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ADVANCED NEGOTIATION L5M15 Paper 9*.
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What is the purpose of a negotiation?
Which of the following is an advantage of having an agenda within a negotiation? Select 2
DSA is a large organization that is in the process of expanding its procurement department. It is recruiting two new contract managers. The department lead insists that the new recruits possess soft skills that will be useful in the procurement function. Which of the following would be considered a soft skill? Select THREE.
Honesty and integrity are important aspects of recognized business ethical codes of practice. These types of behaviors can help avoid which of the following?
Robyn is preparing for several upcoming meetings with suppliers. Below are details of the upcoming negotiations. For each supplier, Robyn will use a different negotiation style depending on the subject to be discussed.
Supplier 1: Robyn has a good relationship with this supplier and wishes to collaborate with them long term on a new project. Her focus in the meeting will be to invent options for mutual gain and separate people from the problem. The current issue is the number of faults found in the products delivered by the supplier. For the new project, defects must be kept to an absolute minimum.
Supplier 2: This supplier is one of several who provide routine, low-value items. Robyn plans to mention that she is in discussions with other suppliers who are offering a very generous discount.
Supplier 3: Robyn has a fixed idea of what she wants to achieve from this meeting and is hoping to convince the supplier to improve upon a vital KPI. At the moment, the supplier is failing to meet important deadlines, which is causing delays in production.
Supplier 4: There is a single-source relationship with this supplier, and Robyn is keen to maintain a good working relationship with them. She plans to discuss an idea for implementing a new ordering system, which will benefit both parties by improving communication and transparency.
Complete the table below with the correct negotiation technique Robyn is using and the topic of discussion with each supplier: Positional negotiation, principled negotiation, win-win, gamesmanship, quality, delivery times, price, technology.
Each response should only be used once:
Which of the following will you put into box 3?
Robert and Debbie are looking to formalize a business relationship in which they will share resources to create a mutually-beneficial project that is both high risk and high value. What type of relationship should Robert and Debbie seek to enter into?
Which of the following could be considered a Pull Style negotiation tactic? Select TWO
Which of the following sentences about the Human Relations approach to company structure is not true?
Mohammed is a Procurement Manager at a large retail company called Tarki Ltd. He holds several meetings with suppliers each week. His main objective is to secure deliveries of items as cheaply as possible. He believes that push influencing techniques are the most effective to achieve his aims. Is this correct?
Using praise or flattery in a negotiation is the use of which of the following tactics?
Which of the following are incentives to increase supplier performance? Select TWO.
In every negotiation, it is important for both parties to assess and take into account the situational aspects of the negotiation. Which of the foolowing cannot be identified as the situational aspect in a negotiation?
Entering into long term contracts present both potential advantages and challenges. Which of the following are the challenges of negotiating for long term contracts?
1. Trust cannot be built in a long term contracts
2. Changes are inevitable in longer term contracts and more likely to affect the initial agreement between the parties
3. There is a high possibility of geopolitical fluctuations likely to affect the long term supplyof required materials
4. Long term contracts needs to be well justified using an effective cost/benefit analysis
WGYR Investment is in a long term contract with BBFR Limited for the supply of raw materials they use in their production operations. BBFR Limited is a company oversees and acts as a monopoly for the products they supply and supply a lot of other organisations. This presents a lot of risk for WGYR Investments and they are likely to experience a potential bottleneck in their operations if they receive their deliveries late. They use a risk register to as a way to manage the risk that might affect their operations. Which of the following explains to correct use of a risk register in managing the risks that affect WGYR Investments?
Which of the following are the elements of a principled negotiation that both parties should take into account to establish a long term working relationship?
- Separate people from the problem
- Use of bargaining power to extract the best value
- Focusing more on positions rather than the interest of the parties
- Devising many options for mutual gains before deciding what to do
Which of the following techniques can be used by the parties to managing risks in long-term supply contracts? Select TWO that apply.
Which of the following are examples of ‘open’ questions?
- How many of the deliveries per week will be made
- How do you plan to meet our requirements for the new product
- Will you be able to generate 10% savings we need within the timescales
- What might be the impact of the weather on your delivery performance
Why is sharing of information a key part of achieving a win/win outcome from the negotiation? Select TWO that apply.
Conflict might arise between two negotiating parties due directly to which of the following? Select TWO that apply.
Litigation is always a suitable method for the organisation to use in the event of a breach of contract by the other party. Is this correct?
GBVE Enterprises, a paint manufacturing company recently realised the need to implement some changes in its operational strategy. They decided to inform their employees of the changes that need to be implemented for the company to protect its competitive position in the market. Few days after a lengthy discussion with their employees, the top management realises that most of the employees are not happy of the change that the management wants to implement. Most of the employees are rather trying to resist away from the change and trying to reason why the change should not be implemented. At which stage of the change cycle are the employees at?
One of the key disadvantages of a narrow span of control is
Which of the following is a motivational factor, according to Herzberg's two-factor theory?
Which type of negotiation is defined by one party having a fixed idea, using their power as leverage or being satisfied with a win-lose outcome?
A category manager is negotiating with an important supplier and is concerned that progress is too slow. The supplier has already offered a significant pricing reduction. In response, the category manager agrees to modify the specification to suit the supplier's processes. Both parties have moved further than they had planned. The category manager’s response could be described as …
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