ELTU 2012 Business Communication I

MODULE 3A BUSINESS PROPOSALS

CONTEXT AND AUDIENCE
OBJECTIVES
To introduce the functions and types of business proposals
To understand how to plan a proposal by conducting a situation, audience or
customer analysis

LEARNING OUTCOMES
Upon completion of the course, students will be able to:
1.
2.
3.

explain the functions and types of proposals

conduct a situation analysis to position the proposals in context appropriately
conduct an audience or customer analysis to identify the readers needs, goals, and
roles in the proposal.

RECOMMENDED READING
Sant, Tom. Persuasive Business Proposals Writing to Win More Customers, Clients, and
Contracts. 2nd ed. New York: AMACOM, 2004.
Thill, John V. Excellence in Business Communication. 10th ed. Boston: Pearson, 2013.

FUNCTIONS

OF

PROPOSALS

TASK1: WHY WRITE

PROPOSAL?

According to the Merriam Webster dictionary, a proposal generally refers to something

(such as a plan or suggestion) that is presented to a person or group of people for
consideration. You probably have offered or suggested an idea and invited others to
consider or accept it.
What kinds of proposals have you written in your university study or work experience?

Module 3a: Business Proposals: Context and Audience_updated July 2015

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Describe the context to show when and why you were asked to write these proposals.

TYPES

AND

AUDIENCE

OF

PROPOSALS

Why is writing effective proposals an essential skill to learn in the workplace? In

business, being able to present ideas and give suggestions is one of the key skills and
abilities required. Your boss may ask you to write an informal proposal to recommend a
promotion activity, a marketing event or a fund-raising project that improves the
companys operations or performance. You may also wish to propose a solution to an
external organization for helping to ease a difficult situation or crisis in a more formal
proposal.
Proposals can take different forms. They can be internal or external, and solicited or
unsolicited. The type or length of the proposal always depends on the context and
audience you intend to write this proposal for.
Internal proposals, which are usually shorter, are written to a specific level of
management within a company.
External proposals are usually written for the company you are working for in order to
get a contract or funding from an outsider. These proposals are considered as full
proposals, longer and used as a marketing tool targeting current or prospective
customers. They are often written in response to a Request For Proposal (RFP), a formal
document outlining the needs of the company who wants to buy a product or service
from an outside source.

TASK 2: DEFINING SOLICITED

AND

UNSOLICITED PROPOSALS

Read the following paragraphs that describe various types of proposals written for the
internal or external audience. Fill in the missing words in the blanks.
Solicited proposals are written to respond to a request initiated by an ex____________
ternal
party (outside your company) who is searching for organizations or persons to perform
lving
pplying
a specific task such as su____________
specific goods and so____________
a problem.
There are two types of solicited proposals: advertised and negotiated proposals.
vitation
Advertised proposals: The invitation is sent in a detailed In__________
for Bids (IFB)
which clearly defines the desired product or service and the corresponding
arded
requirements. The proposals are aw________
on the basis of price and favor the lowest

Module 3a: Business Proposals: Context and Audience_updated July 2015

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bidder.
quest
Negotiated proposals: The invitation is sent in the form of Re__________
for Proposals
(RFP) also detailing the specific needs and seeking response. The proposals are
plement
awarded on the quality of the solution and the ability to im___________
the solution. As
the invitation to propose is open to the public, the competition among writers of
solicited proposals is usually keen.

ternal
Unsolicited proposals are initiated by the in__________
members of companies who
entify
id_________
specific needs and write to upper level management recommending
responses to meet those needs. For these proposals to be awarded, the target audience
must first be co____________
that a need is pressing and that the recommended action is
nvinced
sources
worth the re____________
such as time, money and staffing required.

TASK 3: IDENTIFYING

THE

SITUATIONS

A store manager may need to write an internal proposal to suggest the installation of a
suggestion box to collect customers feedback whereas a marketing team leader may be
asked to write an external proposal to bid for a project fund. What other situations for
writing internal or external proposals can you think of?
More situations for writing internal proposals:
1. _____________________________________________________________
2. _____________________________________________________________
3. _____________________________________________________________
More situations for writing external proposals:
1. _____________________________________________________________
2. _____________________________________________________________
3. _____________________________________________________________
Which of the following items are relevant when preparing a sales proposal to sell a
product or service to a business?
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Relating the proposed product or service to the prospective customers

problems or needs and showing a clear understanding of them. (T/F)
Providing a solution and an action plan with dates for implementing this
solution in various phases. (T/F)
Referring to other successful jobs done to show my companys work record.
(T/F)
Relating costs to benefits. (T/F)
Showing how my company will benefit. (T/F)
Providing relevant research questions that my paper will examine and
answer. (T/F)

PLANNING

PROPOSAL

WITH THE

3PS

Since each proposal is unique and written for its specific audience with an intended
purpose, it can be written in different format and length. A short proposal can take the
form of a letter or a memo while a detailed formal proposal warrants a longer
document containing complex components such as precise implementation plans, cost
estimates, management of technology and staffing, and the qualifications and
experience of the proposal writers.
To kick start the proposal writing process, you will need to analyze the context in which
the proposal is situated. Use 3Ps the problem statement, proposed solution, and
pricing information.
Problem Statement

What is the audience/reader or customers problem?

How can you convince the audience that the problem you have identified is a
valid and important one?
Will your proposal arouse the readers interest to do something about the
problem?

Proposed Solution

What solution would you like to propose?

Do you have the details such as the implementation plans of your proposed
solutions?
What evidence supports the solutions?

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How can you convince the audience that you can help them solve their
problems?
How can you show that you are able to address each problem and every need
you have discovered?

Pricing

Does your proposed solution require a budget?

How can you convince the audience that the pricing strategies are feasible?
How are you qualified to write on these recommendations?

To be specific, effective writers usually perform a series of analytical tasks in the

planning phase. For example:
1. Situation analysis
2. Audience analysis
3. Customer analysis
4. Formulating a solution and strategies
5. Budgeting the proposal
6. Creating an outline plan

SITUATION

ANALYSIS

To make the proposal more persuasive, it is important to examine the internal and
external environment. Analyze the situation and assess the strengths and limitations of
both your company and your competitors before you decide on the highlights and
differentiating attributes of your proposal. What are your competitors credentials e.g.
ability and experience in launching projects of a similar nature and magnitude?

What are your or your companys credentials in proposing and launching the
project? How are you or your company uniquely suited to perform the work
required for the proposal?
What are your major selling points expressed in themes such as high quality,
efficiency or reliability?
How will you communicate to the reader that your ideas are superior to those of
the competitors (if any)?

At the start of the Situation Analysis section, you will need to clearly identify your
communication objectives for the message. Poor writing usually reflects undeveloped
thinking. Being clear is about thinking through all the relevant questions before acting.
The following are questions to ask yourself so as to be clear about why you are writing:
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What is my immediate purpose? Is it to inform, persuade or motivate?

Is it achievable? What is the foreseeable long- or longer-term impact of the proposal?

TASK 4: ONE-SENTENCE

SUMMARY OF YOUR PURPOSE

For the following scenarios, write a one-sentence summary of your purpose.

1. You are one of the sales team supervisors of TRY Company. Since your team will
be promoting more products in the coming years, you would like to propose to
the management to increase manpower for your team.
________________________________________________________________________
________________________________________________________________________
2. You are the administration manager of YOUR Company. In view of the wasteful
behavior of your colleagues, you would like to propose some recycling and
waste reduction activities to your boss in order to initiate a green working
environment.
________________________________________________________________________
________________________________________________________________________
3. You are the management trainee of BEST Company. There has been an increase
in the number of English-speaking clients and you would like to propose to
management to have all company staff members attend English language
learning programmes offered by a local university.
________________________________________________________________________
________________________________________________________________________

AUDIENCE ANALYSIS
Business communications are written from the point of view of the audience (reader),
and not the writers. Essentially, those who read your proposal are the evaluators, and
they have a decisive role to play in selecting or dropping your proposal. Ask yourself
the following questions to find out the needs and wants of your audience.

Who will read and evaluate the proposal, as individuals or members of the same
team?
What is the personal background and knowledge of the evaluator?
What is your relationship with the audience/evaluator?
What role does the evaluator play in his/her company?

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What would interest the evaluator most?

Based on your understanding and research, what are the evaluation criteria of the
evaluator?

CUSTOMER ANALYSIS
In many ways customer analysis is the most important piece of your business plan. In
order for your proposal to be successful, you must be able to demonstrate who will buy
or use your products or services. Be sure to identify your customer segments, and how
your proposal will meet their specific needs.

Consider the demographics of your customers including their age, sex, race,
occupation, household income, rent vs. own, population, spending habits, where
they are located, etc. Be sure to cite all of your sources.
Describe their behavior. Consider how they make decisions and who in the
household makes which decisions. Determine whether they respond to price,
loyalty, quality, technology, reliability or trends.
Divide your market into segments, assign value to each segment, and decide how
to best approach each segment.

FORMULATING

SOLUTION

AND

STRATEGIES

An effective outline plan enables the proposal writer to understand strategic issues to
be addressed in devising a solution to the problem. As a framework, the writer will
take technical, management, and cost strategies into consideration. First, your
proposed solution has to be technically feasible and viable. You will discuss your
proposed research methodology and the analysis. Second, the management section
establishes your ability to carry out the solution proposed and to deliver the goods
promised. Elaborate your companys experience, expertise, facilities and resources, and
measures in quality assurance as well as a schedule for implementation. Third, you will
prove your solution is cost effective and your service is reasonably or competitively
priced.

BUDGETING

THE

PROPOSAL

The budget will not only include the potential investment on material capital but also
the human capital and so on. Some costs are more measurable than others. Capitalize
on what you have learnt from your business studies to prepare a sensible budget.

CREATING

AN

OUTLINE PLAN

An outline plan is an internal analytical planning document guiding the preparation of

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a proposal which aims to ascertain all variables are thoroughly considered and
managed. It involves the three elements mentioned below:
Problem: the current situation which is characterized by a problem or an opportunity.
Proposed solution: the desired situation and its desired results and outcomes which are
the endpoint(s) of an intervention such as a project for improving the current situation.
Pricing and benefits: the benefits which accrue to you, the audience and the customers
from achieving your desired results.
In general, these three elements will be elaborated in four key components of a business
proposal:
1. Background section (critical analysis of the present situation, identified problem and
intended audience or customer)
2. Objectives section
3. Methods/Implementation section and the qualifications section which explain how
the objectives are to be achieved
4. Benefits section which summarizes the proposals major selling points and buyers
benefits.
Details of these sections will be discussed in greater detail in Module 3b.

TASK 5: CONDUCTING

SITUATIONAL ANALYSIS

The South China Morning Post reported the following news in April 2012. Read the
following text and perform a situational analysis in preparation for a proposal.
Bosses at a new branch of the AB Cafe will change menus that use simplified Chinese
characters after being accused of discriminating against Hongkongers.
The cafe apologised on its Facebook page yesterday after an online outcry over what internet
forum users dubbed the 'invasion of simplified Chinese' at the new branch in Tseung Kwan
O's PopCorn mall.
Internet users were angered to see that menus adopted the simplified characters normally used
on the mainland, rather than the traditional Chinese used in Hong Kong, for items such as
salad and chocolate. The row comes amid months of tension between Hongkongers and those
from the mainland.

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Cafe staff apologised on its Facebook page yesterday, and a company spokeswoman said
management had decided to replace the wall menus at all branches, but said the company had
been using simplified Chinese since at least 2008.
'The Times Square branch - one of the first shops we had - only offered English menus and we
received complaints. So we have also included simplified characters at every branch since
then. The Tseung Kwan O branch was not the only one,' the spokeswoman said.
'In light of the complaints, we will replace all our wall menus to include only English and
traditional Chinese. Simplified Chinese will be listed alongside the two languages in the
printed menus,' she said.
Traditional Chinese characters are understood by both mainlanders and Hongkongers, an
assistant professor of Chinese language at Lingnan University, said. 'It is not right
Hongkongers should have to accommodate mainlanders,' he said.
Mr. Fan, Sai Kung district councilor, says it is unfair to Hongkongers that more shops and
restaurants are targeting mainland tourists. 'It's disrespectful and discriminatory,' he said.
One blogger wrote on HK Golden forum: '[The] mall is for mainlanders. The use of simplified
Chinese is normal [there], Hong Kong's businessmen have no dignity.' Another wrote:
'Chinese people should use simplified Chinese'.
(Source: SCMP dated 3 April, 2012 available at http://www.scmp.com/article/997314/cafemenus-cook-discrimination-row)

1.

Identify the present situation

Description of problem:
_______________________________________________________________________
Cafe received many complaints; Reputation blemished
Many dissatisfied customers
_______________________________________________________________________
Identification of problem:
Cultural tension between Mainland Chinese and Hong Kongers
__________________________________________________________________________
____________________________________________________________________
_______________________________________________________________________

2.

Suggest the desired situation, results and outcomes, and the objectives
_________________________________________________________________________

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_____________________________________________________________________
_______________________________________________________________________
3.

Suggest solutions/methods
Conduct public campaigns to promote understanding and courtesy between locals and
__________________________________________________________________________
Mainland Chinese
______________________________________________________________________
________________________________________________________________________

4.

Describe benefits and deliverables after adopting the methods

Promote cohesiveness and harmony between Mainland Chinese and Hong Kongers
__________________________________________________________________________
by proving separate menus in Simplified and Traditional Chinese.
______________________________________________________________________
________________________________________________________________________

TASK 6: IDENTIFYING CUSTOMER NEEDS

ABC Company was launched to sell casual clothing to teenagers two years ago. Read
the following passage extracted from a recent company report. Perform a customer
analysis.
The situation:
Our research has shown that the active customers are between the ages of 15 and 20, who like
to buy T-shirts imported from Korea. Facing the high rents of the two current outlets in Hong
Kong, the company is now interested in extending their Korean product line as well as
exploring opportunities for online sales.

1. Are the targeted customers clear? What are their characteristics?

2. What are the customers' needs and desires?

3. What is the average education level of the customer base? How can you find out
more about the spending power of the targeted customers?

TASK 7: ANALYZING SITUATIONS

AND

CUSTOMERS

Identify a company report or press release that illustrates a business situation. Upload
the article or its hyperlink on the class Blackboard site. Then analyze and comment on
the situation and its potential market or customers. Make notes using the following
headings: source of information, present situation, identified problem, suggested
solution, potential market or customers need.
Module 3a: Business Proposals: Context and Audience_updated July 2015

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Company name and source of

information
Present situation

Identified problem

Proposed solution

Potential customers and characteristics

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