Master the Art of Commercial Negotiations

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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

the first four suppliers Signup and view all the answers

What is an SLA?

A document outlining the expected minimum level of service between a buyer and a supplier Signup and view all the answers

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

Innovation Signup and view all the answers

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

Contract award and implementation Signup and view all the answers

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

Stage 2: Specification development Signup and view all the answers

What is supplier conditioning in the procurement process?

All of the above Signup and view all the answers

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

Stage 6: Develop documentation PPQ and detailed spec Signup and view all the answers

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

Stage 7 to 8 Signup and view all the answers

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

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. Signup and view all the answers

What is the importance of communication in negotiations?

Communication helps convey messages amongst the negotiating parties. Signup and view all the answers

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

The negotiation will be viewed as a one-off 'event'. Signup and view all the answers

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

Stage 9 - 13: Contract Management Signup and view all the answers

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

To outline the expected minimum level of service between a service provider and a client Signup and view all the answers

What is a key component of supplier relationship management?

Conducting supplier performance reviews 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?

Stage 9 - 13: Contract Management 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?

Stage 1 to 6 Signup and view all the answers

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

Stage 9 to 13 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?

Limited negotiation scope 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?