrase “to walk away from (something)” means to leavea bad situation without trying to fix it: “Once you’re married, you can’t just walkaway from the relationship if you have problems.” The phrase “to walk(something) off” means to go on a long walk when one isn’t feeling well so thatone will feel better: “Una had a headache, but she decided 14 to walk it off and nottake medicine.” Finally, the phrase “to walk out” means to leave because someone doesn’t like something: “The actors were horrified 15 to see their audiencemembers walking out during the play.”

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CULTURE NOTE

Before “investing” (putting money or other resources into something, hoping tomake more money or see results) money in anything, it is important to “conduct”

(do) “due diligence,” learning as much as one can about something and makingsure it is “legitimate” (real) and “legal” (following the laws). This is true forbusiness “transactions 17” (buying and selling) and “philanthropy” (giving money tononprofit organizations).

In a business transaction 16, due diligence is usually related to a company’s“financial situation” (how much money a company has, how it is managed, andhow profitable 18 it is), as well as legal and tax “considerations” (concerns; worries).

Conducting due diligence requires reading the company’s annual reports and“financial statements” (documents with financial information) and “verifying”

(making sure something is true) that information by conducting an “audit” (theprocess of testing many transactions or accounting 19 entries to make sure thingsare done correctly). Due diligence might also involve making sure the companyhas all the “requisite” (required; necessary) “licenses” and “permits” (officialpermission to do something) and checking with the city and state to see if anycomplaints have been “filed” (submitted) against the company.

In philanthropy, “prospective” (possible; considering doing something) “donors 20”

(people who give money to organizations) conduct due diligence “much as theywould” (similarly; in a similar way) for a business transaction. They learn asmuch as they can about the organization and review its annual reports andfinancial statements. They review the organization’s tax filings and study howthe organization spends its money. Donors also want to understand theorganization’s “impact” (effects; results) on the “beneficiaries” (people whobenefit from something) so that they know their money will be used to do goodthings.

______________Comprehension Questions Correct Answers: 1 – b; 2 – b

COMPLETE TRANSCRIPT 21

Welcome to English as a Second Language Podcast number 632: Negotiating aBusiness Deal.

This is English as a Second Language Podcast episode 22 632. I’m your host, Dr.

Jeff McQuillan, coming to you from the Center for Educational Development in –guess where? That’s right, beautiful Los Angeles, California.

Our website is eslpod.com. Consider becoming a member of ESL Podcast tosupport this effort. You can go to our website, and by becoming a member alsodownload the Learning Guide for all of our current episodes 23.

This episode is called “Negotiating a Business Deal” (a business agreement). It’sa dialogue between Gia and Logan. Let’s get started.

[start of dialogue]

Gia: Why are the negotiations on this deal taking so long? I thought we wouldbe putting the finishing touches on it by now.

Logan: The other side is holding out for more concessions. I don’t know whatthey’re thinking. They made some pretty big demands at the start and I thinkwe’ve given in to most of them. Now they’re countering with even moredemands.

Gia: They probably know that they have us over a barrel. After all of the timeand money we’ve put into this deal, they know that we don’t want to walk away.

Logan: That’s true and that’s why we’re still at the table, but they may bepushing too hard. In the end, I don’t think we’ll cave on those additionalconcessions.

Gia: So the entire thing is touch-and-go right now?

Logan: That’s how I would characterize it. If I were you, I wouldn’t make anylong-term plans.

Gia: Duly noted. I won’t run out and buy that new house and those three newcars.

[end of dialogue]

Gia begins by asking, “Why are the negotiations on this deal taking so long?”

“Negotiation” is the process of trying to reach an agreement – trying to agree withanother person or another business, when each side “compromises,” that is,each side gives in a little. For example I want to buy a new car and the personselling it says, “It’s 20,000 dollars,” and I say, “Oh, that’s too much. How about18,000 dollars?” and the person selling – the seller – says, “Oh, no. I could onlygo as low as 19,000 dollars,” and you say, “I’ll give you 18,500 cash. I have themoney with me,” and he says, “Okay, I’ll take it.” That’s a negotiation.

Negotiations are always about time, power, and knowledge. That is, if you havea long time to wait or you need something done right away, if you haveknowledge about what the other person wants, and finally if you have some othersort of influence or power over that person, all those things will affect yournegotiation.

Gia wants to know why the negotiations on this deal (this agreement) are takingso long – are lasting 24 such a long time. She says, “I thought we would be puttingthe finishing touches on it by now.” The expression “to put the finishing (or final)touches on (something)” means to be making small changes in order to finishsomething so that it’s perfect. The idea is that most of the important work hasalready been completed.

Logan says, “The other side (the people they are negotiating with) is holding outfor more concessions.” “To hold out” is a two-word phrasal verb meaning todelay agreeing to something because you are waiting to receive something more;usually we say you “hold out for” something. For example, someone wants tooffer you a job and they offer you 50,000 dollars a year, and you say, “Uh, I’m nottoo sure. Let me think about it,” and you wait, and you wait. You are holding outfor more money. The boss may call you back and say, “Well, I’m sorry. I need tomake a decision, it’s been a week,” and you say, “Just one more day,” and hesays, “Okay. Just one more day.” As time goes on the boss becomes more andmore desperate. He need to hire someone, and so you may get what you wantbecause you have made him wait; you have used time to your advantage in thenegotiation. The same is true when you go to buy, for example, a new car at aplace that sells a lot of cars. The more time you can take with the salesperson,the more likely they will be to negotiate 25 with you. Because they’ve spent all thattime with you they don’t want to have you walk away, and they having wasted anhour for example on trying to sell you a car. Well, the other side is holding out forconcessions. “Concessions” are things that you agree to do in order to reach anagreement. It’s like a compromise; you say, “Well, okay. I can’t give you more than 50,000 dollars (as the boss), but I can give you an extra week of vacationtime.” That would be a concession.

Logan says, “I don’t know what they’re thinking (the other side). They madesome pretty big demands at the start and I think we’ve given in to most of them.”

“Some pretty big demands” means some very large demands, where “demand” issomething that you say you must have – I cannot do this deal without it. Logansays their company has already given in to most of their demands. By the way,the word “demand” has a couple of different meanings; the other meanings youcan find in our Learning Guide. “To give in” is a two-word phrasal verb meaningto agree to do what someone else wants you to do even though you don’t reallywant to do it. So the parent who has a child who says, “Mommy, Mommy, I wantto go to the store! I want to go to the store! I want to! I want to! I want to! Iwant to!” Mommy can either say, “No, go to your room. I’m not letting you go tothe store,” or she can give in; she can say, “Okay. You can go to the store.”

Nowadays, most parents just give in, or so it seems – so it appears to me. Youknow, when I was young…oh, never mind!

Logan says the other side is countering with even more demands. “To counter”

is when someone makes you a proposal: “I will sell you this car for 20,000dollars,” and you say, “No. I…I only want to pay 18,000 dollars.” Your proposalis a counter proposal: he says 20,000; you say something different. Thatsomething different that the other person says is their counter proposal. Theverb is “to counter,” to offer something else instead of the original proposal.

Gia says, “They probably know that they have us over a barrel.” The expression“to have (someone) over a barrel” (barrel) means to be in a situation wheresomeone is very uncomfortable, or to be in a situation where you can beat theother person or take advantage of them knowing that you will win. For example,you live in an apartment and the person who owns the apartment raises yourrent, but if you don’t have anywhere else to go or if you need to stay in thatapartment he has you over a barrel; he has you in a situation where he can getwhat he wants because you don’t have the power to move. In this case, theother side has knowledge about the situation of Gia and Logan’s company, andthey have power – they have them over a barrel.

Gia says, “After all of the time and money we’ve put into this deal, they know thatwe don’t want to walk away.” This is the idea I was talking about earlier. Gia andLogan’s company has spent a lot of time and money negotiating this agreement,so they don’t want to waste that time and money – they don’t want to walk away.

“To walk away” is a two-word phrasal verb meaning to stop the negotiations, toend the discussion.

Logan says, “That’s true and that’s why we’re still at the table.” “To be at thetable” means to be continuing to participate in the negotiations – to continue totalk to them. Logan says, “they may be pushing too hard (meaning they may betrying to do too much – trying to get too much). In the end, I don’t think we’ll caveon those additional concessions.” “To cave” (cave) as a verb means to agree todo what the other person wants you to do just so you can reach an agreement;“to give in” or “to give up” are also ways of saying same thing. Gia says, “So theentire thing (the entire negotiation) is touch-and-go right now?” “Touch-and-go” is something that could fall apart at any time; it’s something, we would say, that isvery fragile. “To be fragile” means you could break it easily. Well, thenegotiations are fragile – they’re touch-and-go.

Logan says, “That’s how I would characterize it (meaning that’s how I woulddescribe it). If I were you, I wouldn’t make any long-term plans (plans into thefuture).” Gia says, “Duly noted.” That phrase, “duly (duly) noted,” is used toshow that you have heard and understood what the other person has said andwill think about it. We use this phrase especially if we need to make a decisionabout something. Gia says, “Duly noted. I won’t run out and buy that new houseand those three new cars.” “I won’t run out” means I won’t go immediately andbuy a new house and three new cars. She’s joking, of course. She’s saying thatshe will not spend a lot of money because they still don’t know how thenegotiations are going to end up; that is, how they are going to come to a finalresult, what that result will be.

Now let’s listen to the dialogue, this time at a normal speed.

[start of dialogue]

Gia: Why are the negotiations on this deal taking so long? I thought we wouldbe putting the finishing touches on it by now.

Logan: The other side is holding out for more concessions. I don’t know whatthey’re thinking. They made some pretty big demands at the start and I thinkwe’ve given in to most of them. Now they’re countering with even moredemands.

Gia: They probably know that they have us over a barrel. After all of the timeand money we’ve put into this deal, they know that we don’t want to walk away.

Logan: That’s true and that’s why we’re still at the table, but they may bepushing too hard. In the end, I don’t think we’ll cave on those additionalconcessions.

Gia: So the entire thing is touch-and-go right now?

Logan: That’s how I would characterize it. If I were you, I wouldn’t make anylong-term plans.

Gia: Duly noted. I won’t run out and buy that new house and those three newcars.

[end of dialogue]

I would characterize our scriptwriter as amazing. That’s because it’s our own Dr.Lucy Tse.

From Los Angeles, California, I’m Jeff McQuillan. Thank you for listening. Comeback and listen to us next time on ESL Podcast.

English as a Second Language Podcast is written and produced by Dr. Lucy Tse,hosted by Dr. Jeff McQuillan, copyright 2010 by the Center for EducationalDevelopment.