Which of the following are examples ofnon-verbal negotiation? Select THREE that apply.
Correct Answer: B,D,F
Explanation Nonverbal communication is important because it gives us valuable information about a situation including how a person might be feeling, how someone receives information and how to approach a person or group of people. There are several types of nonverbal communications you should be aware of, including: 1. Body language Body language is the way someone situates their body naturally depending on the situation, the environment and how they are feeling. Example: Someone might cross their arms if they are feeling angry or nervous. 2. Movement The way you move your arms and legs such as walking quickly or slowly, standing, sitting or fidgeting, can all convey different messages to onlookers. Example: Sitting still and paying attention in a meeting conveys respect and attention. 3. Posture The way you sit or stand can also communicate your comfort level, professionalism and general disposition towards a person orconversation. Example: Someone might slouch their shoulders if they feel tired, frustrated or disappointed. 4. Gestures While gestures vary widely across communities, they are generally used both intentionally and unintentionally to convey information toothers. Example: Someone in the United States might display a "thumbs up" to communicate confirmation or that they feel positively about something. 5. Space Creating or closing distance between yourself and the people around you can also convey messages about your comfort level, the importance of the conversation, your desire to support or connect with others and more. Example: You might stand two to three feet away from a new contact to respect their boundaries. 6. Paralanguage: Paralanguage includes the non-language elements of speech, such as your talking speed, pitch, intonation, volume and more. Example: You might speak quickly if you are excited about something. 7. Facial expressions One of the most common forms of nonverbal communication isfacial expressions. Using the eyebrows, mouth, eyes and facial muscles to convey can be very effective when communicating both emotion and information. Example: Someone might raise their eyebrows and open their eyes widely if they feel surprised. 8. Eye contact Strategically using eye content (or lack of eye contact) is an extremely effective way to communicate your attention and interest. Example: Looking away from someone and at the ground or your phone may convey disinterest or disrespect. 9. Touch Somepeople also use touch as a form of communication. Most commonly, it is used to communicate support or comfort. This form of communication should be used sparingly and only when you know the receiving party is okay with it. It should never be used to conveyanger, frustration or any other negative emotions. Example: Placing your hand on a friend's shoulder may convey support or empathy.
Question 2
Which of the following is the true statement?
Correct Answer: B
Internal stakeholder support will be important not just at the initial negotiation of the contract, but potentially throughout the life of the contract right through to exit. As a general rule, connected stakeholders (with the exception of suppliers) have a low level of influence on procurement negotiations. Suppliers are connected stakeholders who have contractual relationships with the organisation. Commercial negotiation objective should be driven by thebusiness needs of the organisation, and not just the instinct of procurement.
Question 3
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?
Correct Answer: B
Explanation Avoiding is unassertive and uncooperative. When avoiding, an individual does not immediately pursue his or her own concerns or those of the other person. He or she does not address the conflict. Avoiding might take the form of diplomatically sidestepping an issue, postponing an issue until a better time, or simply withdrawing from a threatening situation. LO 1, AC 1.1
Question 4
XYZ Ltd needs to purchase a bundle of IT products from suppliers. The procurement manager requests details of costs regarding designing and managing those products. After receiving reports from suppliers, she realises that they have charged up to a 1,095% mark-up on IT products. In order to ensure value for money, which of the following should be a priority pricing arrangement of the procurement manager in the negotiation with these IT suppliers?
Correct Answer: B
In the scenario, the main cost driver is suppliers' mark-up. The priority should be limit the margin to be added. XYZ Ltd can agree "cost plus"contracts with their suppliers to ensure no IT product purchased exceeds an agreed maximum margin level. Procurement teams can use their benchmarking tools to police these contracts. Cost plus contracts are agreements where the contractor's pricing is based on itemising allowable costs and then adding an agreed margin. Market penetration pricing - pricing low to win a large share of the market Market skimming - pricing a new product high in order to make a large profit from the purchases by initial customers. This is an effective strategy only in the absence of competition.When competition appears, market skimmers usually drop their prices Premium pricing - usually pricing high because the market is prepared to pay extra for the kudos associated with the product, thanks to, say, a reputation for quality, or a highly fashionable brand name, and so on
Question 5
Which of the following is the process enabling the buyer to sharewith 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?
Correct Answer: D
Supplier conditioning is the process of influencing a supplier or suppliers to behave in a certain way, or to accept certain circumstances. Within a negotiation, the buyer needs to make sure that the supplier has a number of messages in mind, about the outcomes that the buyer needs to achieve and about the shared sense of purpose that buying organisation has in achieving these outcomes. Supplier appraisal is a process of evaluating a supplier's ability to carry out a contract in term of quality, delivery, price and other contributing factors. Supplier positioning is the process of classifying spend with a supplier in terms of the profit potential and supply risk and assists in prioritising categories of spend and developing the rightstrategy. Supplier selection is the process of selecting a supplier to acquire the necessary materials to support the outputs of organisations. Selection of the best and/or the most suitable suppliers is based on assessing supplier capabilities (Shih et al., 2004).
