Which of the following are rules of attentive listening? Select TWO that apply.
Which of the following are signs indicating that the trust between buyer and supplier has improved? Select TWO that apply.
Tony is undertaking a negotiation with a strategic supplier and is frustrated by the lack of progress. He proposes using threats to get what he wants from the negotiations. Is this the correct course of action?
Champion Toys (CT) is negotiating a large order of luxury toys with its supplier. CT has identified that lead times, order quantities, and delivery locations are tradeables that could be used in this negotiation. At which negotiation stage should CT introduce these tradeables?
An oil refinery plant imports much of its crude oil from overseas. A procurement manager in the refinery suggests that fixing the crude oil contract price for 36 months would be beneficial for the company. Would this be a right thing to do?
All of the following shift the supply of watches to the right except...?
Which of the following are internal factors when a supplier is making its pricing decision?
Lina Rawlins, a senior buyer for a medical equipment company, is in charge of the company's largest supplier account. Recently, the supplier's performance has declined, leading to more rejected items. Lina has asked the supplier for an urgent meeting. In the meeting, she asks: “Can you tell me exactly what you are doing to ensure quality?”
What type of question is Lina asking?
At which stage in a negotiation would questions be asked to obtain missing information?
Which of the following are most likely to be characteristics of a perfectly competitive market? Select TWO that apply
In general, which of the following is the consequence of a flatter demand curve?
In a commercial negotiation, a procurement professional negotiates on his company's behalf. The power of buying organisation is the only factor that influences the behaviours of the other party. Is this assumption true?
Which of the following are features of a single-sourced type of relationship on the relationship spectrum?
Exclusivity granted in relation to a particular product
The supplier is an oligopoly market structure
The supplier is trusted and collaborative
Framework contracts are used to identify the supplier
Which of the following are most likely to be direct costs of a steel manufacturer? Select THREE that apply.
What is the most likely outcome when two organisations with adversarial relationship negotiate with each other?
Commercial negotiations on prices cover a range of aspects including pricing arrangements. A buyer may negotiate for a 'fixed price agreement'. Why is a fixed price agreement advantageous to the buyer?
Which of the following is the process enabling the buyer to share with the supplier their purposes and needs to focus on some specific areas such as quality, cost, social and environmental standards, etc in the supplier's bids?
Maria has adopted an adversarial style relationship with her stationery supplier. This relationship style can be characterised by which of the following? Select the TWO that apply.
Which of the following will shift the supply curve to the right?
During a negotiation, the supplier requests for payment term shortened to 45 days from 60 days. Seeing that this proposal lies within the concession plan, the procurement manager asks for 5% discount in return. Is that right thing to do?
In addition to organisational power, personal power of each negotiator can influence the outcomes of a negotiation. A good negotiator can leverage different sources of power. Is this statement true?
The stages of commercial negotiation involve which of the following characteristics?
Which of the following is the internal factor that is taken into price of a product?
When implementing value analysis or value engineering, which of the following acronyms reminds both buyer and supplier of ideas on removal, substitution and design-out of cost elements?
Listening is a key activity in any negotiation. Which of the following are characteristics of effective listeners?
Which of the following will help to indicate personality preferences in four dimensions?
Active listening in negotiation includes which of the following activities?
1. Hearing
2. Interpreting
3. Rapport
4. Influence
Why is rapport building with the supplier important during the opening phase of a negotiation?
A buying organisation with a low spend but the reputation for paying on-time. In order to increase buyer's leverage in negotiation with suppliers, which of the following should be a priority of this buyer?
Representatives from South African Department of Health is negotiating the price of hospital drugs with US pharmaceutical companies. Which of the following are most likely to be macro factors that influence the outcomes of the negotiation? Select TWO that apply.
Sumitomo Rubber Industries (SRI) is a Japan-based tyre manufacturer. In order to increase production, SRI is sourcing rubber from Southeast Asian firms. Which of the following micro factors are most likely to shift the balance of power to supplier? Select TWO that apply
Information generated through Purchase Price Cost Analysis can be useful to the purchaser, by helping to identify which of the following costs relating to the supplier? Select the THREE that apply.
A procurement manager has decided to bring in a junior member of their team to a negotiation meeting. Which of the following would be suitable roles for this junior member of the team?
Note taker
Expert
Observer
Chair
During a negotiation, Jose Gomez, the salesperson for a strategic supplier, states that his sales director will not approve discounts against initial purchases. However, Jose offers a 5% discount on the aftercare package, which will provide the same monetary saving. Sally Pampas requires both the product and the aftercare package and has an objective to achieve a 5% discount off the purchase price. To achieve a win-win (integrative) negotiation, Sally should...
A purchasing organisation is discussing its approach to an upcoming negotiation with a key supplier over a contract for critical new services. They have decided they want to find a Win/Win (integrative) solution. Which TWO of the following would be appropriate in this scenario?
A buying organisation with a low spend and the reputation for paying late might be viewed by a supplier as which of the following?
To buying organisation, savings can be achieved from different saving levers or tactics. Which of the following are means that deliver savings through optimising specifications?
Which of the following are most likely to help buyer become preferred customer in supplier's perspective? Select TWO that apply.
Which of the following are common forms of collaborating approach in Thomas-Kilmann conflict resolution model? Select THREE that apply.
Which of the following is a source of power in organisational relationships?
Which of the following are internal factors when a supplier is making its pricing decision?
Price elasticity of demand
Environmental legislation
Risk management
The stage in the product life cycle
Before engaging in a negotiation with a supplier of rechargeable lights, procurement team tries to visualise the breakdown of supplier's costs to calculate its break-even point. They estimate that total fixed expenses related to rechargeable electric light are $270,000 per month and variable expenses involved in manufacturing this product are $126 per unit. The supplier charges its customer $180 per unit. Within its current capacity, this supplier will make a profit at which of the following?
The trust is built based on the other party's professional qualifications or proven or certified technical capability or experience is known as...?
An adversarial style of negotiation is appropriate where the buyer has greater bargaining power over the supplier. In what other situations may the buyer adopt this style of negotiation?
John Browne, a junior buyer for a corporation, is analyzing the global supply market before undertaking negotiations and is wondering whether foreign exchange rates are important to factor into his research. Should John consider the foreign exchange rates?
The activity of listening in a negotiation includes which of the following processes?
Hearing
Interpreting
Rapport
Influencing
Which of the following types of questions are likely to be the most effective to check facts in negotiations?
In which of the following scenarios could you adopt a distributive-based negotiation approach?
Which of the following constitutes a key element to developing high-trust supplier relationships?
One of the most important steps in preparing for negotiations is to appraise the relative power of the parties. The buying organisation must assess its bargaining power against that of the supplier it intends to negotiate with. This information is necessary in facilitating the preparation, the negotiation team and the negotiation strategy.
In what situation is the bargaining power of buyers likely to be high relative to suppliers?
A garden furniture supplier currently in negotiations for a high-value contract has offered the procurement manager a visit to their site. The supplier suggests that during this visit, they can undertake the contract negotiation. What would be an appropriate response from the procurement manager?
Neville is a senior procurement specialist in a automaker. He has good relationship with his team mates and other departments because of his amazing purchasing skills and kindness. Which of the following sources of power is Neville likely to possess?
In airline industry, suppliers prefer to adopt dynamic pricing in order to constantly monitor and change their fares in response to market conditions. Dynamics pricing is based on which costing method?
Where a negotiator uses numerical reasoning with facts as part of their negotiation approach, which of the following techniques will they be adopting?
Which of the following tactics would be appropriate in an integrative negotiation?
Which of the following are effective approaches when procurement professionals negotiate with monopoly suppliers?
1. Delaying payment with monopoly suppliers as long as possible to increase bargaining power
2. Setting up stronger BATNA
3. Engaging in the negotiation with a distributive approach
4. Eliminating requirements in the specification that prioritises monopoly suppliers
At the first stage of CIPS Procurement and Supply Cycle (Understand need), which of the following is the most important duty of procurement professional?
Where can we find the data on macroeconomics?
1. From trade journal
2. From supplier's marketing catalogue
3. From stock exchange market
4. From government's statistics
Which of the following would cause a demand curve for a good to be price inelastic?
Which of the following is a true statement regarding macroeconomic factors and their potential impact on negotiations?
Which of the following is considered a strength of a ‘logical’ style negotiator?
Colin Smith is preparing for a negotiation with a supplier that provides a chemical for grass fertiliser. Colin has been given an action to secure a commercial deal that achieves his organisation’s objective of ‘ethical and sustainable procurement.’ As part of his negotiation plan, Colin is using the ‘must, intend, like (MIL)’ framework to prepare for the negotiation. Colin would categorise his organisation’s objective within the negotiation plan as:
In which of the following costing methods, overhead costs are applied in proportion to production volume?
Which of the following two are recognized strategies to achieve a win-lose outcome?
Making the other party lower its resistance point
Making the other party think this settlement is the best it can achieve
Employ empathy to gain mutual understanding
Using compromise and creativity tactics
JCB is a large manufacturer of heavy machinery. The CPO is going to a negotiation with a Chinese supplier about procuring some major components. He is wondering about balance of power in the negotiation. Which of the following micro factors are most likely to shift the balance of power towards the buying organisation in this commercial negotiation? Select TWO that apply
Distributive approach in negotiation is typified by which of the following?
Freefields Housing Authority (FHA) is a housing provider that has outsourced a range of management services using fixed-price long-term contracts. FHA’s regular supplier credit reviews have identified that some key outsourced service suppliers are at risk of insolvency due to high inflation rates observed in the macroeconomic climate. Which of the following actions would enable FHA to reduce this risk for the lifetime of the affected contracts?
What is a benefit to the buyer of having a BATNA (best alternative to a negotiated agreement) in a negotiation?
Which one of these key approaches could be pursued for a successful negotiation of a commercial agreement?
Which of the following can help both parties to break the vicious cycle of blame when a relationship needs repairing? Select TWO that apply.
Which of the following is an attribute of a distributive negotiation approach?
Which of the following are variable costs?
When planning a negotiation for sourcing internationally, which of the following divergent positions, and therefore potential conflict areas, should be prepared for? Select TWO that apply:
Which of the following would be considered appropriate influencing techniques in contract negotiation? Select TWO that apply.
Which of the following are indicative behaviours of a distributive approach to negotiating?
Which of the following are most likely to be abilities of a person with high emotional intelligence? Select TWO that apply.
Which of the following would help build trust in a relationship?
Mediation attendance
Regular meetings
Keep promises
Coercion
When is the best time to adopt accommodating style according to Thomas-Kilmann conflict mode instrument?
XYZ Ltd decides to go to market for a cleaning contract to service a number of offices. It knows that it will get a price which may, or may not, be better than the one it is currently paying. To gain leverage in the marketplace, the organisation decides to add other related services to the scope, such as gardening, security and maintenance, which increase the value of the contract. This is an example of which forms of spend consolidation?
When developing a negotiation approach, according to recognised theory (for example Mendelow), how should stakeholders with high interest but low power be managed?
In a detailed cost breakdown, a company has a salary cost of 9%, raw materials cost 51% and overheads cost 24%. Which of the following represents the mark-up of that company?
Which of the following is active listening?
Which of the following is the area where two or more negotiating parties may find common ground?
A negotiation meeting commences with the supplier asking the buyer 'How do you feel about the service you receive from us currently?', followed by 'What do you think about our latest products?' and 'How do we compare with other suppliers you use?'
The supplier is using which type of questions?
Commercial negotiation ends at the award of a contract. Is this statement true?
Which of the following are intangible values created by trust in business relationships? Select TWO that apply.
A breakeven analysis uses which of the following aspects as part of the analysis?
When is the best time in procurement process in which procurement should get involved so that the cost-saving opportunities are the greatest?
Which of the following are the most typical characteristics of integrative approach to negotiation? Select TWO that apply.
John Browne, a junior buyer for a corporation, is analysing the global supply market before undertaking negotiations and is wondering whether foreign exchange rates are important to factor into his research. Should John consider the foreign exchange rates?
Which of the following are examples of connected stakeholders in a private organisation? Select TWO that apply.
A skilled negotiator will use a range of questioning techniques in a negotiation. If they wished to explore options with the other party without making any formal commitment, which type of question style would they use?
Which of the following is most likely to be a reason why a supplier charges its customer higher price after it has reached the break-even point?
Maria is a professional services category buyer within the National Health Service. Due to the severe financial budget cutbacks the National Health Service is facing, the procurement team has been tasked with achieving cost savings so that funding available can be spent on patient care. Maria plans to achieve savings with one of her collaborative suppliers. Which negotiation approach should she undertake?