You're listening to Business English Pod, the Business English podcast for professionals on the move.
Hello and welcome back to Business English Pod for today's lesson on making strategic decisions.
This is the second of a pair of lessons on business strategy.
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According to the old saying, good ideas are a dime a dozen.
There's no shortage of possibilities in business, but not all those ideas and possibilities are equal.
You have to be able to sort out which ones are the right fit for your business.
Given limited time, resources and capacity, you can't chase after every shiny new thing that comes along.
This is where strategy comes in.
Strategy helps you separate the excellent business opportunities from all the merely good ideas.
Strategy allows you to say yes to the right ones and no to the rest.
Without a strategic perspective, companies are doomed to go the way of Blockbuster.
Strategic decision-making involves asking whether your company is the right company to pursue the idea.
That means assessing whether it plays to your strengths and fits with your brand.
It also means discussing the opportunity, costs or the things you'll be giving up to pursue the new idea.
And any new opportunity has to have long-term potential.
It can't just be a flash in the pan.
In today's dialogue, we'll rejoin Paolo, Adrian, and Michelle, who work for a solar panel company.
The company has traditionally focused on commercial projects.
Now they're discussing whether it's a good idea, strategically speaking, to get into the residential market.
As you listen to the dialogue, try to answer the following questions.
1.
Why is Adrian concerned about the opinions of residential customers?
2.
What does Adrian say is the focus of their company's brand?
Three, what is Michelle's concern about the idea of providing energy audit services?
And with our depth of experience compared to these newer startups, I feel like we're in a good position overall.
Yes, we're in a good position, and I agree this looks like an amazing opportunity.
The market is there.
I have no doubt we could make money, but I guess I'm curious if this is the right opportunity or the right way for us to grow.
So, not just the general fit, but the right direction?
I guess that's one way to put it.
I mean, we have a competitive advantage in some respects, but would these new residential customers think we're the right ones to do it?
Well, our job would be to show them that we are.
Sure, but we might have to stretch ourselves more than we think.
We've always said we're good at big things, right?
We're good at executing on big complex projects.
Does this play to that strength?
Fair point.
It is a different kind of work.
Smaller projects, more customers.
That changes how we operate.
I think that's clear.
But remember, we're talking about solar panels.
That's what we do.
Big or small, I don't think it makes a huge difference.
The product is the same.
But we're not just a solar panel company.
We're a green energy company.
And our whole brand is built around serving commercial customers.
Impacting business triple bottom line stuff.
I don't think it's a stretch.
Companies evolve.
Brands evolve.
I'm not talking about resisting all change, but putting our energy and resources into this would mean we couldn't put them into other opportunities.
Like energy audits, which we've discussed at length.
Precisely.
Huge value add to what we currently do.
And for the same customers.
And there are not a ton of other firms doing it.
No, they're not.
But I wonder, is that because energy audits are going to be a big thing for the next few years?
Then fizzle out.
Is it a long play?
Maybe too soon to tell.
But I agree that we're not in a position to do both.
It's one or the other.
Here's what I think we should do.
Talk with Pelican just to hear them out.
Meanwhile, maybe your team could have another look at the numbers, Michelle.
And Adrian, if you can put together what we've already got on energy audits, we'll have more to work with.
And go from there.
Now let's go through the dialogue again and look at the language and techniques used by the three colleagues.
At the start of this part of the conversation, Adrian is asking a really important question.
And with our depth of experience compared to these newer startups, I feel like we're in a good position overall.
Yes, we're in a good position, and I agree this looks like an amazing opportunity.
The market is there.
I have no doubt we could make money, but I guess I'm curious if this is the right opportunity or the right way for us to grow.
So, not just the general fit, but the right direction?
I guess that's one way to put it.
I mean, we have a competitive advantage in some respects, but would these new residential customers think we're the right ones to do it?
Adrian understands that moving into residential work is a good fit with their overall business goals.
Or, as Paolo says, it's a good general fit.
And Adrian understands, they may have a competitive advantage or an edge over other companies doing this kind of work.
But what he really wants to know about is suitability.
Will the market and the customers accept their company?
Just because your company thinks it's the right fit doesn't mean customers will.
As you can see, there's lots to consider when it comes to suitability.
It's not just about business fit, but also customer perceptions and alignment with values.
Let's try some more ways of asking about whether an opportunity is suitable.
What makes you think we're the right company to do this?
Is this idea really a good fit for what we believe in?
Is this the right kind of partnership for us to pursue?
Next, Adrian asks about another aspect of suitability.
Let's listen.
Well, our job would be to show them that we are.
Sure, but we might have to stretch ourselves more than we think.
We've always said we're good at big things, right?
We're good at executing on big, complex projects.
Does this play to that strength?
To Adrian, it's not just about whether they're the right company.
It's also about execution, or making things happen.
After all, we say that strategy is 95% implementation.
And for this reason, Adrian is asking whether the idea plays to or matches their strengths as a company.
Your strengths are what you're good at.
And if you pursue opportunities that don't match those strengths, it might not be the best idea.
So let's try some more ways of asking about whether a decision aligns with your strengths.
What strengths as a company do we have that would be useful here?
Would our strength in customer service help us with this venture?
Do we have all the right skills and abilities for something like this?
Does this really match up with our strengths in online marketing?
Adrian is not the only one with concerns, as we can hear.
Fair point.
It is a different kind of work.
Smaller projects, more customers.
That changes how we operate.
I think that's clear.
But remember, we're talking about solar panels.
That's what we do, big or small.
I don't think it makes a huge difference.
The product is the same.
But we're not just a solar panel company.
We're a green energy company.
And our whole brand is built around serving commercial customers.
Impacting business.
Triple bottom line stuff.
Paolo seems to agree that the residential business is different.
But Michelle seems to think that because the basic product is the same, it doesn't matter who they're selling to or the type of projects.
Adrian, however, doesn't see it that way.
They're not just a company that sells solar panels.
Their brand is based on or built around the idea of helping companies become greener or more environmentally responsible.
Adrian mentions the triple bottom line, which is the idea that companies should care not just about profits, but also people and the environment.
With their emphasis on commercial services.
Adrian isn't sure the new opportunity fits with their brand.
Let's run through a few more ways to talk about whether a decision fits with your brand.
As a luxury brand, we could definitely consider this idea.
Would this damage our reputation as a seller of high-quality goods?
I'm concerned that they have a very different image from us.
So, Adrian isn't sure about the brand fit.
But Michelle still doesn't think they need to limit themselves.
Let's listen.
I don't think it's a stretch.
Companies evolve.
Brands evolve.
I'm not talking about resisting all change.
But putting our energy and resources into this would mean we couldn't put them into other opportunities.
Michelle is wise to point out that companies evolve or change depending on their circumstances.
But Adrian is not yet convinced that this is the right kind of change.
And he mentions a critical issue when it comes to strategic decision making.
Opportunity cost.
Opportunity cost is the idea that if you do one thing, it means you can't do other things.
So you have to consider not just the opportunity in front of you, but also what you'll have to give up for it.
Let's look at some specific examples of discussing opportunity costs.
Partnering with Puma would likely mean we couldn't explore partnerships with other sporting goods companies.
This venture would pull a lot of resources away from our existing business.
Would we have time for both this and new product development?
As we can hear.
Next, there's one other specific opportunity the group has discussed at length or extensively.
Like energy audits, which we've discussed at length.
Precisely.
Huge value add to what we currently do.
And for the same customers.
And there are not a ton of other firms doing it.
An energy audit is a service where an energy company analyzes a company or building's energy usage and needs.
As Adrian points out, few other firms or companies are doing this.
So there's less competition in this opportunity.
But Michelle raises another important consideration.
Let's listen.
Michelle's focus is not on short-term opportunities, but rather the long play, or long-term.
If the demand for energy audits fizzles out or dies in just a few years, then it isn't the right option for them.
In this way, she's suggesting that the residential market might have a better long-term outlook.
What are some other ways we can discuss the long-term outlook of a new idea?
Let's practice some more examples.
I'm a bit concerned this kind of growth is not sustainable over the long term.
Five years from now, I think this is going to be industry standard.
The electric vehicle market is going to continue growing for a long time.
It sounds like Michelle and Adrian can't agree on this decision.
And as Paolo points out, they may need more information to make a good decision.
Let's listen as Paolo hits pause in the discussion to talk about their next steps.
Maybe too soon to tell, but I agree that we're not in a position to do both.
It's one or the other.
Here's what I think we should do.
Talk with Pelican just to hear them out.
Meanwhile, maybe your team could have another look at the numbers, Michelle.
And Adrian, if you can put together what we've already got on energy audits, we'll have more to work with.
And go from there.
As you can hear, their next steps are to talk with Pelican, their potential partner company.
And they're also going to re-examine the data and information they have on both the residential and the energy audit opportunities.
Now let's practice some of the language we learned in today's lesson.
Imagine you work for a travel company.
You're talking with a colleague about whether you should launch a new business travel website.
You'll hear a cue by your colleague.
Then I'll give you a suggestion for what you can say in response.
We'll guide you through each step in the practice and provide an example answer for each response.
Ready?
Let's give it a go.
Start by asking if your company is the right one to offer something like this.
Answer.
But are we really the right ones to do something like this?
Well, we already provide other services to business travelers.
Now say that you're not sure you have the right strengths for online.
Answer.
Yes, but I'm just not sure we have the right strengths for online.
Fair point.
We'd probably have to develop some new capabilities.
Next, say that you also wonder if it fits with your brand, which focuses on retail.
I also wonder if it fits with our brand, which is more focused on retail.
Yes, we may have to consider adjusting our branding if we did this.
Now say, that's a lot of work, and it would mean giving up the rental car project.
Answer.
That could be a lot of work and it would mean giving up on the rental car project.
That's true.
So we need to be really clear why we're choosing one or the other.
Finally, say that one key factor in the decision should be the long-term outlook.
Answer.
Right.
And one key factor in our decision should be the long-term outlook.
Now let's practice some of the vocabulary 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 provide the correct answer.
Let's begin.
At the meeting, we discussed our policy changes at Answer.
At the meeting, we discussed our policy changes at length.
Answer.
I like the idea in some respects, but I think it might be too expensive.
I really think this new business model plays to our Answer.
I really think this new business model plays to our strengths.
Demand for this was strong for many years, but it started to Out Answer.
Demand for this was strong for many years, but it started to fizzle out.
We've reached the end of this lesson on making strategic decisions.
We've learned how to ask about suitability and strengths.
We've also covered how to discuss brand fit, opportunity costs, and the long-term outlook.
For more practice.
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Thanks for listening, and see you again soon.
