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Which of the following is the area where two or more negotiating parties may find common ground?
Which of the following is the area where two or more negotiating parties may find common ground?A . Zone of potential agreementB . Zone of proximal developmentC . Walk away areaD . Best alternative to a negotiated agreementView AnswerAnswer: A Explanation: The zone of possible agreement (ZOPA) orbargaining range is...
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?
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?A . No, because supplier's average costs will rise as the buyer's demand increasesB . No, because the supplier may need to invest in new...
Which of the following best describes Leverage quadrant in Kraljicmatrix?
Which of the following best describes Leverage quadrant in Kraljicmatrix?A . Low risk, high importanceB . High value, high complexC . Low risk, low importanceD . High complex, low importanceView AnswerAnswer: A Explanation: In 1983, Peter Kraljic devised a means to segment the supplier base in the article in HBR....
Is this assumption true?
It may be more difficult to buy on a credit from supplier who locates in a country with a hyperinflation? Is this assumption true?A . No, because supplier's bank will take risks from currency fluctuationB . Yes, because thesupplier's currency will lose its value overtimeC . Yes, because buyer has...
A procurement professional is negotiating with a supplier on cleaning service. She realises that there are huge cost-saving opportunities if the supplier agrees to reduce its mark-up and unnecessary employee benefits. Supplier's mark-up and employee benefits are examples of which of the following?
A procurement professional is negotiating with a supplier on cleaning service. She realises that there are huge cost-saving opportunities if the supplier agrees to reduce its mark-up and unnecessary employee benefits. Supplier's mark-up and employee benefits are examples of which of the following?A . Spend waterfallB . Spend cubeC ....
Which of the following are recognised techniques in contract negotiation? Select THREE that apply.
Which of the following are recognised techniques in contract negotiation? Select THREE that apply.A . Framing and reframingB . RatificationC . Pacing and leadingD . ValidationE . Role ethicsF . AnchoringView AnswerAnswer: A,C,F Explanation: The question asks about negotiation techniques which are not present in the book. In this question,...
Which of the following best describes Leverage quadrant in Kraljicmatrix?
Which of the following best describes Leverage quadrant in Kraljicmatrix?A . Low risk, high importanceB . High value, high complexC . Low risk, low importanceD . High complex, low importanceView AnswerAnswer: A Explanation: In 1983, Peter Kraljic devised a means to segment the supplier base in the article in HBR....
Which persuasion method is she using?
During a negotiation, a procurement manager suggests that the two companies should split the difference which would benefit both the supplier and buyer . Which persuasion method is she using?A . CompromiseB . ThreatC . Good cop/bad copD . LogicView AnswerAnswer: A Explanation: In the scenario, the manager propose to...
Which of the following are means that deliver savings through optimising specifications?
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?A . Value engineeringB . Part substitutionC . BudgetlinkagesD . Compare total cost of ownershipE . Volume poolingView AnswerAnswer: A,B Explanation: If driving greater value...
A supplier’s mark-up on all products is 25%. Supplier's profit margin is...?
A supplier’s mark-up on all products is 25%. Supplier's profit margin is...?A . 20%B . 30%C . 75%D . 15%View AnswerAnswer: A Explanation: Table Description automatically generated with medium confidence Text Description automatically generated with low confidence LO 2, AC 2.1
