Contents

Acknowledgement..............................................................................................................14
1 Introduction.....................................................................................................................17
2 Context of a negotiation and identifying the information required to prepare for a
negotiation..........................................................................................................................18
2.1 Negotiation...............................................................................................................18
2.2 The process of negotiation.......................................................................................18
2.2.1 Preparation and Planning..................................................................................19
2.2.2 Definition of ground rules.................................................................................20
2.2.3 Clarification and Justification...........................................................................20
2.2.4 Bargaining and Problem Solving......................................................................21
2.2.5 Closure and implementation..............................................................................21
2.3 Information required in the negotiation process......................................................22
2.4 The stakeholder involvement in negotiation process...............................................22
2.5 Issues that could occur during the negotiation process and how to overcome from
them................................................................................................................................23
2.6 Generating new business and win a deal..................................................................24
2.6.1 Seven steps to generate a new business and win a deal........................................25
2.7 RFP (Request for Proposal)......................................................................................25
2.7.1 The process of RFP...............................................................................................25
2.7.2 Key Documents used in the RFP process..............................................................27
3 Contracts and tendering...................................................................................................28
3.1 What is a contract?...................................................................................................28
3.2 Process of contract...................................................................................................28
3.3 Breach of contract....................................................................................................30
3.4 Remedies for breach of contract...............................................................................30
4.1 What is Tendering?..................................................................................................31
4.2 Tendering process.....................................................................................................31
4.3 Competitive tender...................................................................................................32
4.4 Risks of tendering and solutions to overcome from these risks...............................32
5 Pitching............................................................................................................................34
5.1 Key Principles of a pitch..........................................................................................34
5.2 Development of a successful pitch...........................................................................34
5.3 Outcomes of the pitch..............................................................................................35
5.4 Potential issues occurred in a pitch and recommendations......................................36
5.5 How organizations Fulfill their requirements through pitching...............................38
 5.6 Post pitch behaviors.................................................................................................39
References..........................................................................................................................41
Appendix A........................................................................................................................43
Appendix B........................................................................................................................50
Appendix C........................................................................................................................53
1 Introduction.

Hayleys PLC is one of the most reputed and award-winning conglomerate in Sri Lanka.
It’s diversified business portfolio spans across Manufacture, shipping & Freight
forwarding (including ship ownership), power and energy (Solar, Hydro and Wind),
agriculture (including equipment, fertilizer & seeds), City and resort hotels, travel and
tourism, Engineering, Tea & rubber plantations, the largest consumer & retail chain stores
operators in Sri Lanka. The company has an annual turnover exceeding USD 1 Billion
and is one of the oldest business houses in the country with a history of over 140 years.

The Group is internationally recognized as a leader in innovation, with manufacturing

facilities in Indonesia, India and Thailand, marketing operations in Australia, India,
Bangladesh, Italy, Japan, the Netherlands, UK and USA, offering transportation and
logistics solutions in Maldives, Myanmar, India, Singapore, Indonesia and Malaysia. The
Group accounts for approximately 3.2% of Sri Lanka’s export income, and 3.6% of tea
and 3.9% of rubber production[CITATION Hay201 \l 1033 ].

Hayleys is ranked 22nd in the Business Today TOP 30, 2017-2018. With a new growth
trajectory, Hayleys became the first publicly listed company in Sri Lanka to deliver the
highest revenue ever recorded.

However, Hayleys continued to expand beyond its borders and remained a Sri Lankan
multinational, owning 46% of Sri Lanka's export earnings. With the acquisition of Singer
SL, the company gained a new growth path. It was the largest acquisition in the history of
the Colombo Stock Exchange, with Hayleys buying a 61.73% stake in Singer SL for 10.9
billion rupees.

With the strength and business acumen of Mr. Dhammika Perera, the vice president who
personally owns more than 50% of the shares, Hayleys has made great strides in
continuing to expand and find new opportunities for the business to grow[ CITATION
Bus20 \l 1033 ].
hjvhv
2 Context of a negotiation and identifying the information required
to prepare for a negotiation.

2.1 Negotiation

Hayleys Fabric PLC has been a leader in manufacturing soft knit fabrics and currently they are
recognized as a manufacturer of world-class fabrics with a high degree of innovative capabilities
with its own brand, INNO. The company is listed on the Colombo stock exchange with a total
asset value of USD 48 million. Hayleys Fabric PLC is controlled by Hayleys PLC, the largest
conglomerate in Sri Lanka, with a total direct ownership of 59% of the company[CITATION
Hay20 \l 1033 ].

Every 4 years, the company makes a request for bidding for businesses to clean and paint the
factory. If a contractor is chosen, Hayleys Fabric initiates a negotiating process to promote this
huge undertaking for the best price and service. Negotiation is a method of seeking an
appropriate solution to a conflict between two parties.

2.2 The process of negotiation.

Negotiations can take place in any business situation, but people negotiate outside of the
workplace on a daily basis. This happens when two or more parties have more than one possible
outcome in a situation of interest, but have not yet determined what the outcome will be. For
example, when buying a used vehicle, there can be a negotiation between the buyer and the
seller, or even between a couple of friends who is negotiating to decide which movie to watch.

Negotiations occur when;

• Convincing someone or a party to take your side of an issue.
• Resolving a problem between parties.
• Selling a product or service.
• Establishing a relationship.
• Reaching an agreement with a certain party.
• Settling an argument.
• Proving a point.

Hayleys Fabric has received numerous bids for the factory painting job. The company has
decided to enter negotiations with Pabro Master Painters (PVT) Ltd. To begin a successful
negotiation process both parties has to gather background information regarding who may
benefit and who may lose in the negotiation, know what negotiation tactics and strategies to use,
create a negotiation plan, and then engage in the negotiation process. There are five steps to the
negotiation process, which are:
1. Preparation and planning.
2. Definition of ground rules.
3. Clarification and justification.
4. Bargaining and problem solving.
5. Closure and implementation.

At each stage of the negotiation process, the relevant parties discuss in a coordinated manner to
determine how to protect each other's interests. After the process is over, the negotiation must be
closed and the negotiation postmortem should be conducted along with the creation of the
negotiation archive.

2.2.1 Preparation and Planning

The first step in the negotiation process is preparation and planning. In this step, both the parties
will organize and gather necessary knowledge to have a successful negotiation. Hayleys Fabric
and Pabro Master Painters both need to prepare fully for the negotiation. Information in
negotiations can be powerful and will help to make statements which will make the opposing
party agree. Both businesses should study the past of each other and try to find out what the
original bid for the painting work is. Pabro Master Painters needs to uncover the highest amount
Hayleys Fabric is willing to pay for the factory paint job, while Hayleys Fabric needs to figure
out the lowest Pabro Master Painters will take for the job.

2.2.2 Definition of ground rules.

Defining ground rules is the second step in the negotiation process. Rules and procedures for the
planned negotiation will be defined in this phase. Attention will be given to questions, such as:
Where to conduct the negotiation?
• Are there time limits?
• Will there be problems beyond the limits?
• What happens if there is no agreement?

Furthermore, both sides will try to figure out what price the starting point for the agreement
should be. Demands and goals should also be revealed up front. Finally, Hayleys Fabric will
need to uncover the bottom line, which is the lowest price that Pabro Master Painters will offer
services to Hayleys Fabric for. Hayleys Fabric is going to begin negotiations with an opening
offer, or starting price, suggesting a job price of Rs.2,000,000.00. Both parties also agreed that
the negotiations would last one day and if a price for the job was not agreed upon, then Hayleys
Fabric would consider a different Painting Company.

2.2.3 Clarification and Justification.

In this stage, both parties' positions are being discussed at length. Each side will have an
opportunity to clarify their original request, justify and endorse it. This part of the negotiation
should not be argumentative, but should provide each side with the opportunity to educate and
persuade each other about their situations. Hayleys Fabric mentions that only Rs.2,000,000.00
should be needed to complete the factory job. They provided Pabro Master Painters with
documents to show them what they paid to the previous vendor and adjusted for inflation.

Pabro Master Painters understands the request for Rs.2,000,000.00 but offers to complete the job
for Rs.3,700,000.00 and then documentation to justify the price rise was issued. The company
states that the price of the paints has risen, and new regulations force them to employ qualified
technicians to disassemble certain parts of the factory for cleaning. This is an extra expense that
did not have to be built into their price by the previous vendor. Now that both sides are aware of
each other's situations, intense negotiations need to occur to come to an agreement.

2.2.4 Bargaining and Problem Solving.

At this point, both sides will have to make compromises to gain satisfying outcomes.

In this scenario, Hayleys Fabric really wants to use Pabro Master Painters, due to their excellent
reputation and professionalism. Pabro Master Painters really wants this huge corporation job, as
it will increase their overall success at gaining other local companies’ business. Both parties
ended up negotiating the cost to an agreed price of Rs.2,880,000.00. Pabro Master Painters had
to drop their price, and also promise to complete the job in a 100-days’ time frame with no
overtime. Hayleys Fabric had to pay more for the factory project and provide documentation that
the factory would be emptied by a specific date, in order for the paint company to start the job in
time. Hayleys Fabric would also recommend Pabro Master Painters to other business owners if
they were happy with the end result.

2.2.5 Closure and implementation

In this last step, both parties will acknowledge the formalized agreement through either a
handshake, written/signed document or contract. The parties will also discuss how, when and
where the implementation will occur.

In Hayleys Fabrics scenario, both parties signed a detailed contract regarding Cleaning and
painting the factory. The companies agreed upon a start date. A deposit was forwarded to Pabro
Master Painters to begin acquiring supplies for the project.
[ CITATION Qui20 \l 1033 ]
2.3 Information required in the negotiation process.

The overall process of negotiation consists of three main negotiation stages, such as:
1. Pre negotiation – Building trust and the relationship between Hayleys fabric and Pabro
master painters.
2. Actual Negotiation – The negotiation process takes place at this stage.
3. Post negotiation – Evaluation of the agreement and following up.

In the current scenario, the culture Hayleys fabric is using in negotiating is to achieve a win-win
situation for both parties. by having a win-win situation Hayleys fabric and Pabro master
painters will benefit out of the outcome of this negotiation.

2.4 The stakeholder involvement in negotiation process.

Stakeholders are entities, groups and organizations that do or do not personally participate in the
negotiation process and may rely on the outcome of the negotiation. In this scenario, if we placed
the stakeholders on a stakeholder’s map, Pabro Master Painters has high interest on the deal and
they should be kept informed. And Hayleys Fabrics is the key stakeholder in this negotiation,
because they are going to begin a contract with a painting company. Hayleys Fabrics should be
kept informed and satisfied due to their high power and interest. The key advantage of a
stakeholder map is to get a visual illustration of all the people who can affect the project and how
they are linked.
Figure 1 Stakeholder Map
Often, stakeholders and shareholders are confused. Although shareholders own and are interested
in the success of the business, it does not imply that they should become partners in each project
or product initiated by the Company. Stakeholders can operate on a broader level, and also are
involved in the success of the project or product, not just because it affects the performance of
the business.[CITATION mir11 \l 1033 ]

2.5 Issues that could occur during the negotiation process and how to
overcome from them.

• Failure in thorough preparation - Rushing into a negotiation without adequate preparation

is a top negotiation mistake any business negotiator may make. Wise negotiators
understand how necessary it is to take sufficient time to carefully examine many aspects
of the negotiation. They can begin by thinking about their best alternative to a negotiated
agreement also known as BATNA. If they are not satisfied with the outcome of the
negotiation, BATNA is the best course of action open to them. It is also important to
know their worth, or their walkaway point, and the BATNA of the other party. All of
these equations will help them make choices that are more logical.

• Cognitive Shortcuts - Psychologists found that when negotiating, particularly when

negotiators are unprepared or short on time, they all rely on cognitive shortcuts. For
example, they appear to be overconfident about their odds. And they pay more attention
to vivid details like the price of the job than to less flashy information like working time
and dedication needed for the job, which may make a greater effect on the outcome.
Through carefully planning and taking time to negotiate, they can dodge many negative
outcomes.

In this scenario of the paint job negotiation, Pabro Master Painters paid their attention to the both
vivid and less flashy information by negotiating the prices for the job and promising to finish the
job in 100 days without any overtime. Even though they did not achieve their expected price
target, they will gain higher benefits.
 • Competing rather than collaborating - Fear of being taken advantage of, inexperienced
negotiators make ambitious, even unrealistic demands (and some experienced
negotiators) and switch to aggressive and other manipulative tactics to try to get their
way. By concentrating on creating and claiming value, the negotiation will be more
efficient to both the parties. Both parties will feel more comfortable in expressing their
underlying interests in the negotiation when you take time to establish partnership and
trust. This understanding will allow you to recognize possible compromises. By striving
for win-win option, smart negotiators know that they may benefit more.

• Emotional biases - Negotiators are vulnerable to emotional biases, which may discourage
them from doing their best. Our feelings and those of our counterparts, will definitely
provide us with useful data on how the negotiation is going. Yet intense feelings can also
prevent us from making reasonable choices, and this can lead to errors in negotiation.
Negotiators also do not understand how discussions are affected by feelings. Harvard
Kennedy School professor Jennifer Lerner discovered that rage can lead us
in making unnecessarily risky decisions, and sadness can make us to overpay in
negotiations. when negotiations get intense, negotiators can take a break to let everyone
cool down and discuss about what happened as they regroup, allowing everyone time to
express their thoughts.

2.6 Generating new business and win a deal.

A business deal contains a common agreement or interaction between two or more parties. The
contract is typically between a seller and a buyer to trade goods, services, information and assets.
It is assumed to be finished or approved if the parties have come to an agreement on the terms
and conditions of the deal. The terms and conditions of the contract shall be agreed by all parties,
which they consider necessary to defend their rights and interests. Then they conclude the
contract, which may involve both signing documents, under the terms and conditions of the deal.
[ CITATION CFI20 \l 1033 ]
2.6.1 Seven steps to generate a new business and win a deal

• Step 1: Focus on your core product.

• Step 2: Keep your pitch simple.
• Step 3: Stay true to who you are.
• Step 4: Map it.
• Step 5: Utilize marketing tools that work best for you.
• Step 6: Implement a plan of action.
• Step 7: Exercise the plan.
[ CITATION CFI20 \l 1033 ]

2.7 RFP (Request for Proposal)

RFP is a document created by a corporation, non-profit, or government entity to describe the

requirements for a particular project. They use the RFP method to ask eligible suppliers for bids
and decide which supplier may be the best for the job to complete the project.

2.7.1 The process of RFP

• Step 1 - Determining the Needs and Specific Requirements: Hayleys fabrics determined
that they needed the factory repainted and cleaned.
• Step 2 - Establish supplier eligibility: Once Hayleys fabrics understands the demand for
the project, the next step is to setup the vendor eligibility criteria. Some minimum
eligibility criteria will need to be set up to be used to scan and shortlist vendors. They
must also clearly specify the additional factors that will give some added preference to
the suppliers or contractors.
• Step 3 – how will proposals be invited? Hayleys fabrics has two options. They can either
put up an advertisement to invite proposals or they may only invite proposals from a
selected list of vendors by contacting them individually.
• Step 4 - Scan Existing Supplier Database: Since every organization maintains some kind
of service providers database, that’s the first place the company should begin the service
provider search.
• Step 5 – Research new suppliers – when Hayleys fabric gets the final copy of the RFP
document, they need to send it out to the service providers as a hard copy or in any
electronic form.
• Step 6 – Scan and shrink the list of suppliers – Hayleys should make a tentative list of
potential suppliers after inspecting each supplier against the eligibility criteria.
• Step 7 - Create a Supplier/Contractor Evaluation Plan – Hayleys need a detailed plan that
will be used for evaluating and selecting the vendor. This plan should include the
procedure to be followed, evaluation criteria and details about the decision makers.
• Step 8 – Draft a request for proposal - A request for proposal contains information from
the requirements specification document and the seller evaluation plan.
• Step 9 - Invite Suggestions and Comments on the Draft - The draft which the company
prepare in the step 8 is not the final one. Before Hayleys makes the final document, the
draft must be distributed to all the concerned internal stakeholders of Pabro Master
Painters to generate their comments and suggestions. If Hayleys generates a list of
suppliers in step 6, this list should also be attached with the draft.
• Step 10 - Prepare the Final Document - After making adjustments to the request for
proposal draft, to accommodate the suggestions received during the above step, Hayleys
can prepare their final copy of the RFP.
• Step 11 – Send out the RFP – after completing the final RFP, Hayley should send out the
suppliers using the preferred media.
• Step 12 – Receive response for proposal.
• Step 13 – Evaluate the response for proposal – after receiving the response for proposal,
Hayleys will have to evaluate all the received proposals and choose the winning supplier
or vendor.
• Step 14 – Award the contractor.
• Step 15 - Prepare a Work Order Form - This is the last step of the RFP process where a
work order form is prepared and sent out to the selected supplier or contractor.
2.7.2 Key Documents used in the RFP process.

Statement of work (SOW) - This document collects all elements of your project and identifies
them. The activities, results, and the timetable of the project will be recorded. This is a highly
detailed document, as the groundwork of the project is laid. [CITATION htt \l 1033 ]

Request for quotation (RFQ) - A RFQ is a document outlining the specifications of a buyer and
asking vendors to respond in terms of pricing and payment. An RFQ varies from an RFP because
it entirely focuses on the expense of a single item or items. RFPs, on the other hand, are slightly
more versatile and allow innovative solutions to be proposed by the vendor. [CITATION rfp20 \l
1033 ]

Terms and conditions – Terms and conditions define the rules applicable to the performance of
the contract and forms an essential part of the contract. To form a contract, buyers and sellers
must agree on the terms and conditions. [ CITATION glo20 \l 1033 ]
3 Contracts and tendering.

3.1 What is a contract?

In the Hayleys Fabrics case, after the negotiation, both parties signed a contract regarding the
job. It is necessary to understand the contents of the agreement they are signing before they sign
on the dotted line. A contract is a written or articulated agreement to provide a product or service
between the two parties. There are basically six components of a contract that make it an
agreement that is legal and binding. In order to be enforceable, a contract must contain:
1. An offer that specifies precisely regarding what will be offered.
2. Acceptance, the obligation of the other party to the offer submitted,
3. Exchanges of consideration, money or something of interest between the parties.
4. Capacity in terms of age and mental capability of the parties.
5. Both parties' willingness to complete their commitment.
6. Legally enforceable terms and conditions, also called object of the contract.

In other words, a contract is enforceable when both parties agree to something and what they
promise to do is within the law. [CITATION Stu20 \l 1033 ]

3.2 Process of contract

Typically, there are some discussion between the parties when contracts are complicated or of
high in value. In order to bargain for what both parties can deliver and obtain, both parties enter
into an agreement. With the expectation of benefit, both parties will enter into the contract.
Contracting parties can negotiate on their own or appoint a delegate to carry out this mission.
However, if a third party negotiates on behalf of a party, it should be the legally intended
representative.
Inclusion in a written document is important. Relevant, simple, and succinct should be the
contract language. Until forming the agreement, writing an outline will allow the parties to create
a legal document without any possible chances of disagreements. To prevent any confusion, the
consistency of data such as party names, addresses and terms and conditions is important. The
most productive way for parties to gain insight into just what one party wants from another party
and protect them from false statements in the future is to write a contract.

7 Stages in the process of contract.

• Stage 1 - Contract preparation - Hayleys Fabric has to identify the need of the company,
establish the goals of the project, set expectations from Pabro Master Painters. And also,
Hayleys has to identify the risks because they are giving this project to an outside
company. Risks such as breach of contract or the opposition party may bargain
unnecessarily may take place.
• Stage 2 - Author the contract - It is prudent to consult with in-house counsel or an
attorney, especially if there are any complexities. It is better to use a preset template
drafted by the company’s legal team to make sure all the information is updated and all
required sections and terms are included.
• Stage 3 - Negotiate the contract - The negotiation of contracts should start with openness
and confidence. Before the interaction, anticipating and researching the needs of the other
party simplifies the process and provides a solid foundation for a lasting partnership.
• Stage 4 - Get approval before finalizing the contract - In this scenario, Hayleys Fabrics’
negotiators will need approval from managers or the higher authorities, and all the
approval conditions will need to be met before the agreement is Finalized. For instance, if
a business has clear procurement policies, they would need to be followed before
receiving approval for the contract. This is as easy as setting up an approval workflow in
a contract management framework so that whoever wants to approve the contract
receives a notification and can access, modify, and give feedback on the contract.
• Stage 5 - Execute the contract – After all parties agree, the signature of the contract is the
simplest part of a contract process, and the next step is simply to make it legal.
 • Stage 6 - Keep up with amendments and revisions - Contracts never stay static. Revisions
and amendments are a normal aspect of the development process of the contract. After
the completion stage, revisions to the contract may be made, such as adding additional
terms and conditions or modifying previous statements.
• Stage 7 - Manage after the signature - After the contract is signed, contract management
doesn't stop. Running routine audits would ensure fulfillment of commitments and
realization of value. For deadlines and renewals, reminders should be set. Missed
renewals mean missed chances for a partnership to continue, and for a corporation, most
significantly, Revenue loss. Being conscious and making communication long before the
renewal date indicates the relationship's stability and care, and will help to build trust and
loyalty.[ CITATION con20 \l 1033 ]

3.3 Breach of contract

If any of the terms of the contract between the party’s undertaking are violated, poorly executed,
completely broken or only partially met, this could establish a breach of contract.

For example, Pabro Master painters failing to provide their services up to the negotiated standard
they are being paid for or non-payment of invoices relating to work which has been carried out
by the Hayleys Company.

3.4 Remedies for breach of contract

Before resorting to arbitration, it's always best to try and settle a conflict. The principal remedies
for breach of contract are:
• Repudiation - If a term is violated, it is possible to cancel or terminate the contract
entirely and claim compensation for any damage incurred.
• Damages - Both quantifiable damages such as loss of profits and unquantifiable losses
such as inconvenience suffered, arising from the violation may be awarded.
 • Specific performance - This is a less common solution requiring a party to fulfill certain
contractual obligations. For example, the court forces the party to fulfil their obligations.
• Adherence - The innocent party can also require the other party to comply with its
contractual obligations
[ CITATION roc20 \l 1033 ]

4.1 What is Tendering?

A tender is a request to bid or accept a contract proposal, such as a takeover bid, for a project.
Tendering generally refers to the process by which large projects that must be submitted within a
specific deadline are invited by governments, financial institutions, private sector companies and
businesses or non-governmental organizations for proposals. The term also describes the process
whereby shareholders submit their shares or bonds in responding to a takeover offer.
[ CITATION inv20 \l 1033 ]

4.2 Tendering process

The tendering process consists of seven steps.
1) Determining the tender process – Hayleys Fabrics understood that they need to do a
tender process.
2) Request for tenders - In this stage, Hayleys Fabric will have to make the RFT.
3) Invite the tenders – After requesting for tenders, Hayleys Fabric should send invitations
to the vendors who have responded to the RFT with their proposals such as Mr. Paint,
Nippon Paint Lanka, Nimlac Paints, Pabro Master Painters and Siri Luk Painters.
4) Suppliers respond – After sending out invitations, suppliers will respond mentioning that
whether they are joining the bid or not.
5) Evaluation and selection – Hayleys Fabric should evaluate and select the vendor
according to the selection criteria. In the selection criteria, information such as past
projects, quality of work, punctuality and cost will be examined.
 6) Notification and debriefing – Hayleys Fabric has chosen the vendor Pabro Master
Painters due to their quality and punctuality. The organization will have to notify Pabro
Master Painters and send feedback to other vendors who responded to the RFT.
7) Contract establishment – Finally, a contract will be established and managed with the
selected vendor, Pabro Master Painters.

4.3 Competitive tender

In the construction industry, competitive tendering is a traditional procurement practice. In

response to an invitation to tender, a tender is a request made by a prospective
supplier/contractor. It makes an offer for the provision of goods or services. Those bidding for a
contract frequently compete with others and, in general, none of the bidders are aware of each
other's quotes; thus, they are encouraged to submit their most competitive bid. In this way, it is
assumed that procurement rivalry will add value to the customer. [ CITATION des20 \l 1033 ]

4.4 Risks of tendering and solutions to overcome from these risks

The Risky Buyer

There is an actual risk in sending a tender to provide the services if you have
no previous experience of the client, the client might be:
• Unreasonable to work with and demanding.
• Imprecise and incapability in decision making.
• Tardy with invoices.
• Requesting for free services.
By running a background check on the client before signing any contract with them will avoid
this situation.

Risky procurement process

Following are some typical risks in the process:
 • Centralized procurement departments or external parties with little or no experience of
the procurement process.
• Stages in the process that result in misunderstanding and submission errors are
unnecessarily complex and frustrating.
• Documents containing errors or conditions which are not applicable to the facilities
• Clarification responses due to inattentive managers are skipped or delayed.
• Significant delays in the evaluation process, resulting in delay in the mobilization period
and start date of the contract. It causes problems with training, recruiting, procurement of
equipment, setting up vendors and so on.

Being conscientious is clearly the best way to escape many of these dangers. Read all the papers
carefully and early. As soon as any problems appear, flag up and don't make assumptions based
on past experiences.

Risky Terms and Conditions

The T&Cs are crucially important. At the tendering point, the vendor should read them carefully
or risk missing sections that they cannot comply with. Unlimited liability sections or penalty
sections can also exist which, if triggered, may seriously damage their business.

Of course, the greatest danger of all could be whether or not to accept the terms and conditions
agreed and amended. The vendor should ensure that the T&Cs suit their business and their
capabilities. If not, they can find themself in a difficult position, unable to adequately supply the
service.

By getting into the habit of reading the terms and conditions as quickly as possible or making the
legal department to read it for them, so that they can discover any concerns early on and pose or
negotiate questions. [ CITATION bes20 \l 1033 ]
5 Pitching

A pitch is a presentation to potential investors of a business venture. People pitch a company

because they need resources. If the aim is to raise start-up cash, gaining an investor is the goal of
the pitching presentation. Many companies pitch to potential buyers to offer their service.
Finally, some companies are pitching because they need a partner or resource to help them
achieve their goal.
According to the scenario, every four years, Hayleys Fabric submits a RFP to pitch for a
company to run the factory cafeteria. To help with their image they prefer to contract a small
independent company as opposed to a national chain. “Kamu restaurant” is a recently started
small business in Colombo looking to expand their business and having a cafeteria inside the
Hayleys Fabrics factory seemed to be an ideal opportunity.

5.1 Key Principles of a pitch.

Having an appropriate body language is compulsory. And Kamu restaurant should understand
the importance of body language. and also, by using visual aids, Kamu restaurant can make an
interactive pitch. And preparing and practicing before actually pitching is also a key principle of
a good pitch.

5.2 Development of a successful pitch

Pitching is about selling the business. Trust is a key factor considered by the buyer. To build the
bridge of trust during a pitch, Kamu restaurant will have to ensure that they are pitching to the
right person, to those who make decisions about using services or buying products. If not, it is a
waste of time if they are speaking to the wrong people. And doing a research on the Hayleys
fabrics company before pitching can help Kamu restaurant to tailor points to target unique
concerns.
When opening a pitch, it should be energetic and strong in posture such as starting the pitch by
asking a question from the audience or by using a strong tagline or quote. And the introduction
should be short. Making the presentation using creative and colorful slides is essential.
During the pitch, there are several points Kamu restaurant has to be concerned about;
• Offer a solution to the problem Hayleys has, but also, they have to limit their number of
solutions, because Hayleys can take advantage out of it.
• Being confident when conducting the pitch.
• Usage of simple language.
• Kamu Restaurant should be genuine and they should listen to what the Hayleys
representors are saying.
• They can use a success story.
• They have to distinguish their product from competitors.
• And they can show value for money.
• By using customer feedback, Kamu restaurant can build a good position on themselves.
• While presenting, Kamu Restaurant can ask if clarification is needed during the pitch.

When ending the pitch,

• They should finish with a simple call to action.
• Remember to shut down and plan to take further action.
• Negotiating.
• Dealing politely and gracefully when rejected is compulsory.
• Inquire for referrals.
• Ensure that a follow-up is in place for the company.
• Study the pitch and amend it accordingly.

5.3 Outcomes of the pitch

There are four possible outcomes of a pitch; they might participate in a due diligence; they can
hear "No, thank you"; they hear nothing; or they hear "After you hit certain milestones, come
right back."
Possibility 1 – In this possibility, if Kamu Restaurants effort leads to due diligence, they have
won the project. The next step depends on the no-shop agreement they are signing, or not.

Possibility 2 – If the Kamu Restaurant get to hear the words “No thanks”, they must not bother
Hayleys Fabrics anymore.

Possibility 3 - Regrettably, not hearing anything at all is the most common of the outcomes. If
Kamu Restaurant hears nothing at all, the best way is to analyze their interaction with Hayleys
fabrics. By asking the appropriate questions, Kamu restaurant can get responses which will help
to predict the next step.

Possibility 4 – In this possibility, Hayleys Fabrics wants to see improvement in the business
before they sign an agreement, and they will specify directly or indirectly, the types of progress
they are looking for. At this point, Kamu Restaurant has to go back to developing their strategies
and the restaurant.
[ CITATION dum20 \l 1033 ]

5.4 Potential issues occurred in a pitch and recommendations.

When talking about someone’s project in front of other people who may not be as thrilled as they
are, can be a petrifying experience. So being panicking is common when presenting the pitch.
Even a most confident person will be panicked at this very moment. There are many issues that
could occur in the pitching process such as;

1.Commiting without a plan – Before making a pitch, they should be fully prepared with a plan
by having a better idea of not just where the pitch will land and how the plan will help to be
successful.

2. Lying or exaggerating financials – This is an issue that happens continuously. The presenter
should have an understanding of finance.
3. Predicting growth without supporting evidence – If the presenter is going to make any kind
of higher forecasts in the business, he or she should have convincing solid proof.

4. Mentioning that they have no competitors – Every organization has a competitor. If the
presenter is mentioning that they have no competition, either the presenter honestly assumes
there is no competition, or a big blind spot is revealed. None of those things are good though.
And that company better know how to defeat them while the competition is on the road of war,
or the competitors will run over them.

5. Claiming that their management or the team has no gaps or blind spots - As a company,
growing means upgrading your team. So, if a prospective investor asks how the team should be
changed, a fair answer would be perfect.

6. Focusing only on the positiveness.

7. Dwelling on issues - At some stage, any organization is bound to encounter problems, and
also those problems should be understood by the investor, the presenter should not dwell on the
issues. Problems offer opportunities to explain how a corporation has traditionally dealt with
similar problems or to prepare to deal with them in the future.

8. Reading the slides – Slides are Prompts, which should only help and guide the pitch.

9. Money minded.
[ CITATION ent20 \l 1033 ]

Recommendations

By hitting the following key components when pitching, the presenter can make the pitch truly
great.
 1. Tell a real customer story.
2. Pare it down to the essentials.
3. Outline the business model.
4. Crystal clear presentation to every audience.
5. Talk about themselves
6. Talk about past projects.
7. Address competition head on.
8. Giving numbers that are behind the companies’ numbers.
9. Show the product.
[ CITATION bpl20 \l 1033 ]

5.5 How organizations Fulfill their requirements through pitching

Pitching has become the traditional way for entrepreneurs to communicate knowledge. It
originated as a way of talking to very busy people who had to make a decision in a short period
of time, and has grown to meet many long-term criteria for a start-up, such as raising money,
applying and participating in start-up competitions, forming alliances, delivering keynotes,
selling goods, applying for accelerator and incubator programs, and more. [ CITATION eus20 \l
1033 ]

5.6 Post pitch behaviors

After a pitch, if the investor does not give an answer, some may check their email every two
minutes, or might leave voicemails every hour, and they are trying to explain to their manager
why they haven’t closed the deal yet. Everyone in the sales department has experienced this
situation. There are many follow up mistakes that should be ignored, such as;

1. Refusing to breakup with a prospect.

2. Sending a generic follow up.
3. Being too pushy.
4. Not listening.
5. Refusing to take a “no” for an answer.
6. Forgetting about non-traditional channels.
7. Leaving the pitch open-ended.
8. Not continuing to give.
9. Taking it personally.

To keep the conversation, open with investors post-pitch, we can keep in mind the following
facts;

1. Treat Your Follow-up Like a Sales Campaign - To ensure that the email is active and
they have opened it, give them a follow-up email using a method like Yesware. Send
another email a few weeks later, with a link to exciting news about your company. Have
they clicked the link? This will accurately determine their level of interest, even if they
don't respond immediately.
2. Forecast and Track - Emphasize a crucial market indicator and the near-term outlook to
keep the dialogue open with investors after the initial pitch. In a follow-up conversation,
make sure to compare how the organization is monitoring the expected primary metric.
Not only will this give customers something to look forward to, but it will explain how
you are implementing the strategy.
3. Keep Them Updated, But Don’t Be in Pursuit - Be sure to keep these investors updated
after your meeting, but don't follow them. Let them understand the mechanism and strive
to gain control in the relationship. The more you need to be chased by them, the more
likely you are to collect money.
4. Understand Their Doubts and Address Them- You demonstrate that you are willing to
listen and change your tactics to suit their needs by demonstrating that you are mindful of
 their doubts and are trying to resolve them. They would be more able to collaborate with
you and to trust your vision if they see success in the fields where they have reservations.
5. Offer to Help Your Investors - By looking for ways that you can potentially assist them,
keep the dialogue going with investors. This form of action is not generally anticipated
by investors, and it fosters a much better relationship than if you follow up only to hound
them for an investment in your company. Until asking a person to invest in you, make a
positive effort to convince them that you are worth investing in.
6. Always determine the next step - You need a justification to follow up in order to keep
the discussion going. Tell, 'What's our next move going to be? If they say they're going to
get back to you, if you don't hear from them, offer to follow up in a week. Get on it right
away if the investor asks you to send over any financial forecasts or market analysis.
Until you get the term sheet, keep up the momentum!
7. Be Emphatic, Not Desperate - An investor will stay engaged by being enthusiastic,
inspired and optimistic about your business and its objectives. However, be patient, rather
than desperate, to keep the conversation emphatic. Going off-rails can be really simple
and beginning to come off as an owner who is in need rather than one who needs help
and a genuine partnership. Neediness, for an investor, is not an appealing attribute.
8. Tell Them What They Want to Know - You don't need to keep the conversation going if
an investor is interested in your company, because they will remain actively engaged.
You need to exit the pitch meeting with a solid understanding of the one milestone that
the investor cares about if an investor is not really sold on what you are doing but is
similar. Hold off on updates before you can inform them in record time that you have
blown past the milestone.