ELTU 2012 Business Communication I

MODULE 3B BUSINESS PROPOSALS

COMPONENTS AND STRUCTURE

OBJECTIVES
 To learn the generic structure, layout, and visual appeal of business proposals

LEARNING OUTCOMES
Upon completion of the course, students will be able to:
1. identify the key sections of a business proposal: situation, objectives, methods,
qualifications, benefits, financial projections, and executive summary
2. produce a proposal that follows good format and layout design principles and has
visual appeal
3. prepare a short informal proposal following the generic structure

RECOMMENDED READING
Freed, Richard C., Shervin Freed, and Joseph D. Romano. Writing winning business
proposals: your guide to landing the client, making the sale, persuading the boss. New York:
McGraw-Hill, 1995.

Bovée, Courtland, and John Thill. Excellence in Business Communication. 10th ed. Boston:
Pearson Prentice Hall, 2012.

GENERIC STRUCTURE OF PROPOSALS

The seamless argument in your proposal is organized in a generic structure which often
contains the following sections:

1. Title Page
2. Table of Contents
3. Executive Summary
4. Situation: The problem or opportunity

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5. Objectives: Measurable targets or goals to be achieved by responding to the

problem or opportunity
6. Methods: How you are going to achieve the objectives
7. Qualifications: Credentials (qualifications and experience)
8. Financial Projections The financial data on which you are basing your
projections
9. Benefits: The benefits or value to the reader: the value proposition
10. Supporting documents and sources

WRITING KEY CONTENT SECTIONS

S I T U AT I O N AND OBJECTIVES SECTION

In this section you demonstrate how knowledgeable and competent, as well as sensitive,
you are regarding your customer’s industry, problem, or opportunity.
 What is the current situation, and what is its history?
 What are the external and internal factors and the triggering event(s) leading
to the problem or opportunity?
 What is the overriding problem or opportunity and the effects if the problem
is not solved or the opportunity is not realized?
 If there were past attempts to solve the problem or realize the opportunity,
what went wrong, and what pitfalls need to be avoided?
 What are the objectives of the project in concrete and measurable terms?
 Describe the market you would like to enter: Who are your competitors?
Where do you fit? How much market share can you capture and when?

TASK 1: IDENTIFYING AN E F F E C T I V E S I T U AT I O N S E C T I O N
Examine the following paragraph which describes the situation/ problem of a client and
the objectives of the proposed project. Is it effectively or ineffectively written? What
problems can you identify and what suggestions for improvement can you make?
Discuss in small groups and then try to compose a more effective message, demonstrating
your knowledge of the situation, clarity and confidence in stating the objectives, and
writing skills to appeal to readers.

The revenue of your company (Durable Electronics) was HK$10 billion in 2011, and the
annual increase in profits was 12%. Although the company has experienced soaring
distributing costs, Durable Electronics has continued to gain market share against major
suppliers of electronic products. Despite the success, there are obvious problems and
future concerns such as a change in customer profile and demand. We are here to help

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you increase profitability, produce sought-after goods, and maintain market share. i

Problems in the paragraph above:

Rewrite of the paragraph above:

METHODS SECTION
How do you describe your product or service? How will you provide/produce this?
 How is your product/service different from others?
 What is your marketing plan?
 What are your group’s/company’s strengths, weaknesses, opportunities, and
threats (SWOT)?
What other options did you consider and why did you not select those?

Q U A L I F I C AT I O N S S E C T I O N
This section is similar to how you tailored your resume and cover letter to a given
company, in that rather than giving generic qualifications and focusing on yourself, you
are targeting qualifications specific to this situation and focusing on the customer.
 What specific skills, experiences, and successes does your team have that solves
this problem or addresses this opportunity?
 Why is your group/solution the best?
 How do you/your solution stand out from the rest of the competitors/competing

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options?
 What are your competitors’ weak points? What are your specific strengths?

TASK 2: WRITING A Q U A L I F I C AT I O N S S E C T I O N

Imagine that you work for a company, in the marketing department. Your team has
decided to propose establishing a travel agency Golden Age that focuses on retirees here
in Hong Kong, designing customized itineraries, managing all of the bookings, and
providing travel device rental (SIM cards, cell phones, adapters, etc.).

 What type of company would already have some sort of strategic advantage to
beginning this type of business?
 Would you propose a partner company as well, that might have some sort of
complementary strategic advantage, or would you propose to just have your
company develop this product or service?
 Within the company context, who is the team and what are their backgrounds that
make them qualified to manage this new product/service?

Use your answers to these questions and any other relevant information to write a
qualifications paragraph here.

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FINANCIAL PROJECTIONS SECTION

As this is an English language course, this section will primarily be concerned with
effective communication. Still, having sound financial logic for your project is essential
for having a persuasive proposal. You do not need to perform detailed or sophisticated
financial analyses: rather, you can analyze and project your results on a more general
scale. For our purposes you should have a profit and loss statement, based on numbers
rooted in reality.

For example, if you are proposing a bike sharing system, you should perform a quick
search for the cost of buying bikes, buying and implementing a payment system, staffing
for bike maintenance, purchasing insurance, developing a website, marketing the
product, etc. Producing perfectly accurate numbers is not the goal here. Instead, your
goal is to show that you have accounted for reasonably large expenses and performed
some research into costs and revenues, so you know if your plan is profitable. These
should be in an attractive format that highlights the key points. A balance sheet and cash
flow statement are not necessary.

TASK 3: WRITING A FINANCIAL PROJECTIONS SECTION

For the following table that shows the profit and loss for a company, describe the revenue
section.

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Note:
Currency is Hong Kong Dollar
Brackets indicate negative value

BENEFITS SECTION
Benefits are discussed throughout the proposal, but you will want to gather them at the
end as your conclusion to form a powerful and persuasive summary: a value-laden
conclusion to your proposal.
Example
 The company anticipates continuing profitable operations into the foreseeable
future, with no plans to exit this market.
 As discussed throughout this plan, the firm plans to increase its presence in the
market, capturing growth opportunities in emerging markets.

E X E C U T I V E S U M M A RY S E C T I O N
The executive summary is not a summary of all the other sections. Rather, the executive
summary focuses on:
1) the problem necessitating the proposal
2) your suggested solution, highlighting key aspects
3) the measurable benefits derived when your proposal suggestions are
implemented

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Remember to write the executive summary for the broadest audience possible, so that it
is understandable and free of technical terms. Use graphic and design elements
(explained in the next section) to further your appeal. Lastly, use the linking function to
link to other parts of your proposal to help readers find details easily. Although placed
at the end in this description, the Executive Summary comes first in the proposal. Some
experts recommend writing the executive summary last; others recommend writing it
first.

F O R M AT , L AY O U T , AND VISUAL APPEAL

As mentioned earlier, few people read any proposal in its entirety. Instead, most people
skim, starting with the executive summary. If the executive summary captures readers’
attention, only then will they proceed to look deeper into the document, often skimming
through headings, looking at tables and charts, and only diving in to read deeply at
certain points. Because of this typical reader behavior, format your proposals so they
are easy to skim.

To make your document easy to skim have lots of white space with bold headings and
subheadings. These headings will ensure that your readers can find the information they
want and skip other sections. Keep the headings of your executive summary and key
content sections such as Situation purely navigational, but consider using informative
headings for subheadings. Rather than having Cost Considerations, use Why Our Costs are
Highest in Our Class and How to Lower Them. Do not use these informative headings in
Responses for Proposals (RFPs) where the format is often set.

To make your document more visually appealing and highlight certain points, in
addition to the guidelines above, also use:
 side bars and text boxes (insert<textbox)
 call-outs (insert<textbox)
 graphics (including tables and charts)

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Source: http://www.technicalcommunicationcenter.com/2011/02/24/how-to-add-a-
stylish-sidebar-text-box-to-a-ms-word-2007-or-word-2010-document/

Source: http://www.whitepapercompany.com/blog/?p=2034

Other formatting conventions are single spacing, serif fonts for text (headings can be a
different sans serif font), and numbered pages.

Serif fonts are fonts like Times New Roman or Garamond that have the small horizontal
lines at the bottom of letters. These lines act as a line and guide the reader’s eye along
the text for less eye strain. Arial, Verdana and Helvetica are examples of sans serif texts.
Remember this advice for documents, and note that it will be the opposite for
PowerPoints.

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Source: http://en.wikipedia.org/wiki/Serif

T A S K 4 : F O R M AT AND L AY O U T : A N A L Y S I S OF BUSINESS
PROPOSALS

1 . What differences do you notice in terms of formatting and layout?

2 . Which one would you rather read? _____ Why?

WRITING PRACTICE: WRITING A SHO RT PROPOSAL

Whether a proposal is a 200-page long proposal with in-depth analysis in each section or
a short 2-page, letter/memo proposal, it should contain a professional tone and address
the prospective client’s problems, needs and/or specifications.

To better prepare you for the in-class writing task (writing a short proposal), we will look
into the writing of short proposals which are typically used to win small projects. An
example of a short proposal can be an internal proposal for a campus improvement
project. The following writing practice exercises, with examples taken from short
proposals written by previous students, will help enhance your writing in both long and
short proposals.

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TASK 5: WRITING THE PROPOSAL INTRODUCTION

The introduction briefly explains the reason for the proposal. To pique interest or grab
attention, include a key selling point such as low costs or quick results, a solution to a
serious problem, or a significant benefit. If you are writing a short proposal to an internal
audience, the introduction can consist of just one to two paragraphs explaining the
purpose and motivation of your proposal.

Imagine you are writing a short proposal for a campus improvement project in CUHK.
You know that many students talk about the need for more on-campus recruitment
support. You want to tackle the on-campus recruitment issues. How will you write the
introduction section?

On behalf of the CUHK Student Service Team, I am writing this proposal to

____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
_______

The background discusses the problem and the goal or objective of the proposed work or
project. Your job is to persuade the reader that you have a thorough understanding of the
problem. If the proposal is a response to an RFP (request for proposal), then use similar
language.

Read the following background and objectives section. What is your impression of the
writing? Will the quality of the writing affect your decision if you were the intended
reader of this proposal? Proofread the following background and objectives section.
Check out for grammatical errors and improve the writing.

Lacking on campus recruitment activities weaken CUHK students’ job search

performance comparing with the other universities’ students. They have no sufficient
training on where and how to look for job. On the other hand, they fear while they have

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a chance to attend interviews from different companies because they are lack of related
fields insights and do not know what the employers want. The consequences showed
when the final year students are stressed because they only realize it is too late for them
to learn to search job when they are graduating.

The objectives of the proposal are as follow:

- Identify job that students are interested.
- Provide up to date recruitment information.
- Improve exiting mentoring program.

TASK 6: WRITING THE M E T H O D S / I M P L E M E N TAT I O N P L A N

This section focuses on the proposed solution. It should provide specific information –
such as methods, products, and work to be delivered – about what you will do to benefit
the reader or your company. Depending on the project, this section might also discuss
how the project will be managed and how progress will be assessed as well as a schedule
of activities and deliverables.

In a short proposal, you need to explain/describe your plan of actions in a concise manner.
Go over the list of actions for improving on-campus recruitment activities below and
decide what information should or should not be included in the implementation plan
and whether the information can be organized more logically.

1. We will hire 5 student helpers for a year. The salary is $50 per hour.

2. Make arrangement for the career fair, e.g. venue booking, inviting companies,
inviting speakers, etc.

3. A questionnaire will be used to collect students’ opinions on the jobs that interest
them. It will include a rating system and a feedback column for students to give
suggestions. The rating system has a score from 1 to 10. 1 indicates the least
preferred job and 10 for the most preferred job.

4. Interview HR management experts and seek advice on job hunting for CUHK

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students. Record the interviews and transcribe the comments. Type the interview
record in a word document.

5. Browse through different job search websites. Each helper will browse two web
sites. Identify potential jobs.

6. A booklet is needed for each participant. Each participant will get one booklet.

7. Write an evaluation report. Hold a celebration dinner with student helpers.

TASK 7: WRITING THE Q U A L I F I C AT I O N S SECTION

The project staff’s expertise is also a key selling point. Therefore, the proposal should
contain a section that discusses the skills and experience of project leaders/participants
and other pertinent personnel. Also mention special facilities, equipment, or technology
that will be used to create desired results.

Compare the two qualifications sections below. Which version will impress the reader
and why?
______________________________________________________________________________
Version A:

As the Student Union of the Business Faculty of CUHK, our committee members have
ample experiences in organizing events for the students. Furthermore, we also have
frequent contact with the industry practitioners through our study programs and our
activities. We are confident that our experiences and our industry connection will be
useful to this proposal.

______________________________________________________________________________
Version B:

The team is formed with the following members who are interested in the project:
Name Position
Vicky Li President
Desmond Chan Treasurer
Cherry Yau Publications

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Samuel Wan Marketing Officer

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TASK 8: WRITING THE BUDGET SECTION

Cost is always an important consideration. So the proposal should include a carefully

prepared budget. A budget may be stated as a total sum or include detailed line items. A
thorough analysis of the project can help you create the most appropriate budget. In
some cases the reader may request a particular kind of budget or fee structure.

The following is a draft of a budget section. Is the information presented clearly? Can you
think of other ways to present the budget?

The printing fee of 1000 questionnaires is $0.3 per page and each questionnaire has two
pages. So the cost is $600. The printing fee of 400 recruitment information booklet is
$0.3 per page for 6 pages each. So the cost is $720. The 100 supermarket coupons as the
prizes for the questionnaires are $20 each. So the cost is 2000. The payment to HR
management experts is $1000 per hour for 3 hours. So the cost is $3000. The total cost
required is $6320.

TASK 9: WRITING THE AUTHORIZATION AND BENEFITS SECTION

Short informal proposals often end with a request for approval or authorization. The
closing should also remind the reader of key benefits and motivate action. Although
benefits are discussed throughout the proposal, you will want to gather them at the end
as your conclusion to form a powerful and persuasive summary. The closing is your final
chance of making sure your proposal says what you mean for it to. Research shows it to
have a strong and lasting impression on its reader.

In the following authorization and benefits section, can you identify which part refers to
the authorization and which part refers to the benefits?

Increasing the number of on-campus recruitment activities will enhance CUHK

students’ performance in the job search process. This will also help match CUHK
students with potential employers. In the long run, this will boost CUHK graduates’
image among employers. Thank you for your time and we look forward to discussing

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this proposal with you.

TASK 10: CREATING AN OUTLINE PLAN FOR AN INFORMAL

PROPOSAL (OPTIONAL)

In a small group, read the following scenario and discuss the content for preparing a short
proposal by completing the outline plan below.

Scenario:
Hopeluck Company is a curtain-making company in Hong Kong and its business has
been gradually increasing in recent years. Tiger Woo is the manager of the Human
Resources Department of the company. In view of the lack of staff, especially those who
are highly skilled in curtain making and fitting (possibly 2 different types of positions),
Tiger wishes to propose to senior management to employ more staff. Create an outline
plan with your group mates.

Background section

Present situation

The problem

Objectives section

The desired situation

and outcomes

The solution

Methods section

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Implementation

Qualifications

Budget (overall cost)

Benefits section

Proposal’s major
selling points

Reader’s/Buyers’
benefits

TASK 11: WRITING OUT THE SHORT PROPOSAL (OPTIONAL)

Now that you have an outline plan, draft the informal proposal for Tiger. You can
conduct some quick research online for necessary details for the proposal. Be prepared to
present your proposal to the rest of the class!

TASK 12: A N A LY Z I N G A S H O RT P R O P O S A L S A M P L E

Read the following short proposal which is a campus improvement fund proposal.
Comment on the effectiveness of the different sections of the proposal. Can you suggest
ways to further improve the proposal?

Proposal Section Comments

Situation
Many CUHK students have expressed concerns
regarding different aspects of our campus. The two
major issues are the quality of food on campus canteens
and insufficient recruitment activities for students. To
improve our campus in the long run, these two issues
must be addressed.

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Objectives

This proposal aims to respond to these issues by adding

two functions to the existing mobile application of
CUHK. The first function enables users to upload
reviews of the canteens. The second provides
recruitment talks information and serve as a platform
for students and alumni to exchange opinions. Finally, a
career fair will be held. A student committee will be
formed to reflect students’ opinions on improving
campus facilities.

Operation details
Stage 1
1. Our society will launch a campaign in campus
and social media to recruit engineering and
marketing students. Engineering students are
responsible for designing the new application
functions, while
2. marketing students will prepare a promotion
plan for the mobile application and career fair.
3. We will cooperate with different societies of the
Business Faculty to contact our alumni, career
coaches, as well as recruitment teams of
companies.
4. Both mobile application and career fair will need
technical support. Our team will contact ITSC
and EMO to discuss the work plan.

Stage 2
1. Marketing students will start promoting the
mobile application and career fair.
2. After trial runs, an updated version of the mobile
application can be downloaded. The new version
will include:
a. Canteen reviews: This function is similar
to Openrice. Students can upload photos
and give comments on aspects such as

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food quality, variety, environment and

service.
b. Recruitment information: This function
updates students with recruitment talks
schedules. On the other hand, students
can suggest which companies to invite for
recruitment talks. Besides, this is a
platform for students to talk to alumni
regarding their future career and
companies’ selection processes.
3. Our society will discuss with the Students Affairs
Office on booking venues and other details of the
career fair.
Stage 3
1. A career fair will be held in The University Mall.
Approximately 30 companies will be invited. The
canteens with the highest scores in the mobile
application will be invited to provide food at the
fair.
2. A written evaluation report will be submitted to
the Students Affairs Office regarding the events.
Budget

Item Cost
Mobile Application
Promotion $500
Technical Support $4000
Career Fair
Career Coach $2000
Decoration $500
Venue $300
Total: $7300
Qualifications

As the Student Union of CUHK, our society is very

experienced in organizing events and cooperating with
different parties. Having served students for one year,
we have in-depth understanding of students’ concerns

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over our campus. Lastly, our society also includes

engineering students who can spearhead the design of
the new functions.

Benefits

1. Students have a channel to give opinions on

food. The university will have a great source of
opinions when they decide whether to extend
contracts with canteens. The canteens will know
how they can improve to provide better food for
students.
2. Students will not miss the recruitment talks of
the companies they are interested in. They can
express their interest in certain companies so that
the university can act correspondingly in the
future. They can also easily seek guidance from
alumni.
3. Career fair helps students gain access to
recruitment information of many companies in a
single venue. Students can have more interaction
with recruitment staff or career coaches.

Authorization
We believe that this plan responds to the needs of
students and facilitates the improvement of campus. We
hope that we will be given an opportunity to present to
you our ideas so that you can gain a better
understanding of the benefits of our proposal. Should
you have any queries, please do not hesitate to email us
at cuhksu1516@gmail.com.

i Richard C. Freed, Shervin Freed, and Joseph D. Romano, Writing winning business
proposals: your guide to landing the client, making the sale, persuading the boss, (New
York: McGraw-Hill), 1995.

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SOURCES
Dun & Bradstreet. "Tips on Formatting Your Business Plan."
http://www.allbusiness.com/business-planning-structures/business-
plans/4057778-1.html, accessed May 2014.

Freed, Richard, C. Shervin Freed, and Joseph D. Romano. Writing winning business
proposals: your guide to landing the client, making the sale, persuading the boss. New
York: McGraw-Hill, 1995.

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