Market Leader Intermediate 3rd edition SB

AUDIO SCRIPTS
For example, one of otlr recent enquiries was into the groceries market
in the UK. UIll, that is quite a highly concentrated market, in the
sense that there are, sort of, four or five major grocery companies in
this country, erm, and they control something in the region of80 per
cent of the market. However, um, our-, after in-depth investigation, it
was clear that this is a market where these companies arc competing
actively with each other. Um, customers have a choice and they're
exercising that choice and, as a result, the comp;mies concerned arc
competing with each other, which brings the benefits in terms of, lim,
lower prices, innovation and greater choice for consumers.
C02 TRACK 38 (RT = RORY TAY LOR)
RT We could contrast that with another enquiry that we did, completed
about two years ago, into what's known as liquid petroleum gas
for domestic users. Essentially, this is for customers who arc not
supplied fo r energy through pipes - they live in remote areas,
and therefore they need the gas, which is ;"llso known as propane,
propane, delivered to their house and put in a tank. Again this is a
market with only four major players in it, concentrated in the same
way in nominal terms like the groceries industr)', but we fo und a far
more static market. Er, we found that customers were not switching
between the companies, the companies were not competing with
each other, erlll, and conseqllently we were finding higher prices, less
innovation and less choice.
C02 TRACK 39 (M = MANUFACTURER, A = AGENT)
M OK, perhaps we could start, as we agreed, by discussing the kind of
A
M
A
M
A
M
A
relationship we want.
OK.
Usually with a major distributor or agent, we don't oner an exclusive
agency agreement, because they don't want it. They like to usc and
distribute the products of most of the top companies. They make
more money that way.
Ye s, a non-exclusive contract would be perfect for us, too. As you
know, we represent many f-amous brands and will be happy to add
your product lines to our list.
Right. Now, prices: we like to recommend prices for each overseas
market - we advise on minimum and maximum prices fo r each of
our models.
No, that's no good for liS. We prefer to set the prices for all the
products we offer. We know the market conditions fa r better than
you ... we would set the correct prices to maximise profits, of course.
OK, it is 110t really a problem if you prefer it that way I won't argue
with you. Now, the commission: I suggest a rate of 1 5 per cent on all
the re\ '
enue you obtain, either directly or indirectly. Is that OK?
Fifteen per cent is too low. We want at least 20 per cent. The market
is ver) , competitive. \·Ve·U have to spend a lot on advertiSing and
promoting your products.
M Yes, but \\'e could help with this.
A How much will YOll pa)' liS?
M \'\'e1l, we might go 50:S0 up to an agreed limit. We can talk abollt the
A
M
exact figures later.
,'II have to think about it. We'll talk about the commission later.
Let's discuss the length of the contract. Normally, we offer two years,
and to be honest, with a new distributor, we prefer a shorter period.
Either side can terminate with 60 days' notice.
A Well, it must be at least three years for it to be profitable for us.
M Well, we can talk about it later. I suggest we break for lunch now.
CD2TRACK 40
A non-exclusive contract would be perfect for us, too.
2 No, that's no good for liS.
3 We know the market conditions far better than you.
4 I suggest a rate of I S per cent on all the revenue you obtain.
5 Fifteen per cent is too low. We want at least 20 per cent.
6 \'Ve could help with this.
7 How much will you pay liS?
8 We'll talk about the commission later.
9 To be honest, with a new distributor, we prefer a shorter period.
10 It tllust be at least three years.
WORKING ACROSS CULTURES 4:
COMMUNICATION STYLES
CD2TRACK 41
How close do you like to be when speaking with a business colleagud
How much eye contact are you comfortable with? Are you comfortable
with long periods of silence? And how do you feel about interruptions
These are some of the questions we will be looking at in loday's
workshop on communication styles and cultural awareness. My
name's Patrick Keane and ,'m the Managing Director of Ollr office in
Caracas, Vene7.uela.
So wh), should you listen to me? Well, ]"ve had 12 overseas postings,
including Brazil, Russia, China and lndia, and I speak fo urlanguages.
By the end of the workshop today, you'll have a better understanding
of communication styles in )'our own culture and an introduction
to those st),les in other cultures ... and this is the starting point for
learning how to deal with cultural difterences.
It's worth bearing in mind lhat60 per cent of people in this company
get an overseas posting.
Let me tell you briefly what we arc going to cover today. J'll get the
workshop going with a brief talk. Firstly, I'm going to talk about
some ways in which we use verbal communication and J'll look at
two areas. Then ['m going to look at non-verbal communication,
again looking at two areas. And after that, we'll cia some activities
looking at communication styles in your own culture.
Let me ask you a question: can you put up your hands if you've
alread), h:ld an overseas posting? Thank you. Now, we know that the
majority of ) , Oll will have an overseas posting at some time in your
career. One of the challenges we face when we go into a new cultural
environment is the communication style.
I'm going to begin with verbal communication. M)' first example
is silence, and how comfortable people are with silence ... when
people don't say anything. East Asian and Arab cultures are generally
quite comfortable with silence. However, Anglo-Saxon cultures dOIl't
feel happy with long pauses in the conversation.
My second example is the acceptance of interruption between
speakers. This is seen differently among different cultures. Generally,
we can say that East Asians, Americans and Northern Europeans
are not comfortable with interruption. They prefer to have as few
interruptions as possible during conversations. Now, 1 'm not saying
that people in these cultures don't interrupt. However, in these
cultures, people who interrupt frequently arc regarded as rude. But
if we look at Southern Europeans and Latin American cultures .
well, they're quite comfortable with interruptions. They even see it
as positive engagement. 111e) , can see cultures which remain quiet as
being rather fo rmal or cold.
Let me move on to non-verbal communication - body language and
gestures which can provide challenges for staff not used to working
abroad. Again, I have two examples. First, [ want to talk about
proximity, or ho\\' close you stand when talking to people. Now, this
really docs var), behveen cultures. There's been some research into this,
and apparently East Asian cultures prefer the space between people
in conversation to be approximately one metre. However, the Latin
cultures of Europe and Latin America ... they prefer less than half
a metre. This can cause some strange situations where people from
different cultures try to get comfortable during the conversation by
moving fo rwards or backwards. As I said earlier, I'm based in Caracas,
Venezuela. In fact, Venezuelans like to talk to each other standing
about 12 centimetres apart. And they like to touch each other to show
trust, or to show that the other person is what they call simpatico.
My second example of non-verbal communication is the level of
eye contact - how much eye contact is normal and when to break
it. Some cultllt"es may fe el that the other side is not engaging with
them and not sho\\ling enough eye contact. Other cultures may feel
that they arc being stared at. Well, Arab and Latin cultures usually
have the most e) ' e contact, while East Asians have the least. North
Americans and Northern Europeans are somewhere in the middle.
Before we move on to the workshop, I"d like to ask you \\'hich
cultures you feel you know well.
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