What letter R in the acronym SMART stands for?

• A.Recommended
• B.Random
• C.Relevant
• D.Risk-free

Comment: *

Name: *

Email: *

Verification: *

Which of the following are most likely to be fundamentals of Fisher & Ury's principled negotiation?
1. Depersonalise the argument
2. Focuson positions
3. Generate creative options
4. Using subjective criteria

• A.2 and 3 only
• B.2 and 4 only
• C.1 and 3 only
• D.1 and 4 only

Correct Answer: C

Explanation
Principled negotiation is based on four fundamentals: people, interest, options andcriteria:

Diagram Description automatically generated
1st Principle: separate the people from the problem: Negotiator should depersonalise the situation and accepting that the subject matter of the negotiation. This can be difficult for untrained negotiators, but this is a key skill to develop
2ndprinciple: focus on interests, not positions: It is important in principled negotiations not to focus on their parties' positions (what are expressed during negotiations), but on the interests (underlying needs) behind them
3rd principle: invent options for mutual gains: this principle aims to help the parties find a solution that both would benefit from. The more options - or tradeables - that can be brought to the table the better.
4th principle: insist on using objective criteria: is about making sure that the negotiation stays focused on outcomes based on objective criteria and that it is productive.
LO 1, AC 1.2

Comment: *

Name: *

Email: *

Verification: *

A procurement professional is sourcing low value items. He conducts market analysis and realise that these items can be provided by many suppliers and switching cost between suppliersis relatively low. He also assume that the relationship between buyer and supplier will be transactional rather than long-term. According to Thomas-Kilmann conflict model instrument, which of the following is the most appropriate style that the procurement professional should adopt when negotiating with these suppliers?

• A.Avoiding
• B.Compromising
• C.Competing
• D.Collaborating

Correct Answer: C

According to Thomas-Kilmann conflict model instrument, there are 5 conflict management styles:
Graphical user interface, text, application, email Description automatically generated

In this scenario, the buyer's bargaining power is stronger than suppliers', and the relationship is transactional.
Therefore, to get the most preferable outcome, the procurement professional can take an assertive approach, while he doesn't need to co-operate closely with these suppliers. Competing will be the most appropriate approach to negotiation in this scenario so that the buying organisation can get a better deal.

Comment: *

Name: *

Email: *

Verification: *

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

• A.The buyer does not have the option to move to an alternative supplier
• B.The buyer's spend takes up a small proportion of supplier revenue
• C.The buyer demand isso urgent that it can't be postponed
• D.The buyer is large in size relative to its suppliers

Comment: *

Name: *

Email: *

Verification: *

A good negotiator invests time in understanding the needs of the individuals in a negotiation. Is this statement true?

• A.Yes, because individuals' needs always unify with their own organisation's needs and wants
• B.No, becausenegotiator should attempt to satisfy the needs of the other organisation only
• C.No, because satisfying individual needs will lead to conflict of interest and unethical practices
• D.Yes, because individual needs largely influence the outcomes of the negotiation

Comment: *

Name: *

Email: *

Verification: *