The Power of Negotiation and Communication: Unpacking an Inventor's Successful Pitch
Question
Task: How do negotiation and communication theories explain the success of an inventor's pitch to investors?
Answer
1. What, according to negotiation and communication theory assignment, is great about her pitch to the Dragons and their validation thereof?
The effectiveness of the inventor's pitch to the Dragons and their acceptance of her offer to trade stock in her company for funding are excellent insights into negotiation and communication theory assignment. The business owner initially wanted $200,000 for a 10% stake in her company, but she ultimately agreed to a deal worth $400,000 if she could give each of the four investors a 5% stake in return. We may consult the literature on mentoring, leadership, and real-life role-modeling to comprehend why this proposal was effective (Vanderpal et al., 2017).
First off, the inventor's proposal probably showed strong bargaining abilities, which are essential in such investment situations. According to negotiation theory, skilled negotiators frequently begin with a stance that leaves potential for compromises. The inventor took advantage of the situation by originally asking for a 10% stake at $200,000 in her request. This is consistent with the anchoring concept, which holds that the opening offer can serve as a starting point for all following discussions. It may have seen as a big concession when she eventually decided to accept the offer of $400,000 for a 5% share, leading the investors to believe they had negotiated a favourable deal.
Additionally, the inventor's pitch could have done a good job of conveying the worth of her company and its potential for expansion. Communication theory states that creating an engaging story in addition to providing facts and data is necessary for good pitching. The investors may have connected with the entrepreneur's ability to communicate her vision, enthusiasm, and the possibility for expansion of her firm. This is consistent with leadership literature, which highlights how crucial it is for leaders to communicate effectively in order to inspire and motivate others.
The literature on mentoring also emphasises how important role models are in inspiring entrepreneurs. In the process of learning about entrepreneurship, the idea of having a strong entrepreneurial role model is seen to be essential. Entrepreneurs frequently look for mentors who can offer advice based on their own accomplishments and experiences. The impact of the inventor's presentation may have been increased if she had shown herself as a respectable and successful businesswoman.
Incorporating the Cocktail Bomb business plan into this research, it is crucial to emphasise how the inventor's interpersonal abilities, negotiating strategies, and sincerity would also be crucial in convincing potential investors to back her endeavour. She should concentrate on communicating not just the business concept but also her enthusiasm, showcasing the room for expansion, and establishing herself as a dependable and sincere businesswoman.
In conclusion, successful negotiating tactics, persuasive communication, and the view of the inventor as an authentic role model all contributed to the Dragons' acceptance of her offer and the success of the inventor's pitch to them. These ideas from leadership and mentoring literature, as well as negotiation and communication theory assignment, can be useful guides for her proposal for Cocktail Bomb and other potential business ventures.
Bibliography
AFRIZA, E.S.D., SURYAWATI, I. & DIANA, R., 2021. LINKING COMMUNICATION PRACTICE TO THE IDENTITY NEGOTIATION THEORY. ICCD , 3(1), pp.528-535 retrieved from https://www.researchgate.net/publication/367825290_LINKING_COMMUNICATION_PRACTICE_TO_ eneurs'_Leadership_Experiences_with_SpecificTHE_IDENTITY_NEGOTIATION_THEORY. negotiation and communication theory assignment
Vanderpal, G.A., Robinson, D.A. & Hoang, N., 2017. Entrepreneurs' Leadership Experiences with Specific Regard to Mentorship. Journal of Leadership Accountability and Ethics, 14(3), pp.91-100 retrieved from https://www.researchgate.net/publication/321242494_Entrepreneurs'_Leadership_Experiences_with_Specific _Regard_to_Mentorship.
