Negotiation Skills in Business Development: A Comprehensive Guide

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Running head: PITCHING AND NEGOTIATION SKILLS
Pitching and Negotiation Skills

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Table of Contents
Task 1...............................................................................................................................................3
Introduction......................................................................................................................................3
1. What is a negotiation in the business context?............................................................................3
2. The key steps for negotiating and generating business deals......................................................4
3. The context of negotiation and the importance of key individuals in a negotiation....................5
4. How to gain the best deals/contract.............................................................................................6
5. How to generate new business and win deals..............................................................................7
6. Tendering for contracts................................................................................................................8
7. Preparing for negotiation through a request for proposal (RFP) form........................................8
8. Responding to RFP – creating a business proposal.....................................................................9
9. The contractual process and agreements...................................................................................10
Conclusions....................................................................................................................................10
Reference List................................................................................................................................11

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Task 1
Introduction
Pitching and negotiation is an important part of every business and it is associated with proper
operations and management of the organisation. Business management is extremely important as
it can help to ensure the successful operation of a company and can help in the management of
the daily activities carried on by the employees (Fatehi and Choi, 2019). Similarly, the process of
negotiation is very common among the companies and it is associated with the daily activity that
helps to ensure proper decision making during the business processes and helps in business
contracts and sales. The below part of the study will be focusing on the creation of a booklet
associated with recommendation associated with business negotiation, request for proposal,
business dealings and the process of tendering used by the entrepreneurs and marketers.
1. What is a negotiation in the business context?
The negotiation process can be termed as an understanding, which is mutual between two
different persons, and both of these individuals are involved equally to complete a particular
transaction (Carnevale, 2019). In general terminology, negotiation is associated with settling
differences between people and is a method to complete a particular deal with another individual.
However, in a business context, it is associated with the settling of a transaction with the mutual
agreement amid two different parties, having equal contribution in the transaction, focused on
enhancing maximum advantage from the deal, and eliminating conflicts between each other
(Carnevale, 2019). Business negotiation is also associated with discovering a common goal while
settling a particular idea and reaching an agreement with shared affairs so that all the conflicts
can be settled and the goal can be achieved.
This terminology has been used as a synonym to bargaining, collaboration, settlement, and
agreement. It involves a lot of additional work associated with the identification of the aspects
that have to be negotiated, the parties associated with the negotiation, the viewpoint of the
stakeholders, the purpose of the negotiation, and the final outcome from the negotiation. The
process of negotiation is inevitable as it is important for the leaders and managers of the
organisation to carry out business transactions (Dax et al., 2019). The managers and leaders are

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involved in the negotiation process so that they can bargain the right price for the particular
transaction and ensure a beneficial business transaction while mutually agreeing with the aspects
of the other parties as well. Good negotiation can help to meet organisational objectives, while
bad negotiation and lead to financial loss, disputes and legal issues.
2. The key steps for negotiating and generating business deals
The process of negotiation is a very systematic process and every negotiator will have to follow
certain steps to complete the same associated with the business transaction. Negotiation is the
medium, which increases interaction between the parties and the stakeholders of the party within
a particular organisation and in a business context, it is associated with increased engagement of
the employees so that proper decision-making can be made, and flexibility can be brought into
the business operations as well as to the structure of the company. There are five steps to a
perfect negotiation process and these are as follows:
Planning and preparation: Negotiation can never be started without proper planning and
preparation for the process, and therefore, it is important to gather information and define the
necessities of the negotiation prior to the process. It is extremely important for the managers so
that the goal, the time is taken and the budget of the negotiation can be determined as well as the
resources that will be required during the process (Fatehi and Choi, 2019).
Defining the ground rules: It is important to gather all data after the understanding has been
developed, and this is where this negotiation process has to be communicated with the
stakeholders so that they will know about the business dealings and finds out the pitfalls that can
affect in the future. This is where the ground rules will be created and a mutual environment will
be created for successful development of the negotiations.
Justification and clarification: This is where the negotiator will have to identify the key
ideologies of the transactions and address the problems of both the parties. This is the stage of
the negotiation where the goal ends up being a mutually beneficial deal for both parties. The
stakeholders focus on clarifying the demand and the interest of the parties while providing legal
documentation for the same (Carnevale, 2019).

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Problem solving and bargaining: This is one of the most important stages of the process, and
this is where the actual bargaining is done. The mutual idea is taken into consideration for the
common goal. In this process, the concessions are made and the transaction is carried out while
being beneficial to both the parties (Steele and Beasor, 2017).
Implementation and closure: The final step of the negotiation process is implementation and
closure of the business dealing. After the bargaining has been completed and the agreement is
done, all the procedures are developed and implemented in the process so that the new deal can
be put into operation and monitored on a periodical basis.
3. The context of negotiation and the importance of key individuals in a negotiation
Negotiation is associated with the context of “political instability, laws, religious doctrine,
cultural norms, situations, customs, and habits”. Negotiation within a team is done between two
members, who act as opposition parties, and they focus on a particular goal, accepting a stake in
the process. This context can result in coalitions and advancements of factions. This is a very
complex process, and as negotiation is crucial, it must be done properly. A good negotiation can
help the organisation to develop the business objectives and collaborate with different
individuals to have a competitive edge in the market (Coughter, 2016). Every individual
associated with a particular negotiation plays an important role, and individuals who play a
crucial role are highlighted below:
The most important person in a negotiation process is the chief negotiator who is responsible for
managing the schedule, performing as an alliance, and articulating for the organisation between
the administrator, management, and the negotiation team.
The legal representative plays an important role and is responsible for ensuring and scheduling
the terms and conditions of the negotiation process and the contract while providing both the
parties with an advisory legal opinion.
The responsibility of the procurement official is to monitor the process of the negotiation while
acting as an interconnection between both the parties, especially with the survey endorsement
process and the departmental delegates (Dax et al., 2019)

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The project representatives play a vital role and they are responsible for providing important
and relevant project related information and input to the contract so that the business negotiation
can be done effectively and conflicts can be avoided
The departmental representatives also play a vital role and they are responsible for providing
relevant program contribution to the agreement, significance in the negotiation process, and offer
departmental information.
Subject matter experts also play a vital role and are responsible for providing the necessary
information and the relevant subject matter that is associated with the negotiation process.
Finally, the executive management team of the company is associated with the resolving of
issues, conducting instruction sessions, and introducing activities that can help to complete the
business deal properly.
4. How to gain the best deals/contract
It is important to ensure a proper business negotiation so that it becomes easy for both the parties
to reach a mutual decision and get the best out of the transaction. It is also important to achieve
the common goal and gain maximum benefit from the transaction. For this reason, it is important
for the management of the company and the leaders to have extensive problem-solving skills and
gather knowledge about the same so that they can explore effective negotiation processes and
make the business dealings successful (Rojot, 2016). It is also important for them to have the
right attitude during the transaction process so that success can be insured. The negotiator will
have to focus on identifying the reason behind the negotiation process and collaborate every
activity properly to complete the transaction effectively.
To complete a business negotiation properly, it is important for the managers of the company to
learn more about the customer's demand and provide them with the valued products that can help
the company to increase competitive advantage in the market. It is also important to use evidence
in the process so that they can make the business dealings properly and support it with legal rules
and restrictions. Therefore, tools such as usage history, value sheet, and real situations review
can be used in the process, and full involvement of the stakeholders must be allowed in the
business negotiation process so that engagement can be increased (Cleary, 2016).

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To start business negotiations with the suppliers, the managers will have to take the quotations
from multiple suppliers and get information about the market properly, so that they can
encourage competitive pricing, and choose the right price for the product and services. The
negotiation team must understand the requirements of both the parties and the financial aspects
must be communicated with these people so that legal disputes can be exterminated and
flexibility can be brought into the process.
5. How to generate new business and win deals
It is important to follow certain steps so that new businesses can be developed and deals can be
won. The steps to the process can be derived as below:
It is important to focus more on the limitations so that the parties can have a better understanding
of the problems and not face the same during the process of negotiation. They should find the
middle ground to the utmost benefit during the process.
It is important to create a set of connections within the mind of the negotiator and the other party
so that both the parties can gratify themselves with the transaction, and be pleased with the
transaction of the commodities (Lewis, 2015).
It is extremely important to have a good brand image and impression in the market so that people
can be attracted through their personal and emotional touch, and help the company to increase
the productivity and profitability, associated with increased loyalty.
It is always important for both the parties to communicate with each other properly so that they
can maintain a personal touch and have a good relationship that can help in clarifying the
problems and making the business deal successful.
There must be a good relationship between both the parties associated with the new business and
the process of negotiation so that they can guarantee the trust in the process and complete all the
activities without getting into a conflict (Ehlich and Wagner, 2011).
Finally, it is important for the individual associated with the process of negotiation to act both
legally, and emotionally so that the dedication in the process can be respected and the loyalty of
these people can help them to come back to perform a business deal again.

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6. Tendering for contracts
The process of tendering in a contract is associated with offering a certain sum of money for a
particular service or a product, which is sold by a particular organisation or an individual,
associated with the legal local, global, and national framework. Tendering is always a formal
request for seeking a particular product or service and that is why formal documentation is done
in which the needs of the customers is mentioned (Fraser, 2017). A quotation is provided along
with the timeline and the prices are determined for the services immediately.
The steps to good tendering are:
 Expressing the case
 Accompanies sessions of tender knowledge
 Generating a reply
 Showing the interest
 Choosing the right option for the transaction
 Knowledge of the payment terms
 Pre-Qualification Questionnaire
 Tender Invitation
 Scrutiny and submitting
 Debriefing
 Deal with complaints (Rojot, 2016)
7. Preparing for negotiation through a request for proposal (RFP) form
The request for proposal can be defined as a soliciting tender provided by one of the parties to
ask for procurement of service and develop a bidding method that can help in to carry out the
business dealings later on. This form can be defined as a prearranged request from the buyers to
the suppliers so that a purchase can be made, especially involving a high amount (Cleary, 2016).
It is distributed as it helps to carry out with the decision-making process and understand the
options and choices, which can help the buyer to have a better selection of valuable and valid
resolutions. The standards of setting up an RPF demonstrate its motivation in exchange and
business contracts. For example, it is educating providers that the association is looking for
manufacturing and affecting them to offer their best exertion (Fraser, 2017). It is changing

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providers about the aggressiveness of the choice procedure. It is empowering wide dissemination
and reaction. It is guaranteeing that providers' are reacting to the said prerequisite with realities.
It is guaranteeing that the organization is indicating the proposition for procurement. The process
of preparing the negotiation is associated with the following steps.
Stage 1: Arranging
Stage 2: Preparation
Stage 3: Review
Stage 4: Revision
Stage 5: Approval
Stage 6: Distribution and backing
Stage 7: Response Evaluation
Stage 8: Selection (Fraser, 2017)
8. Responding to RFP – creating a business proposal
The response to a request for proposal is a vital aspect of a negotiation process within a business
and therefore, it is important for the managers and the leaders of the company to specify and
identify the scope of the business needs (Lewis, 2015). They will have to consider the business
structure during the process and ensure that all the resources have been allocated effectively and
that the proposal is justified in such a way that it can meet the objectives of the company. It is
also important to introduce the key aspects and address them during the response to the RPF and
some of the aspects that have to be fulfilled include the policies, timeline, execution, contact
information, pricing, and the blueprint of the plan (Ehlich and Wagner, 2011). Even the request
for proposal is written in a formal way and it will have to consider the terms and conditions,
however, no informal policies will be introduced during the same. Some of the stages to the
response to the request for proposal are as follows:
Stage 1: Evaluating the parameters

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Stage 2: Surmising the references
Stage 3: Re-examining the prerequisites of the individuals
Stage 4: Checking the necessities minutely
Stage 5: Constructing the decisive agreement
Stage 6: Acknowledging the requisite targets
Stage 7: Impersonating the feeling
9. The contractual process and agreements
The individuals of the arrangement can come to the common utilisation of the 'master service
agreement', which is characterized as an agreement between two individuals, where these
individuals consent to the terms that will oversee the future understandings and the deals made
by them (Lewis, 2015). This is a quicker procedure, and the gatherings to arrange a future
exchange and understandings can utilize this, as well. The agreement is an authoritative record
that can be effectively depended upon as it has a solid establishment of the contract and the terms
could possibly be arranged a while later to make associated bargains (Cantù et al., 2015). The
contractual processes are associated with practices, which are used for the process of a contract
between two parties and to perform a systematic and successful activity associated with the
same. The key reason for legally binding systems is to guarantee that each party engaged with
the contractual process is satisfying its goals and obligations in an ideal way.
Conclusions
From the above part of the study, it can be seen that negotiation is an extremely important part of
business process, it is important for the managers, and leaders of the company take part so that
proper decision-making can be done and the overall process is successful. The above part has
shown a good understanding of business dealings, business negotiations, tenders, request for
proposal and contracts.

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Reference List
Cantù, C., Corsaro, D., Tunisini, A., Möhring, M.M. and Finch, J., 2015. Contracts, relationships
and innovation in business-to-business exchanges. Journal of Business & Industrial Marketing.
Carnevale, P.J., 2019. Strategic Time in Negotiation. Current opinion in psychology.
Cleary, P.J., 2016. The negotiation handbook. Routledge.
Coughter, P., 2016. The Art of the Pitch: Persuasion and presentation skills that win business.
Springer.
Dax, M., Tyssen, E.K., Schmitz, C. and Ganesan, S., 2019. Do salespeople matter in competitive
tenders?. Journal of Personal Selling & Sales Management, pp.1-16.
Ehlich, K. and Wagner, J. eds., 2011. The discourse of business negotiation (Vol. 8). Walter de
Gruyter.
Fatehi, K. and Choi, J., 2019. International Communication and Negotiation. In International
Business Management (pp. 109-143). Springer, Cham.
Fraser, W., 2017. Request for Proposal.
Lewis, H., 2015. Bids, tenders and proposals: winning business through best practice. Kogan
Page Publishers.
Rojot, J., 2016. Negotiation: from theory to practice. Springer.
Steele, P.T. and Beasor, T., 2017. Business negotiation: A practical workbook. Routledge.