Effective Negotiation Skills in Business

The provided assignment is about the importance of effective negotiation skills in business. It emphasizes the role of negotiation in settling differences between parties and creating better understanding and communication. The document references various studies and research papers on negotiation, including qualitative political communication, leadership development, and entrepreneurship education. It highlights the need for effective negotiation skills to achieve business objectives and provides a summary of relevant literature on the topic.

PITCHING AND
NEGOTIATION SKILLS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Define Negotiation, its occurrence and key stakeholder associated with its process............1
P2 Key steps and information required for negotiation skill......................................................3
TASK 2 ...........................................................................................................................................4
P3 State RFP process and type of documentation related with it ..............................................4
P4 Contractual Process and how relevant documentation is managed or monitored ................5
TASK 3............................................................................................................................................6
P5 Key principles of appropriate pitching to attain sustainable competitive edge ....................6
TASK 4 ...........................................................................................................................................7
P6 Potential Outcome of a Pitch ................................................................................................7
P7 State Potential Issues .............................................................................................................8
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Negotiation refers to the process by which employee settle their differences. In simple
word, It is a method of discussing issues or problem with one selves and ending to a conclusion
that benefits all involved parties in the discussion (Figenschou and Thorbjørnsrud, 2015) . It is
considered as one of the most effective tool that aid in avoiding tension and conflict arise
between employee and employer. It also assist in attaining organizational goals and objective
without hurting anyone. Negotiation Skill involves method of influencing and persuading,
communicating, strategizing, planning, team work, employing tactics and tool set systems &
process. This report talks about how M&S uses various negotiation skill so as to maintain better
manager-personnel relationship in their work environment. This assignment also covers steps of

negotiation skills, RFP process, Key principles of pitching, potential issues and lastly outcome of
a pitch.
TASK 1
P1 Define Negotiation, its occurrence and key stakeholder associated with its process
Negotiation can be defined as the bargaining process that mostly occurs between two or
more parties, each is having its own perspective or need seeking to find a common ground and
settle the matter with mutual concern of both parties. When employees of an organisation is
having different view points, chances of conflict increase. Thus in order to avoid such situation,
both the parties say worker and employer sit together, discuss their issues in an open forum,
bargain or negotiate with one another and finally reach to a conclusion that satisfies both ends or
parties. According to Don A Moore “ When two or more than two parties wants to reach a
collective decision but have different perspective and preferences, they negotiate in such
situation”.
Conflict: When two or more person have different view-point on similar thing, chances of
conflict arises between them. Basically it is a difference between belief, interest or idea of two
person.
Levels of Conflict: There are four types of conflict that is categorised below:
 Individual Conflict: It usually arises when motives or drives of an individual are
blocked and they are unable to take any decision (Coppens, And et. al., 2014). When a
person or employee is unable to achieve what he wants to attain, he becomes frustrated.
Frustration is considered as the highest level of dissatisfaction which gives rise to
conflict.
 Inter-Personal Conflict: It is usually arise between two or more person because of their
different view-point or perspective. It is most common conflict that happens in an
organisation. These are mainly occur because of personal differences, environment stress,
lack of information etc.
 Organisational Level Conflict: Such type of conflict occurs between buyer and seller,
employee and employer and lastly between company and government agencies. Conflict
at this level, cause adverse affect on the functioning and performance of entire
organisation.

Cause of Conflict:
 Poor Communications
 Differences in Personalities
 Different Values and View-point
 High Competition
It can happen in any business situation where employee and employer disagrees with
each other. It usually occurs when two parties are having different interest or view point.
Organisation negotiate with them by fulfilling the needs and desire of both parties (Adrian, 2011)
(.Tenenboim-Weinblatt, 2011). Apart from that there are various reasons that states why
organisation prefer to negotiate are mentioned below:
1. Avoiding Conflict: There are different situation that promotes higher chances of conflict
in an organisation such as when employees work in a team, each of the team member is
having different view point or perspective. In order to avoid such situation, all the team
members of M&S sit together and discuss their view point with each other and then
jointly frame a decision with the mutual consent of all team members.
2. Create Win-Win Situation: Many people thinks that, negotiation is about beating the
decision of opposition party. However their perception is false as it refers to the process
of accomplishing business goal without hurting anyone and reaching a conclusion that
fulfil the interest of both parties in an effective manner.
3. Building up of respect: Self-respect or Being Respected by others plays crucial role in
increasing the productivity of an employee. Therefore at the time of negotiation, it is
really important to develop long lasting impression on personnel i.e. came up with a
conclusion that satisfies the interest of both parties which makes them feel valuable and
important.
Key Stakeholder associated with Negotiation are defined below:
 Primary Stakeholder: These are the one who either positively or negatively influenced
by the final conclusion made by an organisation (Cheng, 2014). Under this usually
agency or institution falls. Suppliers of M&S are considered as its primary stakeholder.
 Secondary Stakeholder: Employees and employers categorise under this. Both parties
tries to frame conclusion from their point of view but M&S make it keeping in mind
concern of both parties.

Dual Concern Theory: This theory focuses on establishing healthy relationship by balancing
the need and concern of both parties. It mainly include:
1. Competition: Individual is more concern about themselves and having low concern
towards others.
2. Avoidance: Individual possess low concern for both self and others
3. Compromise: Person is highly concerned about oneself and others too
4. Accommodation: Person possess high concern for other and low concern for themselves
5. Collaboration: It is mainly related with search of middle ground of concern.
P2 Key steps and information required for negotiation skill
Four steps required for negotiation skill are defined below:
1. Preparation & Planning: Before starting negotiation, one must aware of the conflict reason,
the history that leads to negotiation, parties involve in it and their own view-point or perception.
One should also determine what other party wants and how it is contradicting with its demand.
The success of any negotiation depends upon how parties associated with that has prepare
themselves for the negotiation. If a person is well prepared, their confidence level automatically
rises and gives an edge to the negotiator. Well- Preparation includes:
 Parties are require to have clarity regarding their objective.
 Both Parties are require to gather all necessary information regarding each other.
 It is important to understand with whom the process of negotiation is going to take place.
 Parties are require to anticipate what type of negotiation they want (RAWLINGS, 2013) .
2. Opening Phase: At this level, both parties come face to face. Each party tries to create
impression on other and tries to influence their perspective and thinking at the first opportunity.
Basically this stage is important as it sets the pitch of negotiation between parties. Both parties
are presenting their case and view-point.
3. Bargaining Phase: Negotiation Process begins at this phase. At this level, M&S first listen
the perspective of both parties and then tries to convince one party to concede the demand of
other (Bryant, 2017). They tries their best in reaching to a conclusion that satisfies both parties
interest and desire.
4. Closure Stage: This is the end phase that states negotiator has achieve success in convincing
both parties or it says both parties have created a conclusion with mutual consent. It also includes
sealing of an agreement which describes both parties have agreed on same thing.

TASK 2
P3 State RFP process and type of documentation related with it
A Request for Proposal (RFP) is a document that seek proposal, often made by business
enterprise or an agency via bidding process that is mainly interested in procurement of a service,
commodity to potential supplier or to submit business proposal. In order words it is a kind of
bidding solicitation in which business enterprise declares that there is a availability of funding
for particular program or project. Such type of proposal usually takes place between two
companies. For example: M&S negotiate with its supplier and they collectively draw a
conclusion. RFP includes specification of project or item for which bidder request proposal.
Success of proposal depend upon its detailed specification. It is mainly consist of following
consist:
1. Establish Project Boundaries: Under this parties involved with project requires to identify
key constraints such as total budget of project, its deadline, any particular requirement of
client etc. This aid both parties in knowing what are their requirement.
2. Identify key stakeholder and advisor: Lots of work and knowledge requires whiles
drafting or writing a RFP. M&S needs to gather all necessary details about the bidder and
so does bidder needs to collect data regarding the company (Keinonen, 2016). For each
particular project that needs RFP, M&S can appoint one person that is going yo lead the
entire process. It is important to determine who all are associated with RFP and what are
their requirement, so that M&S can address them in an effective and efficient manner.
3. Define your project needs: This can be considered as the vital component as it deals with
identifying what are the actual requirement of Bidder or Client. It is a time consuming
process as M&S will critically examine the needs of bidder and finds out whether they
are able to fulfil their requirement or not (Magness, 2013). Also if in case they tailored
any of the bidder's need then they will describe them.
4. Write the RFP: After knowing what exactly bidder or vendor wants, M&S can draft RFP.
It mainly covers need of supplier, how company is to accomplish, tools and techniques
used etc.
5. Review Responses: When the RFP is made by the company, vendors are required to go
through the proposal and proposed solution that has been framed by the company so that

latter on any change from the side of supplier will be not acceptable once the RFP has
been signed by both parties.
6. Negotiate and Sign a Contract: Before both parties signs the contract, negotiation takes
place between both parties. If company was able to fulfil the requirement of supplier then
there is no need for bargaining but however if in case vendor is not satisfied, then
negotiation occurs which results in reaching to a conclusion with the mutual discussion or
consent.
P4 Contractual Process and how relevant documentation is managed or monitored
Contracts involve any written contract, memorandum of understanding, binding letter of
intent, transfer, assignment, deed or other document whose provision is binding upon a person or
an organisation. Below mentioned are the steps of contractual process:
Step1 Selecting a Contract:- Contract is an agreement that mostly happen between two or
more parties that generate certain obligation for both parties. For example: PA of M&S manager
wants to increase their salary by 10%. Now this is a legal process thus, documentation is required
in an appropriate manner. At this stage, party also finds out which is the most suitable type of
contract.
Step 2 Collecting Necessary Information: At this stage, both parties will gather all necessary
detail regarding each other (Sullivan, 2015). For instance: Here, PA want 10% hike in their
salary. So manager will figure out all relevant data associated with PA. When he leaves from
office, most of the time he badly stuck in traffic which waste their lots of time and energy. So
what company can do is alter their working timing.
Step 3 Choosing a Negotiator: Only the person associated with organisation is allowed to enter
into an agreement (Haddad, 2014). Here PA can be the negotiator as here he requires hike in his
salary. Thus the negotiation process occurs between Manager of M&S and his PA.
Step 4 The Contract Review Process: Once the contract has been made, PA requires to cross
check it whether the contract is able to fulfil his desire or not.
Step 5 Contract Signing: Once both the parties are satisfied with the contract they are require to
sign it. After signing it becomes lawful in the eyes of law and none of the party is liable to
change anything.

TASK 3
P5 Key principles of appropriate pitching to attain sustainable competitive edge
Pitch refers to the communication that is mainly carried out by different business
stakeholders to the prospect. This type of communication usually takes place so to convince
client and make them agree to invest in the business operation. Pitch is usually carried out
various tools such as e-mail, letter and presentation. The common term used in this approach is
known as elevator approach. It is concerned with preparing a detailed description that should be
easily understand by both parties in an appropriate manner. The main elements of pitch is
defined below:
 Keep it Short: The first and foremost key principle of pitch is, it should be concise and
short. Lengthy or detailed description may bores investor. Therefore, firms are required
to frame to pitch that is simple and short, explaining all essential factors concerned with
that. In addition to that, it should also represent certain level of confidence that seize the
attention of investors and he immediately agrees to the pitch.
 Focus on Execution: Another crucial principle of Pitching is, it should not falls into the
category of fictional dream. It is something that easily catch the attention of investor i.e.
strategy with minimum amount of risk associated with it. If the project is feasible and
viable, chances of attracting more investors increase.
 Ignoring hockey stick projection: It is important for presentor to ignore unrealistic and
hyped projection related with future (Bhangoo, 2014). Therefore, presentor needs to
execute pitch that seems to more realistic and profitable. Three projection that should be
taken into consideration are best, moderate and worst. This aid investors to take decision
quickly.
 Depict ideal management tactics: To receive adequate fund from the investor, it is
important for presenter to make them realise that they are extremely responsible and
using the resources in an optimum manner.

TASK 4
P6 Potential Outcome of a Pitch
Once the presenter is done with pitching the investors, now the responsibility of investor
arises in terms of responding back to the investors. Basically this shows whether investor is
convinced with the proposal of presenter or not which are mainly described below:
 Acceptance: This is considered as the most favourable outcome as this means investor is
ready for investing money in their business operation. This also states both company and
investor needs to sign no-shop clause which describes that they are not allowed to enter
into contract with any other party (Seal, 2014). Investors are not allowed to invest their
funding in any other business plan. On the other hand, company is also not liable to
approach any other investor.
 Refection: This refers to the unfavourable outcome which states that investor is not
satisfied with the proposal given by the presenter. Now, its time for presenter to look
forward and seek other profitable investors.
 No Response: This considered as the most common outcome of the pitch where investor
neither agree with the presenter nor disagree with the presenter which simply means that
they need more time for thinking and reaching to final conclusion. They will taken into
consideration all important factors associated with it. Presenter tries to predict their
answer through their reaction.
 Come Back Later: Under this outcome, investor simply dis-satisfies with presenter's
pitch which means that presenter fails to impress investors and seize their attention. This
simply means that presenter is unable to make investors realise that their project was
profitable for them and they usually tell them to come back later (Ferry, 2011).
P7 State Potential Issues
An elevator pitch is considered as one of the most effective tool that is mainly carried out
by the organisation in order to fulfil its roles and responsibilities related with various
stakeholder. After receiving financial assistance from the investor, there are various obligation of
business enterprise which are mainly defined below:
Generating Revenue: Once the investor aid presenter in terms of providing adequate funds to
them, company becomes liable to generate more profits so to give better return to investor. In

addition to that it is also helpful in maintaining long lasting relationship with investors which is
very essential for both company as well as for investors. Therefore, organisation needs to
generate funds in a structured and thorough manner (Bobo, 2016.). Higher profit generation
means greater chances of investor satisfaction.
Managing Relationship: Another major task which business concern needs to fulfil in an
effective manner is to maintain long lasting relationship with its investors. They are obliged to
inform every single information related with the project to investor so to remain them updated
and informed with latest information. Also the company is liable to use business resources in an
optimum manner which directly help in yielding more profits. In order to facilitate better and
ideal relationship, entity is required to opt effective strategies that aid in achieving their long
term goal and objective in a significant manner.
CONCLUSION
According to the given report, it has been cleared that negotiation plays important role in
settling the differences or issues between them. There are certain situation when people have
different view point or perspective that means chances of conflict between them has increased.
Therefore company is liable to adopt effective negotiation skill that creates better understanding
and communication between both parties which is highly essential in order to attain its business
objective in an effective manner.

REFERENCES
Book and Journals
Figenschou, T. U. and Thorbjørnsrud, K., 2015. Qualitative Political Communication| Backstage
Media-Political Elite Negotiations: The Failure and Success of Government
Pitch.International Journal of Communication. 9. p.19.
Coppens, A. D. And et. al., 2014. Learning by observing and pitching in: Benefits and processes
of expanding repertoires. Human Development. 57(2-3). pp.150-161.
Adrian, J.M., 2011. Local Negotiations of English Nationhood, 1570-1680. Houndmills and New
York: Palgrave Macmillan.
Tenenboim-Weinblatt, K., 2011. Mediated negotiations: A case study of a transcultural exchange
between Lebanon and Israel. Communication and Critical/Cultural Studies. 8(2).
pp.165-185.
Cheng, R., 2014. Autoethnography approach towards Collaboration in the Entrepreneurship
Education. International Journal of Physical and Social Sciences. 4(5). p.41.
RAWLINGS, L., 2013. IN ANCIENT GREECE. The Oxford Handbook of Warfare in the
Classical World. p.1.
Bryant, A., 2017. Grounded theory and grounded theorizing: Pragmatism in research practice.
Oxford University Press.
Keinonen, H., 2016. Television format as a site of cultural negotiation: Studying the structures,
agencies and practices of format adaptation. VIEW Journal of European Television
History and Culture. 5(9). pp.60-71.
Magness, P.W., 2013. The British Honduras Colony: Black Emigrationist Support for
Colonization in the Lincoln Presidency. Slavery & Abolition. 34(1). pp.39-60.
Sullivan, G.R., 2015. Leadership Development in the Workplace. Leadership and Women in
Statistics. p.259.
Haddad, C., 2014. PR for plumbers: Winning business: Is price everything?. Plumbing
Connection, (Summer 2014). p.74.
Bhangoo, G.S., 2014. Kingdon's Multiple Streams Model and the Window of Opportunity for
Improved Aboriginal Employment and Skills Development Outcomes.
Seal, E., 2014. Juggling Identities: Elite Female Athletes' Negotiation of Identities in Disability
Sport (Doctoral dissertation, University of Bath).
Ferry, M.D., 2011. Secondary school physical educators' content negotiations. Wayne State
University.
Bobo, A.B.D., 2016. A participant-focused sociological analysis of beedz, a Grahamstown skills
training project for woemn (Doctoral dissertation, Rhodes University).