L4M5 Commercial Negotiation

Question 1

What is 1.1 in understanding key approaches of commercial agreements?

Answer 1

Analyse the application of commercial negotiations in the work of procurement and supply.

Question 2

What is 1.2 in understanding key approaches of comm agreements? Types of approaches.

Answer 2

Differentiate between the types of approaches.

Question 3

What is 1.3 in understanding key approaches of commercial agreements? Explain about balance of power.

Answer 3

Explain about balance of power.

Question 4

What is 1.4 in understanding key approaches of commercial agreements?

Answer 4

Identifying different types of relationship.

Question 5

What is 2.1 in knowing how to prepare for negotiations?

Answer 5

Describe the types of costs and prices.

Question 6

What is 2.2 in knowing how to prepare for negotiations? Contracting economic factors.

Answer 6

Contrasting economic factors.

Question 7

What is 2.3 in knowing how to prepare for negotiations?

Answer 7

Analysing criteria that can be used in a comm negotiation.

Question 8

What is 2.4 in knowing how to prepare for negotiations? Identifying the resources required for a negotiation.

Answer 8

Identifying the resources required for a negotiation.

Question 9

What is 3.1 in understanding how commercial negotiations should be undertaken?

Answer 9

Identifying stages of commercial negotiation.

Question 10

What is 3.2 in understanding how commercial negotiations should be undertaken? Assess negotiation approaches that can influence the decision.

Answer 10

Assess negotiation approaches that can influence the decision.

Question 11

What is 3.3 in understanding how commercial negotiations should be undertaken?

Answer 11

Comparing key commercial skills.

Question 12

What is 3.4 in understanding how commercial negotiations should be undertaken? Analysing methods and assessing outcome of negotiations (lessons learnt).

Answer 12

Analysing methods and assessing outcome of negotiations (lessons learnt).

Question 13

What are kinesics, paralanguage, proxemics, chronemics and haptics.

Answer 13

Facial expressions. tone of voice, personal space, timing and touching.

Question 14

What are the four fundamentals of principled negotiations?

Answer 14

Separate the people from the problem: Keep emotions separate from the negotiation.

Focus on interests, not positions: Consider the underlying needs of both parties.

Invent options for mutual gain: Consider a variety of options before settling on an agreement.

Insist on using objective criteria: Base the agreement on objective criteria.

Question 15

What is vendor base reduction and volume pooling in spend concentration?

Answer 15

Reduction of suppliers and making cross-functional purchases respectively.

Question 16

What is volume distribution and consolidation in spend concentration?

Answer 16

After spend analysis making recommendations to move spend from one supplier to another. Volume consolidation across categories is like aggregation - opportunities are missed if different departments buying the same stuff.

Question 16

Name three ways of spend concentration?

Answer 16

Standardisation of specs, forming purchasing consortia and building stronger relationships.