Chapter 12 – Negotiation

Negotiation is a process of formal communication, where two or more people come together to seek mutual agreement about an issue. Is this:
1. true?
2. partly true?
3. false?
BATNA generally means:
1. buy at next auction
2. begin all the negotiations again
3. best alternative to a negotiated agreement
4. buyers’ action terminated negotiated agreement
5. none of the above
A position is the stated demand that is placed on the table, by a negotiator. Is this:
1. true?
2. partly true?
3. false?
Which of the following is not usually a phase in a negotiation?
1. identify a purchase requirement
2. determine whether negotiation is required
3. plan for the negotiation
4. conduct the negotiation
5. review the negotiation process
6. execute the agreement
Which of the following factors does not necessarily suggest a negotiated agreement?
1. the agreement involves a special collaborative relationship
2. the purchase is for widely-available, standard commodities with accepted market prices
3. the purchase has complex technical requirements
4. the supplier will perform important value-adding activities
5. the total contract value is large
6. the purchase involves expensive plant and equipment
Negotiations are normally limited to price and delivery details. Is this:
1. true?
2. largely true?
3. false?
Which of the following is not usually included in decisions for negotiation planning?
1. opening bids
2. protocols
3. purpose
4. aims
5. purchasing strategy
6. responses
Which of the following is not a common phase in face-to-face negotiations?
1. fact finding and information sharing
2. disagreement over opening bids
3. recess
4. narrowing of differences
5. agreeing terms
What is a negotiation plan?
1. a scheme for doing whatever is necessary to achieve a desired end
2. a timetable for reaching agreement
3. a schedule for implementing the agreement
4. a series of ploys used to achieve your own ends
5. the desired results from a negotiation
Which of the following is not a common step in planning a negotiation?
1. recognise your counterpart’s needs
2. practice the negotiation
3. identify facts and issues
4. analyse each parties strengths and weaknesses
5. hiding key facts from the opponent
Which of the following is not a common step in planning a negotiation?
1. develop the negotiation tactics
2. brief other people
3. establish a position on each issue
4. pretend to walk away and terminate negotiations
5. develop specific objectives
6. gather relevant information
BATNA is the worst acceptable result from a negotiation. Is this:
1. true?
2. partly true?
3. false?
Which of the following is not a common source of power in negotiations?
1. coercive power
2. referent power
3. implicit power
4. expert power
5. reward power
6. informational power
Every negotiator should expect to give and receive concessions. Is this:
1. true?
2. partly true?
3. false?
There are no real tactics for negotiations, as negotiators only have to discuss concessions until they reach an agreement. Is this:
1. true?
2. partly true?
3. false?
Which of the following is not a common type of negotiation tactic?
1. scarcity
2. consistency
3. reciprocation
4. authority
5. social proof
6. intimidation
In negotiations, is it always the case that one side wins and the other loses?
1. yes
2. no
Which of the following is not a common approach to win-win negotiations?
1. cut costs
2. find a bridge solution
3. non-specific compensation
4. expand the pie
5. mutuality
6. logroll
International negotiations are the same as domestic ones, but with some added complications. Is this:
1. true?
2. to some extent true?
3. false?
The Internet is reducing the need for face-to-face negotiations. Is this:
1. true?
2. partly true?
3. false?