Which of the following are signs indicating that TOP is using coercive power in commercial negotiation? Select TWO that apply.
Answer(s): B,C
Coercive power comes from the belief that a person can punish other for non-compliance, and can be considered as the flip side of reward power. Coercive power rests in the individual's ability to change other people's behaviour through threat, intimidation, use of guilt, ability to embarrass or shame, or withdrawal of benefits, ...
Which of the following is the true statement?
Answer(s): 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 the business needs of the organisation, and not just the instinct of procurement.
Which of the following is most likely a consequence of falling interest rate?
Answer(s): A
If interest rate are too low and credit is too, cheap rates can fund a spending boom with consumers and businesses buying (investment) more than they can afford to pay back.
Which of the following is an objective of proposing phase?
Answer(s): D
In the study guide, CIPS lists 5 stages of an negotiation:The opening phase: confirm understanding and get the issues on the table. At this stage, both parties should check agenda, authority and create atmosphere conducive to agreement The testing phase is an information gathering stage where the hypothesis and assumptions you have made in the planning stage can be tested and confirmed or disconfirmed The proposing phase: Both sides may start making tentative proposals regarding their offering. The bargaining phase: Both parties trade concessions; the preliminary stages are over and proposals move from being tentative and general to being more definite and specific. The agreement and closing phase: both parties should seek agreement or if TOP does not have the final authority, some sort of acknowledgement of what key terms are should be sought.
Should a buyer use closed questions in a negotiation?
Asking questions the right way is both an art and a science. Ask the question the wrong way, and the other negotiator might act like a turtle, becoming defensive and withdrawing into their shell. Ask the question the right way, and the other negotiator might "spill the beans.".Closed Questions: How and when to use them?Closed questions are those that require a short and focused answer, and are especially helpful in the beginning stages of the negotiation to encourage interaction. They can be used to clarify a point, or to reconfirm certain facts. For example, you can use a closed question to confirm the amount of units the company can produce in a week, or to clarify that what they are really saying is that they don't feel comfortable outsourcing their accounts to India. Most closed questions only require a simple "yes" or "no" response, so there really isn't much room for misinterpretation great for finding out where both you and they stand.
CIPS study guide page 169What Questions Can We Ask In Negotiations?
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