The Apprentice UK 2011 – Episode 3 Business lessons review

To Watch Apprentice UK 2011 Episode 3 click here to be taken to the BBC iplayer site. (You may have to search for a UK proxy if it denies you access – Search Google for a UK Proxy then try the link again).

The third installment in this year’s UK Apprentice finds our teams at the prestigious Savoy Hotel. Their task is to locate and purchase 10 items at the lowest price possible. There is a fine of £50 plus hotels marked price for each item missing from the list.They have access to phones, a london Yellow Pages and of course transport and money to purchase the items and return them to the hotel by the deadline.

10 items the Apprentice teams had to find for Savoy task:

Cloche
7Kg Fillet Steak – Aberdeen Angus
Chandelier Light Bulbs (50 clear candle bulbs)
Top Hat
Chamomile tea
120kg Crushed Ice
Organza Silk
Brass engraved plaque
Toilet Roll
nobody knows……. if you know what item 10 was please let us know.

The first task as usual is chosing a team leader. Lord Sugar mixed it up this week to compensate for the men losing two players so we no longer have the men vs the boys.

After some friction (in team Logic) between ‘I think I’m god’s gift to ladies’ Vincent and Gavin, the latter got the job. Team venture opted for the young Susan Ma.

Susan really showed some organisation in the beginning of her task. She assigned a product to each of them to research and asked them to locate the product from three different suppliers within a certain area of London. She however failed to grasp that the areas she has chosen were perhaps the most expensive within London, something would severely hamper their bargaining chances later on. Karen Brady spoke very highly of Susan’s leaderships skills at this stage, although I feel it was more effectiveness organisation skills and not really clever leadership as she forget the basics of location for the best price.

Vincent and Gavin were always going to have a battle of ego’s and it was clearly evident. Although Gavin assigned each a product also he failed to enforce his directions and sort of let them do what they wanted. There was one seriously stupid part where everyone in the room listened to Natasha call a rival restaurant and ask them to give our their suppliers list. Even crazier is that she gave no valid reason for giving their suppliers list so it was a no go even before she opened her mouth. Seriously stupid piece of business time-wasting.

Susan’s team managed to locate all of their items quickly and set off to negotiate. There was a surprisingly good performance by Irishman Jim who seemed to have a knack for bartering. Many will look at his words and say that was the key to his success but it was more than that. It is the way he stands and delivers. He speaks softly but firmly and once set on a price he does not back down to show weakness. He says a price and then stands very firmly waiting for an answer, when the answer is not what he hopes he cuts the person off half way though and gives them a second option,aways still expecting a sizeable discount but making it more reasonable than the first offer.

There were of course times where his eyes and smile seem to encourage the discount but his negotiation for the meat was well worth watching as a good example of negotiation.

Susan put herself on the other half of the team (they split into two groups within their team with different cars) and found bargaining really difficult. I have to say this was mostly down to them walking into really expensive stores that have a zero bargaining policy. Really silly planning in my eyes and of course picked up by Mr Sugar.

Gavin, after three-hour trying to identify items on the list which they did not understand, eventually left to start buying. Seriously lost for time they were never going to buy all of them. Gavin split the teams with Vincent becoming sub leader of the other sub team. Both negotiations and item location were nothing to write home about as they paled in comparison to Irishman Jim’s efforts for the other team. Had they set out on time, I think they could have done really well.

The other point to note was when Susan went to collect vintage tea which was priced at £900 for the box! After threatening to walk away the price was dropped to £400 but anyone willing to drop their price that much obviously does not value their product and would have made me very suspicious, even if the £900 first quote hadn’t already had me laughing in fits as to how stupid the price was.

In the end it came down to just eight pounds to decide the winner. Susan’s team won it and Gavin suffered, largely because they actually only brought four items on the list. Disgraceful when you have nine hours.There was not too much else to talk about in the boardroom as I dislike this part of the show anyway.

Business lessons from Apprentice UK 2011, Episode 3

1) Focus on the actual task

Whilst Susan started off brightly and organised she made a serious flaw. The task was based on price so her whole priority should have been sourcing at the cheapest pricee. She concentrated instead on ensuring she had all the products located without any regard to price based on the location or bargaining potential. What is worse is that they did not even have a basic idea of costs before entering premises. When you call up to see if they have an item in stock why would you not ask what their price is?

So many entrepreneurs make this mistake so a very valuable reminder of this lesson.

2) How to negotiate

Negotiation is naturally different in every situation and had Jim gone to some of the places Susan had been then he also would have been a failure. However, they choose places that allowed him to display his abilities and they were well worth watching.

The key to negotiation is to look like you really know what you are doing. Jim’s stern face but polite tone really works well for this. When you compare him to some of the others you can see they are not serious by the tone on their face and the impatient they have for an answer. Jim on the other hand has the confident posture and poise of someone who expects a good outcome and this creates a little pressure on the person he is bargaining with to play his game. What was also good was that when they said no he still went back to his orignal price and often waited for them to give him a discounted price before playing the meet in the middle game.

Have an idea of what price you would like when you start negotiating and expect a good outcome. Be prepared to show your confidence and to stand and wait as it is the silence that creates deals. Jim seems to have nailed that well.

Well worth watching this episode for the negotiation display by Jim.

3) A leader should encourage his team.

I’m always surprised when leaders come up with a plan but then never enforce it. It shows they have canned methods prepared but no real experience. One terrible example of leadership was with Vincent and his sub team of women. He considered himself to be the best and insisted and being able to do things better than his team. This effectively meant the gave up and let Vincent do his things, effectively reducing his team from four minds down to one. Very little surprise there that they lost.

However, Vincent’s example is a lesson to all Entrepreneurs. As creators of a business we always believe we can do things better than people we employ, but as shown in this episode that is a great way to make your workers switch off and leave you to fight alone. As Entrepreneurs we need to keep focus on the key objective and allow out teams to find their own paths. They are all capable people and just because they do things differently does not mean they do things wrong. Of course step in when things go wrong, but only if you keep focus of the ultimate objective will you even recognise when things are veering from the goal.

Conclusion

Good episode to remind yourself of how to negotiate and how to both keep your eye on the ultimate goal whilst allowing your team freedom to be themselves. As long as your team are working effectively towards the end goal then perhaps allow them to use methods which work better for them and never ever lose focus of the ultimate objective. Entrepreneurs often focus on the method when it is always the goal that is most important.