Negotiation Strategies for Business Growth: A Comprehensive Guide

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Task 1
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Executive summary
The ensuing assignment studies the various processes and steps involved within the process of
negotiation and align the steps that companies may take in order to close deals and grow their
overall profitability. It also presents a request for proposal form and how companies can generate
business through replies and outlines the various contractual agreements and process involved.
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Table of Contents
Introduction......................................................................................................................................3
1. Negotiation in the context of a business......................................................................................3
2. Key steps for negotiating.............................................................................................................3
3. Context of negotiation and importance of key individuals..........................................................4
4. Ways to gain the best deals..........................................................................................................5
5. Developing new business and winning deals.............................................................................5
6. Tendering for contracts................................................................................................................6
7. Preparing for negotiation by Request for Proposal (RFP) form..................................................6
8. Forming the business proposal with RFP responses....................................................................7
9. Agreements through contracts and processes.............................................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9
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Introduction
Negotiation essentially relates to the settling of differences among a number of parties
specifically in terms of the various business operations of the parties. Negotiation is a crucial
element concerning establishing healthy relationships in the wider business environment, and
must be emphasized upon heavily by organizations and companies irrespective of their sectors
and industries. Negotiations have certain key roles within the aspect and these primarily relate to
the various leaders, experts, relaters and critics as well.
Task 1
1. Negotiation in the context of a business
As mentioned by Brett and Thompson, (2016), negotiation within the concept of businesses and
the business environment primarily relate to the presence of correspondence among the
stakeholders of organizations to sort their differences and establishing a healthy interpersonal
relationship in order to facilitate operational flow. The process of negotiation is extremely
important for businesses to gain certain advantages and more competitive pricing points from
other organizations. As put forward by Brett, (2017), a sound system of negotiation can
significantly affect the overall productivity of an organization, and must be approached with
carefulness and a certain strategy.
2. Key steps for negotiating
Negotiation and its associated aspects have certain key steps which have been discussed below
and are as follows.
 Planning and preparation: The planning and preparation stage form the initial stages of
negotiation, and includes the accumulation and gathering of all the relevant information and
data that would help the parties in engaging in an effective session of negotiation. The data to
be presented must be verified by all the parties as wrongful presentation can significantly
impact the quality of the negotiation process (Waterhouse et al., 2016).
 Norms and the ground rules: This is the second stage of the overall negotiation process and
essentially relates to the establishment of the norms and the various regulations that the
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parties must adhere to while engaging in the negotiation. This includes the choice of place
and the time as well, and the same must be notified to the various parties involved prior to
the date of negotiation.
 Clarifying the specifics: This phase of the negotiation process essentially involves the parties
presenting their viewpoints in the most effective manner possible and is the most integral
component within the overall process.
 Bargaining and resolving conflicts: This stage involves the parties engaging in the
negotiation process and forms the crux of the entire procedure. Moreover, this results in the
final stage and essentially leads to the closing stage.
 Closure: The closure stage is the final part of the negotiation process and typically ends by
parties mutually agreeing to certain conditions and codifying the same through an agreement
or a legally enforceable document.
3. Context of negotiation and importance of key individuals
As mentioned by Geiger, (2017), the key principle upon which the context of negotiation relies
upon is the delivery of mutual benefit to all the parties involved within the process of
negotiation. Typically the processes that involve a negotiation include contracts relating to
supply and demand chains, obtaining investments from third parties, legal compliance and so on.
It allows organizations to obtain competitive advantages, be it in terms of price points or quality
of raw materials.
The presence of key individuals within the negotiation process is extremely important as they
inherently have a certain degree of gravitas and can make their presence felt (Luomala et al.,
2015). Negotiation teams typically have a leader who conducts the overall process. The critics
within the team also play an important role, and are primarily tasked with highlighting the
various pros and cons of the negotiation that could subsequently provide further benefits to the
parties involved. The relator is another key figure within the negotiation process, and is
essentially tasked with developing the relationship between the parties and collecting relevant
information and data that could ease the overall negotiation process. The expert plays a tertiary
role to a large extent, and provides specialized opinions typically related to legal compliance and
statutory legislations.
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4. Ways to gain the best deals
The process of closing deals includes a number of steps that have been discussed below and are
as follows.
 Establishing the objectives: The establishment of the objectives is the most important part
within any process of negotiation, as it allows the individuals involved to maintain a certain
direction of action and enables them to carry out the negotiation process efficiently.
 Comprehending the expectations: Understanding and evaluating the various expectations of
the parties involved is another important factor in closing out deals. It allows the individuals
involved within the negotiation process to present their viewpoints in an articulate manner,
thereby increasing the possibility of a successful negotiation (Lam and Liaw, 2017).
 Setting up efficient strategies of negotiation: The negotiator of all the parties involved must
specifically emphasize on setting up efficient strategies that they would undertake in order
achieve positive results during the negotiation process. The multiple possibilities that could
come up during the negotiation must be factored in by the individuals involved prior to
setting up the strategy, as it would ensure that no loopholes are present in it.
 Suitability of the negotiators: The negotiators must be suitable individuals who have had
some experience in dealing with other parties prior to the initiation of the negotiation process
that would currently take place. The selection of incompetent negotiators can significantly
deter the overall quality of the negotiation and can even harm the organization in the long
run.
 Presentation competencies: The presentation of the viewpoints and the outlook of the parties
involved must be carried out in the most suitable and appropriate manner possible. Improper
presentation can harm the overall process of negotiation and may halt the deal along with
causing financial damage to the organizations involved on the process.
5. Developing new business and winning deals
Planning the resources is an integral part of a business to convince the investors in order to make
the stakeholders invest in the business. These resources are mostly in the form of expertise of the
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employees, capital accumulated from various sources along with proper strategic planning
eventually leads to the growth of the organization (Cao et al., 2018). The entrepreneurs must
exhibit a compromising attitude towards the demands of the investors. Unique selling point is
another aspect that needs to be improved by the organization so that the investors get confidence
in the potential of the organization. Formation of partnerships can also lead the business to target
new heights and this is only possible when a thorough market research has been conducted by
the company. The needs and choices of the customerS have to be the main priority of the
business individuals. Further analyzing the drawbacks and loopholes of the company has to be
ascertained so that improvements can be made beforehand. The communication standard of the
members of the company also enhances the capability of the company as a team and therefore
improves the pitching level.
6. Tendering for contracts
The process of tendering mainly concerns about the methodologies involved in providing
effective merchandises and strong service quality to other business enterprises. A thorough
analysis of the strengths, weaknesses, opportunities and threats are carefully undertaken to
develop an effective tender. All the information relevant for the development of contract are
gathered and accordingly decisions are made. The need of the bidding party is evaluated and if
the statement seems convincing enough, the deal is made. The terms and conditions are set by
the company based on which the deal is made (Druckman, 2019).
7. Preparing for negotiation by Request for Proposal (RFP) form
All data and information regarding the innovative patterns of the products and service ranges are
mentioned in the RFP form. The two parties make an agreement through the strategies of
negotiation. Proper evaluation of the strengths and weaknesses are conducted for smooth process
of cracking the deal. All these facts are demonstrated to the investors, who decide whether the
company is suitable enough for making the investment. The RFP contains all the details of the
company, such as the functions they undertake, beliefs and customs they follow, and ambitions
they have for making extensive growth in the target market. The dealers check the RFP form,
and ensure that whether the company can perform up to the mark. For instance, the RFP form
ensures that the small business companies of the United Kingdom are making effective practices
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to state all their details and increasing the scope of the business. Several payment information are
also mentioned in the form based on which the necessary investment prospects are sought after.
The data regarding the payment options determines the amount required by the company to
develop the industry in the competitive market (O’Neill, 2018).
8. Forming the business proposal with RFP responses
To change the structure of the company, RFP can be an effective tool. The start up businesses
and other small organizations initiate their business growth with the help of this RFP tool.
● The main idea behind the initiation expansion of the business must be mentioned. The
proposal parts comprise of these reasons. The goals of the business can be met
accordingly.
● The second part identified in the proposal further elaborates the reasons for the
implementation of the business innovations. Allocations of the resources are made based
on which the decisions are cited.
● In the third part of the proposal, the nature and conditions of the business are mentioned
to enhance clarity.
● The proposal emphasizes all the crucial information related to the growth of startup
businesses. Therefore, incorporating fact based data in the proposal makes the pitching
more effective.
● Creativity in the proposal enhances the quality of the objectives of the business and hence
can lure the investors in a more heightened manner (Lingo, 2017).
9. Agreements through contracts and processes
The two organizations involved in the deal shares all the relevant statistics and information about
each other so that transparency as well as trust between the parties. The employees and
customers develop loyalty in the goals of the business. The payment processes in the deal, scope
and growth of the industry (Gunia et al., 2016). The signing of the contract is done after a
thorough negotiation that creates a long lasting bond between the parties. The pitching and the
negotiation factors play the main role in cracking the deal. Thus, the startup company can make
extensive growth with the help of these investments. However, there are chances that the investor
might refuse to put funds for the development of the small businesses. The main reason behind
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this failure is inability in convincing the stakeholders to have faith in the initiating company. The
terms and conditions created by both the parties have to match the ideal of each other (DeVault
et al., 2015). Then only the final agreement can be said to be successful. The startup business has
to comply with the demands of the investors and make compromises if required. Moreover, both
the parties can unite together to make the final decision about making long term changes.
Conclusion
Hence, from the above analysis, it can be derived that the negotiation is an important criterion for
a contractual business to flourish. Pitching is one kind of negotiation that the small business
entrepreneurs make with the investors to accrue more funds for the growth of the organization.
The stages of negotiation are discussed in brief in the above documentation. The relevance of
negotiation in the context of business and its importance for specific individuals in the
organizational platform are made visible. It has also been affirmed that negotiation enables any
business to crack the best deals and gain competitive edge. Thus, the tendering process of
making the contracts between the two parties, development of a request for proposal form and
gathering specific responses are cited in the report. The agreements meant for the contracts and
the entire procedure has been finally inferred.
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References
Brett, J. and Thompson, L., 2016. Negotiation. Organizational Behavior and Human Decision
Processes, 136, pp.68-79.
Brett, J.M., 2017. Culture and negotiation strategy. Journal of Business & Industrial
Marketing, 32(4), pp.587-590.
Cao, K., Lazaridou, A., Lanctot, M., Leibo, J.Z., Tuyls, K. and Clark, S., 2018. Emergent
communication through negotiation. arXiv preprint arXiv:1804.03980.
DeVault, D., Mell, J. and Gratch, J., 2015, March. Toward natural turn-taking in a virtual human
negotiation agent. In 2015 AAAI Spring Symposium Series.
Druckman, D., 2019. Negotiation Theory. Negotiation Journal, 35(1), pp.85-85.
Geiger, I., 2017. A model of negotiation issue–based tactics in business-to-business sales
negotiations. Industrial Marketing Management, 64, pp.91-106.
Gunia, B.C., Brett, J.M. and Gelfand, M.J., 2016. The science of culture and negotiation. Current
Opinion in Psychology, 8, pp.78-83.
Lam, N.T.H. and Liaw, S.Y., 2017. Comparing Mediation Role of Cultural Intelligence and Self-
Efficacy on the Performance of International Business Negotiation. International Business
Research, 10(7), pp.22-33.
Lingo, E.L., 2017. Negotiation and Lovesongs: Brokerage of Paradoxes in Creative Projects. In
Academy of Management Proceedings (Vol. 2017, No. 1, p. 16937). Briarcliff Manor, NY
10510: Academy of Management.
Luomala, H.T., Kumar, R., Singh, J.D. and Jaakkola, M., 2015. When an intercultural business
negotiation fails: comparing the emotions and behavioural tendencies of individualistic and
collectivistic negotiators. Group Decision and Negotiation, 24(3), pp.537-561.
O'Neill, B., 2018. International negotiation: Some conceptual developments. Annual Review of
Political Science, 21, pp.515-533.
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Waterhouse, J., Keast, R. and Koppenjan, J., 2016. A negotiation and boundary object approach
to exploring methods of transdisciplinary research.
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