Canadian/Iranian negotiating a lease for an INGO in Afghanistan
Canadian/Iranian negotiating a lease for an INGO in Afghanistan
Landlord, Mr. Golam, pays a surprise visit to the office of the INGO and wants to see the new Director Ramin, who arrived in country 3 weeks ago
Ramin: Hello, I hear you are our landlord, my name is Ramin Shahzamani, I have replaced Julian
Golam: Hello Mr. Shahzamani Sir Boss, how are you? How is your health? How are you? Are you ok? My name is Golam Golam.
Ramin: Thank you Mr. Golam Golam, I’m very well and how are you?
Golam: Blessed God, I’m fine, how is your health, how are you?
Ramin: (I was starting to feel like something was wrong with me) I’m fine thank you
Golam: How are your wife and the children?
Ramin: (I can’t tell him that I have a partner but not married) Oh, I’m not married.
Golam: Inshallah (God willing) you will be bless you with the pleasure of sons one day.
Ramin: uhhh, yes Thank you … I have always wanted children. Please have a seat.
Golam: I heard there is a new person in charge so I’ve come to say hello and welcome you to Afghanistan. I have also heard you are from the same region, which makes me very happy because you will understand us more.
Ramin: Thank you, it is very kind of you to come by and greet me.
Golam: Mr. Sir Boss I hope you are comfortable in our country. You know this is a very difficult place, we have had 30 years of war and it still continues here. We have seen many destructions and deaths.
Ramin: Yes, I’m aware of the history and of course the current situation.
Golam: let me tell you a story of when I first met a young Russian business man, who was here doing business when we were invaded by them. He also was using this office space and he knew our history too, but he left. If you look at our history, the Roman’s came and left, the British came and left, the Russians came and left and.. well. But us normal average people we want to just live with Allah as our protector.
Ramin: Yes fortunately we are not here for business, we are here to try to provide assistance to the war affected children and their families.
Golam: Yes a very noble thing and may Allah bless all those who help this poor country. But Mr. Sir Boss as I said we just want to live our lives. Now that I am here, perhaps we can also discuss your lease, my sons tell me that the rent is very low here, much below market value. We could be getting $10,000 per month for this place.
Ramin: I’m sorry I wasn’t aware we were going to discuss the rent so I’m not aware of what we are paying now. I will call the Administrative officer and go to get the lease.
Ramin: Please let me pour you a cup of tea before I go talk with my administrator. Here you go, as Ramin pours half a cup of tea, Golam stops him, please leave some room for sugar, Golam continues to fill the other half of cup with sugar. Ramin leaves the room and returns 5 minutes later after a short discussion with the administrator to get the lease and discuss briefly the rental situation in Kabul city.
Ramin: Here it is, it looks like we are paying you $2500/month. From my discussions with my colleagues I’m informed this is already a high rent for such a property and you believe you can get 4 times as much.
Golam: Mr. Sir Boss as Allah is my witness, I have had offers many times what you are paying me.
Ramin: Also looking at clause ‘12’ in the contract it clearly says any changes to the contract must be negotiated 8 weeks prior to the end of the contract or the same terms and conditions role over into another year. There is only 2 weeks left to this contract, which means that the time to negotiate has long passed.
Golam: We are in Afghanistan, we have lost 30 years of our lives with wars, these time restrictions do not mean anything, you know there was a time in Kabul, where rockets were flying all over the city, 2000 rockets every day. Time, contracts, paper, what does that mean, how much significance can we give to them. After all this is my property and I can do as I wish with it and I can ask you to leave.
Ramin: Yes sir, that is your choice with sufficient notice you can ask us to leave and if you choose to do so we will of course vacate the premises. However, that would not be to neither of our advantage. We are leasing several properties from you and I would hate for us to part ways after being your clients for a number o years. Although I have not been for a long time, because of our policy, we always pay our bills on time and take care of any repairs to any of the properties and we abide by the customs and rules of this great country. So, you may be able to find a tenant who will pay you more, but not much more and you can not be sure if that tenant will be a good tenant.
Golam: Allah willing I will have good tenants. Your organization has asked to see proof that I am paying the taxes on this property. Why should I prove to you that I am paying the taxes? Do you know where these taxes go, into the pockets of people who only steal from this country.
Ramin: Well sir, you have to understand this is an organizational policy because in the recent years in different countries where we work, we have faced government officials who tell us it is our responsibility to withhold the rental tax and pay the government or they charge us a big fine. We are just trying to avoid that issue.
Golam: But that is 20% of the rent.
Ramin: Well sir that is the law of your country, and you are a parliamentarian so I would think you would understand that we have to abide by the laws of this country.
Golam: Are you implying that I don’t know the laws of my own country
Ramin: No sir but I’m saying we are bound by the laws of your country
Golam: This is unacceptable for me, you will pay me twice what you are paying me or else you have to leave
Ramin: Mr. Golam, be reasonable, you have to understand, first that we have restrictions on what we can do, we are not a business and can not produce more and make more money, so even if we wanted to we could not pay you twice as much. Secondly, any additional money we pay takes away from the money we can spend on the beneficiaries, the children of this country and its future.
Golam: I guess we are at a hard place.
Ramin: Mr Golam, what I can do is to increase the rent by 5% and we will subtract the taxes from the rent and pay them so you do not have to go through the trouble of wasting one of your days dealing with this issue.
Golam: That is unacceptable, it has to be at least 50% for all the properties you are renting from me.
Ramin: Please understand even the 5% will be difficult for me.
Golam: Then you will have to leave.
Ramin: Mr. Golam Golam, the best I can do is to increase the rent by 10% and even that is going to be difficult for me.
Golam: I’m afraid that will not do, you must realize I have a large family and my sons will never accept this.
Golam stands up to end the meeting, we shake hands and we walk out.
Ramin thinks we better start looking for other properties.
Next day Golam comes to the office and meets Ramin.
Golam: I have spoken to my sons, it was a very difficult conversation because they think you are cheating us. But I told them you are helping our people and that is the only reason we have decided to agree to a 20% increase.
Ramin: I cannot guarantee I can come up with that much money but I will try.
Mr. Golam: Allah willing you will and we will do business for many years.
Next day, Ramin accepts 20% increase to the rent.
Analysis of the negotiation between Ramin and Golam through Trompenaars’s Cultural Dimensions
1. Universalism vs. Particularism
Difference between the two cultures is apparent from the start when Golam at first encounter and under the guise of welcoming Ramin uses the occasion to dive into a lease negotiation. Ramin, a Canadian expected certain rules and approaches (universalism). For him a business meeting would be clearly arranged and the intentions of that meeting would be clear to all. However, for Golam who is from a culture where circumstances dictate how practices are conducted (particularism), it was very normal to dive into a contentious business issue without any set meeting or knowledge of the other party.
Also in not understanding the business practices in Afghanistan, Ramin refers to a clause within the lease which indicates a time limit for negotiations and points out that time limit has passed. In a culture where rules and contracts are binding, that would be a natural assumption and a strong negotiation point, however in a culture where rules and regulations are fluid that argument was not seen as a relevant argument by Golam.
3. Individualism vs. Communitarianism
In the negotiations Golam refered to his sons and their influence on the decision. Coming from a communitarian culture, ownership is familial and decisions are communal. For Ramin, who represents the organization and is from an individualist culture, Golam’s inclusion of his absent sons in the negotiations was seen as a way for Golam to shift responsibility to his sons and make himself appear as the good guy where his sons are the ones causing the difficulty.
4. Neutral vs Emotional
Both Canadian and Afghan cultures are neutral in their approach to negotiations therefore in that sense there was compatibility. However, what is interesting with the Afghan culture is that in the negotiation they attempt to push the buttons of the other side, Golam did this by referring to the history of Afghanistan and in a disguised way comparing Ramin, a foreigner with previous foreigners/invaders who were not successful in their endeavors in Afghanistan. In making this comparison Golam was trying to shake Ramin and gain an advantage in the negotiation
5. Specific vs. Diffuse
Canada is a specific culture and in a negotiation issues are raised, clarified and discussed. However, Afghan Culture is a diffuse culture where things are not said clearly and it takes some time to understand what is the real issue being negotiated. Not understanding this Ramin thought Golam was being unreasonable and wanted to increase the rent 4 times the current rent. Ramin took the initial point of discussion as the main reason why the landlord was there. However, later on in the conversation the real reason for the meeting and the negotiation was identified, that being that the landlord was not happy having to pay the 20% tax and that the entire negotiation was about the tax and not the rent. If Ramin had a better understand of the culture, he would have first tried to understand the real reason why the landlord was there, which would have strengthened his negotiation tactic.
6. Achievement vs. Ascription
Canada is an achievement culture and status of an individual is based on his or her performance, however Afghan culture is very much an ascription culture in which the status of the person is based on who that person is and usually the older a person is the greater his status. The wise, experienced and powerful people are called ‘white bearded ones’. Hence when Golam an older gentleman was negotiation with Ramin a younger individual most likely he was not seeing Ramin as an equal to him in negotiation and perhaps thought he could dictate his terms. However, Ramin, not having the same perception did not see the power difference which worked to his advantage in the negotiation.
Landlord, Mr. Golam, pays a surprise visit to the office of the INGO and wants to see the new Director Ramin, who arrived in country 3 weeks ago
Ramin: Hello, I hear you are our landlord, my name is Ramin Shahzamani, I have replaced Julian
Golam: Hello Mr. Shahzamani Sir Boss, how are you? How is your health? How are you? Are you ok? My name is Golam Golam.
Ramin: Thank you Mr. Golam Golam, I’m very well and how are you?
Golam: Blessed God, I’m fine, how is your health, how are you?
Ramin: (I was starting to feel like something was wrong with me) I’m fine thank you
Golam: How are your wife and the children?
Ramin: (I can’t tell him that I have a partner but not married) Oh, I’m not married.
Golam: Inshallah (God willing) you will be bless you with the pleasure of sons one day.
Ramin: uhhh, yes Thank you … I have always wanted children. Please have a seat.
Golam: I heard there is a new person in charge so I’ve come to say hello and welcome you to Afghanistan. I have also heard you are from the same region, which makes me very happy because you will understand us more.
Ramin: Thank you, it is very kind of you to come by and greet me.
Golam: Mr. Sir Boss I hope you are comfortable in our country. You know this is a very difficult place, we have had 30 years of war and it still continues here. We have seen many destructions and deaths.
Ramin: Yes, I’m aware of the history and of course the current situation.
Golam: let me tell you a story of when I first met a young Russian business man, who was here doing business when we were invaded by them. He also was using this office space and he knew our history too, but he left. If you look at our history, the Roman’s came and left, the British came and left, the Russians came and left and.. well. But us normal average people we want to just live with Allah as our protector.
Ramin: Yes fortunately we are not here for business, we are here to try to provide assistance to the war affected children and their families.
Golam: Yes a very noble thing and may Allah bless all those who help this poor country. But Mr. Sir Boss as I said we just want to live our lives. Now that I am here, perhaps we can also discuss your lease, my sons tell me that the rent is very low here, much below market value. We could be getting $10,000 per month for this place.
Ramin: I’m sorry I wasn’t aware we were going to discuss the rent so I’m not aware of what we are paying now. I will call the Administrative officer and go to get the lease.
Ramin: Please let me pour you a cup of tea before I go talk with my administrator. Here you go, as Ramin pours half a cup of tea, Golam stops him, please leave some room for sugar, Golam continues to fill the other half of cup with sugar. Ramin leaves the room and returns 5 minutes later after a short discussion with the administrator to get the lease and discuss briefly the rental situation in Kabul city.
Ramin: Here it is, it looks like we are paying you $2500/month. From my discussions with my colleagues I’m informed this is already a high rent for such a property and you believe you can get 4 times as much.
Golam: Mr. Sir Boss as Allah is my witness, I have had offers many times what you are paying me.
Ramin: Also looking at clause ‘12’ in the contract it clearly says any changes to the contract must be negotiated 8 weeks prior to the end of the contract or the same terms and conditions role over into another year. There is only 2 weeks left to this contract, which means that the time to negotiate has long passed.
Golam: We are in Afghanistan, we have lost 30 years of our lives with wars, these time restrictions do not mean anything, you know there was a time in Kabul, where rockets were flying all over the city, 2000 rockets every day. Time, contracts, paper, what does that mean, how much significance can we give to them. After all this is my property and I can do as I wish with it and I can ask you to leave.
Ramin: Yes sir, that is your choice with sufficient notice you can ask us to leave and if you choose to do so we will of course vacate the premises. However, that would not be to neither of our advantage. We are leasing several properties from you and I would hate for us to part ways after being your clients for a number o years. Although I have not been for a long time, because of our policy, we always pay our bills on time and take care of any repairs to any of the properties and we abide by the customs and rules of this great country. So, you may be able to find a tenant who will pay you more, but not much more and you can not be sure if that tenant will be a good tenant.
Golam: Allah willing I will have good tenants. Your organization has asked to see proof that I am paying the taxes on this property. Why should I prove to you that I am paying the taxes? Do you know where these taxes go, into the pockets of people who only steal from this country.
Ramin: Well sir, you have to understand this is an organizational policy because in the recent years in different countries where we work, we have faced government officials who tell us it is our responsibility to withhold the rental tax and pay the government or they charge us a big fine. We are just trying to avoid that issue.
Golam: But that is 20% of the rent.
Ramin: Well sir that is the law of your country, and you are a parliamentarian so I would think you would understand that we have to abide by the laws of this country.
Golam: Are you implying that I don’t know the laws of my own country
Ramin: No sir but I’m saying we are bound by the laws of your country
Golam: This is unacceptable for me, you will pay me twice what you are paying me or else you have to leave
Ramin: Mr. Golam, be reasonable, you have to understand, first that we have restrictions on what we can do, we are not a business and can not produce more and make more money, so even if we wanted to we could not pay you twice as much. Secondly, any additional money we pay takes away from the money we can spend on the beneficiaries, the children of this country and its future.
Golam: I guess we are at a hard place.
Ramin: Mr Golam, what I can do is to increase the rent by 5% and we will subtract the taxes from the rent and pay them so you do not have to go through the trouble of wasting one of your days dealing with this issue.
Golam: That is unacceptable, it has to be at least 50% for all the properties you are renting from me.
Ramin: Please understand even the 5% will be difficult for me.
Golam: Then you will have to leave.
Ramin: Mr. Golam Golam, the best I can do is to increase the rent by 10% and even that is going to be difficult for me.
Golam: I’m afraid that will not do, you must realize I have a large family and my sons will never accept this.
Golam stands up to end the meeting, we shake hands and we walk out.
Ramin thinks we better start looking for other properties.
Next day Golam comes to the office and meets Ramin.
Golam: I have spoken to my sons, it was a very difficult conversation because they think you are cheating us. But I told them you are helping our people and that is the only reason we have decided to agree to a 20% increase.
Ramin: I cannot guarantee I can come up with that much money but I will try.
Mr. Golam: Allah willing you will and we will do business for many years.
Next day, Ramin accepts 20% increase to the rent.
Analysis of the negotiation between Ramin and Golam through Trompenaars’s Cultural Dimensions
1. Universalism vs. Particularism
Difference between the two cultures is apparent from the start when Golam at first encounter and under the guise of welcoming Ramin uses the occasion to dive into a lease negotiation. Ramin, a Canadian expected certain rules and approaches (universalism). For him a business meeting would be clearly arranged and the intentions of that meeting would be clear to all. However, for Golam who is from a culture where circumstances dictate how practices are conducted (particularism), it was very normal to dive into a contentious business issue without any set meeting or knowledge of the other party.
Also in not understanding the business practices in Afghanistan, Ramin refers to a clause within the lease which indicates a time limit for negotiations and points out that time limit has passed. In a culture where rules and contracts are binding, that would be a natural assumption and a strong negotiation point, however in a culture where rules and regulations are fluid that argument was not seen as a relevant argument by Golam.
3. Individualism vs. Communitarianism
In the negotiations Golam refered to his sons and their influence on the decision. Coming from a communitarian culture, ownership is familial and decisions are communal. For Ramin, who represents the organization and is from an individualist culture, Golam’s inclusion of his absent sons in the negotiations was seen as a way for Golam to shift responsibility to his sons and make himself appear as the good guy where his sons are the ones causing the difficulty.
4. Neutral vs Emotional
Both Canadian and Afghan cultures are neutral in their approach to negotiations therefore in that sense there was compatibility. However, what is interesting with the Afghan culture is that in the negotiation they attempt to push the buttons of the other side, Golam did this by referring to the history of Afghanistan and in a disguised way comparing Ramin, a foreigner with previous foreigners/invaders who were not successful in their endeavors in Afghanistan. In making this comparison Golam was trying to shake Ramin and gain an advantage in the negotiation
5. Specific vs. Diffuse
Canada is a specific culture and in a negotiation issues are raised, clarified and discussed. However, Afghan Culture is a diffuse culture where things are not said clearly and it takes some time to understand what is the real issue being negotiated. Not understanding this Ramin thought Golam was being unreasonable and wanted to increase the rent 4 times the current rent. Ramin took the initial point of discussion as the main reason why the landlord was there. However, later on in the conversation the real reason for the meeting and the negotiation was identified, that being that the landlord was not happy having to pay the 20% tax and that the entire negotiation was about the tax and not the rent. If Ramin had a better understand of the culture, he would have first tried to understand the real reason why the landlord was there, which would have strengthened his negotiation tactic.
6. Achievement vs. Ascription
Canada is an achievement culture and status of an individual is based on his or her performance, however Afghan culture is very much an ascription culture in which the status of the person is based on who that person is and usually the older a person is the greater his status. The wise, experienced and powerful people are called ‘white bearded ones’. Hence when Golam an older gentleman was negotiation with Ramin a younger individual most likely he was not seeing Ramin as an equal to him in negotiation and perhaps thought he could dictate his terms. However, Ramin, not having the same perception did not see the power difference which worked to his advantage in the negotiation.
Analysis - An Englishman dealing with the Caribbean
UK - An achievement culture
Characterised by: Desire to get the deal done and expedited quickly - Frustration at the slow pace of discussion. Ends up giving concessions just to move forward
Caribbean - A non achievement culture
Charachterised by slow speach - Emphasis on words and trivia - Lack of work ethic, almost a reluctance to accept the order - Reluctance to negotiate - Tendancy to put barriers in the way of transaction.
Characterised by: Desire to get the deal done and expedited quickly - Frustration at the slow pace of discussion. Ends up giving concessions just to move forward
Caribbean - A non achievement culture
Charachterised by slow speach - Emphasis on words and trivia - Lack of work ethic, almost a reluctance to accept the order - Reluctance to negotiate - Tendancy to put barriers in the way of transaction.
An Englishman dealing with the Caribbean
Receptionist at the Vincy Hot Sauce Company:
Mr. Cyrus, There is a call for you from London, from Texaco - A Mr. Philpott
Winston Cyrus:
OK, OK - I'm coming - (Mr. Cyrus speaks very slowely and deliberately - He picks up the phone) - This is Winston Cyrus speakin.
Phillpott:
Hello Mr. Cyrus, This is Ian Phillpott here. I am the Purchasing Direc
tor for Tesco Supermarkets in Britain. Our Managing Director was in the Caribbean on holiday last week and he tried your hot sauce. He brought back some and he has asked me to purchase some to give it a trial in our supermarkets.
Cyrus:
Now - hold on a bit Mr. Phillpott. It is not easy to get hot sauce to England. It takes time.
Phillpott:
It's OK Mr. Cyrus. We buy from all over the World, so we are used to transport arrangements. How much would you charge us for a trial order.
Cyrus:
Well, let me see - - - - I tink we would be lookin at 12 dollars a bottle, dependin on quantity and then there would be shippin costs as well.
Phillpott:
Mr. Cyrus - That is an outragious price. It is around £6 pounds a bottle and that's more than 6 times the price of anything comparable.
Cyrus: (Very slowely and deliberately)
Let me tell you something, Mr Phillpott. - - Let me tell you - You won't find a better tastin hot sauce - You won't find a better tastin hot sauce in the whole Caribbean - Not in the whole Caribbean.
Phillpott:
But it is still very expensive
Cyrus:
Let me tell you, that we have costs - There is -- taxes, and bottles - and labels -- and caps - and boxes - and - ingredients. Let's not forget ingredients - Ingredients don't grow on trees Mr. Phillpott.
Phillpott:
Well, yes they do - never mind. I tasted your sauce Mr. Cyrus and it's very good, but our customers won't pay that price. Remember that we can place very large orders if we have a good trial. It is a great opportunity. Do you have the power to negotiate?
Cyrus:
Well now Mr. Phillpott. I would be very careful usin words like "The Power" to negotiate. Only Almighty God has the Power. I have the authority to negotiate. I am the owner of the Company.
Phillpott:
Now you are playing with words Mr. Cyrus. I am dealing with you and I want to know that you have the power to negotiate. God is nothing to do with it, and yes - he has supreme power, but not in this negotiation.
Cyrus:
I could agree a price and then I could be struck down - and then where would your agreement be.
Phillpott:
OK - OK. You have the authority to negotiate
Cyrus:
How many bottles would you be wantin, Mr. Phillpott
Phillpott:
Well I thought we could try a case of each flavour.
Cyrus:
That is a sizable order, because we have 5 flavours.
Phillpott:
For each or our stores of course
Cyrus:
Eh - How many stores would that be.
Phillpott:
We have 147 in the UK - so that would be 737 cases
Cyrus:
(Very long pause) - 737 cases - - - - - Well then, I could do it for 10 dollers a bottle.
Phillpott:
Look Mr. Cyrus - We normally wouldn't bother with a company like yours. The only reason that I'm calling you is that our Managing Director has instructed me to buy some of your sauce. You are going to have to do better than this. By the way, do you have a HACCP Certificate.
Cyrus:
A HACCP Certificate?
Phillpott:
You know - Health and Safety
Cyrus:
Let me stop you there Mr. Phillpott. Don't you be comin to me about no Health and Safety, --- 'cause that's when the costs go creepin up. ---- We have to buy hats for de workers, -- and gloves and washin equipment - and water for de washin. Let's not forget de water for de washin. Let me tell you this Mr. Phillpott. This -- Is a small Caribbean Island. - This is a small Caribbean island - Water don't grow on no trees you know Mr. Phillpott. You have to pay for it you see.
Phillpott:
Look Mr. Cyrus - We have the power - I mean the authority - I mean the ability - the potential to make you rich. Forget the HACCP for now, and I'll pay your price for the trial period, because my Managing Director tells me to, but you are going to need to be more businesslike if we are to deal with you in the future. When can we have the goods?
Cyrus:
That depends
Phillpott:
Depends on what?
Cyrus:
A number of things
Phillpott:
Like what?
Cyrus:
A number of things - - Like when we make the sauce - And when de boat leaves - And how long it takes the boat to get to you - and when de boat arrives - and how long it takes to get de sauce from de boat to you - and stuff like that.
Phillpott:
OK - OK. Just send it to me and we'll accept it when it arrives. I'll fax you an order - and we can send you a part payment - with final payment when the goods arrive
Cyrus:
Fax? Just give me your name and address and we'll send de sauce to you. And don't go worryin about no part payment. Just send us de money when you get de sauce.
Mr. Cyrus, There is a call for you from London, from Texaco - A Mr. Philpott
Winston Cyrus:
OK, OK - I'm coming - (Mr. Cyrus speaks very slowely and deliberately - He picks up the phone) - This is Winston Cyrus speakin.
Phillpott:
Hello Mr. Cyrus, This is Ian Phillpott here. I am the Purchasing Direc
tor for Tesco Supermarkets in Britain. Our Managing Director was in the Caribbean on holiday last week and he tried your hot sauce. He brought back some and he has asked me to purchase some to give it a trial in our supermarkets.Cyrus:
Now - hold on a bit Mr. Phillpott. It is not easy to get hot sauce to England. It takes time.
Phillpott:
It's OK Mr. Cyrus. We buy from all over the World, so we are used to transport arrangements. How much would you charge us for a trial order.
Cyrus:
Well, let me see - - - - I tink we would be lookin at 12 dollars a bottle, dependin on quantity and then there would be shippin costs as well.
Phillpott:
Mr. Cyrus - That is an outragious price. It is around £6 pounds a bottle and that's more than 6 times the price of anything comparable.
Cyrus: (Very slowely and deliberately)
Let me tell you something, Mr Phillpott. - - Let me tell you - You won't find a better tastin hot sauce - You won't find a better tastin hot sauce in the whole Caribbean - Not in the whole Caribbean.
Phillpott:
But it is still very expensive
Cyrus:
Let me tell you, that we have costs - There is -- taxes, and bottles - and labels -- and caps - and boxes - and - ingredients. Let's not forget ingredients - Ingredients don't grow on trees Mr. Phillpott.
Phillpott:
Well, yes they do - never mind. I tasted your sauce Mr. Cyrus and it's very good, but our customers won't pay that price. Remember that we can place very large orders if we have a good trial. It is a great opportunity. Do you have the power to negotiate?
Cyrus:
Well now Mr. Phillpott. I would be very careful usin words like "The Power" to negotiate. Only Almighty God has the Power. I have the authority to negotiate. I am the owner of the Company.
Phillpott:
Now you are playing with words Mr. Cyrus. I am dealing with you and I want to know that you have the power to negotiate. God is nothing to do with it, and yes - he has supreme power, but not in this negotiation.
Cyrus:
I could agree a price and then I could be struck down - and then where would your agreement be.
Phillpott:
OK - OK. You have the authority to negotiate
Cyrus:
How many bottles would you be wantin, Mr. Phillpott
Phillpott:
Well I thought we could try a case of each flavour.
Cyrus:
That is a sizable order, because we have 5 flavours.
Phillpott:
For each or our stores of course
Cyrus:
Eh - How many stores would that be.
Phillpott:
We have 147 in the UK - so that would be 737 cases
Cyrus:
(Very long pause) - 737 cases - - - - - Well then, I could do it for 10 dollers a bottle.
Phillpott:
Look Mr. Cyrus - We normally wouldn't bother with a company like yours. The only reason that I'm calling you is that our Managing Director has instructed me to buy some of your sauce. You are going to have to do better than this. By the way, do you have a HACCP Certificate.
Cyrus:
A HACCP Certificate?
Phillpott:
You know - Health and Safety
Cyrus:
Let me stop you there Mr. Phillpott. Don't you be comin to me about no Health and Safety, --- 'cause that's when the costs go creepin up. ---- We have to buy hats for de workers, -- and gloves and washin equipment - and water for de washin. Let's not forget de water for de washin. Let me tell you this Mr. Phillpott. This -- Is a small Caribbean Island. - This is a small Caribbean island - Water don't grow on no trees you know Mr. Phillpott. You have to pay for it you see.
Phillpott:
Look Mr. Cyrus - We have the power - I mean the authority - I mean the ability - the potential to make you rich. Forget the HACCP for now, and I'll pay your price for the trial period, because my Managing Director tells me to, but you are going to need to be more businesslike if we are to deal with you in the future. When can we have the goods?
Cyrus:
That depends
Phillpott:
Depends on what?
Cyrus:
A number of things
Phillpott:
Like what?
Cyrus:
A number of things - - Like when we make the sauce - And when de boat leaves - And how long it takes the boat to get to you - and when de boat arrives - and how long it takes to get de sauce from de boat to you - and stuff like that.
Phillpott:
OK - OK. Just send it to me and we'll accept it when it arrives. I'll fax you an order - and we can send you a part payment - with final payment when the goods arrive
Cyrus:
Fax? Just give me your name and address and we'll send de sauce to you. And don't go worryin about no part payment. Just send us de money when you get de sauce.
An American in Cairo
An American negotiating the delivery of parts manufactured by an Egyptian Engineering Company
El Adewy:
I understand you completely – Eh. Would you like more tea?
Other people enter the room and El Adewy stops to sign some papers – The uncle gets up and shakes hands with Brad – He kisses El Adewy and leaves the room. The others who have entered the room are sitting around. One is reading the newspaper and another is chatting to El Nossier.
CEO of the Misr Helwan Engineering Company, Cairo:
Good Morning Mr. Fastbuck, I am Mohammed El Adewy and this is Engin
eer Ahmed El Din Nossier our engineering Director. I trust you had a pleasant flight and welcome to Cairo.
Good Morning Mr. Fastbuck, I am Mohammed El Adewy and this is Engin
eer Ahmed El Din Nossier our engineering Director. I trust you had a pleasant flight and welcome to Cairo.Brad Fastbuck – Purchasing Director – United Widgets Co.:
Hi Mohammed / Ahmed. Yes I’m Brad Fastbuck. I had a great trip thank you and it’s really great to be here in Cairo. Now I have an objective for this meeting to secure agreement with you to a delivery date for our order by July 27th. How do you feel about that?
Eng. El Adewy
Would you like some tea?
Hi Mohammed / Ahmed. Yes I’m Brad Fastbuck. I had a great trip thank you and it’s really great to be here in Cairo. Now I have an objective for this meeting to secure agreement with you to a delivery date for our order by July 27th. How do you feel about that?
Eng. El Adewy
Would you like some tea?
Brad:
Sure that would be nice, Thanks Mohammed – Now about that date?
Sure that would be nice, Thanks Mohammed – Now about that date?
Eng El Adewy:
Do you take sugar?
Do you take sugar?
Brad:
Yes – one spoonful please – Do you think this date is reasonable?
A stranger enters the room and sits down
Yes – one spoonful please – Do you think this date is reasonable?
A stranger enters the room and sits down
Eng. El Adewy
Ah Uncle Hassan. Mr. Fastbuck, may I introduce you to my Uncle. Mr Hassan Ibin El Goggary
Ah Uncle Hassan. Mr. Fastbuck, may I introduce you to my Uncle. Mr Hassan Ibin El Goggary
El Gogary:
Nice to meet you Mr. Fastbuck. Where in USA are you from?
Nice to meet you Mr. Fastbuck. Where in USA are you from?
Brad:
From Conneticut.
From Conneticut.
El Gogary: 
Ah – I was 10 years in America myself. A wonderful country. I am a graduate from the University of Massechusetts
Ah – I was 10 years in America myself. A wonderful country. I am a graduate from the University of Massechusetts
Brad:
That’s really great – I hope you liked our country – It’s really great to be in Cairo and I’m looking forward to a great working relationship with you guys. I’m just here really to expedite the order that we placed with you. I wonder ...
That’s really great – I hope you liked our country – It’s really great to be in Cairo and I’m looking forward to a great working relationship with you guys. I’m just here really to expedite the order that we placed with you. I wonder ...
El Adewy holds up his hand:
Excuse me for a moment Mr. Fastbuck
A conversation ensues for a few minutes in Arabic betwe
en El Adewy and El Gogary with some input from El Nossier. There are some silences and some laughter. Brad sits in silence.
Excuse me for a moment Mr. Fastbuck
A conversation ensues for a few minutes in Arabic betwe
en El Adewy and El Gogary with some input from El Nossier. There are some silences and some laughter. Brad sits in silence.Two more people enter the room and sit down and join the conversation in Arabic. Eventually El Adewy turns to Brad.
El Adewy
Now Mr. Fastbuck – How can I help you.
Now Mr. Fastbuck – How can I help you.
Brad:
Call me Brad please, Mohammed – My goal from this meeting is to secure your absolute commitment to these delivery dates. It is very important.
Call me Brad please, Mohammed – My goal from this meeting is to secure your absolute commitment to these delivery dates. It is very important.
El Adewy:
Everything is possible Mr. Fastbuck – Don’t worry. Engineer El Nossier here is very organised and he can arrange everything – Insha Allah.
Everything is possible Mr. Fastbuck – Don’t worry. Engineer El Nossier here is very organised and he can arrange everything – Insha Allah.
Brad:
Yes – but we need an absolute written assurance and we would like to discuss penalty clauses for failure to deliver on time – It really is very important to us.
Yes – but we need an absolute written assurance and we would like to discuss penalty clauses for failure to deliver on time – It really is very important to us.
El Adewy:I understand you completely – Eh. Would you like more tea?
Other people enter the room and El Adewy stops to sign some papers – The uncle gets up and shakes hands with Brad – He kisses El Adewy and leaves the room. The others who have entered the room are sitting around. One is reading the newspaper and another is chatting to El Nossier.
Brad:
So can we agree on these dates Mohammed.
So can we agree on these dates Mohammed.
El Adewy:
We can arrange everything – Of course Ramadan is coming...
We can arrange everything – Of course Ramadan is coming...
Brad:
Look Mohammad – I really need concrete assurances. The bottom line is that we will invoke the penalty clauses if you fail to deliver on these dates. We are not kidding about this.
Look Mohammad – I really need concrete assurances. The bottom line is that we will invoke the penalty clauses if you fail to deliver on these dates. We are not kidding about this.
El Adewy smiles:
Perhaps you would like to visit the factory – I have arranged for Engineer El Nossier to give you a tour and then I propose that he bring you back here and that we go for lunch,
Perhaps you would like to visit the factory – I have arranged for Engineer El Nossier to give you a tour and then I propose that he bring you back here and that we go for lunch,
Brad:
But, Mohammed – Are you prepared to sign a document agreeing to these dates?
But, Mohammed – Are you prepared to sign a document agreeing to these dates?
El Adewy
Everything is possible – Don’t worry.
El Adewy stands up – El Nossier stands up and eagerly leads Brad towards the factory.
Everything is possible – Don’t worry.
El Adewy stands up – El Nossier stands up and eagerly leads Brad towards the factory.
After a tortuous tour of a desperately hot factory, Brad finds himself back at the office of Eng. El Nossier, who receives a phone call to say that Mr. El Adewy apologises for not being able to join them for lunch because he has been called away to an urgent meeting. 
Brad goes for lunch with El Nossier and he has a tour of Cairo sampling the Egyptian way of life
- He never gets his agreement.
Surprisingly, the goods arrive. They are a little su
b-standard, and a little late, but by and large, the deal works well for the Americans. The working relationship eventually develops into one of trust and Brad learns to relax a little. The Egyptians end up reluctantly giving in to his fixation about deadlines (most of the time).
Brad goes for lunch with El Nossier and he has a tour of Cairo sampling the Egyptian way of life
- He never gets his agreement.
Surprisingly, the goods arrive. They are a little su
b-standard, and a little late, but by and large, the deal works well for the Americans. The working relationship eventually develops into one of trust and Brad learns to relax a little. The Egyptians end up reluctantly giving in to his fixation about deadlines (most of the time).
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