We meet today to discuss the terms of our future business. The principales issues that we want

to talk about are the price, the method of payment and the joint- venture.

I represent Royce Lytton Company and my colleagues represent KTC.

The purpose of this visit is to hold preliminary negotiations about a possible contract between

Royce Lytton and KTC.

The manager of RL came from England to close this deal. We need to set an agreement for

the purchase and distribution of Royce Lytton products. For the next five years it was

predicted a doubling of the demand on the poultry market, which means that we need to find

a realiable source of supply as soon as possible.

Taking part in the conversation are:

John Rutherford, manager of Royce Lytton

Sheikh Sayid, KTC

Abdullah Najibi, general manager of KTC

1.Relationship building

A: Hello Mr Sheikh Sayid. Are you feeling good today?

E: Mr Rutherford, this is a pleasure. How are you?

A: Before all , I want to say that I’m grateful for this chance to talk again. You’re reputation

proceed you. I’m fine, thank you.

E:Are you for the first time in Kuwait? Did you see the cityAndreea: It’s my first visit here

and unfortunately is a short visit.I’m afraid I won’t be able to see very much because I’m

short of time.

E: ? I hope you enjoy your stay here…

A: Thank you, I will.

2.Agreeing procedure

E: I think we should start.I’d like to say we hope this will be the beginning of a good business

relationship for both our companies.

A: Yes,indeed. So do we.

E: First of all ,I think we should establish the overall procedure for our metting.I’d likeheck

what you hope to achieve.What we’d like to get from this meeting is to find out more about

your company needs and talk about servicing those needs.

Is that OK with you?

A:Certainly.First of all, thank you for attending this meeting. As you know, the objective of

this meeting is to discuss a proposal for the future plans of ours companies. Has everybody

got the copy of the agenda?

E: I think we do. I would like to discuss following the agenda.

E: Well,what’s most important for us is to find out more about your expectations. Would you

go along with that?

A: Oh, yes, our main objective is to discuss the price, the method of payment and a possible

joint venture. Does that fit in with your objectives?

E: Yes, this is fine.

A: Good. We seem to have broad agreements on objectives.

3.Exchanging information

E: Tell me more about you’re company , Mr Rutherford.

A: The company is based at Hadleigh, in Suffolk It’s on the Estern side of England. We are

producing and also distributing poultry products.

E: We also have many interest in the Gulf : property, factories, shopping malls, hotels…

A: Woud you be interested in importing poultry products?

E: Yes and we also want to distribute your products.

4. Questioning (aici poti sa adaptezi ce am mai scris noi au sa stergi) e alegerea ta

- Now, you’ve read the proposal, so without further ado, I’d like to open up for

discussion.

- Can I just ask you about your basic requirements? What poultry you want the most?

- Of course, we understand that you need time to consider any offer. My first priority is

to keep the negociations open, not to jump the gun.

5. Options

A: - As we can see, there are many areas where our interests are aligned. The main

overlapping goal is how to remain competitive in the face of largers providers, don’t you

think?

E/A: - Shall we list the optiones first and them examine them in more detail one by one?

A: - Yes, I agree. In this situation I propose to start with the principals issues from our

agenda, which are the price of chickens and geese, the method of payment and, if it is possible

our joint venture. Are you ok with that?

E/A: - Yes, we are. We read your proposals and these are the issues that we consider most

important, too. But before that, can I just ask you about the quantity of poultry you can export

per year to our market?

A: - Sure. I have in mind a quantity of 4.000 tones a year. This means aproximatively 420

tone for mounth.

E/A: - I understand that. But my question is: why think small when we can do better? We

have been thinking about 6 or 7 thousand tones a year to begin with or maybe more. Chickens

more, and then geese. Do you think you can produce these quantity?

A: - Well, that’s a lot of poultry. On that score, what I can say is that we will put our

shoulders to the wheel and obtain the quantity that you expect. It’s our pigeon to thank all our

clients and parters.

E/A: - I see. We discuss later about the exact quantity we desire. Can I ask you What method

of payment you use more?

A: - From the beginning of the business, we use a irrevocable letter of credit payable at sight

with the new costumers. We use this method because we don’t know very well the new

companies and this is the safest for each of us. To put in other words, we don’t want to

jump the gun.

E/A: - We use another kind of payment. But we discuss about this later. Now, we were

interested about the fact if you will give our products to other producers from the local

market.

A: - No. You’ll receive exclusively. We have the main line of business and maybe this is a

great chance to work together. Don’t you think?

E/A: - Sure. I can agree with that.

6. Proposals / Bidding

A: - I’d like to start by suggesting that we shall concentrate at the cost of chicken, because

this is the poultry you interest the most. We shall agree about the slaughtering facilities, then

take into consideration the way to pay for it . Is this ok with you?

E/A: - Yes. Now, Can you provide us more details about the prices you intend to start for

chickens and geese ?

A: -Sure. We propose for the beginning 420 £ per tones for chickens and 540 for gees. But

can i suggest something before we talk about the price?

E/A: Go ahead.

A: How about talking about the method of payment and then concentrate on cost?

E/A: These could be a good idea. You’ve said before that you prefer a letter of credit.

A: Yes, indeed. Does that seems acceptable to you?

E/A: Not quite. We usually use a bank draft . For this, we give our suppliers a payment term

of 120 days. What do you think about our proposal?

A: I think that would be a better solution to use a letter of credit on sight.

E/A: I understand. We can take into consideration this proposal as a option too. But this

method we use with our suppliers for a long time.

A: I agree with you. But, alternatively, we could choose a letter of credit because this is a

used primarily in international trade transactions of significant value, like here because u said

that you want to buy a very large quantity.

E/A: You’re right. You’ll see that things happen at a different pace around here.

A: We understand that you need time to consider any offer. My first priority is to keep the

negociations open. At least would you think about this/it as an option?

E/A: -Certainly. Now I propose to concentrate of another isuue from the agenda? Do you

agree with that?

A: I agree. Which one are you reffering to?

7.Bargaining

E: Mr Rutherford, we’ve looked at what you have proposed and we are ready to respond. We

are interested in a joint venture. Would you agree with that?

A:To be honest, we don’t know. We wouldn’t want to jump the gun, eh? We would have to

study this. Can we get back to you on this later?

E:This is ok with us. Can I just move on to another question?

A: Go ahead.

E: Can you give me an idea of what quantity you might be interested in selling?

A: Well, you’ll be impressed. Let’s say 10 thousand tones a year.

E:I will now hand the floor over to Mr Abdullah, who is our general manager. He will explain

you with more details our position on this matter.

Andrei: It’s a pleasure to meet you Mr Rutherford. Now that we’ve got here, I think we

might start to discuss about quantity. Would that be acceptable to you?

A: Sure. Could you be more specific?

Andrei: We are willing to buy let’s say six or seven thousand tones of chicken a year or

maybe more.

A: As I said before, I have to admit that this is a lot of chicken. Let’s just set up the details,

then.

Andrei: Would that be acceptable to you a price of 350 pounds per tone?

A: Taking into consideration that our poultry is quoted as high quality products, we want at

least 393 pounds per tone for chicken.

Andrei: What about the geese? What price have you established for it?

A: Well, we thought that 530 pounds per tone would be convenient

E: I agree with what you said. We are aware of your high quality products. From where we

stand, a better solution might be to accept your price for the chicken and if we can assure you

that we are willing to buy also 2 thousand tones of gees a year, would you offer us a discount

of 15%?

A:This agreement is acceptable to us.

Andrei: May I ask,please, what your proposal is concerning the payment method?

A: Let me kick things by saying that We grant 90 days and accept a bank draft in our favour.

Is that ok with you?

Andrei:We would be willing to accept that. However, taking into consideration that we were

used to have 120 days, we will add 1 per cent to our trading costs over a year. Is that ok?

A: I was sure that we can clinch a deal.

8.Settling and concluding

E: Is that anything you’d like to change?

A: No, everything ‘s fine. Concerning the joint venture that you mentioned, as I said ,,we

don’t want to force the pace. We'll have to consult with our colleagues back in the office.

We'd like to get back to you on it.

E:There is no problem. Just think about it. We consider that would be an excellent

opportunity for both of us.

Andrei: Let’s make sure now that we agree on thes dates. We established a price of 393

pound for the chickens and a discount of 15% for the gees. We also agreed that you’ll grant

payment terms of 90 days plus 1 per cent to our trading costs over a year. Is this an accurate

summary?

A: Yes, you are right.

E:We are happy to accept this agreement.