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CIPS Commercial Negotiation – L4M5 paper *9.
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1.
Which of the following factors could lead to conflict during a negotiation? Select THREE that are most likely.
2.
An organization faces a conflict with a key supplier due to the poor quality of materials provided. According to the procurement department, this is the main issue. What is the best approach the procurement manager can take to resolve the situation?
3.
In which of the following cases is a position-based negotiation most appropriate? Select the situations that apply.
1. A critical product with a complex market.
2. A low-value product that can be easily replaced.
3. The supplier has superior technical expertise.
4. A one-time, low-value supply contract.
4.
When a party gives up something valuable in a negotiation, this is called...
5.
Stakeholder engagement is crucial in every negotiation. Is this statement true?
6.
What do payments and incentives achieve in contract management?
1. Enhanced performance
2. Competitive benchmarking
3. Supplier motivation
4. Customer loyalty
7.
What term describes actions taken by the buyer to improve a supplier’s capacity, capability, and performance?
8.
When preparing for negotiations, which of the following elements should be included in training and preparation? Select THREE that are important.
9.
Why is a highly skilled and experienced negotiation team necessary in high-risk and high-value negotiations? Select TWO reasons.
10.
A buyer is considering a conflict management style that considers both its own concerns and those of the supplier. Would "accommodating" be the appropriate conflict management style?
11.
A buying organization is negotiating with a critical supplier for raw materials essential to its operations. The parties want to focus on common ground and mutual benefits. Is distributive negotiation the right approach?
12.
What is the main goal of a commercial negotiation?
13.
What is characteristic of a collaborative negotiation?
14.
Which is the best example of a BATNA (Best Alternative to a Negotiated Agreement)?
15.
What is NOT an advantage of having a BATNA (Best Alternative to a Negotiated Agreement)?
16.
Which of the following principles are part of principled negotiation that both parties should consider to establish a long-term relationship?
1. Separate people from the problem
2. Use of bargaining power to extract the best value
3. Focusing more on positions rather than the interest of the parties
4. Devising many options for mutual gains before deciding what to do
17.
Distributive negotiations are most commonly associated with which of the following?
18.
Which of the following can hinder generating options for problem-solving in a collaborative negotiation? Select the TWO that apply.
1. Researching more about the problems and the concerns of the other party
2. Making decisions without considering all possible options.
3. Asking effective questions to clarify the other party’s position.
4. Using power to restrict the options presented by the other party.
19.
The ideal outcome of a collaborative negotiation is...
20.
What is an advantage of negotiating as a team compared to individually?
1. Greater ability to influence the other party.
2. More flexibility in choosing the location of negotiations.
3. Involvement of a broader range of experts.
4. Better decision-making.
21.
Which of the following are sources of personal power in a negotiation? Select THREE that apply.
22.
What type of power arises from a person’s high levels of expertise and knowledge?
23.
A logistics company has a preferred supplier for its vehicle fleet replacement. The supplier is the only one who can meet the company’s specific needs in terms of vehicle type, volume, and delivery times. Which of the following would be a suitable BATNA for the company to use in the negotiation?
24.
Which of the following can enhance the buyer’s attractiveness to the supplier? Select the TWO that apply.
25.
What defines an arm’s length relationship between two parties?
26.
When a category manager uses a threat to terminate the contract in order to prompt a supplier to agree, what type of power is being demonstrated?
27.
What sources of personal power are being used when a procurement professional influences negotiations using superior knowledge and threats to cancel a contract?
1. Reward power
2. Referent power
3. Coercive power
4. Expert power
28.
In which situation is a collaborative negotiation most suitable?
29.
Which are examples of direct costs for a manufacturing company? Select TWO that apply.
30.
Costs that change with the level of output are known as...
