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An adversarial style of negotiation is appropriate where the buyer has greater bargaining power over the supplier. In what other situations may the buyer adopt this style of negotiation?
An adversarial style of negotiation is appropriate where the buyer has greater bargaining power over the supplier. In what other situations may the buyer adopt this style of negotiation?A . When the supplier is a monopolist and some advantages need to be gained from the agreementB . In a market...
Contract award and implementation
Contract award and implementationA . 1 and 4B . 1 and 3C . 3 and 4D . 2 and 3View AnswerAnswer: A Explanation: Commercial negotiations commonly take place during Contract Management and Improvement (1) and Contract Award and Implementation (4) stages. During these stages: Contract Management and Improvement (1): Ongoing...
Which of the following is considered a strength of a ‘logical’ style negotiator?
Which of the following is considered a strength of a ‘logical’ style negotiator?A . AssertiveB . MethodicalC . Friendly and accessibleD . Interrelate issues easily and make quick decisionsView AnswerAnswer: B Explanation: A useful and simple shorthand for preferred negotiation styles is summarised by four simple descriptor: 'warm', 'tough', 'logical'...
Effective listening is important in integrative negotiations. Is this statement correct?
Effective listening is important in integrative negotiations. Is this statement correct?A . Yes, as it allows issues to be shared and understood between all partiesB . Yes, as it means the supplier’s attempts at negotiation can be stopped quickly with reasoningC . No, as what the other party has to...
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?
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?A . No, purchasing can negotiate other details of the purchase requisition even where value analysis is absentB . No, value analysis is a very...
Which TWO of the following would be appropriate in this scenario?
A purchasing organisation is discussing its approach to an upcoming negotiation with a key supplier over a contract for critical new services. They have decided they want to find a Win/Win (integrative) solution. Which TWO of the following would be appropriate in this scenario?A . CollaborationB . Problem solvingC ....
At which negotiation stage should CT introduce these tradeables?
Champion Toys (CT) is negotiating a large order of luxury toys with its supplier, Top Teds. CT has identified that lead times, order quantities, and delivery locations are tradeables that could be used in this negotiation. At which negotiation stage should CT introduce these tradeables?A . BargainingB . ClosureC ....
In airline industry, suppliers prefer to adopt dynamic pricing in order to constantly monitor and change their fares in response to market conditions. Dynamics pricing is based on which costing method?
In airline industry, suppliers prefer to adopt dynamic pricing in order to constantly monitor and change their fares in response to market conditions. Dynamics pricing is based on which costing method?A . Activity-based costingB . Cost plus costingC . Absorption costingD . Marginal costingView AnswerAnswer: D Explanation: Dynamic pricing is...
Which of the following is the best description of direct cost?
Which of the following is the best description of direct cost?A . Direct costs are only variable raw materials that constitute a productB . Direct costs include raw materials, labour and overheadsC . Direct costs include only raw materials and labour of making the final productD . Direct costs include...
Which of the following is a description of mark-up?
Which of the following is a description of mark-up?A . Profit expressed as a percentage of the selling priceB . Profit expressed as a percentage of costsC . Profit expressed as a percentage of fixed costsD . Profit expressed as a percentage of variable costsView AnswerAnswer: B Explanation: Mark-up is...
