Which of the following are signs indicating that TOP is using coercive power in commercial negotiation? Select TWO that apply.

How contribution is calculated in break-even analysis?

Effective listening is important in integrative negotiations. Is this statement correct?

A buyer is preparing for an upcoming negotiation with a large supplier on a contract renewal price. The buyer has undertaken some analysis and is concerned that changes in the organisation’s macro-environment over the last year will result in a price increase. The buyer’s analysis has identified changes in which of the following?

Which of the following is categorised as fixed cost?

Using emotion as a technique of persuasion is ethical. Is this a true statement?

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?

XYZ Ltd is importing goods from overseas. They prefer to pay their supplier in their own currency. Which of the following is a true statement?

A skilled negotiator will use a range of questioning techniques in a negotiation. If they wished to explore options with the other party without making any formal commitment, which type of question style would they use?

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?

If a negotiation results in an offer which does not meet the buyer’s minimum requirements, which of the following could the buyer pursue?

What is a benefit to the buyer of having a BATNA (best alternative to a negotiated agreement) in a negotiation?

A buyer continually states during negotiation that budget constraints limit their concessions. What tactic is being used?

John and a supplier agree on a long-term relationship based on trust, respect, and shared risk/reward. What type of relationship is this?

According French and Raven's base model, which of the following are sources of personal power that can be used in commercial negotiation? Select THREE that apply.

Which of the following are most likely to turn buying organisation into an unattractive customer in supplier's perspective? Select TWO that apply.

Which of the following are most likely to be characteristics of a perfectly competitive market? Select TWO that apply

A supplier has offered international football tickets to the procurement manager while they are in the middle of a contract negotiation. What should the procurement manager do?

In which of the following costing methods, overhead costs are applied in proportion to production volume?

Lina Rawlins, a senior buyer for a medical equipment company, is in charge of the company's largest supplier account. Recently, the supplier's performance has declined, leading to more rejected items. Lina has asked the supplier for an urgent meeting. In the meeting, she asks: “Can you tell me exactly what you are doing to ensure quality?”

What type of question is Lina asking?

Which of the following types of questions are likely to be the most effective to check facts in negotiations?

Which of the following are sources of power in organisational relationships?

Coercive power

Intruded power

Referent power

Tactical power

SBL provides contract bathroom furniture and fittings for a wide variety of domestic and commercial clients. To some suppliers, SBL spend claims a large portion of their revenue. But SBL is famous for imposing draconian obligations on these suppliers. Which of the following is most likely to be overarching objective of these suppliers to SBL?

A procurement professional is dissatisfied with how a recent negotiation was concluded. What could they do to improve their negotiation approach?

Seek feedback from the supplier on their recent performance

Prepare for all negotiations with a WIN/LOSE (distributive) approach

Involve lots of people in future negotiations

Undertake reflective practice after each negotiation

Which of the following are internal factors when a supplier is making its pricing decision?

Which of the following is the true statement?

Understanding supplier's mark-up and margin can provide procurement professional a comprehensive insight into supplier's net profits. Is this statement true?

Which of the following is an objective of proposing phase?

The buyer's bargaining power tends to be relatively higher than supplier's bargaining power in which of the following circumstances?

Why is rapport building with the supplier important during the opening phase of a 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?

When planning a negotiation for sourcing internationally, which of the following divergent positions, and therefore potential conflict areas, should be prepared for? Select TWO that apply:

Which of the following are elements of price negotiations? Select the TWO that apply.

Which of the following is an advantage of a fixed-price agreement?

Which of the following should be adopted to minimise the conflict between parties in commercial negotiation?

Which of the following are examples of variable costs?

Building and site rent

Annual insurance premium

Raw materials expenditure

Delivery costs for materials

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?

Which of the following are most likely to be sources of conflict that can emerge from the process of commercial negotiations? Select TWO that apply.

Are tactical ploys only used in distributive approach?

Which of the following two are recognized strategies to achieve a win-lose outcome?

Making the other party lower its resistance point

Making the other party think this settlement is the best it can achieve

Employ empathy to gain mutual understanding

Using compromise and creativity tactics

A procurement manager has decided to bring in a junior member of their team to a negotiation meeting. Which of the following would be suitable roles for this junior member of the team?

XYZ Ltd decides to go to market for a cleaning contract to service a number of offices. It knows that it will get a price which may, or may not, be better than the one it is currently paying. To gain leverage in the marketplace, the organisation decides to add other related services to the scope, such as gardening, security and maintenance, which increase the value of the contract. This is an example of which forms of spend consolidation?

Professional buyer is planning for the next negotiation of a simple one-off contract. This negotiation is typified by which of the following? Select TWO that apply.

For a commercial negotiation to be effective, the organisation has to identify resources required for negotiation. Which one of the following could help?

Which of the following occur in the planning and preparation stage of negotiation? Select THREE.

When implementing value analysis or value engineering, which of the following acronyms reminds both buyer and supplier of ideas on removal, substitution and design-out of cost elements?

When might a buyer decide to use a distributive approach to a negotiation with a supplier?

What are the potential sources of conflict between the buyer and supplier? Select TWO that apply.

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 buying organisation with a low spend and the reputation for paying late might be viewed by a supplier as which of the following?

Which of the following are types of non-verbal communication that could be used during a negotiation meeting? Select THREE that apply.

What is the most likely outcome when two organisations with adversarial relationship negotiate with each other?

A skilled negotiator will use a range of questioning techniques in a negotiation. If they wished to explore options with the other party without making any formal commitment, which type of question style would they use?

In general, which of the following is the consequence of a flatter demand curve?

Which of the following roles would support negotiations with an external supplier when planning a negotiation for a low-value, routine purchase? Select TWO that apply.

Which of the following is a variable cost?

Which of the following are features of a single-sourced type of relationship on the relationship spectrum?

Exclusivity granted in relation to a particular product

The supplier is an oligopoly market structure

The supplier is trusted and collaborative

Framework contracts are used to identify the supplier

A procurement manager is considering negotiating variable pricing for a contract duration of 12 months. Would this be the right thing to do?

Different types of relationships impact commercial negotiations. At a negotiation, which one of the following sources would help to support leverage for the buyer?

Katie is preparing a negotiation with a strategic supplier. Through deep market analysis, she realises that her company and the supplier have equal bargaining power. Via regular communication, Katie knows that both parties are arguing on amount of liquidated damages and neither party shall concede all of their requirements but some are negotiable. Katie and her counterpart from supplying company still desire a long-term relationship and hope that the meeting between them will be a solution for current situation. Which of the following is the most appropriate approach that Katie should adopt to achieve the above outcome?

A procurement team has discussed, in advance of a negotiation, what they will do if there is no agreement with the current supplier. They have decided that they will perform the services themselves in-house on a trial basis if no deal is made. Which of the following describes what they have prepared here?

Mike is a junior buyer who has been working for a manufacturing organisation for two years, specializing in purchasing research. Over this time, he has built good relationships within his team and with other departments. Which of the following sources of power is Mike most likely to possess?

AB Manufacturing seeks to buy a new materials resource planning (MRP) software system. At the ‘defining the business need’ stage of the procurement cycle, the procurement manager ensured that all the internal stakeholders involved had the power to contribute and sign off on requirements. For the MRP system, the procurement manager consulted the head of production planning of AB Manufacturing. The head of production contributed to demand levels, existing manufacturing planning, and existing staff levels. What type of power does the head of production demonstrate?

Which of the following should be the final step of a negotiation process if both parties cannot reach an agreement?

Buyers should have the ability to analyse the costs of their purchases not only for determining their impact to their organisation’s cost but also for the purpose of reducing them during commercial negotiations to contribute to the profitability of their organisation. One way ofanalysing costs is to classify them into direct and indirect costs. Which ONE of the following is an explanation of ‘direct costs’?

Jessica Taylor, a senior buyer, is reflecting on her most recent negotiation. She has been asked by her manager to create a written record of performance.

Which of the following should Jessica include in this negotiation performance report? Select THREE that apply.

What are the potential sources of conflict between the buyer and supplier? Select TWO that apply.

There are no commitments in hypothetical questions. Is this statement true?

Where can we find the data on macroeconomics?

1. From trade journal

2. From supplier's marketing catalogue

3. From stock exchange market

4. From government's statistics

Which of the following are most likely to be fundamentals of Fisher & Ury's principled negotiation?

1. Depersonalise the argument

2. Focus on positions

3. Generate creative options

4. Using subjective criteria

Personal power is only used in distributive approach. Is this statement true?

The activity of listening in a negotiation includes which of the following processes?

Hearing

Interpreting

Rapport

Influencing

Freefields Housing Authority (FHA) is a housing provider that has outsourced a range of management services using fixed-price long-term contracts. FHA’s regular supplier credit reviews have identified that some key outsourced service suppliers are at risk of insolvency due to high inflation rates observed in the macroeconomic climate. Which of the following actions would enable FHA to reduce this risk for the lifetime of the affected contracts?

Listening is a key activity in negotiation. Which of the following are characteristics of effective listeners?

Showing empathy

Persuading

Paraphrasing

Offering immediate solutions

Which of the following tactics would be appropriate in an integrative negotiation?

Which of the following could be regarded as the outcome of a collaborative approach to negotiation?

When prices of input materials increase, supply curve shifts to the left while demand remains stable. The shift of supply will tend to cause which of the following?

Which of the following is a description of mark-up?

A buyer continually states, during a negotiation, that budget constraints are impacting their ability to make concessions. What type of tactic are they using?

Which of the following is the process enabling the buyer to share with the supplier their purposes and needs to focus on some specific areas such as quality, cost, social and environmental standards, etc in the supplier's bids?

In what circumstances is the bargaining power of suppliers likely to be high, in relation to buyer power? Select the THREE that apply:

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?

Colin Smith is preparing for a negotiation with a supplier that provides a chemical for grass fertiliser. Colin has been given an action to secure a commercial deal that achieves his organisation's objective of 'ethical and sustainable procurement.' As part of his negotiation plan, Colin is using the ‘must, intend, like (MIL)’ framework to prepare for the negotiation. Colin would categorise his organisation's objective within the negotiation plan as ...

One difference between perfect competition and monopolistic competition is that...?

Which of the following are typical characteristics of activity-based costing (ABC) method? Select TWO that apply.

Which of the following is the internal factor that is taken into price of a product?

A negotiation meeting commences with the supplier asking the buyer 'How do you feel about the service you receive from us currently?', followed by 'What do you think about our latest products?' and 'How do we compare with other suppliers you use?'

The supplier is using which type of questions?

Which of the following can help both parties to break the vicious cycle of blame when a relationship needs repairing? Select TWO that apply.

Which of the following are most likely to be abilities of a person with high emotional intelligence? Select TWO that apply.

Which of the following is the best description of direct cost?

Which of the following are the most typical characteristics of integrative approach to negotiation? Select TWO that apply.

An automotive company purchases high quality steel to produce components. The steel is an important raw material and the contract value is enormous. They sources the steel from oversea and contact some potential suppliers. One of the potential suppliers invites the procurement team to their premise for a new business opportunity. Should the procurement team accept the invitation?

Which of the following is most likely a consequence of falling interest rate?

Which of the following best describes Leverage quadrant in Kraljic matrix?

The bargaining power of buyers is likely to be high in relation to suppliers in which of the following situations?

Which of the following is the most appropriate approach to investors or shareholders who have high level of influence but low interest in the running of business?

An adversarial style of negotiation is appropriate when the buyer has greater bargaining power. In what other situation may the buyer adopt this style?

When is the best time to adopt accommodating style according to Thomas-Kilmann conflict mode instrument?

A procurement manager has been asked to procure 1,000 pens. He suggests to his manager that to obtain the best value for money, they should undertake a competitive bidding process. Would this be the best course of action?

When considering a new supply source for a product, a procurement professional reviews supplier quotations before negotiation. Which of the following is a direct cost in the supplier’s quotation?

Which of the following is a challenge when calculating absorption costing?

John is in a negotiation with a supplier. They have decided that their future

relationship will be long term, built on trust and respect, and that gains and risk

will be shared between the parties. The parties will also share ideas and

collaborate on those ideas. Which of the following is this type of relationship?

Jane is planning for a forthcoming negotiation with a key supplier. She has learned what are important to the supplier and what are important to her company from previous contracts between them. In order to avoid negotiation deadlocks, she has set up several concession plans. But Jane has little experience in dealing with suppliers and doesn't know when to trade these concessions. When is the best time in a negotiation to trade concessions?

During a negotiation, Jose Gomez, the salesperson for a strategic supplier, states that his sales director will not approve discounts against initial purchases. However, Jose offers a 5% discount on the aftercare package, which will provide the same monetary saving. Sally Pampas requires both the product and the aftercare package and has an objective to achieve a 5% discount off the purchase price. To achieve a win-win (integrative) negotiation, Sally should...

Where a market consists of a large producer of a product with high market power, it is known as:

Tony is undertaking a negotiation with a strategic supplier and is frustrated by the lack of progress. He proposes using threats to get what he wants from the negotiations. Is this the correct course of action?

Which of the following are rules of attentive listening? Select TWO that apply.

An oil refinery plant imports much of its crude oil from overseas. A procurement manager in the refinery suggests that fixing the crude oil contract price for 36 months would be beneficial for the company. Would this be a right thing to do?

After studying Thomas-Kilmann conflict resolution model and considering different approaches carefully, the procurement team of XYZ Ltd. decides to adopt an avoiding approach to the upcoming negotiation with one of their suppliers. Which of the following will be the objective of XYZ procurement team in this negotiation?

Citywide Developments Ltd (CDL) is a construction programme management company that delivers the design and build of high-value property development schemes. CDL uses third-party consultant design services, using named consultants in the contract. CDL has recently observed increases in the consultancy day rate for these consultants. Which of the following tradeable concessions could CDL offer when negotiating with the suppliers of design services, in order to achieve lower rates of pay, but without lowering the quality of service?

A procurement manager has decided to bring in a junior member of their team to a negotiation meeting. Which of the following would be suitable roles for this junior member of the team?

Note taker

Expert

Observer

Chair

Macroeconomics can have an impact on commercial negotiations. Is this statement correct?

Which of the following will shift the supply curve to the right?

“A negotiation ends once the meeting finishes.” Is this statement true?

Which of the following are examples of non-verbal negotiation? Select THREE that apply.

Which of the following is the area where two or more negotiating parties may find common ground?

The procurement manager of a private healthcare provider is running an IT project. Who would be the stakeholders?

General public

Pharmaceutical suppliers

Senior Management

Software support developers

Which factors give rise to conflict within the procurement negotiation context? Select THREE that apply.