ADVANCED NEGOTIATION L5M15 Paper 3*

Effective training is required for inexperienced negotiators and non-commercial team members to avoid which of the following situations?

Providing training and preparation in the pre-negotiation phase is an important step to achieving a positive negotiation outcome. Training and preparation should encompass which of the following elements? Select THREE that apply

Newcastle Motors is looking to reach an agreement with the supplier of maintenance, repair and operating materials (MRO). They are generally of lower cost and do not any significant profit to the organisation. Morgan who works as a procurement assistant for Newcastle Motors has been appointed as a lead negotiator. Morgan Yussuf has selected just three members of the procurement function to help him in the negotiation process. Morgan Yussuf tells them that the nature of the negotiation does not allow them to hold an intensive rehearsal.

Which of the following is an importance of having a negotiation agenda?

A manufacturing company negotiating for the supply of its raw materials has always been too structured and inflexible in their negotiation process with the intention of achieving their desired negotiation outcome. However, after a post-negotiation review, they realised that they need to avoid being too rigid when undertaking their negotiation. Is this statement true?

Which of the following are the important points to consider when developing a negotiating strategy?

When undertaking high risk and high value negotiation, a high skilled and experienced negotiation team is required for which of the following reasons. Select TWO that apply.

Before entering into a long term relationship with a particular buyer, the supplier determines the attractiveness of the buyer which will influence a smooth flow of business between the two parties. Which of the following factors influences a buyer’s attractiveness? Select THREE that apply.

CRANVET Limited is a supplying company mainly supplying many of its customers with raw materials to use in their production operations. They are set to enter into a negotiation with DIAMOND Investments to negotiate a new deal worth millions. CRANVET Limited negotiating team are assessing the buyer organisation to find the suitable approach to use during the negotiation. In their conclusion, they found out that DIAMOND Investment will be providing consistent larger volumes of business throughout their agreement also with the possibility of negotiating other more valuable contact. However, DIAMOND Investment has a bad history of failing to pay their suppliers on time. What is the most suitable approach that CRANVET Limited is likely to use?

Which of the following are likely to influence the parties to a negotiating entering into a long term working relationship?

Q11. Listening is an important part of negotiation as it help the other party to a negotiation understand how determined the other party is into reaching an effective negotiation outcome and how invested they are into the negotiation. Which of the following should the parties do when listening with four ears?

AFRICAN MOVERS is a sugar producing company supplying many of its products to local and international markets. It is entering into a negotiation with ALLIANCE Limited, an international company that supply them with raw materials for their sugar production. During the negotiation itself, ALLIANCE Limited promised to reduce cost of its materials by 5% for the amount of materials that AFRICAN MOVERS is procuring. They also assured AFRICAN MOVERS of a significant reduction in lead times to 2 weeks, a week earlier than the normally deliver. As a result AFRICAN MOVERS also promised to pay a 7% bonus if ALLIANCE Limited keeps up with their promise? Which of the following is described by the above statement?

When entering into a negotiation, both parties always have their intended objectives and motives to achieve at the end of the negotiation meeting. Which of the following are typical examples of the supplier motives in a negotiation? Select THREE that apply.

Ensuring a good working relationship is an important aspect in every integrative negotiation when the parties are negotiating for more valuable deals likely to run for a longer time periods. Which of the following is likely to influence good working relationship between the parties in a negotiation?

Demonstrating which of the following characteristics to the other party is the most important when attempting to build a good and sincere working relationship?

In distributive negotiations, the parties use their bargaining powers to get the best deal at the expense of the other party. This type of negotiation is characterised by both parties being too structured to achieve what they have outlined in their pre-negotiation planning and preparation. This approach is more likely to results in deadlocked negotiation where the parties can no longer reach any further agreement. Which of the following are the measures to be used by the parties in unlocking a deadlocked negotiation?

Most negotiations require the buyer to be having an alternative for in case the negotiation doesn’t go as planned, normally called best alternative to the negotiated agreement (BATNA). Which of the following is not an advantage of having a best alternative to the negotiated agreement?

Bamford Crafters is an international company originating from Germany. It is well known for producing small sized aircrafts which it supplies to a number of countries around the world. They are entering into a negotiation with a producer of aircraft components from Switzerland. The deal is expected to be a lengthy and more complex one. Therefore, Simon, a highly experienced negotiator has been appointed as a lead negotiator for the negotiation meeting. Which of the following approaches is Simon expected to undertake to ensure that lengthy negotiation does not affect their momentum?

After a successful negotiation, the lead negotiator and his superior agree on having a pre- negotiation evaluation as the both believe this will be a perfect approach to measure their negotiation performance and achievement of intended objectives. Will this be necessary?

BHDFJ Limited has agreed on a date of a negotiation with one of its suppliers who provide them with products which are critical for their operations. They have a dedicated negotiating team which have been on the preparations for these negotiations. The negotiating team and senior management have been engaging consulting the key stakeholders with every decision they intending to make regarding this negotiation. Was this appropriate?

Which of the following are the ways outside the contract that may help in incentivising the suppliers?

Honesty and integrity is an important aspect for the buyer to consider when seeking to form a more stable and collaborative working relationship with a supplier. Which of the following behaviours can contribute in affecting the trust between the parties willing to form a long-term, mutually beneficial relation? Select THREE that apply

The use of clear contract terms and conditions will avoid any issues when dealing with a supplier based in another country. Is this correct?

The use of deception in a negotiation is likely to bring in some benefits for the organisation at the end of the negotiation.

Q25. A buyer is seeking to enter into a long-term relationship with one of the three suppliers it is negotiating with. The selected supplier will be responsible for supplying critical raw material highly characterised by high value and high market complexity in term of acquiring those raw materials. The buyer recognises the important of having to build trust with the supplier it will be selecting. In which of the following situations is trust more likely to be built between the two parties seeking to enter into a relationship?