HND Business Unit 44: Pitching and Negotiation Skills Report

This report delves into the concept of negotiation within a business context, focusing on how business owners and salespeople determine the value of their products or services. It highlights negotiation's role in adjusting prices and achieving mutually beneficial outcomes, using Croydon Council as a case study. The report outlines the principles of mutual benefit, relationship building, and fairness, emphasizing their importance in fostering trust. It details the conditions under which negotiation is necessary and describes the three stages of the negotiation process: preparation, development, and closing. Furthermore, the report provides a step-by-step guide to achieving desirable outcomes, including preparation, discussion, clarifying goals, negotiating win-win situations, reaching agreements, and implementing action plans. It also emphasizes the significance of understanding the social context of negotiations, the importance of individual qualities like honesty and patience, and effective negotiation strategies such as not making the first offer and utilizing silence as a tactical resource. The report underscores the importance of these strategies in securing the best deals and fostering successful business relationships.

1 . W h a t i s n e g o t i a t i o n i n t h e
b u s i n e s s c o n t e x t ?
Negotiation is the method through which business owners or
salesperson settle the value for their product or services. In
business, negotiation generally takes place for money value. It
helps in decreasing or increasing the price of a particular
product or service. Croydon is the selected local council for
this study. Negotiation helps the parties to achieve a desirable
outcome that benefits all the involved members. In other
words, negotiation can be defined as a bargain which means
give and take process (Doyle, 2019).
Negotiation process involves three principles: the principle of
mutual benefit, building relationship and value for fairness of
decision. These principles are required to maintain in order to
build trust and loyalty among involved parties. Below are the
specific conditions which can help Croydon council to achieve
desirable outcomes:
 When any conflict arises among the members or
parties.
 When parties feel that there is a need for negotiation.
 When members or parties are not agreeing on same
condition.
Negotiation process applies 3 three stages. In the preparation
stage, discussion is made regarding the purpose of
negotiation, sharing of adequate information and interest of
both parties. In the development stage, parties defend their
viewpoint and try to put their condition. In the closing stage, 2
situation happens in this stage that is: either parties accepted
the condition of each other or both parties decided to wind up
Pitching
and
Negotiatio
n Skills
CRAYDON COUNCIL, ENGLAND

2. In order to accomplish a desirable
outcome below steps can be applied.
Preparation: Before negotiation process,
Croydon council require to set a time-scale
for discussion. Allocating time for discussion
helps in avoid conflict and wastage of time.
Discussion: Members or parties discuss
negotiation as per their understanding or
knowledge for the product or service.
Croydon council can also record points for
future reference and both parties should
have equal opportunity to present their case.
Clarifying goals: After discussion goal of
both the parties should be clearly present in
front of each other. This is the important
step in negotiation process because without
clarifying enormous misunderstanding can
take place.
Negotiate for a win-win situation: This
step is marked as "win-win situation"
because both parties end up having a
positive outcome. Every party involves in the
discussion should feel that their perspective
is taken into consideration (Forester, 2013).
Agreement: Every member needs to abide
by the law and condition mention in the
agreement. The agreement creates a legal
obligation for both the parties to fulfil their
responsibilities.
Implementing a course of action: Actions
required to be carried out after making an
agreement. In this part, both parties fulfil
their responsibilities towards each other.
In order to accomplish a desirable outcome below steps
can be applied.
 Preparation: Before negotiation process, Croydon
council require to set a time-scale for discussion.
Allocating time for discussion helps in avoid
conflict and wastage of time.
 Discussion: Members or parties discuss
negoation as per their understanding or
knowledge for the product or service. Croydon
council can also record points for future reference
and both parties should have equal opportunity to
present their case.
 Clarifying goals: After discussion goal of both
the parties should be clearly present in front of
each other. This is the important step in
negotiation process because without clarifying
enormous misunderstanding can take place.
 Negotiate for a win-win situation: This step is
marked as "win-win situation" because both
parties end up having a positive outcome. Every
party involves in the discussion should feel that
their perspective is taken into consideration
(Forester, 2013).
 Agreement: Every member needs to abide by the
law and condition mention in the agreement. The
agreement creates a legal obligation for both the
parties to fulfil their responsibilities.
 Implementing a course of action: Actions
required to be carried out after making an
agreement. In this part, both parties fulfil their
responsibilities towards each other.
2 . T h e k e y
s t e p s f o r
n e g o t i a t i n g
a n d
g e n e r a t i n g

4 . H o w t o g a i n
t h e b e s t
d e a l s / c o n t r a c t ?
4. Below are the effective negotiation strategies that can
succour the negotiator in cracking or gaining best deals:
Never make the first deal or first offer: Person should not
first offer the price because it can be possible that other party
can offer less price than expected. Always demand low prices
for gaining the best deal (Luu et al., 2016).
Silence and time as a tactical resource: Never respond
too quickly to an offer because it can be possible that other
party can offer goods or service at below price than expected.
Bundle system: A great way for negotiation on the price is
to include other goods in the cart. This can force the seller to
offer good at low prices because another party is purchasing
multiple quantities of goods.
Share knowledge or information: Use smart approach
ways, a person should have adequate knowledge about the
product because this leaves an impression in the mind of the
seller that another party is aware about the market price of
the product.
Willingness to walk away: If the seller is not coming down
to the maximum level then another party should have the
courage to leave the counter. This action will force the seller
to bring his prices down for next time and for another
customer.

5. How to generate new business and
win deals?
5. Great business ideas come from the creativity of the person. In order
to get the idea and win deals a person should follow the below steps:
Meeting with new people: It helps a person in knowing about the
thinking, demands or needs of the different-different person. It is
possible that after hearing the demand or need of a particular person,
other party gets an idea for doing business in which they will fulfilling the
same needs of other population. For example, when X meets to Y then Y
told X "I do not like to purchase grocery by going in the market. I
consider this a waste of time." Suddenly X thoughts to start the service
which can deliver monthly grocery items directly to their client’s place.
Exploring a new way of thinking: For getting a great business idea a
person should be creative and have the ability to enrich or welcome a
new way of thinking (NG, 2014).
Market research: By conducting the market research a person gets to
know about an emerging trend in the market. This can help a person in
getting a new business opportunity.
Ways to win the deal:
Focus on customer's issue: In order to win a deal, salesperson should
focus on the need and problem of the customer. Instead of focusing on
the negotiation, salesperson should focus on their customer’s need to
win the situation (Rouse, 2018).
Be Confident: Salesperson should be confident and relaxed while
cracking the deal. It is essential for the skilled salesperson to appear
comfortable in front of their customers. It has been observed that
inexperienced salesperson rushes out in front of their clients which
shows their impatient behaviour.

6 . T e n d e r i n g
f o r c o n t r a c t s
6. Tender refers to the opportunities organized by the
public sector organization. Public sector organization
processes an invitation to tender for the specific
industries. After that, they call business owners for the
bidding process. For example, when the public sector
brings the contract of making roads, then they
received a lot of application from the contractors. All
the contractors are invited for the bidding process
then whoever is agreed to work on minimum wage,
public sector authority selected their application. Apart
from this, Contract documents are the agreements
between the contractor and the department for
performing certain work which is already specified in
their tender note. The difference between contract and
tender is that tender document offers to many
contractors or business owners for getting a lowest
quote but contract documents are giving only to those
contractors who are agreed to work on the certain
project at a pre-decided price. Contract document is

7. Preparing for negotiation through a
request for proposal (RFP) form.
7. Request for proposal is the proposed document
which defines the scope of project and price. This is
an invitation to bid by other party. RFP involves the
bidding process, terms related to the contract and
how the bid should be formatted. CROYDON local
council mainly use RFP to secure a contractor for a
project but the government only uses request for
proposal. RFP received only for complex projects and
all the details regarding the work nature is specified
in the statement. It may also contain information
about an organization and its line of business. This
process enables an organization to get more and
more bidders and other organization also have the
right to place a bid (Forester, 2013).
Creating a request for proposal
The process begins from drafting a request for
proposal. People who want to bid reviews the
solicitation and submit their advice or suggestion for
improvement. After applying their suggestion, the
final RFP is issued. People who want to bid submit
their proposals and after this customer selects the
group for their choice and enters in the negotiation
process for price and other technical details. A
competitive bid price is connected with a price
submitted by other bidders.
Example of the RFP
Request for proposal has been issued by the
administration of railroad for design and construct a
rail system. Interested parties can submit their
proposal with the essential requirements. The
department will review all the proposal and select the
most appropriate proposal for the project (Gabriel,
2015).

8. Responding to RFP – creating a
business proposal
8. Responding to RFP – creating a
business proposal
8. Responding to RFP is as important for business as maximizing profits. Always
remember to draw the requirement outline in RFP. Quality to RFP proposal enhances the
probability of cracking the golden deal. Below are the steps for crafting a convincing
response to RFP.
 Review and analyse the entails of RFP as early as possible.
 Review the essential components of the RFP.
 All the questions need to be answered as per the requirements of prospects.
 Creating a proposal for business.
 Now, give an adequate response to objections.
 In the end, present proposal.
Creating a business proposal
1. Carefully entail all the details of the request for proposal: An individual
must be submitting a business proposal in response to receiving the RFP. Legal
agencies or government can send RFP whenever they want to buy goods or
services.
2. Prior attempts: Responding to a business proposal to the party’s requirement by
clearing confusion from the RFP. Always make sure that the proposal is consistent
with the policies as per the operating process.
3. Format the proposal: Business proposal must be presentable and readable. Font
size and style should be as per the reader’s comfort.
4. Add a title page: Always add a title page as the cover of business proposal. Title
page should include name, company or council’s name, date of submitting
proposal, etc.
5. Introduce the business need in proposal: A proposal should identify need or
problem about the business. In the beginning, always start by the clear language
that can be understood easily by the other party. For example, "Croydon council is
suffering because of the Payroll services. Currently, all the task related to the
payroll services is completed by the management team. By hiring employees in

9. The contractual
process and
agreements
9. Contractual process includes the contract,
subcontract, memoranda of understanding, lease, deed,
agreements, etc. The main purpose is to ensure that
party fulfil their own roles and responsibilities, effectively
and efficiently. In contractual process date, time and
participation parties details mention specifically. This the
legally binding agreement which describes
responsibilities of other party with the legal manners.
This agreement is the legally enforceable relating to the
transaction of sale, purchase, sale of goods, etc. A
contract includes an obligation on the part of the
contractor which can be expressed either verbally or in
writing. Parties would be bound legally to respect and
honour the agreement. Contractual process is the
practice undertaken by other party (Lawrence & Ali,
2014).
Contractual process and agreement include transaction
for the purchase or sale, it is the standardized form.
Agreements fulfil each party's requirements and rights
for every contingency that arise during the transaction or
fulfilment. A formal contract note is required to engage
an external evaluator. The contract should clearly
describe purpose details regarding deliverable, timelines,
obligations, etc should be mention (Doyle, 2019).

R e f e r e n c e s
Doyle, A., 2019. Important Negotiation Skills for Workplace Success. [Online] Available at: https://www.thebalancecareers.com/negotiation-skills-list-
2063760 [Accessed 30 June 2019].
Filzmoser , M., Hippmann, & Vetschera, , 2016. Analyzing the multiple dimensions of negotiation processes. Group Decision and Negotiation , 25(6),
pp.1150-63.
Forester, J., 2013. On the theory and practice of critical pragmatism: Deliberative practice and creative negotiations. Planning theory, 12(1), pp.8-12.
Gabriel, C., 2015. Robustness and linear contracts. Economic Review, 105(2), pp.550-58.
Lawrence, S. & Ali, S., 2014. Negotiating more effective global agreements. Oxford University Press.
Luanne, K., 2019. Top Ten Effective Negotiation Skills. [Online] Available at: https://smallbusiness.chron.com/top-ten-effective-negotiation-skills-
31534.html [Accessed 30 June 2019].
Luu, L. et al., 2016. Making smart contracts smarter. ACM SIGSAC.
NG, F., 2014. Negotiation Process: How It’s Done in 8 Steps. [Online] Available at: https://blog.udemy.com/negotiation-process-2/ [Accessed JUNE
June 2019].
Rouse, M., 2018. Request for Proposal (RFP). [Online] Available at: https://searchitchannel.techtarget.com/definition/request-for-proposal [Accessed
28 June 2019].
Wins, M., 2017. 7 Key skills for successful negotiation. [Online] Available at: https://www.procurement-academy.com/7-key-skills-successful-
negotiation/ [Accessed 30 June 2019].