The scenario of this report is based on creating a pitch that means giving a presentation about the business idea to potential investors. In negotiation, both parties try to create a win-win situation as it is beneficial for both negotiators.
- Evaluate the process of negotiation as well as analyze the information required for its preparation.
- Critically discuss the requirement of managing documentation at the time of tender and contract.
- Develop a pitch that can be used to gain sustainable competitive edges for Marks and Spencer.
- Discuss the outcomes of implementing practices related to pitch and negation with the help of several aspects.
Pitching and negotiation process plays an important role in organisation as it is focused on seeking interest of stakeholders by speaking to them about the interest and benefits of an organisation. The report will outline the negotiation process and involvement of stakeholders of Marks and Spencer. M&S is the leading retailer of UK, and its core products are clothing, accessories etc. Further, it will discuss about request for proposal and essential documentation in case of breaching agreement with firm. Also, it will outline outcomes of pitch process and appropriate recommendation which can be used by Marks and Spencer to deal with Post pitch issues.
P1 Negotiation process and engagement of key stake holders in negotiation process.
Negotiation is process where two parties discusses and argues on issue in rot find result on the basis of common interest. It is important for an organisation to negotiate with stakeholders because it helps the company in successful management of business operations. Negotiation with stakeholders is the most prominent and critical part of Mark and Spencer because in this the focus of management to seek consent of key individual on the chge process of firm (Mejía-Arauz, Dayton and Henne-Ochoa, 2018). Discussion and information process with stakeholders is known as negotiation where the motive manager to analyse improvement measures on the basis of shared interest and values. The ultimate aims behind conducting negotiation process of serving satisfaction to key person of organisation. Stakeholders depict a vital part in almost all sort of organisations where they play a significant role in deciding several numbers of things for a smooth and effective functioning of the firm. It is hereby with a significant role of stakeholders in the process of negotiation that involves some major number of changes in the workforce with some financial considerations as well. It not only involves concerning about bringing significant changes in workforce planning but together includes bringing some other vital changes that are important to fulfil the actual requirements of the customers in the market. M&S together follows a procedural approach of negotiation by together involving its stakeholders in it. It is basically a stepwise procedure which is as stated below in which the management first aims at making arrangements- It is a foremost process in which M&S is hereby responsible to decide a list of participants to be involved in this process with a clear set of aims and objectives to be communicated to all included stakeholders. Further, Identifying as well as discoursing upon some potential areas of arbitration- Being the 2nd stage of this process, this involves both the parties to present their views in terms of achieving their set aims and objectives. Bargaining and proposing, is the stage in which the parties involves in this process are known to bargain to reach to a point that serves the intent of both involved parties. Lastly, closure in which, the parties are responsible to take a final decision, serving the needs of both the involved parties.
Negotiation process is point of discussion with the help of which the management is able to analyse interest individuals with company and its functions. Like, Marks and Spencer ensures negotiation in presence of employees because as per manager these are the individual which rule business operation and are aware about changing preferences of consumers. Moreover employees are the individual who understand the needs of maintaining cost effectiveness and altering process. In addition, the firm involves shareholders in negotiation because these are the persons who invest in business of an enterprise and have complete share in profits and losses of entity. Similarly, suppliers are the key drivers of retailers because availability of quality raw material ant cheapest possible price is controlled by suppliers. Thus, engagement of stakeholders in negotiation process is an essential part of retail business because it helps the enterprise in maintaining ethical practices of organisation to analyse interest of stakeholders (Tse, 2014). Hence, it is the process which helps in deriving appropriate improvement measures which can helps in enhancing vales of services with mutual interest ad consent.
Rationale for negotiation process
The motive behind conducting negotiation process is to manage stable business function by serving satisfaction to all individual who share interest with organisation and its functions. Moreover, it is the practice which helps in deriving various loopholes and need of changes as per argument and discussion. However, negotiation process is conducted with the motive of managing safe practices by seeking advise from every person who is related to firm and its functions (Andrews, 2016). Thus, it assists in altering and modifying functions on common interest which reduces the chance of further complications.
P2 Negotiation process
Conducting systematic negotiation process allows the firm in establishing proper agreement. Further, the steps assist management in reducing obstacles and involving essential detailed step wise process. The process used by Marks and Spencer is discussed below:
- Preparing and Planning: In this the manager of organisation collects all the information which needs to discussed in meeting on what basis every particular thing can be argued. Preparing for negotiation is the foremost and most important step because in this the manager outlines all the basic arguments which can occur and how to manage discussion on mutual consent.
- Establishing ground rules: In this the manager set the framework on which the discussion will conduct and will carry forwarded. Further, in this step the company ensures that on what points the management can agree (McKendrick, 2014). Like, advise given by stakeholders needs to be as per planned changes and ethical.
- Justification and Clarification: It is the step when management confronts stakeholders. In this the firm seek interest of every person which helps in developing option, sharing information and deriving various needs which ca be considered as per planned changes. However, it is the step by which Marks and Spencer is able to analyse individual interest with company and its functions.
- Executing and Summarizing: It is the step in which management frames detailed analysis of all considerable arguments. Views of every person is considered and summarized on one common interest and then the modification are executed with the helps of agreement in order to avoid future chance of conflicts and disinterest of any person (Miyamoto, and Ito, 2017).
Critical Analysis of steps of negotiation process
Following step wise negotiation process assist the management in considering necessary details and establishing systematic flow. But on other hand negotiation process can be obstacle to employees performance if in case management ultimate decision varies from employees argument in process. Thus, it can be argued that conducting negotiation process helps the management in prior planning in which Marks and Spencer is able to consider all arguments which can be occurred due to conflict between two parties who share different interest with organisation.
P3 Request for proposal and documentation and consequences for breaching agreement.
Request for proposal is the record of guidelines which outlines mandatory terms and conditions which aims at protecting interest of organisation and its products and services. The RFP of retailer comprise every necessary detail which is required to keep stakeholders aware about firm process ad functioning ( Cham.un and Kyle, 2011). The proposal is forwarded by Marks and Spencer to maintain ethical business functions and to seek for suggestion which can assist in establishing improvement in an enterprise. In this case management of company calls meeting to seek views on draft of proposal. This step is based on discussion where the manager aims at making stakeholders aware about the changes. Thus, to conduct Request for Proposal the firm follows step wise process which is described below:
- Analysis of buyers requirements and changing trends
- Analysing benefits ad risk related to proposal
- Analysing development tolls like software and hardware (Crump, 2011)
- Determining project breakdowns to ascertain life cycle of project.
However, breaching rules and contracts plans is a legal offence to which abiding is necessary. Anyone found not following the rules is punishable offense which can lead to cancellation of agreement, damages, loses etc. Thus, following rule of RFP process is an ethical process and it is the responsibility of manage is to ensure that confidentiality and appropriate implementation of RFP agreement in order to maintain trust of stakeholders.
Analysis competitive tendering and contract process
Competitive tendering is the term which was enforced to protect interest of organisation who supply goods and services on agreement. The focus of this system is to improve cost efficiency of state funded organisation that comprise governmental, local and central departments (Lewicki and et.al., 2011). Competitive tendering is process of seeking equipments, raw material and different resources from various suppliers. However, competitive tendering is beneficial for Marks and Spencer in various ways like, it assists the organisation in managing value of money which improve cost effectiveness of business operations. In addition, the system is effective for enhancing quality of services as it derives various alternatives for accomplishing goals (The contracting process, 2018). The tendering process is done with the helps of master agreement which involves certain steps such as:
- Offer is an opportunity which is given by party to resolve certain issue between two parties for the sake of business.
- Acceptance is agreeing to offer by disputing parties.
- Consideration is reading and abiding the agreement and its terms and conditions carefully (Goldberg and et.al., 2014).
- Applying law to agreement in order to maintain mutual obligation to agreement.
- Ability in both parties to abide the rules and legal capacity of agreement.
P4 Pitching process
Enclosed in power point presentation
P5 Dynamic and creative pitch for new product launch
Enclosed in power point presentation
P6 Outcomes of Pitch and recommendation for managing post pitch issues
Pitch was based on launch of exclusive range of Women's leather Jacket by Marks and Spencer. However, to maintain effectiveness of procedure the manager implemented the use of pitch process. It involved stakeholders like, suppliers, employees, media and shareholders. As per the success of pitch it has been derived that launch of exclusive range is remarkable and its has set trend among females across the globe (Goldberg and et.al., 2014). However, according to stakeholder the idea of promotion via social media advertising is an effectiveness but shareholders and suppliers argued on the schemes of offering discount to first 100 consumers because it can create mess for the store management (Jun and Kyle, 2011). Therefore, with regard to this, it can be recommended that firm can offer discount 10 first on first purchase to all consumers. This will help in maintaining equality among buyers and will also assist in boosting sales. Further, the stakeholders discussed about the limited colours in jacket which will be obstacle to sale s and profits. Therefore, to overcome issue, it can be recommended that firm can produce more colours but after the consumer response to limited production. Thus, it will help the company in making optimum utilisation of resources. A last outcome of this pitch in terms of its premium pricing strategy could lead to an unfavourable consequence of this new product launch. It is with a special concern of youngsters who may not afford such high priced product and may consider buying high quality product in lower price. It is thereby recommended to this pitch to begin with a penetration pricing strategy to attract a large set of consumers towards this newly launched product. This way, they will be able to gain a high market share and can consider raising the price once after the closure of their promotion period. Another is economy pricing strategy that can also be adopted by M&S with thinner margins of profit at an initial stage. This will also necessitate them to fix a very low budget for marketing and advertising.
Critical Analysis of pitch process and post pitch outcomes
Pitching process is effective because it Helped Marks and Spencer in making stakeholders aware about all the necessary details which is considered form launch of exclusive range (Lewicki and et.al., 2011). Summarizing post pitch outcomes is most crucial part because in this it is the responsibility of management to implement changes in suggest issues.