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| Section | Objectives |
|---|---|
| Understand how to prepare for negotiations in procurement and supply | - Understand how to prepare for a negotiation
|
| 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 # 320
"BATNA is a concept that should be considered at the start of negotiations." Is this statement correct?
Answer: B
Explanation:
BATNA (Best Alternative to a Negotiated Agreement) is a core preparation concept and should always be considered before negotiations begin. It gives the buyer clarity on the minimum acceptable outcome and provides leverage by ensuring they do not accept a deal worse than their alternative. BATNA is not a legal requirement, nor should it be developed only when negotiations fail, as this weakens negotiating confidence and decision-making. CIPS emphasises BATNA as a fundamental planning tool that underpins effective and disciplined negotiation behaviour.
Reference: CIPS L4M5 Commercial Negotiation (CORE), 2nd edition - LO 2.2: BATNA and walk-away points in negotiation preparation.
NEW QUESTION # 321
Which of the following is considered a strength of a 'logical' style negotiator?
Answer: A
Explanation:
A useful and simple shorthand for preferrednegotiation styles is summarised by four simple descriptor: 'warm',
'tough', 'logical' and 'dealer', which can be applied to describe individuals' dominant preferred style in most circumstances.
Warm - a people person
Tough - a hard-nosed negotiator
Logic- a numbers person
Dealer - a trader who loves bargaining
Strengths, weaknesses of logical style are described below:
Table Description automatically generated
NEW QUESTION # 322
Langham Industries is seeking to expand its operations globally. The CEO has asked the procurement department to engage in a macroeconomic analysis for its potential new supply chain to meet organisational objectives and outcomes. Which of the following would be a source of macroeconomic data?
Answer: D
Explanation:
Published market indices are a source of macroeconomic data, as they reflect broader economic trends and provide insights into the overall market environment, which is essential for global expansion planning.
Macroeconomic analysis focuses on high-level economic indicators, as recommended in CIPS's guidelines on sourcing macroeconomic data.
NEW QUESTION # 323
According to Professor Gavin Kennedy, in which of the following forms of dispute resolution, both parties will voluntarily exchange their ideas and beliefs?
Answer: D
Explanation:
:
Professor Gavin Kennedy highlights that we need to distinguish negotiation from other forms of decision- making by focusing on what is unique about it (the voluntary exchange) and not shared by other techniques such as persuasion, gambling (e.g., coin tossing), command decision, instruction, litigation and coercion.
NEW QUESTION # 324
According to Professor Gavin Kennedy, in which of the following forms of dispute resolution, both parties will voluntarily exchange their ideas and beliefs?
Answer: D
Explanation:
Professor Gavin Kennedy highlights that we need to distinguish negotiation from other forms of decision-making by focusing on what is unique about it (the voluntary exchange) and not shared by other techniques such as persuasion, gambling (e.g., coin tossing), command decision, instruction, litigation and coercion.
NEW QUESTION # 325
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