Pitching and Negotiation Skills: Disney-Lucas Films Acquisition

This report examines the negotiation strategies and processes employed in Walt Disney's acquisition of Lucas Films. It begins with an introduction to negotiation, its significance, and the key stakeholders involved, using the Disney-Lucas Films deal as a case study. The report then delves into the crucial steps of negotiation, including planning, preparation, and the various phases involved, such as opening, bargaining, and closure. It further explores the Request for Proposal (RFP) process, detailing the necessary steps and documentation required. Additionally, the report covers the contractual process, emphasizing documentation management and monitoring, and concludes with a discussion of competitive tendering, contract processes, and recommendations for minimizing risk in tender submissions. The report offers a comprehensive overview of negotiation, RFP, and contractual processes, providing valuable insights into business acquisition and deal-making.

Pitching and
Negotiation Skills

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
Negotiation, why it occurs and key stakeholders during negotiation process........................1
Evaluation of key steps and information required for negotiation and deal generation.........2
Planning and Preparation........................................................................................................3
Opening Phase........................................................................................................................3
Bargaining Phase....................................................................................................................4
Closure Phase.........................................................................................................................4
TASK 2............................................................................................................................................4
Explain RFP process and relevant types of documents required...........................................4
RFP Process............................................................................................................................4
Explain contractual process and how relevant documentation is managed and monitored...5
Competitive Tendering, Contract Process and recommendations for successfully completing a
tender with minimal risk.........................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Negotiation is an activity wherein two or more parties come together to sign an
agreement for mutual benefit of both the parties (Belinsky and Gogan, 2016). Business
negotiation is usually carried out with an aim to gain strategic advantage in market. Present
assignment is based on business negotiation taking an instance of Walt Disney’s acquisition of
Lucas Films. The process of negotiation and its key stakeholders are discussed in this
assignment. Also, the stages involved in negotiation process are covered. Along with that
Request for Proposal process and contractual process is covered to carry out the purpose of
negotiation successfully.
TASK1
Negotiation, why it occurs and key stakeholders during negotiation process
Negotiation is an activity between two or more parties who face divergence in interest
and understanding that they are interdependent, look for an alternative arrangement aiming at
eliminating their divergence and thus creating, maintaining and developing a healthy relationship
between them (Negrón, 2014). In context of business organisations, this process is imperative to
be creative in any business process, especially selling process. Business negotiations often occur
for the purpose of deal-making, corporate team building, entering into contracts, business
acquisitions, vendor pricing and sales, real estate leases etc. A successful business negotiation
was carried between Walt Disney Company and Lucas Films where after bargaining for one and
half years, Disney finally acquired Lucas Films.
Business negotiation occurs because the objective of resolving points of difference and
gaining competitive advantage for individual or collective relevance is attached with it. Also, it
takes place to derive successful outcomes for the interest of parties involved in negotiation. This
process is often carried out when one party put forward an opinion as to the importance of
collaboration and then offering a position and making concessions to arrive at achievement of
agreement. The extent to which the negotiating parties place trust and belief in each other to
execute the negotiated process defines whether the negotiation is successful or not (Baranowska,
2018). The acquisition of Lucas Films by Disney made the company a leader in animation and
superhero films and generated huge revenues from already lucrative Star Wars media and
merchandising empire of Lucas Films.
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To carry out a successful negotiation, there are various skills that should be present in a
negotiator. Effective negotiators must have analytical skills to understand a problem and
determine the interest of each negotiating party. Before entering a bargaining meeting, a skilled
negotiator determines goals, areas for negotiation and alternatives to pre-decided process.
Successful negotiators possess good listening skills to hear the other party during the debate.
Also, it is imperative that a negotiator keeps control over emotions as sometimes negotiation
may not yield the desired outcomes. Along with that, negotiators must possess the ability to
effectively communicate his opinions and solutions to the other party. In context of acquisition
by Disney, the company gave Lucas Films a period of 1.5 years so that Lucas Films can gain
trust in Disney. Robert IGER, chairman of Walt Disney possessed tactical skills to give time
frame to Lucas Films and then carried out a successful acquisition which resulted in bolstering
the status of enterprise as the leader in animation and superhero films. Also, IGER possessed
smartness as he put forward the deal of continuation of Star Wars film series, a dominant and
revenue generating source in past for Lucas Films.
Stakeholders are those persons, groups or institutions who possess an interest or are
directly/indirectly affected by the outcome of any event. Key stakeholders are those who can
significantly influence or are important for the success of an event important in the process of
negotiation. During negotiation, key stakeholders are the parties involved in the process of
bargaining and then mutually coming together to an agreement (Jackson, 2012). They are the
people who are responsible for carrying out the process of negotiation by communicating need of
entering into an agreement and the probable outcomes that are expected to take place as a result
of negotiation.
Evaluation of key steps and information required for negotiation and deal generation
Whenever a negotiation is carried out between two or more parties, parties have to make
certain choices that directly affect the outcome of negotiation process (McNeill and et. al., 2014).
To derive a favourable outcome, it is important to ascertain and understand the process of
negotiation.
While many negotiations are direct, some of them are the hardest decisions that have to
be taken by the negotiating parties. The success of negotiation depends upon the planning and
preparations done for the process. These may involve well defined strategies and tactics to
execute the process from the stages involved beginning from planning to closure.
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Steps involved in the process of Negotiation
Negotiation is a 4 stage process which is explained below:-
Planning and Preparation
This step is essential for the success of negotiation process. Planning everything in
advance and being well prepared for the process generates confidence among negotiator.
Planning and preparation involves the following activities (information):-
(i) Gathering information: It is important to ascertain and understand the problem as the more
the negotiator learns about the problem, the more effective solutions can be developed.
(ii) Leverage Evaluation: It is essential for negotiator to evaluate his and the other party's
leverage as a number of steps can be adopted to raise or reduce the leverage of the other party.
(iii) Understand the people involved: Determining and gaining an insight into the parties
involved in the process of negotiation is necessary. It is also important to develop an
understanding of their vision, objectives, roles and stake in market (Fatima and Rahwan, 2013).
Also analysing the issues that can be raised by the other party during debate can be helpful for
successfully being able to tackle the issue by tactics during negotiation process.
(iv) Rapport: Establishing and maintaining a healthy relationship with the other negotiating
parties during the early stages of process can be helpful. This aids the negotiator in
understanding the extent of cooperation that the other party exhibit and to gain their trust fro
successful execution of negotiation.
(v) Know your objectives: It is essential to ascertain one's objectives behind entering into an
agreement with the negotiating parties as this will help the negotiator in effectively
communicating their motive behind negotiation to the other parties involved (Tse, 2013). All
arguments and justifications should be kept ready by negotiator.
(vi) Type of negotiation: It is important to ascertain whether the negotiation will be face to face,
by fax, through a mediator or in some other manner.
(vii) Plan: Deciding on the negotiation approach and planning is done as per that.
Opening Phase
Here, both the negotiating parties come face to face. They present their views and
opinions and try to influence the other party's thinking. By effectively communicating their say
during the debate, they initiate the setup of negotiation.
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Bargaining Phase
Bargaining process involves closely analysing the aim and objective behind entering into
an agreement with negotiating parties (Coppens, A. D. and et. al., 2014). This process involves
the basic strategy applied to convince and influence the other party regarding the demand placed
by negotiator. To execute this process, negotiator must possess tactical skills and effective
communication to clearly state the views and opinions in his favour.
Closure Phase
The closing phase of a negotiation process represents the opportunity for the negotiating
parties to capitalize on all the planning and execution of work in the earlier stages (Genovese,
2014). The research done in the planning and preparation phase along with all the information
that has been gained during the negotiation process is helpful in the closing phase. It also
involves formal documentation of the agreement which both the parties are willing to enter. The
parties to negotiation formalize the agreement in a written contract or letter of intent. Reviewing
the negotiation is also necessary to learn what was favourable in the negotiation and what needs
to be improved.
TASK 2
Explain RFP process and relevant types of documents required
Tendering is the process used by business organisations to invite suppliers and vendors to
supply goods or services to the enterprise. Negotiation is carried out with suppliers through
Request For Proposal (RFP). Request for Proposal is the process of documentation and
solicitation that communicates the needs of an organisation for a service and invites various
vendors to submit proposals in this concern to gain the opportunity (Horton, 2016).
RFP Process
The key steps of creating an RFP are described below:-
 Determine needs: It is essential to ascertain the needs behind writing an RFP. While
documenting a RFP, the business entity is primarily writing a "help wanted" ad. It should
communicate the needs of business enterprise, skills, tactics, quality and timeline within
which a proposal is to be submitted.
 Write the RFP: Like a CV or resume, RFP has a specified format. Different authors
suggest a different format but it is wise for a business enterprise to follow a uniform
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format as this will help the vendors in understanding what should they be expecting from
RFP.
Distribute the RFP: Distribution of RFP is another essential element of RFP process. Business
organisations try to distribute maximum RFPs to gain a fruitful response from vendors and
suppliers. When dealing with the long list of people seeking for proposal approvals, enterprises
should consider the realities of the proposal (Paço, Ferreira and Raposo, 2016).
 Evaluate Responses: This process is time-consuming yet the most essential stage of RFP
process. Business organisations consist of a team of stakeholders who go through every
response carefully to select the best proposal. The process of eliminating the unwanted
proposals is called "shortlisting." Once the shortlisting of vendors or suppliers is done or
a smaller group of applicants that submitted relevant proposals are selected, company can
begin scrutinizing them more carefully (Greenwood, 2018).
 Evaluate Further: After shortlisting of the selected proposals, there is still some
information left to be collected. A round of interviews are then conducted to gain
additional information about the selected candidates. Vendors should be willing to
provide these additional details and perhaps even a demo if required by business
organisation. At this step, stakeholders should have all information necessary to make a
final decision like pricing and terms of agreements if the candidate is finalised as the
supplier for company.
 Make a Decision: The stakeholders in the organisation should look at all options and
information presented by the selected candidates and then decide upon the suitable
vendor who will deliver the best services as required.
Explain contractual process and how relevant documentation is managed and monitored
When contracts are complex or of high value, there is usually some negotiation between
the parties (Chang, Benamraoui and Rieple, 2014). Both parties enter into an agreement with the
intention to bargain for what both the parties will deliver and receive. Both the parties will enter
into the contract with the expectation of gain. Parties may negotiate for themselves or appoint a
representative to perform this task. But, if a third party negotiates on a party's behalf, he should
be legally intended representative.
It is essential to enter into a written document. Contract language should
be specific, clear, and concise. Drafting an outline before creating the agreement can assist the
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parties in creating a legal document without any chances of disputes in future. Accuracy of data
such as party names, addresses and terms and conditions is essential to avoid any unclarity.
Writing a contract is the most effective way for the parties to gain an insight into exactly what
one party want from another party and protect them from false claims in future.
Competitive Tendering, Contract Process and recommendations for successfully completing a
tender with minimal risk
Competitive tendering is a process where a number of organisations present tender for a
particular contract, specifically central government or local government work. When two or
more parties enter into an agreements for the mutual purpose of gain, it is called contract. It is
recommended that organisations can successfully acquire a tender if they proofread what they
submit as bid to the company. Also, it is recommended that the information written in the tender
should be true to the knowledge of person submitting the tender.
CONCLUSION
From the above report, it has been concluded that negotiation is vital in every sphere of life.
In business organisations, this process is carried out without an aim to increase its sales or other
operational activity. Also, it has been analysed that the contract signed by parties to negotiation
should be clear to all the parties involved in negotiation. Also, RFP process carried out by every
enterprise to select the suppliers is analysed. Along with that, it is concluded that it is important
to ascertain and understand the stages involved in negotiation process.
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REFERENCES
Books and Journals
Horton, S., 2016. The Leader's Guide to Negotiation: How to Use Soft Skills to Get Hard
Results. Pearson UK.
Greenwood, A., 2018. Experiences with authentic assessment on two practitioner-focused
business degree programmes.
Chang, J., Benamraoui, A. and Rieple, A., 2014. Learning-by-doing as an approach to teaching
social entrepreneurship. Innovations in education and teaching international. 51(5).
pp.459-471.
Genovese, J., 2014. Sports television reporters and the negotiation of fragmented professional
identities. Communication, Culture & Critique. 8(1). pp.55-72.
Coppens, A. D. and et. al., 2014. Learning by observing and pitching in: Benefits and processes
of expanding repertoires. Human Development. 57(2-3). pp.150-161.
Fatima, S. and Rahwan, I., 2013. Negotiation and bargaining. Multiagent Systems, 143.
McNeill, T. and et. al., 2014. In for the Long Haul—Models of Sustained Graduate Support and
Education. Industry and Higher Education. 28(6). pp.417-425.
Jackson, D., 2012. Business undergraduates' perceptions of their capabilities in employability
skills: Implications for industry and higher education. Industry and higher
education. 26(5). pp.345-356.
Paço, A., Ferreira, J. and Raposo, M., 2016. Development of entrepreneurship education
programmes for HEI students: The lean start-up approach. Journal of Entrepreneurship
Education. 19(2). p.39.
Tse, J., 2013. Pitching your ideas to senior management. Training & Development. 40(6). p.11.
Negrón, R., 2014. New York City's Latino ethnolinguistic repertoire and the negotiation of
latinidad in conversation. Journal of Sociolinguistics. 18(1). pp.87-118.
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.
Belinsky, S. J. and Gogan, B., 2016. Throwing a change-up, pitching a strike: An
autoethnography of frame acquisition, application, and fit in a pitch development and
delivery experience. IEEE Transactions on Professional Communication. 59(4).
pp.323-341.
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