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 to. 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 a 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 dialog, we’ll hear Jamie and Mike, two former colleagues who have run into each other at a trade show in Malaysia. They have 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.
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?