Master the Art of Commercial Negotiations

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Questions and Answers

Which of the following statements accurately describes negotiation?

  • Negotiation is a strategic dialogue between parties to reconcile their differing interests, find common ground, and reach a mutually beneficial outcome.
  • Negotiation is a process of communication and interaction between two or more parties with the aim of reaching a mutually acceptable agreement or resolving a conflict. (correct)
  • Negotiation is an art and science of achieving compromise and consensus through discussion, bargaining, and give-and-take, with the goal of reaching an agreement that satisfies all parties involved.
  • Negotiation is a one-off 'event' that does not require planning or preparation.

What is a key point to understand about negotiations?

  • Agreement is reached by satisfying the needs of only one party.
  • Negotiations can only be carried out with two parties.
  • Negotiation should be viewed as a process and planning is important. (correct)
  • Communication is not important in negotiations.

What is the goal of negotiation?

  • To avoid all conflicts and disagreements.
  • To satisfy the needs of only one party involved.
  • To achieve compromise and consensus through discussion, bargaining, and give-and-take. (correct)
  • To reach an agreement without any communication or interaction.

During post-tender negotiations, the buyer can engage with

<p>the first four suppliers (D)</p> Signup and view all the answers

What is an SLA?

<p>A document outlining the expected minimum level of service between a buyer and a supplier (A)</p> Signup and view all the answers

Which of the following is NOT a factor that KPIs can be set around in supplier contracts?

<p>Innovation (B)</p> Signup and view all the answers

In which stage of the procurement cycle can negotiations be limited in regulated procurement?

<p>Contract award and implementation (D)</p> Signup and view all the answers

Which stage of the CIPS Procurement Cycle offers great opportunities for value and procurement through negotiating with stakeholders?

<p>Stage 2: Specification development (B)</p> Signup and view all the answers

What is supplier conditioning in the procurement process?

<p>All of the above (D)</p> Signup and view all the answers

At which stage of the CIPS Procurement Cycle is there limited negotiation scope?

<p>Stage 6: Develop documentation PPQ and detailed spec (D)</p> Signup and view all the answers

When does post tender negotiation (PTN) occur in the CIPS Procurement Cycle?

<p>Stage 7 to 8 (A)</p> Signup and view all the answers

Which of the following best describes negotiation in the context of commercial negotiations?

<p>Negotiation is an art and science of achieving compromise and consensus through discussion, bargaining, and give-and-take, with the goal of reaching an agreement that satisfies all parties involved. (B)</p> Signup and view all the answers

What is the importance of communication in negotiations?

<p>Communication helps convey messages amongst the negotiating parties. (A)</p> Signup and view all the answers

What is the potential consequence of disregarding the planning phase before a negotiation meeting?

<p>The negotiation will be viewed as a one-off 'event'. (C)</p> Signup and view all the answers

During which stage of the CIPS Procurement Cycle can post-tender negotiations be limited in regulated procurement?

<p>Stage 9 - 13: Contract Management (A)</p> Signup and view all the answers

What is the purpose of a service level agreement (SLA)?

<p>To outline the expected minimum level of service between a service provider and a client (B)</p> Signup and view all the answers

What is a key component of supplier relationship management?

<p>Conducting supplier performance reviews (B)</p> Signup and view all the answers

In which stage of the CIPS Procurement Cycle can negotiations be limited to non-core areas of the contract?

<p>Stage 9 - 13: Contract Management (D)</p> Signup and view all the answers

Which stage of the CIPS Procurement Cycle involves the process of influencing suppliers to behave in a certain way, accept certain circumstances or information?

<p>Stage 1 to 6 (B)</p> Signup and view all the answers

At which stage of the CIPS Procurement Cycle can negotiations be limited in regulated procurement?

<p>Stage 9 to 13 (C)</p> Signup and view all the answers

What is the nature of negotiations at the stage of developing documentation such as PPQ and detailed spec in the CIPS Procurement Cycle?

<p>Limited negotiation scope (B)</p> Signup and view all the answers

Which stage of the CIPS Procurement Cycle involves activities that offer great opportunities for value and procurement through negotiating with stakeholders?

<p>Stage 1 to 6 (A)</p> Signup and view all the answers

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