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| Section | Objectives |
|---|---|
| Understand the stages of commercial negotiations in procurement and supply | - Analyze the types of approaches that can be pursued in commercial negotiations
|
| Understand the interpersonal skills required for effective negotiation | - Analyze the interpersonal skills required for effective negotiation
|
| Understand how to prepare for negotiations in procurement and supply | - Analyze the factors that impact on the approach to commercial negotiations
|
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NEW QUESTION # 110
Leitax is a consumer electronics firm with headquarters in the US and with a global sales presence. The company maintains seven to nine models in its product portfolio, each of which has multiple SKUs. Product life ranges from fifteen to nine months and is getting shorter. The demand planning and master planning processes at the company were ill-defined. Data relevant to forecasting were usually inaccurate, incomplete, or unavailable and the lack of objectives and monitoring mechanisms for the demand planning process meant that process improvement could not be managed. Support for supply management was equally ill-defined, as master production schedules were sporadic and unreliable and suppliers had learned to mistrust them. Leitax's newly appointed Supply chain director, Jessica realises that the "buy-in" of different functional groups was critical to the improvement of demand planning. She invites relevant stakeholders to a meeting so that they can express their opinions openly. What tactic is Jessica using?
Answer: D
Explanation:
There are nine commonly used influence tactic:
1. Rational persuasion includes using facts, data, and logical arguments to try to convince others that your point of view is the best alternative. This is the most commonly applied influence tactic.
2. Legitimating
3. Personal appeals
4. Exchange
5. Ingratiation
6. Pressure refers to exerting undue influence on someone to do what you want or else something undesirable will occur.
7. Coalitions refer to a group of individuals working together toward a common goal to influence others.
8. Inspirational appeals
9. Consultation refers to the influence agent's asking others for help in directly influencing or planning to influence another person or group.
In the scenario, there is a problem with demand forecasting and supply chain planning in Leitax. The new Supply chain director invites the stakeholders to a meeting to find the solution. She is using coalition tactics.
Reference:
- CIPS study guide page 163-168
- Cross-Functional Alignment in Supply Chain Planning: A Case Study of Sales and Operations Planning
- 13.3 The Power to Influence - Organizational Behavior (umn.edu)
LO 3, AC 3.2
NEW QUESTION # 111
Procurement gets involved in negotiating purchase requisitions only when there is a value analysis to ensure that only value-adding aspects are included. Is this statement true?
Answer: A
Explanation:
Procurement can negotiate various aspects of a purchase requisition even without a formal value analysis.
While value analysis can enhance cost-effectiveness, procurement professionals often negotiate on pricing, terms, and conditions to add value independently of value analysis, as per CIPS's guidelines on procurement flexibility in negotiations.
NEW QUESTION # 112
Which of the following is a key element to developing high-trust supplier relationships?
Answer: B
Explanation:
Trust develops when organisations consistently deliver on commitments-meeting deadlines, respecting terms, and fulfilling promises. While audits, contract management, and data gathering support oversight, they do not in themselves build trust. In collaborative negotiations, reliability becomes the foundation of long-term partnerships, reducing the need for constant monitoring. CIPS highlights that trust is fragile and must be reinforced through transparency, consistent behaviour, and alignment of actions with words. This credibility is more persuasive than any formal monitoring.
Reference: CIPS L4M5 (2nd ed.), LO 3.1 - Trust and relationship-building in negotiation contexts.
NEW QUESTION # 113
Open questions can be a useful communication tool in negotiations. Is this statement correct?
Answer: D
Explanation:
Open questions ("how/why/what...") encourage the other party to share information, interests, and constraints, supporting rapport, listening, and exploration-key to persuasive dialogue and integrative outcomes. Closed questions check facts; open ones surface interests.
Reference: CIPS L4M5 (2nd ed.), LO 3.2 - Questioning techniques (open/closed/probing), listening and rapport in persuasion.
NEW QUESTION # 114
Which of the following are most likely to be abilities of a person with high emotional intelligence? Select TWO that apply.
Answer: A,B
Explanation:
Explanation
Emotional Quotient is the set of skills that enables us to make our way in a complex world - the personal, social and survival aspects of overall intelligence, the elusive common sense and sensitivity that areessential to effective daily functioning. It has to do with the ability to read the political and social environment, and landscape them; to intuitively grasp what others want and need; what strengths and weaknesses are; to remain unruffled by stress; andto be engaging. The kind of person others want to be around and follow.
EQ seeks to measure emotional intelligence and is centred on abilities such as the following:
- Identifying emotions
- Evaluating how others feel
- Controlling one's own emotions
- Perceiving how others feel
- Using emotions to facilitate social communication
- Relating to others
On the other hand, cognitive ability is defined as a general mental capability involving reasoning, problem solving, planning, abstract thinking, complex ideacomprehension, and learning from experience (Gottfredson,
1997).
LO 3, AC 3.3
NEW QUESTION # 115
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