Unit 44 - Pitching and Negotiation Skills

PITCHING AND
NEGOTIATION
SKILLS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Negotiation, its occurrence and stakeholders........................................................................1
P2. Evaluation of key steps and information..............................................................................2
TASK 2............................................................................................................................................3
P3. RFP Procedure and documentation required........................................................................3
P4. Explanation of Contractual process and management and monitoring of documentation. . .5
TASK 3............................................................................................................................................6
P5. Development of appropriate pitch........................................................................................6
TASK 4............................................................................................................................................7
P6. Assessment of potential outcomes of a pitch........................................................................7
P7. Determination of how organisation fulfil their obligation from a pitch...............................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Pitching refers to the procedure of appropriately and effectively present the idea in
relation to a business process to different individuals, such as investors, customers and other
associated stakeholders (Gbadegeshin, 2018). This procedure has effective and enough potential
to instil a positive perception and behaviour of individuals towards the product or service in
context of the idea or offering pitched. On the other hand, negotiation is a process which is
undertaken by people within an organisation to ensure reconciliation of differences between
several parties and come to a common ground. The report is based on determination of
negotiation and related stakeholders, along with evaluation of key steps and information required
for negotiating, explanation of RFP process and relevant documentation, as well as effective
explanation in context of contractual process. Furthermore, the report is also inclusive of
development of a pitch to attain a sustainable competitive edge, along with assessment of
outcome of a pitch negotiation.
TASK 1
P1. Negotiation, its occurrence and stakeholders
Negotiation, in a business context, is an effective method which essentially allows
businesses to achieve a settlement related to several processes and procedures, through adopting
strategies related to collaboration and cooperation. Within a small business, for instance,
Rowlinson Knitwear, negotiation skills within individuals in the company are quite important as
the firm could experience certain benefits from the same. Some of these are as follows:
 The firm would be able to appropriately ensure higher workforce retention through
appropriately negotiating in context of salary and other appropriate employee benefits.
 Through negotiation, it could effectively ensure better and more prominent relationship
with customers.
 In addition to this, better deals could be fetched by investors or customers through
practising negotiation (Greenwood, 2018).
However, apart from this, there are several reasons as to why negotiations within small
companies could occur. They very first reason is associated with the fact that there are certain
situations within daily business functioning, which has more than one decisions to choose from.
This requires the management to communicate, which essentially enhance the scope of a better
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decision making. Furthermore, several ideas are pitched everyday by employees within the
organisations, which could be quite beneficial for one party but not much for other. This requires
appropriate negotiation as to whether an effective and middling outcome could be achieved.
In addition to this, there are several appropriate stakeholders within the organisation,
which are associated with the whole negotiation process. For example, the negotiation process
within Rowlinson Knitwear is associated with negotiating with employees in context of salary
dispute (Gianiodis, Markman and Espina, 2017). Thus, individuals associated within the scene,
along with an appropriate justification are discussed as under: CEO: One of the prominent stakeholder associated with negotiation process is the CEO
of the organisation. This is because they are responsible to authorise the policies, staff
payment schemes and so forth. Hence, they would be an important individual within the
negotiation of salary to the employees. Finance Manager: Another stakeholder associated with the same is the finance manager,
who regulates the finances of the company. Within negotiation this individual would be
acting a prominent role in context of negotiating with employees as to where the finances
are allocated and why those areas require more attention than towards the workforce. Human Resource Manager: This individual would be associated by ensuring that each
employee could understand the firm's point of view and would motivate them to
appropriately settle for the same.
 Employees: These would be quite an essential stakeholder group as the whole process
would be developed and implemented regarding negotiating with employees of the
company in terms of pay disputes.
P2. Evaluation of key steps and information
Negotiation is an essential aspect which would be required to be appropriately understood
and implemented within small businesses, in order to ensure effectiveness in organisational
processes (Fletcher, 2018). Hence, several steps which could be implemented while negotiation
within Rowlinson Knitwear are discussed below:
 Planning:
The very first step associated with the process is planning, which includes accumulation
and organising of several appropriate information which is necessary and essential for the whole
process, for instance, productivity reports, investment reports, ec.. Further, all the parties
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associated with the negotiation are required to prepare themselves in way, which ensures validity
and relevance to their claims. This needs the parties to undertake a 360 degree approach.
 Ground Rules:
There are several ground rules which are required to be pre set before negotiation and
after planning. Hence, this would address areas as to the place, time, possibilities, anticipated
conflicts, etc.
 Clarification:
This step includes clarifications and justifications from both the parties appropriately
where they explain themselves and their viewpoints effectively and each of them educate one
another in context of their perceptions and reasons for negotiating. In this step, the relevant
information from employee's perspective in above case would be annual reports about employee
retention and productivity, whereas, in context of managers and CEO, the information would be
regarding investment report, business opportunity reports, etc.
 Problem Solving:
In this step of negotiation, the parties associated in this process would appropriately be
bargaining with one another, in order to create a win-lose situation (Sleeman, 2019). This means,
that the information presented by both the parties would be associated with their perceived
benefits. For instance, if the case of salary dispute presented above is appropriately reflected,
then the employees would present the the information regarding how the firm would be benefited
by providing higher salaries to them by showing future anticipated projections due to higher
employee retention. On the other hand, the managers and CEO would be bargaining with
employees in relation to long-term benefit which they might achieve.
 Implementation:
The final stage of negotiation is related to implementation and closure. Within this step, a
mutual decision is achieved by the negotiating party and new agreements are formulated.
TASK 2
P3. RFP Procedure and documentation required
Request For Proposal (RFP) refers to an appropriate business document, which provides
effective details related to a specific projects, along with solicits bids from several contractors,
who could help the firm in accomplishing the same in an essential manner. Thus, there are
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certain steps which small organisations like Rowlinson Knitwear is required to appropriately
achieve to achieve this process effectively (Wiener, 2017). These are mentioned below:
 Assessment and Analysis:
The very first step of RFP process is associated with an appropriate analysis as well as
the planning of the whole project. Considering the above scenario, in case managers of
Rowlinson Knitwear agree on enhancing the salaries of employees, this would further require
additional investment. Thus, this step would be inclusive of an effective development of the
foundation idea with respect to the project. Hence, in this process, he required documentation
would be in relation would be project plan, business case, budgeting, timeline, etc.
 Development of RFP:
After assessment of requirements and other essential planning variables, this step is
associated with drafting the RFP, which would be directed towards the scope, performance
standards, deliverables, which would be communicated to certain investors for further bidding.
The documentation within this step would be inclusive of statement of purpose, contractual terms
as well as condition, review timeline, etc.
 Engagement:
Within this stage, the RFP is communicated to the vendors or investors and their
submissions and responses would be acquired on a specific date, after completion of the window.
However, this step requires an appropriate one-on-one conversation with each of the selected
investors, in relation to providing them information as to why they should effectively invest in
the firm's long term plan. Furthermore, this step witnesses acquisition of responses after
clarification of doubts (Loboda, Ostrovskyi and Katernyak, 2018). The documentation in this
step would be associated with projected income statement and Return on Investment, which
would help the firm in getting an effective deal.
 Negotiation and Contract:
After analysis of the responses, this step is related to negotiation in terms of highest
biddings. Moreover, after deciding the most prominent investor, the firm would be effectively
signing up the investor for the company on contractual basis.
In addition to this, this process required drafting of a business proposal, which is
mentioned below:
BUSINESS PROPOSAL
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Objectives
Rowlinson Knitwear, in order to appropriately and effectively
enhance the scope of improvement within the organisation, is
required to ensure high retention of their employees, to ensure higher
productivity and profitability.
Solution
A proposed solution of this objective is in relation to acquire
appropriate funding and investment, to enhance their salaries and
ensure higher productivity (Dinnar and Susskind, 2019).
Benefits
With higher productivity, the investors would be getting higher
return on investment, due to enhanced profitability and better
working standards.
P4. Explanation of Contractual process and management and monitoring of documentation
Within a small organisation like Rowlinson Knitwear, it is highly essential that an
appropriate contractual process is is utilised and several documentation is managed and
monitored, which would provide the organisation with perceived benefits and better security.
Thus, the contractual process is explained as under:
 Contract Selection:
The very first step of the process is inclusive of the type of contract which the firm is
willing to choose to get maximum benefits. Rowlinson Knitwear is must be opting for Non
Statutory Stock Option Agreement, according to which, the investors would be gaining effective
benefits and higher returns when the firm would enhance its value options.
 Gathering of Necessary Information:
This process is inclusive of appropriate acquisition of necessary information before
implementation of the contract (Nixon, 2018). Thus, in this context, the organisation would be
requiring information in relation to the statement of work, payment schedules, budget,
acceptance of proposal, etc.
 Selection of Negotiator:
Authorised signatories are hired, that enter into the negotiations in relation to the binding
contract. This would allow the organisation in context of negotiating the investors in relation to
payment agreements.
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 Review:
This step is associated with appropriate review of the agreement, in relation to the term
and condition of the final agreement. However, any deviation is communicated immediately and
the contract is modified on the basis of the same.
 Signing:
The last step is in relation to signing of the final agreement between the organisation and
the other party.
However, with development and implementation of a contract, it is highly essential that
the documentation is managed and monitored in an effective manner. This could be done through
several ways mentioned below:
 The firm must ensure that the information is segregated appropriately through converting
them in a digital format, where possible.
 Moreover, to better manage and monitor, the firm also could assign specific authorities
who would be having full authorisation to access the information (Rakin, 2017).
 With technologies like cloud computing and artificial intelligence, each information must
be stored in different archives as per their requirements, to ensure better management.
TASK 3
P5. Development of appropriate pitch
It is highly necessary for the organisation to develop an appropriate pitch, in context of
enhancing effective implementation of the secured contract within the company. This process,
along with principles of competitive advantage are discussed below:
 Objective Development:
The first stage of this procedure is related to development of objectives. In this context,
when Rowlinson Knitwear has secured funds for providing a better environment and higher pay
scale to employees, the objective must be to effectively ensure higher productivity.
 Centralisation of Idea:
This step is in relation with centralisation of the overall concept, around which the overall
pitch would be surrounded upon. In context of the company, the idea which would be centralised
is to gain higher returns within stipulated period of time.
 Presentation Structure:
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The presentation used in the pitch must have an appropriate structure which serves the
objective. For Rowlinson Knitwear, the structure must be outlining the best interests of the
employees, which would help them in inducing positive perception towards the whole proposed
scenario (Santonen and et. al., 2019).
 Factual Display:
This requires the organisation to effectively and essentially ensure that all the factors
pitched must be backed up by factual displays, such as forecasted reports, to ensure effectiveness
in the pitching.
 Feedbacks:
Since pitching is about securing a concrete deal, the last step is to acquire feedbacks from
the employees, which would be allowing the company in assessing the loopholes and work
accordingly, thus, ensuring compliance of employees.
Several principles which would be utilised alongside the steps are mentioned below:
 Regular policy updates
 Appropriate working relationships
 Effective Delegation
TASK 4
P6. Assessment of potential outcomes of a pitch
There are several appropriate outcomes in context of pitching. In relation with Rowlinson
Knitwear, these are mentioned below: No response: This is one of the most evident outcomes, wherein the employees, instead
of accepting the deal offered by the company, would be presenting several alternative
options, which could be quite inappropriate for the organisation. If this becomes an
outcome, then the firm is required to reschedule the negotiation process. Rejection: This is the case when the employees completely reject the firm's proposal. In
this case, the organisation must effectively negotiate with the employees, so that a better
pitch could be developed in future (Baranowska, 2018).
 Acceptance: In this case, the employees would appropriately accept the pitching of the
organisation, in which case, the organisation would be going forward with its new deal.
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P7. Determination of how organisation fulfil their obligation from a pitch
There are several ways through which Rowlinson Knitwear could fulfil their obligation
from a pitch. In context of the organisation, this would be accomplished through their post
pitching obligation, which requires the firm to ensure effective follow ups, which would
diminish the chances of a potential conflict in future. Furthermore, an open ended pitching with
regards to flexible modifications in future which would secure the firm's pitching in an effective
manner (Lussier and Kimball, 2019).
However, there are several issues which could likely arise in this process, which are
required to be assessed by the organisation. These are as follows:
 Non-accomplishment of goals: One of the major issues in relation to this process would
be that the goal is ultimately not accomplished. This could be the reason when the
demands of employees would keep on changing overtime.
 Inappropriate Image: Another major issue in this context is that fetching investors for the
purpose of employee motivation might send a wrong message in the market, thus,
developing an ineffective image.
CONCLUSION
Thus, it is concluded from the report, that pitching and negotiation is highly essential for
an organisation to appropriately and effectively enhance the scope of improvement in context of
getting a better deal. It is important to determine the concept of negotiation and reasons for its
occurrence along with stakeholders associated with the same. Moreover, understanding key steps
and information related to the negotiation is also very crucial in enhancing the scope of creating
positive situations in the company. In addition, explanation of RFP process, its documentation
and contractual processes are required to be implemented within the overall company. Lastly, it
is also important for an organisation to develop an effective pitch, assess its outcomes and
determine ways through which it could fulfil its obligation through pitching.
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REFERENCES
Books and Journals
Baranowska, J., 2018. Creativity in managing innovative education based on the Smart-Up Lab
program and Project Based Learning method. World Scientific News. 104. pp.90-101.
Dinnar, S. and Susskind, L., 2019. The Entrepreneurial World. In Entrepreneurial
Negotiation (pp. 13-40). Palgrave Macmillan, Cham.
Fletcher, D., 2018. Looking to the future: how can we further develop critical pedagogies in
entrepreneurship education?. Revitalizing Entrepreneurship Education: Adopting a
critical approach in the classroom.
Gbadegeshin, S. A., 2018, November. Commercialization Skills: Necessity for High Technology
Entrepreneurs in Digital Era. In Proceedings of the Future Technologies
Conference(pp. 965-975). Springer, Cham.
Gianiodis, P. T., Markman, G. D. and Espina, M. I., 2017. TO INVEST OR NOT TO INVEST:
UNDERSTANDING THE ENTREPRENEUR-INVESTOR-VENTURE (EIV)
NEXUS. Frontiers of Entrepreneurship Research, 37.
Greenwood, A., 2018. Experiences with authentic assessment on two practitioner-focused
business degree programmes.
Loboda, V., Ostrovskyi, I. and Katernyak, I., 2018. Developing Entrepreneurial Mindset in
University Undergraduates. E-methodology. 5(5). pp.114-131.
Lussier, R. N. and Kimball, D. C., 2019. Applied sport management skills. Human Kinetics.
Nixon, P., 2018. The Business Developer's Playbook: Relationship Selling Principles and the
DNA of Dialogue Selling. Productivity Press.
Rakin, A. S., 2017. Effectively pitching 3600 marketing services to clients.
Santonen, T. and et. al., 2019. CityDrivers-Easier selling and buying of creative competence.
Sleeman, D., 2019. Experiential Learning, Entrepreneurship and Enterprise: Designing
Learning. Transformations in Tertiary Education: The Scholarship of Engagement at
RMIT University, p.213.
Wiener, O., 2017. High Impact Fee Negotiation and Management for Professionals: How to Get,
Set, and Keep the Fees You're Worth. Kogan Page Publishers.
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