Negotiation Between Representatives of Two Companies

Pasmatex Ltd., 124 Independenţei Street, 256432 Bucharest, Romania, on the one part, and

Collorella Ltd, 23 Via Berteloni Street, 00132, Rome, Italy, on the other part, agree on 3 April 2008, to the following terms.

Pasmatex Ltd., is represented by X., Purchasing Manager

Collorella Ltd., is represented by Y , International Sales Manager

Pasmatex Ltd.,the Romanian company produce shoes for men and women and Collorella Ltd, is a famous Italian company that manufacture shoe leather.

X, representative of Pasmatex Ltd. is visiting Rome to have a meeting with representative of Collorella Ltd Y The purpose of the visit is to hold preliminary negotiations about the possibility that Pasmatex Ltd. to buy shoe leather from the Italian company. The two representatives meets in the lobby of Parco Del Principi Hotel, Rome.

1.Relationship building

Y: Excuse me. Are you X from Pasmatex Ltd?

X: That’s right. I’m X, Purchasing Manager at Pasmatex Ltd.

Y: How do you do? My name is Y. I’m the International Sales Manager at Collorella Ltd.

X: Pleased to meet you.

Y: Very pleased to meet you, too. So, welcome to Rome! You must be tired after your journey.

X: No,not too tired. I have most of the day to relax.

Y: Good. I plan for today to start with a lunch at the hotel’s restaurant! What do you thing?

X: Good idea.

Y: So, this is your first visit to Rome?

X: Yes, and unfortunately this is only a short visit so I won’t be able to see very much of Rome.

Y: That’s a pity! There are so many beautiful places to visit! Anyway I hope this will be the first of many visit.

X: Of course and maybe next time it will be possible to add a few days holiday to the trip.

Y: Are you agree to eat now? Do you like Italian food?

X: Yes, very much. In fact, I do a bit of Italian cooking myself!

Y: I’m glad to hear that! I propose then the Pinzerotti Pasta! Have you ever tried it?

X: I don’t think so! What is it?

Y: It is one of the first pasta made in Italy, very special for the Italians!

X: Oh, really! In that case I must try it.

Y: Two Pinzerotti Pasta, please!

X: It’s very good! Do you eat a lot of this pasta?

Y: Yes, as I say it’s very popular and we eat it at least one at week. We also eat a lot of pizza!

X: I almost forget the Italian pizza! Italy is well known for the pasta and pizza they do all over the world!

Y: Yes, we are famous for that. That’s the reason for that I suggest Pinzerotti Pasta. We can try pizza tomorrow! Let’s eat now!

2.Agreeing procedure

Y: I think we should start now! I‘d like to say that our company hope that this will be the beginning of a good business relationship for both our companies.

X: Yes, indeed. So do we.

Y: First of all, I think we should establish the overall procedure. What we’d like to achieve from this meeting is an exchange of ideas, to identify areas of common interest and find out more about your company. Is that ok with you?

X: Yes, that’s very much how we see it too. What we’d also like to get from this meeting is a full picture of your current products, to talk about possible pricing and deliveries!

Y: Good! We seem to have broad agreement on objectives. Could we now agree on the order in which we want to talk about things?

X: Certainly.

Y: Well, I think we should start by looking at your situation. Would you go along with that?

X: Yes, that’s fine. We’d happy to start with that.

Y: We could then move on to a presentation of our family of products. Does that sound ok?

X: Yes, indeed. I also be very interested in visiting your factory, if possible.

Y: No problem! I was thinking of taking you to visit us tomorrow. Does that fit in with your plans?

X: Yes, that’s fine with me.

3.Exchanging information

Y: I prefer, if you also want to go to the bar to have a cup of coffee and continue our discussion.

X: That’s fine with me. Let’s go!

Y: It is much better here.

X: Yes. Now that we’re agreed on the overall procedure I guess we should move on to the first item on the agenda. Basically, I’d like to tell you our position. But before I do that, I think it would be useful if I gave some very brief background to our company.

Y: Yes, that would be helpful.

X: Pasmatex was set up by Pascal Matwick in 1946 in Bucharest. We manufacture high quality shoes for men and women and currently we are the second largest Romanian shoes producer with an annual turnover of over $2 million and employ a total of 5.000 people. In 1992, we started an export division and export now account for 30 per cent of our turnover. So that gives a very rough picture of Pasmatex. Any questions?

Y: No, that’s very clear.