You're listening to Business English Pod, the Business English podcast for professionals on the move.
Hello, and welcome back to Business English Pod.
My name's Edwin and I'll be your host for today's lesson on strategic negotiations and how to pitch the initial idea.
Competition is at the heart of business.
Companies try to outdo each other, outsell each other, and even destroy each other.
It's the nature of the game, but cooperation has its place too.
Companies often work together to achieve mutual aims.
They form partnerships, using their different assets and strengths to become an even greater competitive force.
But a good partnership is tough to build.
Any kind of agreement has to make sense for both sides, and each will try to get as much out of the deal as possible.
Sure, they're cooperating, but they want to make sure they're cooperating in the best possible way for themselves.
So how does a strategic partnership begin?
Well, any agreement begins with a negotiation, a strategic negotiation.
And how does a negotiation begin?
It begins with an idea.
An idea for two companies to work together.
And that's what we'll be looking at today.
When you pitch an idea for a strategic partnership, there are several key techniques you'll need.
This includes broaching the topic, pitching the basic idea, and speculating about feasibility.
It also includes showing tentative agreement outlining how the partnership might work and outlining the next steps in the process.
We'll cover all these techniques in today's lesson.
In the dialogue we'll hear Jamie and Mike, two former colleagues who have run into each other at a trade show in Malaysia.
They've agreed to meet up for a drink after the day's events and are now talking about doing business in Asia.
Mike is looking for a way to introduce his idea for the two companies to cooperate.
As you listen, try to answer the following questions.
1.
In the beginning, what does Mike say his company is looking for?
2.
Which idea is Mike tentative or hesitant about?
3.
What is Mike going to do next?
But it's still a tough place to do business.
I mean, building a good network takes time.
Yeah, a good network.
Like you guys have, right?
Well, you know, I thought you might be here this week, and there's something I'd like to run by you.
Sure.
I'm all ears.
Okay.
So we both agree that Southeast Asia is a tough nut to crack. especially starting from scratch.
And Sigma also understands the benefit of working with a local partner, particularly in markets like Asia.
So we're looking for someone who's established in the region you know.
Find a good distributor to work with.
Maybe MVP could be that for us.
A distributor, huh?
Well, our guys are always keen to push more product through the network.
We've basically got the whole of Asia covered at this point.
But... Uh-huh.
But what?
Well, just thinking about how it might all work.
They might want more than just a simple distribution deal.
Something more involved, if you know what I mean.
Oh yeah?
Like a partnership?
Well, we've had discussions about this kind of thing back in Michigan before.
And?
And?
Yeah, something like that might be possible.
Though, I'm not sure about all of Asia.
So maybe start with Southeast Asia or something.
Yeah, could be.
Well, they might push for something more extensive.
But either way, they'd most likely be looking for some kind of investment on your side.
Okay, so we put in some investment and you guys give us access to the market in your local network.
Yeah.
Yeah.
I think something like that could make sense with the right company.
Well, I've got to say, MVP is hard to beat in this part of the world.
And growth around here is just nuts.
Yeah, definitely.
You're right about that.
Listen, how about this?
I'll take it back to Michigan and lay out the general idea.
And if you could send me some sales figures and corporate history in the meantime, I'll touch base once I'm back in the States.
Sure thing.
I'll start pulling some stuff together tomorrow and send it over before the end of the week.
And just let me know if there's anything specific you think might help.
Now let's go through the dialogue again and look at the techniques Mike uses to pitch the idea of a partnership.
But it's still a tough place to do business.
I mean, building a good network takes time.
Yeah, a good network, like you guys have, right?
Well, you know, I thought you might be here this week and there's something I'd like to run by you.
We join the dialogue as Jamie and Mike are talking about doing business in Asia.
Jamie emphasizes the importance of a good network or system of connections among people and companies.
When Jamie mentions a network, Mike sees an opportunity to introduce his idea.
He echoes Jamie's words, repeating a good network, before eventually stating that there's something he'd like to run by Jamie.
When we run an idea by someone, we tell them the basic idea to get their initial thoughts on it.
With this sentence, Mike has broached the topic.
He's found a natural time in the conversation to bring up his idea.
Approaching the topic in the first place can be challenging.
Let's practice some more ways we can do this.
That reminds me of an idea I wanted to talk to you about.
Listen, I've been thinking about something you might be interested in.
Expansion of services, huh?
Well, I have an idea about that.
So there's something I'd like to bounce off you if I can.
Now let's listen as Mike explains his idea.
Sure, I'm all ears.
Okay.
So we both agree that Southeast Asia is a tough nut to crack, especially starting from scratch.
And Sigma also understands the benefit of working with a local partner, particularly in markets like Asia.
So, we're looking for someone who's established in the region.
You know, find a good distributor to work with.
Maybe MVP could be that for us.
Jamie says he's all ears, which is an idiom meaning that he's ready and listening.
Before Mike comes out with his idea, he states a few important facts as background.
He calls Southeast Asia a tough nut to crack. which means it's a difficult market to get into.
And he says that his company is looking for a local partner who is established or has a solid history in the region.
More specifically, they want a distributor which would sell their products.
All of this information is part of Mike's initial pitch, which he caps off with maybe MVP could be that for us.
Notice that he uses the word maybe.
This shows some hesitation, or that he's just talking about the possibility of a partnership.
Let's go through some more ways of making an initial pitch and, as we do notice the use of could to suggest the idea of possibility.
You know, we could come together on this and really capture the market.
With your company's technology and our connections, we could really do something special.
What do you think about the idea of representing us in Europe?
You guys are good at content and we've got the platform.
Together we could be a great team.
So, how does Jamie respond to Mike's idea?
A distributor, huh?
Well, our guys are always keen to push more product through the network.
We've basically got the whole of Asia covered at this point.
But... Uh-huh.
But what?
Well, just thinking about how it might all work.
They might want more than just a simple distribution deal.
Something more involved, if you know what I mean.
Now that Mike's idea is on the table, the two begin talking about whether it might be possible.
Jamie's first statement, in which he says his company is keen or interested in selling more product, is positive.
However, he follows this statement with a but.
When prompted by Mike to explain, Jamie uses tentative language.
He says he's thinking about how it might all work and that they might want a more involved or closer relationship.
Jamie and Mike are both careful to sound tentative or a bit unsure of the idea.
They are speculating about the feasibility of a partnership.
Of course, you have to find out if a relationship might work before you get into the details.
What are some other ways we can speculate about feasibility?
Let's run through a few more examples.
Well, the plan certainly has some potential, but costs could be a challenge.
I just wonder how we can structure an arrangement that brings maximum benefit to both of us.
We'd have to find the right pricing strategy and it would take time to break into the market.
Yeah, we'd have to see if Bob would agree to the idea and be willing to commit time and money.
Now, listen as they continue their discussion.
Oh yeah?
Like a partnership?
Well, we've had discussions about this kind of thing back in Michigan before.
And?
Yeah, something like that might be possible, though I'm not sure about all of Asia.
Jamie has suggested a relationship that is more than just a distribution deal, but an actual partnership.
And Mike seems to agree with the idea, but again he is tentative about it, saying it might be possible, and he is careful to add that he's not sure about the extent of a deal including all of Asia.
Mike is agreeing, but he's doing so tentatively.
Mike doesn't really have the power in his company to make a deal at this point.
He can only talk about it in general terms.
Tentative language is a very important part of this process.
So let's run through some more examples of showing tentative agreement.
Very interesting stuff.
Maybe we can talk about it some more over the next week.
Well, the idea is certainly worth exploring.
Yeah, I think some kind of arrangement might work.
It's worth considering for sure.
Now, back to the dialogue, as Jamie and Mike give the idea a clearer shape.
So maybe start with Southeast Asia or something.
Yeah, could be.
Well, they might push for something more extensive.
But either way, they'd most likely be looking for some kind of investment on your side.
Okay, so we put in some investment and you guys give us access to the market in your local network.
Yeah, I think something like that could make sense with the right company.
Again, notice how Jamie and Mike use words like maybe and could when talking about the arrangement.
Jamie also uses might when he suggests that his company might push for or demand a more extensive deal.
He's talking about the range of the partnership and whether it would be all of Asia or just part.
Jamie also mentions that MVP would be looking for an investment.
At this point, the basic idea has been discussed tentatively.
And Mike can outline how the partnership might work.
He states what each side would give some investment for MVP and access to the market for Sigma.
And still he follows his outline with tentative language saying it could make sense.
Now let's practice some more ways of outlining an idea after coming to a tentative agreement.
Here's how it looks.
We'll build out the database while you guys take care of design.
Okay, so you guys lend your brand power to this and we put the work into developing the line.
So we would go 70-30 on the capital investment and bring your guys in during the construction phase.
Right.
We'll handle organizing the event, and you can take care of developing the theme.
Listen as Jamie responds on a strong note.
Well, I've got to say, MVP is hard to beat in this part of the world.
And growth around here is just nuts.
Yeah, definitely.
You're right about that.
Listen, how about this?
I'll take it back to Michigan and lay out the general idea.
And if you could send me some sales figures and corporate history in the meantime, I'll touch base once I'm back in the States.
Jamie wants to reinforce his company's position in the region, telling Mike that MVP is hard to beat or hard to compete against.
And he mentions the growth, too, which he says is nuts.
Nuts often means crazy, and in this case, he means that growth is very impressive.
So, they've discussed a potential partnership and sketched out how it might work.
Mike's next move is to outline the next steps.
He's going to lay out or present the idea at his company in Michigan and he wants Jamie to send some information about MVP.
Then Mike will touch base or get in contact when he gets back home.
You can't end a discussion like this without deciding what to do next.
So let's go through some more ways to outline next steps.
So let's sit down tomorrow and hash out some targets.
How about this?
I'll talk to my partner and you talk to your people.
Then we'll schedule a meeting for next week.
Drop me an email outlining the idea.
I'll present it to the board and get back to you by next Monday.
First, let's each do a bit of market research.
Then I'll give you a call on Friday and we can compare notes.
Now, let's hear how Jamie finishes things off by agreeing to Mike's plan.
Sure thing.
I'll start pulling some stuff together tomorrow and send it over before the end of the week.
And just let me know if there's anything specific you think might help.
As we've seen, Mike has done a good job of pitching the idea, discussing it with Jamie and figuring out what to do next.
In the next lesson we'll rejoin Mike as he discusses his company's approach to the coming negotiations with MVP.
Now, let's practice some of the language we've learned in today's lesson.
Imagine you are talking with someone and you have an idea for a strategic partnership between your companies.
You will need to bring up the idea and discuss it with the person before outlining your next steps.
I'll give you a cue telling you what you need to do.
Then you'll hear a prompt.
Use the words in the prompt to make an effective statement during the meeting.
We'll guide you through each step in the practice and play an example answer for each response.
Ready?
Let's give it a go.
First, broach the topic of a strategic partnership with your former colleague.
So I have an idea that I'd like to talk to you about.
Next, pitch the basic idea for a partnership thinking our companies work together marketing answer.
I was thinking our companies could work together on a marketing campaign.
Now speculate about the feasibility of this potential partnership.
Could Work If Missions Match Answer Well, it could work if our company's missions match.
Next, outline the idea for the partnership.
You could media contacts, we online marketing Answer.
So you guys could use your media contacts and we could do online marketing.
Finally, outline the next steps in developing this partnership.
Answer.
Let me map out the idea and email you next week.
Now, let's practice some of the vocabulary and collocations we've covered in this lesson.
In a moment, you'll hear a series of sentences with a word replaced with a beep.
Repeat each sentence, including the missing word.
For example, if you hear... You can say...
After each response, we'll play the correct answer.
Let's begin.
Answer.
The client hated our first design, so we had to start from scratch.
Answer.
We want to partner with a company that has a solid customer base.
Our firm was... in 1986.
Our firm was established in 1986.
This deal should help improve our overall sales.
This deal should help improve our overall sales figures.
We've reached the end of this lesson, the first in our series on strategic negotiations in which we focused on making an initial pitch.
We've learned how to broach the topic of a partnership, make an initial pitch and speculate about feasibility.
We've also covered showing tentative agreement, as well as outlining the idea and next steps.
Thanks for listening, and see you again soon.
