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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Know how to prepare for negotiations with external organisations | 35% | - Cost and price analysis
|
| Topic 2: Understand key approaches in the negotiation of commercial agreements with external organisations | 35% | - Application of commercial negotiations in procurement and supply
|
| Topic 3: Understand how commercial negotiations should be undertaken | 30% | - Tactics and influencing methods
|
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NEW QUESTION # 367
Which of the following are most likely to be macro factors that may influence the balance of power in commercial negotiation? Select THREE that apply.
Answer: A,C,F
Explanation:
All one-to-one commercial negotiations between a specific purchaser and a specific supplier take place within an industrial market and a larger business environment characterised by multiple forces which both parties typically have little control over. STEEPLE framework highlights the 6 main external influences on a business:
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LO 1, AC 1.3
NEW QUESTION # 368
Which of the following are most likely to harm trust between buyer and supplier in a commercial relationship? Select TWO that apply.
Answer: C,E
Explanation:
Trust-destroying behaviours:
- Rumours of partnership or relationship breaking down
- Emotion-based assessment of performance
- Avoiding accountability, passing the blame to others
- General mood - resentment, distrust, frustration, etc
LO 1, AC 1.4
NEW QUESTION # 369
In a commercial negotiation, a procurement professional believe that the larger the order quantity from buyer, the lower the supplier's average costs. Is this assumption true?
Answer: B
Explanation:
:
In some markets, suppliers experience peaks and troughs in demand and so buyers can increase their leverage through developing an understanding of how busy their vendor are at particular time during the year or business cycle and targetting at quieter period. Similarly, if a buyer can develop an understanding of supplier capacity and to what extent have they covered their fixed cost, they may be able to target suppliers when their average costs are likely to be lowest. Vendor's average costs will be higher at low and high capacity utilisation.
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NEW QUESTION # 370
Effective listening is important in integrative negotiations. Is this statement correct?
Answer: D
Explanation:
Effective listening is crucial in integrative negotiations because it promotes understanding and collaboration.
By actively listening, parties can identify shared interests and address concerns, which supports the goal of reaching mutually beneficial solutions. This is a key component in CIPS guidelines on successful integrative negotiation practices.
NEW QUESTION # 371
'What specific tests do you carry out to ensure quality is achieved?' This is an example of which type of negotiation question?
Answer: C
Explanation:
Explanation
The question requires more detailed answer, it is an example of probing question.
Probing questions are typically follow-up questions, and aim to elicit more detailed information on the back of the answer elicited from theopen questions. Probing question are also useful to check that the supplier fully understand their offering, as well as your needs, can also be used to communicate to the suppliers that you know this category well.
LO 3, AC 3.3
NEW QUESTION # 372
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