L4M5 exam

Fast & Easy Limited, a global fast food retailer, is in a negotiation with its major meat supplier. The supplier is asking for a 2% price increase, which Fast & Easy is strongly resisting. The supplier justifies this increase by stating that currency fluctuations, an unstable economic climate, and rising...

When developing a negotiation approach, according to recognised theory (for example, Mendelow), how should stakeholders with high interest but low power be managed?A . Minimal effortB . Key playerC . Keep informedD . Keep satisfiedView AnswerAnswer: C Explanation: According to Mendelow's Stakeholder Matrix, stakeholders with high interest but low power...

Where there are high levels of commitment to relationships between both the buyer and supplier, this is seen as collaborative and beneficial to negotiations. Is this statement correct?A . Yes, characteristics include risk management and strategic planningB . No, this can be classified as adversarialC . Yes, characteristics include arm's...

What is a benefit to the buyer of having a BATNA (best alternative to a negotiated agreement) in a negotiation?A . To aid detailed pre-meeting data gathering and analysisB . To reduce financial and logistical risk for both partiesC . To be able to confidently walk away from an unfavorable...

Framework contracts are used to identify the supplierA . 1 and 2 onlyB . 1 and 3 onlyC . 2 and 3 onlyD . 2 and 4 onlyView AnswerAnswer: B Explanation: Single-sourced relationships often involve exclusivity for a specific product (1) and a high level of trust and collaboration (3)...

Which of the following is a source of information on microeconomic factors?A . Published economic indices such as the Retail Price Index (RPI)B . Data published by the financial markets and commodity markets and exchangesC . Analysis published in the mainstream and financial mediaD . The marketing and corporate communications...

Can a party gain huge advantages in negotiation from setting room layout?A . Yes, because the host can freely manipulate the other party's mind through setting room layoutB . No, because the advantages gained from manipulating room layout are short-livedC . Yes, because the other party can capitulate to the...

Spend waterfallA . 2 and 4 onlyB . 3 and 4 onlyC . 1 and 2 onlyD . 1 and 3 onlyView AnswerAnswer: A Explanation: Understanding where and with whom your supplier spends their money, or understanding the 'cost breakdowns' or 'price build-up' of the goods and services you purchase...

Any commercial negotiation process has only three potential stakeholders: procurement, the budget holders, and the users. Is this TRUE?A . Yes, and the budget holder is the most important one because of the finances involvedB . Yes, the role of procurement is to ensure that the technical specifications are fit...

Premium pricing strategies used by suppliers are characterised by which of the following? Select TWO that apply.A . Products are charged at a price based on supplier's reputationB . This strategy is often used when supplier attempts to enter new marketC . Price is based on cost structuresD . Typically...