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According to Fiona Dent and Mike Brent, which of the following are characteristics of Push approach? Select TWO that apply.

A.

Inspirational

B.

Persuasion

C.

Collaborative

D.

Seeking commitment

E.

Directive

Lina Rawlins is a senior buyer working for a medical equipment company. Lina is in charge of the company’s largest supplier account, Great Barrington Gas (GBG), a medical equipment supplier. Recently, GBG's performance has declined, leading to an increasing number of rejected items. Lina is aware of the seriousness of this and has asked GBG to attend an urgent meeting. In the meeting, Lina asked the GBG representative, “Can you tell me exactly what you are doing to ensure quality?" What type of question is Lina asking?

A.

Probing

B.

Leading

C.

Reflective

D.

Hypothetical

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

A.

1 and 2

B.

1 and 5

C.

2 and 3

D.

3 and 4

In which of the following scenarios could you adopt a distributive-based negotiation approach?

A.

When asking for changes to the provision of a strategic service provided by a monopoly supplier

B.

When determining costs to incorporate a unique product into your design with the patent holder

C.

When your organisation is dependent on a supplier for delivery of a large contract in the future

D.

When procuring a widely available commodity item which is not strategic to your organisation

The only procurement risk inherent in a distributive negotiation approach is the potential loss in the outcome. Is this statement TRUE?

A.

Yes, because in any commercial negotiation there is always a winner and a loser

B.

Yes, and that is why procurement must seek to engage with suppliers that have less bargaining power

C.

No, both negotiating parties are always committed to ensuring that gains are distributed equally between them

D.

No, there is a chance of reaching an impasse among other outcomes to such negotiations

All of the following shift the supply of watches to the right except...?

A.

An advance in the technology used to manufacture watches

B.

A decrease in the wage of workers employed to manufacture watches

C.

An increase in the price of watches

D.

Manufacturers' expectation of higher watch prices in the future

An integrative negotiation style involves ...

A.

Maintaining a distant (arm's length) relationship with a supplier and the avoidance of information sharing

B.

The buyer demanding concessions without offering anything in return

C.

Creating mutually beneficial outcomes for all parties and collaborative problem solving with a supplier

D.

A competitive approach with a focus on winning at all costs

A procurement manager is preparing for a negotiation with an important supplier. He plans to withhold some crucial information so that his company gains the upper hand in the negotiation. Is this correct when considering using integrative approach to the negotiation?

A.

No, this approach requires honest and open discussion

B.

Yes, the supplier must know what buyer wants and how to provide that even when the buyer is silent on these matters

C.

Yes, the buying organisation must maximise its gain, even at the detriment of the other party

D.

No, holding back information will prompt the supplier gain higher negotiation power

End users are the only stakeholders that are involved in the preparation of a negotiation. Is this statement true?

A.

Yes, because end-users have greater expert power

B.

Yes, because only end-users understand their demand

C.

No, because end-users are external stakeholders

D.

No, because budget holders also play an important role

A purchasing manager is having a negotiation with a supplier to extend the duration of the contract. In order to persuade the supplier to cut the cost by 10%, she promises to shorten the payment period from

45 days to 30 days for each delivery. The supplier's representative does not agree the offer and clearly states that his proposed price is already lower than the market price. The purchasing manager has

used which type of power?

A.

Reward

B.

Expertise

C.

Coercive

D.

Informational