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| Section | Objectives |
|---|---|
| Understand how to prepare for negotiations in procurement and supply | - Analyze the factors that impact on the approach to commercial negotiations
|
| Understand the stages of commercial negotiations in procurement and supply | - Understand the stages of a commercial negotiation
|
| Understand the interpersonal skills required for effective negotiation | - Analyze the interpersonal skills required for effective negotiation
|
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NEW QUESTION # 183
SBL provides contract bathroom furniture and fittings for a wide variety of domestic and commercial clients.
To some suppliers, SBL spend claims a large portion of their revenue. But SBL is famous for imposing draconian obligations on these suppliers. Which of the following is most likely to be overarching objective of these suppliers to SBL?
Answer: B
Explanation:
:
According to Paul Steele's 'The Seller's Perspective', customer can be classified into 4 categories as below:
Chart, treemap chart Description automatically generated
In this scenario, although SBL's spend claims large portion in suppliers' revenues, their draconian treatment will reduce SBL's attractiveness in supplier's perspective. SBL falls into Exploit quadrant. With exploitable customers, suppliers tend to 'milk' the customer and charge a high price to compensate for all the pain customer put on them.
NEW QUESTION # 184
Which of the following method should be used in negotiation if both parties want to communicate verbally and non-verbally without having to meet face-to-face?
Answer: C
Explanation:
Explanation
Using webcams in a web conference means you are able to communicate both verbally and non verbally.
Over the phone, you cannot see TOP, the only cue/signal you have regarding their mood, interest and attitude is person's voice, intonation andany delay.
A teleconference is a telephone meeting among two or more participants involving technology more sophisticated than a simple two-way phone connection.
In-person meeting requires you team and TOP to be in the same place at the same time.
LO 2, AC 2.4
NEW QUESTION # 185
Are tactical ploys only used in distributive approach?
Answer: B
Explanation:
:
There are many tactics and ploys that can be used to persuade others, particularly those not trained in negotiation. But in general these tactics should be used with care, as they can backfire; and in situations where a long-term relationship is desired, they can be, if detected, become an irritant to TOP.
Tactics are particularly effective if and when you are dealing with untrained negotiators, in consumer's buying situation and in once-off encounter.
NEW QUESTION # 186
Maria fears her proposed pricing may be rejected by the supplier. To mitigate this risk, she is preparing a BATNA. Is this the correct approach?
Answer: D
Explanation:
BATNA (Best Alternative to a Negotiated Agreement) gives negotiators a fallback plan if discussions fail. It ensures they never accept worse terms than their minimum acceptable alternative. For Maria, developing a BATNA mitigates rejection risk, strengthens her bargaining power, and provides confidence. Without a BATNA, negotiators risk over-conceding or being locked into unfavourable deals. CIPS emphasises that BATNAs must be realistic, actionable, and aligned to organisational objectives-not merely theoretical alternatives.
Reference: CIPS L4M5 (2nd ed.), LO 2.2 - Negotiation planning tools: BATNA and walk-away points.
NEW QUESTION # 187
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?
Answer: A,E
Explanation:
:
If driving greater value and efficiency from your supply base is your end, you should remember that there are many ways to do this without seeking to negotiate lower prices. Below are 7 types of saving levers:
Table Description automatically generated
NEW QUESTION # 188
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