Effective Pitching and Negotiation Strategies for Business Success

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BUSINESS PITCHING AND NEGOTIATION SKILLS
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Table of Contents
Introduction......................................................................................................................................2
Task 1...............................................................................................................................................2
Task 2...............................................................................................................................................8
Conclusion.....................................................................................................................................13
References......................................................................................................................................14
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Introduction
It is necessary to get tender for contracts through pitching. Pitching can be helpful for getting
outline of the investors and effective pitches can be greatly helpful for making the investors
agreeing for making investment and acquiring financial help. The study effectively highlights
about the negotiation in business context. It has also been explained about key steps that are
included in the context of negotiation for the business. In addition to this, it has also been
clarified about importance of key individuals. The study revolves around the overview of Cuisine
Coffee Shop, for which pitch has been prepared. The result of effective pitches is also taken into
consideration in terms of making huge profits and facilitates innovation.
Task 1
1. Negotiation in the business context
Negotiation is an effective form of communication that is required to be followed by
management of an organisation for communicating with the stakeholders and reach an argument.
In association to business context, it can be stated as a process of dispute resolution and thus, can
be beneficial for communicating and settling deal with investors and suppliers and get into legal
contract (Cooke and Zaby, 2015). Through negotiation, it becomes easier for other side of people
to express their viewpoints and deal with the opposite party in association to particular issues and
get it settled with establishment of real facts.
2. Key steps for negotiating
The process of negotiation encompasses of different steps through which it becomes easier to
maintain effective backend communication with the external parties. Under laid are the steps:
 Preparing and planning
It is necessary for both sides of the parties to acquire appropriate information in order to perform
negotiation. In order to conduct the negotiation process, it is necessary to get aware of the
historical background of both the organisations including its other investors or suppliers
(Harkiolakis and Halkias, 2016).
 Ground rules
In the negotiation process, it is necessary to follow certain rules and regulation. According to
Wertheim (2016), there must be indulgence of specific rules and regulations that can help both
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the parties to comply with and head further in the process. In addition to this, it is necessary to
adopt strategies for resolving certain conflicts that rises during the concerned process.
 Justification and clarification
During the process, both the party has the right to acquire equal opportunity to state their
viewpoint and provide justification for their perspective (Swartz, Amatucci and Coleman, 2016).
This can help both the parties to express their issues and get solves through proper
communication.
 Bargaining and solving of problems
Both the parties make mutual decisions for problem solving and this also makes them to bargain
at this situation in order to establish their superiority over the other. This can result in less
conflicts and equality is maintained in the entire process of negotiation. This can also be
effective for maintaining a strong relationship with the suppliers and investors.
 Closure
This is the last step of the negotiation process; here the agreement is formulated by both the
parties. On this basis, certain rules and regulations are developed and the agreement is monitored
(Paço, Ferreira and Raposo, 2017).
3. Context of negotiation and the importance of key individuals
The major concern of the negotiation process is to reach at a mutual point where both the parties
are able to gain equal and mutual benefits. Negotiation process can be related to legal contracts,
regulations and following of certain legislations that can be effective for proper conduction of the
business operations (Maxwell, 2016). With the help of this agreement, it also becomes easier for
appropriate conduction of the business operation along with financial benefits. Furthermore,
organisations can also comply with suppliers for the delivery of raw materials with cost
effectiveness.
Members of the negotiation process:
In the negotiation process, suppliers and investors are involved along with a leader who directs
the negotiation team. The negotiation team conducts face to face communication with the other
parties that can be useful for adoption of certain strategies that can be beneficial for solving
certain conflicts and issues. As analysed by Baber and Ojala (2015), the leader of the negotiation
group encounters certain challenges while adoption of strategies and decision-making process.
Critic member of the team is responsible for evaluating the issues and flaws during the
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concerned process. Accordingly, he/she adopts certain strategies that can be helpful for fluent
conduction of the business operations. Along with this, Relater is inclined towards the
maintenance of good relationship with the external people and the organisational members.
Experts of the team are responsible for understanding the legal issues and resolve them.
4. Way to gain the best deals
 Setting appropriate objectives
Before conduction of the negotiating process, it is necessary to clarify the objectives of the
process. There must be predefined objectives that can help in making strategic planning for
approaching the investors and suppliers for seeking their attention towards the process. It is also
necessary to analyse about the required financial resources and accordingly prepare as per the
available resources (Benckendorff et al., 2015).
For instance, the negotiation skills of Disney Company to acquire Lucas film. This shows the
successful negotiation skills of the company, this provide the respective company an opportunity
to earn huge profit from lucrative star wars media.
 Understanding the expectations
After the predefined objectives, it is necessary to analyse the expectations of the suppliers and
investors. Through this, it becomes easier to pitch them according to their willingness. This can
be helpful for acquiring huge profits through impressive presentation (Jap, 2015).
For example: this is necessary for small scale businesses to develop appropriate plan for
conducting their deal and expand their business.
However, it becomes easier to crack a deal with the competition is less and in case of start-ups,
there are various financial institutions through which ample of financial assistance can be
gathered.
 Adoption of appropriate strategies
After knowing the expectations of the stakeholders, it is necessary to develop appropriate
strategies as per the requirement. It is necessary to acquire financial resources through which the
needs and expectations of the stakeholders, investors and suppliers are met (Turnbull and
Wheeler, 2016). As per the STP theory, it is also necessary to analyse the target market and
accordingly segmentise it. It becomes easier for the start up business to make strategic decisions
for developing future aspects. It can also become easier for such business to think and explore
different ways to crack different deals.
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 Preparing the negotiating team
In order to conduct the above strategies, it is necessary to have efficient negotiating team. It is
also necessary for the team to be creative so that it leads to innovation. The innovative strategies
can be useful for developing the products and strategies for cracking more effective deals. It is
also necessary for the team members to have effective communication skills (O'Hara, 2015).
This in turn, can be helpful for communicating on a wider basis with the supplier and investors.
 Considering the relevant aspects
The perspective of both the parties can be showcased through the negotiating members of the
organisation. As opined by Bear (2016), during the negotiating process, it is necessary for the
team members to showcase their strength and must also possess good argumentative skills that
can help the team to strengthen themselves and speak their viewpoints. After the whole process,
there comes the closure that results in establishment of arguments and reaches to final decision.
5. Generate new business and crack deals
In order to crack deals and generate new business, the foremost concern is the availability of
ample of resources and makes strategic planning in order to conduct the objectives. As stated by
Berbegal-Mirabent , Gil-Doménech and Alegre (2016), the resources can be effective for
conduction of appropriate operations. When an organisation is strong in terms of resources, this
provides them strength to conduct the negotiation process with the suppliers and investors. The
effective team members also contribute towards the betterment of the organisation and also play
a major role in cracking deal and communicating with suppliers and investors.
6. Tendering for contracts
Tender can be coined as the legal process through which supply of goods and services can be
done in an effective way. This can be a common attribute of the business in order to accomplish
their organisational goals. It is necessary to analyse the strengths and weaknesses of the company
and thus, accordingly adopt strategies that can help them to relate with the contract and crack
deals. They are able to conduct negotiation process through which certain strategic decisions are
made (Sort and Nielsen, 2018). Furthermore, it is also necessary to understand the expectations
of the investors and the suppliers. After integrating appropriate information, applying for tender
can be understood in a proper way. After this, maintaining an appropriate relationship with them
becomes easier.
7. Preparing for negotiation through a request for proposal (RFP) form
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RFP is an effective tool for Project Procurement; RFP is prepared for distribution and responses
for strategic decision making. In RFP, it is necessary to mention all the information that are
associated to the organisation. In this context, it becomes easier for both the parties to prepared
RFP form where the strengths and opportunities of the organisation is mentioned in a proper
way. These facts can be helpful for cracking deal with the investors and suppliers in the
negotiation process (Judd and Laing, 2017).
For instance, preparing RFP can be beneficial for small scale business that can be used for
maintaining effective deal with the investors and suppliers and also underpin the future scope of
the company. It is also necessary for the management of the business to incorporate all the
relevant information that can be helpful for exploring all the details associated to the company.
This can make the deal between the organisations in a better way. This can in turn, result in lead
to further development of the business organisation.
8. Responding to RFP – creating a business proposal
It is necessary for all the types of organisations to underpin the necessity of maintaining the
initial steps of a starting a business. Analysing all the strengths and opportunities of the company
is also of great significance. As analysed by Greenwood (2018), the first step is to grasp the RFP
details and review its components. This can provide a brief ideology about the necessity of
accomplishing the objectives of the company. Along with this, it is also of great importance to
create a business proposal where, it is necessary to respond to all objectives and present the
entire proposal that can be effective for conduction of appropriate business deals. This can also
be helpful for putting forth the views that are associated to the organisation.
It is important to understand the business idea and predefine its objectives and organise the
business structure accordingly to establish their organisation goals and objectives. Along with
this, the second section of the proposal is used for describing the reason for proper evaluation of
the reasons that are responsible behind the allocation of appropriate resources and taking
effective business decisions. After this, the structure of the organisation is considered (Gonul and
Senyuva, 2016). Apart from the above mentioned criteria, it is necessary to underpin the facts
and figures in order to conduct the deal. It is necessary to understand the annual revenue and
other available resources in association to the commencement of the business. The proposal must
be creative in order to seek attention from the stakeholders and this can also help in achieving the
organisational goals.
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9. The contractual process and agreements
The contractual process is beneficial for letting both the parties know about certain important
facts that might be discussed in the conduction of the deal. As stated by Fletcher (2018), after the
negotiating process, it is necessary to make the agreements signed by both the parties and thus,
the decisions are made on mutual basis. It is also necessary to make equal decisions for the
betterment of the organisation. This can also be effective for future advancements of the
organisations. However, it is also necessary to underpin that fulfilment of all the expectations of
both the parties. This can help both the organisations to conduct their business operations in a
better way. Both the parties sign the agreement where all the terms and conditions are mentioned
along with the further aspects of the agreement.
Conclusion
From the above study, it has been understood that it is necessary to underpin the necessity of
conducting negotiation process in order to understand the necessity of proper conduction of the
business operation. The study effectively reveals about the significance of negotiation and its key
steps and the key individuals who are involved in the process of conduction of negotiating
process. In addition to this, it has also been stated about the ways in order to gain best deals.
Tendering contracts and exploring ways to generate new deals are also taken into consideration.
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Task 2
Introduction
Pitching and throwing a sales projection statement is essential for any new organisation to
potentially attract investors and sponsors by presenting a general overview of their concept of
business and its operational functionalities (Mahyuddin and Abidin, 2015). There is a definite
gap between the interest of investors and the highly populated branch of new organisations, as a
result of which it becomes increasingly important to create and reproduce an effective pitch that
can provide an investor with every detail of every key interest area (Meiklejohn, 2017). In the
context of this study, a pitch has been formulated for Cuisine coffee in order to help establish and
potentially expand their business operations. A detailed analysis has also been carried out to
assess the resultant impact of the pitch along with profit maximisation strategies and product
design innovation methods.
Strategic RPF in favour of the bank
Any organisation can achieve sustainable growth and success by stimulating demand and gaining
a competitive advantage over other organisations selling similar products and services. Certain
key principles are relied upon in this process, which are enlisted below and are as follows:
Accumulation of returning customers: Establishing a well structured brand that consumers
love because of the intrinsic value provided by the brand is essential to any organisation
irrespective of sector and industry (Itani et. al., 2014). Cuisine coffee must function in a similar
manner whereby it is able to establish a well founded brand presence and create and accumulate
a collective of customers who are loyal to the brand and make successive transactions. This is
not only necessary for ascertaining long term growth but also important for achieving their
internal organisational objectives and sustaining in the quick service sector which is highly
competitive and dynamic by essence.
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Trade marking and patenting to establish individuality (Patent mark): The sector where
Cuisine Coffee operates is extremely populated and inherently fluid in nature. Naturally a large
number of alternative products and organisations are present in the market. Trade marking and
patenting of individual products helps brands to maintain a creative perspective while retaining
their unique and isolated selling points (Stim, 2017). As a result, Coffee Cuisine must seek to
patent its products and get a trademark for their brand to stand out and sustain developmental
growth in such a competitive market.
Product innovation and continuous development (Involvement in innovation):
In developed economies like UK, the pace of technological growth and advancement is massive
and very dynamic as compared to other markets. Continuously developing the product and
modifying it according to the specific needs and wants of the consumers is absolutely essential to
maintain a certain standard of quality. A lot of market research and feedback evaluation is
therefore necessary to accurately identify the needs and change and modify the existing product
to be able to cater to the target audience in a much more efficient and optimum manner.
Strategic pricing point (Effective price rate)
Cuisine coffee must maintain a strategically perfect and error-free pricing point whereby it is
able to attract and appeal to its target audiences in a broad and extensive manner. Several factors
must be maintained like profit margins, affordability based on income groups and regions and
well a standard quality of the product. Compromising on any of the above can lead to substantial
damages for the organisation, both in terms of developmental and financial prospects. In such
cases, maintaining a range from low to high prices provides a general sense of acceptability and
attracts consumers from all classes irrespective of the target audience of the organisation in
question (Brooks et. al., 2014).
Promotional discounts and offers (Providing offers)
Cuisine Coffee must allocate a certain part of their initiating budget towards promotional offers
and complementary discounts. This method has been tried and tested in nearly every industry in
every sector and more often than not has reaped positive results and benefit. Discounts for first
time consumers, promotional coupons to get a discount on a product, tie ups with other
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beneficial brands and so on can eventually help the organisation to create a returning consumer
base provided their products have an inherent utilitarian value in favour of the consumers. Such
offers and discounts not only help establish the brand, but also provide a sort of word of mouth
publicity, which further boosts and facilitates the sales figures and revenue generation of the
organisation in the long run.
Completed Response to RFP
Almost all new organisations trying to attract investors have to go through the pitching and
presenting phases to be able to gain any sort of investment directly or indirectly. Use of catchy
phrases, innovative product, unique serving methods and so on are certain measures that they
take up to create a lasting impression that stays with the investors, irrespective of any monetary
investment. Key details like sales projection, valuation, selling points, target consumer and so on
must be included in the pitch to present the entirety of the business idea as opposed to just a brief
overview of the business concept.
(Optimisation of investment policies) Effectiveness in the policies related to the investment
In the scenario of a successful pitch presentation, organisations often close the pitch with the
agreement of a certain financial investment either directly or thought indirect means. The
complete process provides the investors with a general overview along with the required
specifics in a well-structured and organised manner (Vismara, 2016). In the context of Cuisine
Coffee, a successful pitch presentation followed by a potential investment policy will greatly
increase their availability of resources, which it can further re allocate towards product
innovation and brand establishment. Moreover, one successful investment automatically creates
a positive image and might attract other investors as well based on the fact that a successful
invertor has already shown interest in the product or the brand.
Exclusivity clause
In the scenario of a substantial and successful investment, investors could propose a clause in the
agreement whereby Cuisine Coffee would not be able to approach any other investing parties or
sponsors in the future. This ensures that Bank of London, in the context of the given scenario,
maintains a strong degree of control upon the organisation while also preventing any sort of
disagreement with other investors, as a no-shop agreement or a exclusivity clause would not
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even allow the presence of a secondary investor. Cuisine Coffee can take this approach provided
the need for investment is urgent and the value of investment is substantial enough to cover its
activities in the long-term functional operations.
Increase in profitability and revenue
During the process of pitching, it is necessary for the investors to agree in order to invest into the
concerned Coffee shop, this can help the concerned organisation to stimulate their business
productivity and this can also lead to further benefit of the company (Hosťovecký, 2017). There
must be availability of proper financial resources. In association to Cuisine Coffee, as it is a start-
up, there is an intense requirement of sufficient financial resources that can help the company to
deal with its business operations on a proper basis. This can also help the concerned company to
analyse their target position and also take up different strategies that can be helpful for revenue
generation for the respective organisation. This can help the respective organisation to expand.
No shop agreement
If the organisation does not sign the “no shop agreement”, then they are able to pitch their
agreement in front other investors. This can help the respective organisation to develop their
business organisation through adopting different strategies that can be beneficial for financial
support (Komarkova et al., 2015). Furthermore, being a start-up, it is also necessary for the
organisation to ensure that there is ample of financial resources available for the company. This
can make the management of the concerned company to get assistance from the investors.
Evaluation of the pitch and negotiation process and reflection of own performance
It is necessary for the organisation to implement certain strategies that are necessary to maintain
the resources and its effectiveness. This can be helpful for the development of their resources.
With the help of the pitching process, it can become easier for the respective organisation to
develop their resources. According to Maxwell (2016), this can directly help the organisation to
develop their business operations. It is necessary for the organisation to implement STP theory
through which, it becomes clear for the organisation to segment their market and accordingly
target their customers. This can help the respective organisation to analyse the market and taste
and preferences of the customers. In order to operate the organisation as per the requirements of
the company, it is necessary for the organisation to underpin the necessity of adopting
appropriate strategies with the help of stakeholders, investors and suppliers.
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