Negotiation Strategies for Success

This assignment delves into the intricacies of IT negotiation, providing students with a comprehensive understanding of effective negotiation strategies. It emphasizes the importance of preparation, communication, and building rapport. The document explores various techniques to gain leverage in negotiations, including BATNA analysis, framing proposals, and managing objections. Students are encouraged to analyze real-world scenarios and develop practical negotiation plans.

Pitching and negotiation
skills
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TABLE OF CONTENTS
LO1.............................................................................................................................................3
P1 What is negotiation and stakeholders involved in negotiation process............................3
P2 Key steps and information required in negotiating deals.................................................4
LO2.............................................................................................................................................6
P3 What is RFP process and types of documentation required.............................................6
P4 Contractual process and how documentation is managed................................................7
P5 Developing appropriate pitch by applying principles .....................................................9
P6 Assess the potential outcomes of pitch...........................................................................10
P7 How organisation fulfil obligation from pitch...............................................................11
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INTRODUCTION:
In every organisation conflicts occurs between employees. Therefore, in order to
solve conflicts negotiation has to be done. It creates a positive environment leading to
effective working of employees and business operations. It also helps in building strong
relationship with others by increasing bonding (Coppens, and et..al ., 2014). Negotiation with
suppliers, distributors, etc. has to done for smooth running of business functions. There are
many ways of doing negotiation; it all depends upon the parties. This report will throw light
on how stakeholder plays a crucial role in negotiation process and steps involved in it. Also,
what is request for approval (RFP) and contractual process is described. Besides this, how
pitching principles are applied in negotiation process is discussed.
For present report Marks and Spencer is taken. It belongs to retail sector and operates
globally.
LO1
P1 What is negotiation and stakeholders involved in negotiation process
Negotiation is a process through which an agreement is made between parties by
discussing with them ( Nic Giolla, Easpaig, . and Humphrey, 2017). By communicating with
them final agreement is made that describes the duties and roles of each party. They have to
follow and implement them. A person must be having enough knowledge and skills in order
to make negotiation between parties. Marks and Spencer must hire experienced manager to
negotiate with employees. It will be beneficial for them to resolve conflicts and create better
working environment. It will help Marks and Spencer for smooth flow of business operations.
A conflict occurs because of disagreement between parties regarding any issue or
problem. So for solving this negotiation has to be done ( Schroeter,. and Higgins, 2016). It
ensures that each party will perform their obligations. Apart from this business ensures that
there are no issues between employee and employer so that their efficiency can be increased.
For example- a person wants to sell his house so a legal agreement must be made between
parties. It will give idea of what payment method is followed, when house will be transferred,
etc.
Every organisation stakeholders play important role in negotiation. They provide idea
about what can be done to reach final agreement. There are several stakeholders in this
process that is described below:-
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Customers- Sometimes, customers are allowed to participate in negotiation process. This
situation arises in case of any issue between private company and customers.
Employees- Generally, employees union helps in negotiating as they already know about
various policies of negotiation. Also, they provide advice on what to do in case of
Government- It is the last option remained for business for negotiating. It provides the best
recommendations to both the parties (Chang, ., Benamraoui,. and Rieple,, 2014). Also, it is
very easy for party to negotiate in this.
Directors- They belong to top management and effectively listen to both parties. They
consists group of people who are very experience and possess enough knowledge. The
overall process is handled by these people until agreement is reached.
P2 Key steps and information required in negotiating deals
A successful negotiation occurs when all the information regarding the issue and party
is been gathered and analysed. This will be useful in giving effective solutions to both
parties otherwise it will lead to failure. Person who is involved in this process must be
responsible for collecting all information. It contains the following details:-
Background information- It is related to the reason of both parties issues. For collecting this
research is done that provide the root cause of their disagreement. Besides this, the number of
parties involved in it is also identified (Cenere, and et..al 2015).
Goal- Before going for negotiation goal must be identified. It will helpful in easily
reaching the agreement with defined goals and objectives. Also, parties will have an
insight on what will benefit them.
Plan- A plan will indicate what actions will be taken to deal with different situations. Also, it
shows the method through which negotiation will be done. Moreover, it consist strategies to
deal with parties (Baber,. and Ojala, , 2017).
The process of negotiation depends upon the nature of issue and interest of parties in
dealing with it. Also, it depends upon the choices of strategies available for negotiation.
For this there are several tactics available:-
Bundle- It happens when buyer wants to buy in bundle rather than a single piece. This
enforces seller to negotiation with buyer easily.
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Barter- This is a traditional method in which goods are exchanged with goods. There is
very less chances of having a negotiation between parties. Also, no involvement of
money is there is this.
Keep it light- This tactic is used by having a thorough conversation with both the
party. it will helpful in understanding their demands.
Written communication- It is the best tactic to have a negotiation. A written letter are
provided to both parties. This can also be kept as a proof while making agreement
(Chao,2017)
Silence and time-
Process of negotiation- Before going for negotiation the person must know its process.
It will help in dealing with situation.
Preparing and planning- A proper plan must be made regarding what step have to be
followed. It is done by collecting all information about the conflict and people involved
in it. Also, what is the issue of conflict and demands of each party. With this it will be
easy to deal with them.
Defining rules- After planning rules and regulations regarding where and when
negotiation will take place is decided ( Lerner,, 2015). Also, who will represent party and
what will be procedure followed for agreement. Everything is done under these rules
made.
Clarification and justification- Demands are exchanged and parties decides to
communicate with each other. This is done to clarify issues and demands of each other.
In this documents are provided by either party in case of need.
Bargaining and problem solving- It is just like bargaining for a product but in this case
party is replaced with customer. It is a step closer to negotiation. In this all the problems
regarding each and every thing is solved that leads to negotiation (Vance, Kulturel-
Konak,. and Konak, ., 2014 )
Closure and implementation- A final stage where agreement is made between both
parties. A formal contract is developed that contains all terms and conditions of
agreement. This has to be followed by both parties.
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LO2
P3 What is RFP process and types of documentation required
RFP is a legal document issued by organisation so that vendors can provide their bids
to them. It is like getting proposals for business services or products from public. It is like a
tender that includes specifications, units required , etc. It is issued for specific project.
Moreover, it describes how vendor will deliver goods to organisation and what
responsibilities he will be having during delivery of goods (Brown, and Collins, 2015).
Tender is issued so that organisation can get bids from various vendors and then select the
best one. Also, it helps in finding out effective featured product at cheap price. There are
various steps involved in this process that is as follows:-
Establish project boundaries- It defines the requirements of project. In this factors such as
budget, deadline, etc. of project is mentioned describing the overall project. This helps in
providing an insight to RFP process.
Identify stakeholder- This stage involves the participation of stakeholders. It is done to take
views and ideas of them in making RFP process. Also, if any vendor exits within them, then
it can be reached by organisation (Hendricksen, ., 2014).
Defining project needs- By discussing with stakeholders projects needs are determined. This
helps in identifying what requirements will project have.
Writing RFP- This step involves drafting the RFP. Different things are written in it such as
features, deadlines, budget, etc. by organisation.
Circulate RFP- After RFP is written specific media is used to circulate it. It is been sent to
potential vendors. Media used are newspapers, internet, etc. (Schaefer,, 2016).
Review responses- Various responses arrives after circulation. Organisation reviews those
with some standards that are set by them. It takes a lot of time as certain factors are evaluated
in this to find the best one. Moreover, experts are hired for doing this.
Vendor records- The track record of vendors are viewed who have been selected. This is
done to ensure the reliability of vendor. Also, some of them are eliminated if they do not
meet the requirements.
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Selecting and signing a vendor- In this step final selection of vendor is made by
organisation. A contract is signed between vendor and company. It ensures that goods
provided by vendor will be according to criteria mentioned in RFP.
The RFP document contains several important elements that is defined below:-
Planning- It is done to make the RFP process easy. It gives direction on what procedure has
to be followed while drafting RFP and selecting vendor. This saves the cost and time of
company (Iba Shimomukai,. and Nakamura,, 2015) .
Defining need- This is the most essential element as it gives an insight to vendor on project
needs. It takes a lot of time as any deviation in defining need can lead to loss of entire project.
Besides this, organisational culture information is also mentioned in RFP document
Communication strategy- This describes the way through which communication will be
done with vendors. For example- whether it will be direct or indirect communication
(Coppens, and et..al ., 2014).
Evaluation criteria- In this certain criteria is decided on which RFP proposal will be
evaluated. It is important because it shows on what factors vendor proposal was selected.
P4 Contractual process and how documentation is managed
An Act of buying and selling of goods or services is known as procurement. In this process
contract is signed between vendor and organisation. Besides this, contractual process means
entering into contract to perform specific task or activities in systematic way. In this each
party role and responsibility is defined. For doing this there are 6 six methods that are
described below:-
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Figure 1 Contracting process
Open tendering- It is a process through which bidding is done by different vendors.
Company gets the benefits by identifying better goods provided by vendor. It is effective
because it allows competition among vendors, but on the other hand quality measures are
often ignored by company ( Schroeter, and Higgins., 2016).
Restricted tendering- In this only selective vendors are allowed to bid. These vendors are
either selected by suppliers or management. For this certain guidelines are issued by
procurement team. It helps in finding out right vendor with high quality of goods.
Request for proposal (RFP)- It is a legal document issued by organisation so that vendors
can provide bids to them. It is like getting proposals for business services or products from
public. It is like a tender that includes specifications, units required , etc. It is issued for
specific project.
Two stage tendering- It is a two stage process. The first one is similar to RFP process and
second one includes submitting partial proposal rather than full proposal (Baber,. and Ojala,.,
2017 ). This is done so that some changes can be made while selecting a vendor.
Request for quotations- Usually, small business uses this as it saves time and cost for them.
Besides this, it does not require a lot of paperwork like RFP process. Also, it do not consist of
formal draft but just quotations. Moreover, selection of vendor is easily done by analysing
their quotations.
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Single source- In this only single vendor is been selected for delivering goods. Each element
is defined very
A contract is considered illegal when any party do not follow its terms and conditions. So in
order to make contract legal, it is been enforced by law. This law states that breaking of any
rules and regulation will result in legal action (Chao 2017). There are various ways of
breaking a contract. It becomes amended when any addition in elements is made by party. In
this case rather than entire contract only some elements of contract is been replaced. Apart
from this if any party breaks any condition mentioned in contract then it is known as
breaching of contract. This may be related to goods, price, etc. also, it may result in taking
legal action against the party. There are several types of breach that is minor, anticipatory,
material, etc.
LO3
P5 Developing appropriate pitch by applying principles
Pitching is related to variation in voice. These variations are usually used to impress the
investor to make investment in start ups ( Lerner, , 2015). It creates a huge influence on
investors to attract them towards business projects. Also, it is useful in making emphasis on
mission and vision of business. For this present case, the structure of company contains
following principles that are mentioned below:-
Brand loyalty- For getting successful in the market every business needs to have a strong
and wide customer base. It will help in creating awareness of brand and gaining market share.
Also, investors will show interest in project if loyalty of customers towards the brand is
effective. Therefore, information about customer brand loyalty in market will be helpful in
attracting investor.
Innovation- Innovation in products and services is needed for organisation to pitch for
investment. For Marks and Spencer manager must develop new products or processes
(Brown,. and Collins,., 2015) This will also influence shareholders to achieve growth in the
future. Besides this, they can make changes in policies of investment of company.
Networking and partnerships- By determining the network of enterprise, it helps in
expanding business operations and sales. This will be useful for investor in defining the
future competencies of gaining profits. Along with this, the partners of company must be
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disclosed so that investor can have an insight of how many partners are there. Also, it gives
an idea of current financial condition of company. With this investor can decide how much
amount has to be invested by them. Overall it build trust during pitch and providing solutions
of problems.
Therefore, these principles analysed it will be easy for company to influence investors and
surviving in market. Also, they can gain competitive edge over their rivals (Hendricksen,
2014).
LO4
P6 Assess the potential outcomes of pitch
There are various outcomes of pitch. These outcomes help in deciding the next step that has
to be taken. Generally, four possible outcomes are there which is as follows:-
Entering into a diligence- It is a positive outcome that means investor is ready to invest in
business project. In this two situation can occur. First one is signing a no shop agreement that
is, now you cannot approach any another investor. Second is no agreement is signed, it means
there are option to approach another investor. Moreover, both can provide fund to business
project (Schaefer, D., 2016).
Hearing NO or THANK YOU- It is the most common outcome of pitch where investors
directly tells no to business idea. They do not have any interest in investing in your business.
This is helpful in focusing on other investors.
Getting no response- This is a very confusing outcome where nothing is cleared in mind.
The investor is not able to decide whether business idea is good or not. In this situation direct
question can be asked to get a clear response so that next step can be taken.
Response of come back later- It is an outcome in which investor wants to see your business
growth. After this he or she will take decision whether to invest or not. It puts business in
dilemma as no proper step can be taken ( Cenere and et..al 2015).
P7 How organisation fulfil obligation from pitch
Organisation can use different techniques to get obliged from pitch. They can terminate
contract or reject negotiation. Contracts can be terminate in many ways:-
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 Impossibility of performance- When any party is not able to fulfil its duties or roles
then the contract gets terminated. In this situation company can break it with
impossibility of performance.
 Breach of contract- It gets terminated when a party fails to meet his obligations
described in contract.
 Prior agreement- In this case a specific reason is given by party for terminating the
contract. This reason must be given prior in written and within a specific time period.
 Rescission- When any party intentionally makes a mistake in a contract, it gets
terminated. In this case legal actions are taken against the party.
 Completion- A contract is terminated if all obligation mentioned in it are completed
by both the parties. Documents are shown as a proof that determines the duties and
responsibilities that is effectively fulfilled by each party.
CONCLUSION:
From this report it is concluded that negotiation plays an important part in building
relationships with others. Negotiation is a process through which an agreement is made
between parties by discussing with them. Stakeholders like government, employees, etc. act
as third party in negotiation process. A successful negotiation occurs when all the information
regarding the issue and party is been gathered and analysed. Request for proposal (RFP) is a
legal document issued by organisation so that vendors can provide their bids to them. An Act
of buying and selling of goods or services is known as procurement. In this process contract
is signed between vendor and organisation. There are various outcomes of pitch. These
outcomes help in deciding the next step that has to be taken. Organisation can use different
techniques to get obliged from pitch. They can terminate contract or reject negotiation.
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REFERENCES:
Books and Journals:
Baber, W. and Ojala, A., 2017. IT Negotiators: What’s your approach?. The European
Business Review. 2017.
Brown, J. and Collins, G., 2015. Embedding simulated practice: health of the community
experience. Primary Health Care (2014+).25(6). p.26.
Cenere, P., Gill, R., Lawson, C. and Lewis, M., 2015. Communication Skills for Business
Professionals 7. Cambridge University Press.
Chang, J., Benamraoui, A. and Rieple, A., 2014. Learning-by-doing as an approach to
teaching social entrepreneurship. Innovations in education and teaching
international.51(5). pp.459-471.
Chao, R.C., 2017. Navigation and Negotiation: Examining the Ecology of Service-Learning
Composition Courses (Doctoral dissertation).
Coppens, and et..al ., 2014. Learning by observing and pitching in: Benefits and processes of
expanding repertoires. Human Development.57(2-3). pp.150-161.
Hendricksen, D., 2014. 12 more essential skills for software architects. Addison-Wesley
Professional.
Iba Shimomukai, E. and Nakamura, S., 2015, T.,. Change Making Patterns: A Pattern
Language for Fostering Social Entrepreneurship. Lulu. com.
Lerner, H., 2015. The Confidence Myth: Why Women Undervalue Their Skills, and How to
Get Over It. Berrett-Koehler Publishers.
Nic Giolla Easpaig, B. and Humphrey, R., 2017. “Pitching a virtual woo”: Analysing
discussion of sexism in online gaming. Feminism & Psychology.27(4). pp.553-561.
Schaefer, D., 2016. Understanding Advertisers Decision-Making when Choosing a Media
Agency.
Schroeter, C. and Higgins, L.M., 2016. Learn by doing: a case study on enhancing students’
entrepreneurial skills. In Western Economics Forum (Vol. 15, No. 1, pp. 32-43).
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Vance, K., Kulturel-Konak, S. and Konak, A., 2014, March. Assessing teamwork skills and
knowledge. In Integrated STEM Education Conference (ISEC), 2014 IEEE (pp. 1-6).
IEEE.
Online:
The contracting process, 2018. [Online] Available through:
<https://rgw.arizona.edu/administration/negotiation-and-acceptance/contracting-process>
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