Question: ASSIGNMENT BRIEF
TASK 1: You are working as a Business Start Up Advisor for your local council, providing advice and mentoring to small businesses on how to manage the pitch process and tender for contracts.
You have been asked to create a guidance document on how to effectively prepare and manage the negotiation process. This is to be presented as a short booklet that includes the following type of information and advice:
1. What is a negotiation in the business context?
2. How to develop negotiation skills?
3. The key steps for negotiating and generating business deals.
4. The importance of key individuals in a negotiation.
5. The Tendering Process and types of Tenders.
6. Preparing for negotiation through a request for proposal (RFP) form.
7. Enlist the contractual agreement process.
TASK 2: (Covers LO 2, 3 & 4)
A major bank has its headquarters in the City of London. Every four years they initiate a request for proposal (RFP) process from different companies to run the Bank's coffee shop. This is a subsidiary business of the Bank. To benefit their image, they prefer to contract a small independent company as opposed to a national chain.
You are a small business owner of Cuisine Coffee, a new start-up looking to expand, and see this as an ideal opportunity. You are keen to share a pitch and enter into a negotiation with the bank.
A) THE PITCH: You are to prepare for a 2-minute pitch, consider the following:
• You have to quote a price to the bank; this will only include your expertise to run this coffee shop successfully in Dubai. All other resources like manpower, venue, furniture, DEWA bills, etc will be borne by the bank. You will be completely in charge of this coffee shop and will be responsible for running this business for the bank
• Your objective is to bid for the highest amount however you are also aware that if you bid too high you may lose the contract. The bidding starts from AED 200,000.
• You know that in order to win the pitch you need to offer the best price however cannot go very low as will directly impact your profits. At the same time, it's a matter of pride for you to be associated with this London Bank and this collaboration will add immense credibility to your business.
• You must have clarity on the profits the bank will earn for the next 3 years. This should be supported with logical facts and figures.
• Chalk out a clear strategy and the approach on the process you will follow.
• Focus on getting a win-win for both the bank and your business; however do not give in easily during a negation.
B) THE NEGOTIATION: Prepare a 3-minute negotiation with the banker (played by your Instructor), consider the following:
• As your Pitch becomes successful, the bank would like to negotiate the terms of the contract with you. You knew that in order to win the pitch you priced as low as you could and therefore have no means of lowering the price.
• You next task is to enter into a negotiation with the bank using a variety of techniques to get them to agree to sign the contract without you having to lower the price.
C) THE ANALYSIS
• Submit a report to evaluate the pitch and the negotiation process adopted by you.
Information related to above question is enclosed below:
Attachment:- PN-Assignment.rar