A Report on Negotiation and Pitching Skills in Business Development

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PITCHING AND NEGOTIATION SKILLS
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Table of Contents
Introduction......................................................................................................................................3
Task 1 (Booklet)..............................................................................................................................3
LO1: Negotiation and required information for preparing negotiation...........................................3
P1: Concept of negotiation and reason of occurrence along with stakeholders for negotiation
process..........................................................................................................................................3
P2: Steps and information for negotiation and generation of deals.............................................4
M1: Rationale for negotiation process along with steps organisations follows for negotiation
process..........................................................................................................................................5
D1: Critical evaluation of steps of negotiation process and solution for dealing with the issues
during process..............................................................................................................................5
LO2: Managing documentation relevant to contracts and tenders..................................................6
P3: Process of RFP and documentation types..............................................................................6
P4: Contractual process and monitoring and managing relevant documentation........................8
M2: Application of RFP process in organisation with the help of key documentation process
and breaching consequence agreement........................................................................................8
D2: Critical evaluation contract process and competitive tendering for completing a successful
tender with the minimum risk......................................................................................................9
Task 2...............................................................................................................................................9
LO3 Development of pitch..............................................................................................................9
P5 Development of suitable pitch having key business principles..............................................9
M3 Examination of pitch process..............................................................................................12
D3 Development of creative and dynamic pitch........................................................................12
LO4 Assessment of pitch outcome................................................................................................13
P6 Assessment of potential outcomes........................................................................................13
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P7 Fulfilling of organisational obligations.................................................................................14
M4 Recommendation to fulfill post-pitch obligations...............................................................16
D4 Evaluation of post pitch outcome.........................................................................................16
Conclusion.....................................................................................................................................16
Reference list.................................................................................................................................18
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Introduction
Pitching can be considered as a presentation in order to share business ideas with investors. The
reason of pitching is the needs of business resources. Negotiation is process to solve issues
between two or more parties of business having different needs. In this study, process of
preparing negotiation and pitching are going to be discussed. In order to generate a deal,
organisations have to follow the process of negotiation and pitching. Issues faced by
organisations during the process of negotiation and pitching are also going to be described here.
Recommendations are going to be discussed in order to minimise the risks during the process of
negotiation and pitch along with their potential outcomes.
Task 1 (Booklet)
LO1: Negotiation and required information for preparing negotiation
P1: Concept of negotiation and reason of occurrence along with stakeholders for
negotiation process
Negotiation in business can be described as a way to resolve disputes between parties. In order to
run the business for long time, it is important for organisations to understand the importance of
negotiation. A compromise as well as agreement between parties is made with the help of
negotiation by avoiding dispute and argument. As stated by Bell and Mandell (2018), negotiation
occurs in business because different parties or partners have different needs and sometime issues
can be faced at the time of running business together. In the workplace, negotiation creates win-
win situation between partners and respect can be built between them. Negotiation helps in
increasing sustainability of business by resolving business dispute. A big lose can be faced by
business due to lack of effective negotiation skills.
Contracts can also be hampered if manager or team do not have effective negotiation skills. The
stakeholders responsible for negotiation process are project manager, project team, investors
and shareholders. In case start up business, it can be advised by local council to make the
employer understand about the importance of negotiation so that organisations can achieve
contracts and run the business in effective way. Employer or manager of a start up organisation
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can face argument with shareholders, investors and partners (Chapman et al. 2017). In that
situation, it is important for manager or employer to have effective negotiation skills in order to
run their business and resolve dispute with investors, shareholders and partners as they are also
an important part of business.
P2: Steps and information for negotiation and generation of deals
Employer or manager needs to do homework to understand and implement negotiation skills in
business. As lots of deals can be hampered f the negotiation skill of employer and manager is not
effective. The steps of negotiation are as follows
Preparation
The first step of negotiation process is preparation in which manager takes decision to organise a
meeting to discuss about the business (Clay-Williams et al. 2018). This process helps in avoiding
dispute between stakeholders during the business. It can be advised to manager or employer of
start up business to set effective goals of organisations, responsibility and roles of each
stakeholder such as investor, shareholder and partners so that future negotiation can be avoided.
Discussion
In this process, needs as well as interests of different stakeholders are discussed during the
meeting organised by employer and manager. This step is also called questioning, clarifying and
listening process. It can be advised to manager or employer of a start-up to listen to everyone.
Dispute and argument can arise when manager or employer of organisation listen less and speak
more. Providing value to everyone during discussion is an effective way to avoid dispute
between stakeholders in business.
Clarifying Goals
Manager or employer needs to clarify the gals of business effectively in meeting in order to
create common goal of business by stakeholders. In accordance to Howrigon (2016), effective
clarification helps in satisfying stakeholders and long term business can be created. Employer or
manager of start-up needs to be genuine and honest so that trust can be built among the
stakeholders and future dispute can be reduced.
Creating win-win outcome
In this process of negotiation, manager or employer needs to think about the stakeholders
benefits in order to run the business for long time. Win-win situation can be created among
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stakeholders in order to avoid disagreement and dispute in future. Compromises can be done
among stakeholders in order to grow the business and increase its benefits. Feedback of
shareholders, partners and investors can be taken in order to build effective relationship among
them in order to create win-win situation.
Agreement
This is the last stage of negotiation process in which agreement is created between stakeholders
to follow in order to run the business effectively and avoid dispute and arguments (Perkov et al.
2016). It can be advised to employer or manager of start-up to create clear agreement so that
stakeholders can understand and follow effectively and goals of business can be achieved.
M1: Rationale for negotiation process along with steps organisations follows for negotiation
process
Organisations need to follow the negotiation process effectively in order to avoid dispute and
argument among stakeholders during the business. Employer or manager needs to prepare for
negotiation process. The various information required for negotiation process are goals of
organisation, effective agreement, licence of organisation and along with information related to
products and services. The steps of negotiation are preparation, discussion, clarifying goals,
agreement and creating win-win situation. It can be advised to employer or manager of start-up
to prepare effectively and organise a meeting with stakeholders. As commented by Preuss and
Van (2017), needs and interests of stakeholders are listened in meeting in order to avoid dispute
and argument in future. Manager or employer needs to provide respect to the opinion of
stakeholders such as investors, shareholders and partners and use effective strategies in business.
Win-win situation can be helpful in running the business effectively to achieve the goal and
avoid argument.
D1: Critical evaluation of steps of negotiation process and solution for dealing with the
issues during process
Challenges are also faced by employer or manager during the negotiation process. Effective
preparation is important for manager or employer before organising meeting with stakeholders.
Employer has to discuss about goals of organisation clearly so that stakeholders can understand
and business can be run effectively. On the other hand, in case manager or employer fails to
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make stakeholders understand about business process then investors and shareholders do not
want to work with organisation (Weiss, 2015). Manager can also face challenges in presenting
their point of view when stakeholders are not ready to listen. It can be advised to manager to
prepare effectively before meeting and respect the words of each individual during the meeting.
Manager needs to have effective negotiation skills in order to deal with situation and build
effective relationship with stakeholders in order to create best deals. Effective agreement can be
prepared to generate new business with the help of stakeholders.
LO2: Managing documentation relevant to contracts and tenders
P3: Process of RFP and documentation types
RFP can be considered as a document that is used to solicit proposals from the outside
organisations for providing service. RFP is used to get contract by an organisation from other
organisation. The steps of RFP are as follows
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Figure 1: Process of RFP
(Source: Influenced by Windsor, 2016)
Assembling team
This is first step of RFP process in order to get a contract. It is important for a start-up to
organise an effective team so that responsibility of contract can be provided to them. Members of
team are responsible for drafting RFP as well as for reviewing RFP. As stated by Windsor
(2016), manager of project takes care of to complete the project on time and avoid roadblocks. It
can be advised to manager of start-up to create effective RFP team for getting contracts
effectively from other organisations.
Developing timeline
In this process of RFP, a deadline is created to complete RFP draft. Deadline also includes the
date to send RFP as well as date to stop tracking the response of RFP. It can be advised to
manager of start-up to complete the RFP draft before the time of sending RFP to organisations.
Writing RFP
It is an important process of RFP to get contract from organisations. An effective RFP is
important to achieve the contract so this responsibility needs to be provided to effective member
of team. The RFP document needs to include introduction of organisation along with background
related to similar projects. An interesting RFP of organisation helps in getting the tender or
contract to provide service.
Distributing RFP
The RFP needs to be viewed by all stakeholders before sending it to organisations. This
responsibility needs to provide to responsible member of team. In accordance to Zhang and
Milan (2018), RFP can be submitted through online as well as by going to organisations. It can
be advised to organisation to send the previous details of services related to similar project so
that contract can be achieved.
Reviewing Responses
After submitting RFP, it takes time to get the result of contract. It can be advised to organisation
to track the response through online or organisations in order to get the result of contract.
Negotiating and Signing Contracts
After getting the contract, a meeting is organised to discuss about the project and sign the
contract.
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P4: Contractual process and monitoring and managing relevant documentation
Contractual Process
It can be advised to start-up to follow contractual process in order to work effectively and
provide services to organisations. There are six steps to manage contract such as planning,
contract initiation, contract solicitation, contract evaluation, contract award and administration.
Figure 2: Contractual Process
(Source: Influenced by Constantin, 2015)
It is important for start-up to plan effectively to get contract and initiate the process effectively so
that organisations can trust it. The documentation related to contact needs to be submitted
effectively in the meeting so that contract can be evaluated (Constantin, 2015). If contractual
work is completed effectively by organisation then the organization can get contact award as
well.
Monitoring and managing relevant documentation
It can be advised to start-up to monitor and manage the documents effectively so that documents
can be provided when needed. M-Files and Docupilot is effective documentation management
system in order to manage contract and other important documents of organisation (Fazekas et
al. 2016). There is also various software to manage and monitor document of organisation such
as Samepage and Byder. With the help of these software and systems, documentations can be
monitored anytime as well as managed effectively for the success of business.
M2: Application of RFP process in organisation with the help of key documentation
process and breaching consequence agreement
In order to grow and run the business, it is important for organisation to use the process of RFP
effectively in organisation. Organisation needs to create effective team for RFP in order to get
tenders and contracts. RFP should be written effectively along with the information of
organisation and information of previous similar project so that contract can be achieved by
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organisation. Tracking of contract is also important in order to get the result of contract to
continue the process. After achieving the contract, it is important for manager or employer to
have effective negotiation skills so that the contractual process can be process without any
argument and issues. In accordance to Lemke et al. (2018), managing documents is also
important in order to avoid contract breach. M-Files and Docupilot is the documentation
systems and Samepage and Byder are documentation management software that can be used to
manage important documents of business and avoid contractual breach.
D2: Critical evaluation contract process and competitive tendering for completing a
successful tender with the minimum risk
Effective planning to manage the contract is important so that the contract can be completed
within time. A meeting is important to understand and share the project work of the contract. On
the other hand, if manager of organisation do not have effective negotiation skills then argument
can be occur during the meeting. An organisation needs to have effective documentation so that
it can achieve competitive advantage and get the contract from other organisations regarding any
service (Patras and Banacu, 2016). Documentation management and system and software can be
used by organisation in order to manage and monitor documents effectively and to avoid contract
breach.
Task 2
LO3 Development of pitch
P5 Development of suitable pitch having key business principles
Preparation of formal RFP
This bank of London is submitting this request for proposal in order to run a coffee shop.
Background
This organization is going to help in context of UK business regulations as well as monetary
requirement for running a coffee shop in London. On the ground of providing support to a new
business start up, this bank is going to negotiate a range of contracts with terms and conditions
relevant to new business proposition. Starter of this coffee shop need to participate in this
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negotiation with a new business as well. As this bank has decided to support a small
organization, rather than any international chain, this contract is a great opportunity for the start
up business managers.
Anticipated selection schedule
This bank has decided to contract with any small and independent business owner rather than a
business holder at national level. As the coffee shop is going to start their business in initial
stage, this bank is preferred to support them in monetary as well as other context.
Scope of services
This major bank of London is looking the way to expand their participation with London-based
business environment. This allows the managers to execute faster and better than others in same
space. The bank is going to provide below mentioned services as per this RFP:
● Off-side and on-side repair and maintenance of store equipments
● Recommend managers to ensure clear operation and sale
● Provide preventive maintenance program and business schedule
● Coordinate stakeholders and service calls by profesional
● Implement company asset identification system
● Execute risk analysis and understand risk areas
Timeline
Organization that has found this RFP as a possible scope for their strategic business growth has
to respond against this within one month.
Evaluation criteria
This bank prefers to support any small business rather than any national chain business owner.
The business strategy must be futuristic as well as ambitious.
Response to RFP by Cuisine Coffee
To,
The Manager,
This is to inform you that Cuisine Coffee is extremely enthusiastic to have an agreement with
you after going through the RFP you have submitted. Cuisine Coffee being a small business
owner of London is viewing this RFP by this bank as a great opportunity of it for having a
consolidated growth of its business. Nevertheless, it can be anticipated that after having a
contract agreement with this bank based on the RFP, Cuisine Coffee will be eligible to get on its
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business missions and vision at the anticipated level. Nevertheless, advice of this bank regarding
business regulations of UK will be opportunistic for Cuisine Coffee regarding flawless business
running. Besides this, monetary support by this bank is also expected to help Cuisine Coffee to
overcome the barriers of capital investment in this business venture.
With thanks and regards,
Assistant Manager (Cuisine Coffee)
Creation of pitch
Introduction
Cuisine Coffee is likely to expand its business to get a competitive edge within the concurrent
business place. Being the responsible assistant manager of this coffee shop it can be stated that
the company is intending to create a value in marketplace through building a significant mission
and business vision as well.
Information
In order to manage this coffee shop, company needs to provide sufficient information about
investment, supply chain as well as partnership.
Idea in starting the business
Size of business is small, limited only in London city. No other supply chain is there in national
or international market. As market competitor, various companies grow up in food industry.
Their challenges are to create a competitive advantage and build a position in industry. Cuisine
Coffee shop is to create a model to generate revenue successfully. This coffee shop is monetized
through selling products in reasonable price to customers.
Difficulties and next step
The next step is to build a business plan and determine operation management. To grab
opportunities from marketplace, company will provide introductory offer as well as discount and
seasonal offer to customers. Cuisine Coffee will expand their physical stores and ensure their
visibility to customers also.
In this context, value of brand loyalty is enormous for Cuisine Coffee and innovation in customer
service is observed to be the best route for consolidating the brand loyalty for Cuisine Coffee.
Additionally, managing a free flow of networking and partnership with stakeholders is also a
suitable route for managing recognized brand loyalty for Cuisine Coffee.
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