Pitching and Negotiating Skills in Business Organizations

This report discusses the importance of negotiation in business organizations, key stakeholders involved, steps of the negotiation process, RFP process, and contractual process for successful tendering with minimal risk.

Pitching and negotiating skills

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Defining negotiation and determining reasons for negotiation and key stakeholders involved in
a negotiation process:...................................................................................................................3
Critically evaluating the steps of the negotiation process and presenting valid solution for
dealing with issue:........................................................................................................................4
Explaining and applying the RFP process and type of documentation required including
consequences of breaching the terms of an agreement:...............................................................5
Explaining the contractual process and tendering to make a tender successful with minimal
risk:..............................................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................1

INTRODUCTION
Negotiation is process in which two parties agree on one final outcome, an formal
interaction and argument is been conducted between these party for a particular product or
service. Bargaining is key element in negotiation process allowing one party to bargain on
particular area, mutual understanding does matter in negotiation process (Budiyono, Pranawa
and Yuwono, 2021). This report will discuss negotiation and reason for negotiation including
key steps and process. Later REP process will be defined including dynamic pitch.
MAIN BODY
Defining negotiation and determining reasons for negotiation and key stakeholders involved in a
negotiation process:
Negotiation is one of the most critical process in every business organization in which
firm try to match best deal for their betterment, the process of negotiation is important because
firm might consider bargaining to get something from the market (Dratistiana, 2018). It is very
clear that every product and service in the market and higher than usually cost which means firm
need to bring down price of product and meet the requirement of the negotiation process, there
are certain reason for negotiation, these are:
Better deal: This is one of the most important reason why company negotiate for a product and
service, firm try to get better deal according to their estimated budget. Getting better deal is
challenging process, firm might lose the deal just become of minor adjustment. However, getting
better deal require negotiator to carry communication skills, delivery of words and power of
bargaining does matter in the area of negotiation. Better deal only become successful when firm
have ability to adjust their determined goal, firm bring adjustment in bidding and other area to
grab the deal.
Generating profit: One of the major reason for negotiation is to generate profit for the firm,
negotiator need to have those skills and ability to bring better dealing in favour of the company
which means to mitigate any kind of loss occurred in the negotiation process. Many negotiated
deals generate profit for the company. For example; if both party agree on profitable deal then
they might enjoy profit and no party will face loss. Some negotiating deals have ability to
generate surplus profit for the firm which make this reason valid for negotiation.
Key stakeholder involved in the negotiation process:

Negotiator: This is one of the most important stakeholder of the negotiation process in which
company assign negotiation to those employees who carry skills including effective
communication skills and negotiation skills itself. However, negotiator does have certain right
during the dealing process, they might impact firm's performance while grabbing the best deal
for the company. Negotiator is key stakeholder who play vital role in the field of negotiation,
they have higher recognition in the workplace.
Legal team: Negotiation should be done in the light of law which means firm need to have team
of legal procedures including lawyer and financial expert (Ghalayini and Deeb, 2021). Legal
team design legal documentation including terms of agreement, latter of interest and financial
statement when purchase is made. It is very clear that legal team ensure negotiation is done
correctly without any legal error because this may affect future relation of both parties.
Critically evaluating the steps of the negotiation process and presenting valid solution for dealing
with issue:
Negotiation is one of the most critical process in which company need to represent those
employees who have ability to win the deal in the negotiation round. Negotiation is skills,
employee who carry these skills have better place in the business because firm consider them as
sales pillar (Vinichenko and et.al., 2019). It is very clear that to win a negotiation, firm need to
develop a plan or negotiator need to focus on five important pillars of negotiation which help
employee to win the deal, these may include:
Step: 1 Prepare: Negotiation start with careful preparation of draft including list of things
required by the company, negotiator should be clear why and for what they want to negotiate.
Preparing a clear base will help negotiator to make better decision for further steps. For example;
negotiator of Microsoft need to prepare BATNA (Best Alternative To Negotiated Agreement).
Step: 2 Exchange information: This is second and critical stage, negotiator from both side need
to exchange information including key negotiation element. Negotiator need to stay clear on
information about the product exchanging in the deal. For example; negotiator of Microsoft need
to provide clear information including bid amount and ground rules during the process.
Step: 3 Clarify: Third stage in which negotiator need to clarify each and every point of
exchange or sales, if one sadder negotiator disagree on something then another one should
clarify. This may allow deal to effectively reach its outcome, negotiators who clarify win the

deal. For example; negotiator of Microsoft need clarify each and every step and should reach a
point of understanding.
Step: 4 Bargains and problems solve: Bargaining is another skills, this is rare in which
employee try to bargain the price of the product. Bargaining is one of the most complex process
in which negotiator need to stay on their point by keeping the confidence, negotiator make
certain adjustment if second party is not ready to deal on a certain point (Zhang and et.al., 2021).
For example; negotiator of Microsoft need to focus on keeping effective verbal communication
which allow them to convey the message.
Step: 5 Conclude and implement: This stage is final which occur when deal have been made,
negotiator from both side need to conclude at some point and should reach to final outcome of
the dealing. For example; negotiator of Microsoft need to conclude their dealing in good manner
to keep the relationship strong.
Explaining and applying the RFP process and type of documentation required including
consequences of breaching the terms of an agreement:
Request For Proposal (FRP) is process in which bidder send their proposal of buying to
receiver or supplier, this document is critical because this highlight interest of bidder, budget to
buy the product and other documentation. Company follow critical steps before sending RFP to
the issuer, these are:
Step 1: Gathering FRP requirement: Bidder need to gather information about RFP, this simply
means company need to examine their business operation needs, vendor try to build healthy
relationship with first ever order. Bidder need to provide clear information about interest
including need, problem faced by the company and solution required when purchase is been
made.
Step 2: crafting RFP documentation: Documentation does matter in RFP process, this simply
means bidder or company develop legal document including LOI (Letter Of Interest), T&C
(Terms & Condition) and other documents (Rajbhoj and et.al., 2019). Here, company need to ask
certain type of question with issuer or vendor. For example; 'Do you provide free trial?'.
Step 3: conducting evaluation: This step arrives after vendor submit their proposal, RFP issuer
need to conduct evaluation including formal comparison of different vendor in terms of their
strength and capacity to deliver raw material. Company shortlist vendor according to the
requirement and select final vendor who is capable enough.

Step 4: Follow up shortlisted vendor: RFP issuer try to test shortlisted vendor because this
allows them to examine strength of shortlisted vendor, however this process often called in depth
evaluation which help company to examine the best suitable vendor for their business operations.
Vendor try to win this battle by providing details of their key strength.
Step 5: Final or completion of contract: This is final stage in which RFP issuer finalize
shortlisted vendor and develop legal agreement between both parties. Final completion of
contract allow vendor to ensure delivery of supply meet business operation requirement, this
stage may be final but play critical role in creating relationship between both parties.
Explaining the contractual process and tendering to make a tender successful with minimal risk:
Competitive tendering is process in which bigger investor show interest, these investors
focus on company's greater plan and operation, these institutional investor auction their bid and
win the contract, there are certain steps in tender contracted, these are:
Step 1 Pre-qualification: This simply means company will identify those contractors who are
qualified enough to be tendered, company test qualification of contractor and try to make the
contract easy.
Step 2: Issuance of tender document: Issuance of tender document is process in which
company issue project at lower rate allowing competitive tender or bigger institutional investor
to invest in the project, many bidders perform risk evaluation allowing them to examine the risk
occurred in the project (Mishra, 2020).
Step 3: Receipt and Review: This is critical process in which company set policy, guideline,
document which are understood by each and every party. Both issuer and bidder need to agree on
final budget, risk, external factors and certain other area to make an contract stable.
Step 4: Award the contract: This is final stage in which company award the contract to bidder
who have bid highest and carry qualification to get this project, company need to provide the
best value to contractor allowing them to create healthy relationship between each other.
CONCLUSION
This report has discussed pitching and importance of negotiation in the business
organisation. Later this report has discussed negotiation and reason for negotiation including key
steps and information required and discussed process of negotiation. Later this report has
discussed RFP process and type of document required in the process, including contractual
process and competitive tendering and contract process.

REFERENCES
Books and journals
Budiyono, S., Pranawa, E. and Yuwono, S.E., 2021. Language as a Communication Tool,
Motivation, Achievement, Negotiation, and Business Professionally.
In Proceedings (Vol. 5, pp. 73-78).
Dratistiana, L.Y., 2018. The Importance of How to Have A Successful Negotiation in
Business. Swara Patra: Majalah Ilmiah PPSDM Migas, 8(1), pp.48-56.
Ghalayini, L. and Deeb, D., 2021. Building an automated win-win negotiation process
model. Information Management and Business Review, 13(1 (I)), pp.33-46.
Mishra, A.K., 2020. Empirical assessment of users committees formation and contractual
process for project implementation. International Journal of Interdisciplinary Research
in Arts and Humanities, 5(1), pp.1-8.
Rajbhoj and et.al., 2019. A RFP system for generating response to a request for proposal.
In Proceedings of the 12th Innovations on Software Engineering Conference (formerly
known as India Software Engineering Conference) (pp. 1-9).
Vinichenko and et.al., 2019. Improving the efficiency of the negotiation process in the social
partnership system. Entrepreneurship and sustainability issues, 7(1), p.92.
Zhang and et.al., 2021. Negotiation complexity: A review and an integrative model. International
Journal of Conflict Management, 32(4), pp.554-573.
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