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1. 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?

2. Which of the following are most likely to be direct costs of a steel manufacturer? Select THREE that apply.

3. An adversarial style of negotiation is appropriate where the buyer has greater bargaining power over the supplier. In what other situations may the buyer adopt this style of negotiation?

4. Win-lose approach is most likely to be associated with which of the following type of relationship?

5. XYZ Ltd needs to purchase a bundle of IT products from suppliers. The procurement manager requests details of costs regarding designing and managing those products. After receiving reports from suppliers, she realises that they have charged up to a 1,095% mark-up on IT products.

In order to ensure value for money, which of the following should be a priority pricing arrangement of the procurement manager in the negotiation with these IT suppliers?

6. Representatives from South African Department of Health is negotiating the price of hospital drugs with US pharmaceutical companies.

Which of the following are most likely to be macro factors that influence the outcomes of the negotiation? Select TWO that apply.

7. Which of the following is categorised as fixed cost?

8. In general, which of the following is the consequence of a flatter demand curve?

9. For a commercial negotiation to be effective, the organisation has to identify resources required for negotiation.

Which one of the following could help?

10. Which of the following are macroeconomic factors that may have influence to the commercial negotiation? Select TWO that apply

11. Which of the following are examples of push techniques in commercial negotiations? Select TWO that apply.

12. Which of the following should be adopted to minimise the conflict between parties in commercial negotiation?

13. Which of the following best describes Leverage quadrant in Kraljic matrix?

14. A senior buyer analyses the supply market and he realises that his organisation is treated as Exploit according to supplier's perspective model.

What does he need to do?

15. Ma Bell was the sole provider of landline telephone service to most of the US in 1980s.

This is an example of...?

16. In a commercial negotiation, a procurement professional negotiates on his company's behalf. The power of buying organisation is the only factor that influences the behaviours of the other party.

Is this assumption true?

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

18. A negotiation is coming to the end. Both parties haven't had any official commitments. Right before leaving the room, the buyer strongly disagrees with supplier's set up prices and requests a discount. The supplier doesn't reply but nods and smiles.

Can the buyer consider these actions as an acceptance?

19. Which of the following should be done when undertaking a reflection activity on negotiation? Select TWO that apply.

20. Maria is a professional services category buyer within the National Health Service. Due to the severe financial budget cutbacks the National Health Service is facing, the procurement team has been tasked with achieving cost savings so that funding available can be spent on patient care. Maria plans to achieve savings with one of her collaborative suppliers.

Which negotiation approach should she undertake?

21. Which of the following is a description of mark-up?

22. According French and Raven's base model, which of the following are sources of personal power that can be used in commercial negotiation? Select THREE that apply.

23. Which of the following are behaviours that builds trust between the buyer and the supplier in business relationship? Select TWO that apply.

24. In airline industry, suppliers prefer to adopt dynamic pricing in order to constantly monitor and change their fares in response to market conditions. Dynamics pricing is based on which costing method?

25. Procurement gets involved in negotiating purchase requisitions only when there is a value analysis to ensure that only value-adding aspects are included. Is this statement true?

26. Which of the following constitutes a key element to developing high-trust supplier relationships?

27. Rose is a senior buyer from a skiing equipment retailer. Rose is concerned about the current ski boot shortage and the number of invoicing problems from a key supplier. She has decided to have a video conference with Victor, CEO of the supplier. Initially, she intends to threaten Victor with contract termination unless he can improve the situation. However, she is a little wary of doing this as the switching costs are high. Eventually, she decides to seek solutions by encouraging the other party to offer their views and ideas. Rose also prepares some ideas to discuss with Victor.

Which of the following is the persuasion method that Rose intends to use in the forthcoming conference?

28. Which of the following are most likely to be fixed costs of an airline? Select TWO that apply.

29. Sumitomo Rubber Industries (SRI) is a Japan-based tyre manufacturer. In order to increase production, SRI is sourcing rubber from Southeast Asian firms.

Which of the following micro factors are most likely to shift the balance of power to supplier? Select TWO that apply

30. If the value of the British Pound in other currencies is strong, which of the following is most likely to occur?

31. A garden furniture supplier who is currently in negotiations for a high-value contract has offered the procurement manager a visit to their site. The supplier suggests that during this visit, they can undertake the contract negotiation.

What would be an appropriate response from the procurement manager?

32. Which of the following is active listening?

33. Which of the following is an objective of proposing phase?

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

35. Which of the following is the true statement?

36. Broken record

37. Which of the following is most likely a consequence of falling interest rate?

38. Which of the following would be considered appropriate influencing techniques in contract negotiation? Select TWO that apply.

39. Leitax is a consumer electronics firm with headquarters in the US and with a global sales presence. The company maintains seven to nine models in its product portfolio, each of which has multiple SKUs. Product life ranges from fifteen to nine months and is getting shorter. The demand planning and master planning processes at the company were ill-defined. Data relevant to forecasting were usually inaccurate, incomplete, or unavailable and the lack of objectives and monitoring mechanisms for the demand planning process meant that process improvement could not be managed. Support for supply management was equally ill-defined, as master production schedules were sporadic and unreliable and suppliers had learned to mistrust them. Leitax's newly appointed Supply chain director, Jessica realises that the “buy-in” of different functional groups was critical to the improvement of demand planning. She invites relevant stakeholders to a meeting so that they can express their opinions openly.

What tactic is Jessica using?

40. Which of the following are examples of variable costs?

Building and site rent

Annual insurance premium

Raw materials expenditure

Delivery costs for materials

41. Which of the following is most likely to be a reason why a supplier charges its customer higher price after it has reached the break-even point?

42. The sourcing manager has decided to adopt an adversarial style of negotiation to take advantage of the buyer's greater bargaining power over the suppliers.

In what other circumstances should an adversarial relationship be used?

43. 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?

44. Which of the following can help both parties to break the vicious cycle of blame when a relationship needs repairing? Select TWO that apply.

45. The National Schools Purchasing Forum (NSPF) is a procurement organisation that purchases goods and services on behalf of schools on a national scale. NSPF is close to concluding negotiations in a meeting with Hygienics For All (HFA) for the supply of consumables to school washrooms. Both parties have reached an agreeable position, and NSPF feels it is important that they conclude the negotiation at this point.

What type of questions should NSPF ask HFA to achieve this?

46. At which stage in a negotiation would questions be asked to obtain missing information?

47. Which of the following is a source of information on microeconomic factors?

48. Which of the following is considered a weakness of a ‘dealer’ style negotiator?

49. XYZ Ltd decides to go to market for a cleaning contract to service a number of offices. It knows that it will get a price which may, or may not, be better than the one it is currently paying.

To gain leverage in the marketplace, the organisation decides to add other related services to the scope, such as gardening, security and maintenance, which increase the value of the contract. This is an example of which forms of spend consolidation?

50. Where there are high levels of commitment to relationships between both the buyer and supplier, this is seen as collaborative and beneficial to negotiations. Is this statement correct?

51. Which of the following is NOT a barrier to entry in a monopolized market?

52. How contribution is calculated in break-even analysis?

53. Information generated through Purchase Price Cost Analysis can be useful to the purchaser, by helping to identify which of the following costs relating to the supplier? Select the THREE that apply.

54. Which of the following is the purpose of using stakeholder support level scale?

55. A purchasing organisation is discussing its approach to an upcoming negotiation with a key supplier over a contract for critical new services. They have decided they want to find a Win/Win (integrative) solution.

Which TWO of the following would be appropriate in this scenario?

56. The party being influenced may not be aware of the process happening

57. A procurement expert has been asked to ensure they consider emotional intelligence in their negotiation strategy. They have agreed to this and have started planning their approach.

Which of the following describes emotional intelligence?

58. Maria has adopted an adversarial style relationship with her stationery supplier. This relationship style can be characterised by which of the following? Select the TWO that apply.

59. Before engaging in a negotiation with a supplier of rechargeable lights, procurement team tries to visualise the breakdown of supplier's costs to calculate its break-even point. They estimate that total fixed expenses related to rechargeable electric light are $270,000 per month and variable expenses involved in manufacturing this product are $126 per unit. The supplier charges its customer $180 per unit.

Within its current capacity, this supplier will make a profit at which of the following?

60. Which of the following are most likely to be the potential cultural differences that can make transactions with an international supplier more problematic that with local suppliers? Select TWO that apply.

61. One difference between perfect competition and monopolistic competition is that...?

62. Which of the following are typical characteristics of activity-based costing (ABC) method? Select TWO that apply.

63. 1.Which of the following occur within the planning and preparation stage in a negotiation process? Select THREE that apply.

64. Buying organisation may increase its leverage with suppliers by concentrating spend.

Which of the following are most likely to be forms of supplier spend consolidation? Select THREE that apply.

65. Fast & Easy Limited, a global fast food retailer, is in a negotiation with its major meat supplier. The supplier is asking for a 2% price increase, which Fast & Easy is strongly resisting. The supplier justifies this increase by stating that currency fluctuations, an unstable economic climate, and rising transport costs have necessitated this increase.

Which influencing tactic is the supplier using?

66. Which of the following are most likely to be characteristics of a perfectly competitive market? Select TWO that apply

67. Which of the following statements about oligopoly is incorrect?

68. Commercial negotiation ends at the award of a contract. Is this statement true?

69. A public agency opens a tendering process for a road building project that lasts approximately 1 year. They post their requirements on public journal and receive some interests. After conducting due diligence process and selecting the lowest bidder, the project commences. However, the supplier complains that price of material increases because of a shortage of supply, then they demands an 5% uptick in contract value. The agency investigates the increment and sees that there is indeed a fluctuation in prices of supplier's input. They are likely to accept the proposal, but they are also concerned that supplier may demand more.

To avoid making another concession with the supplier, which of the following should be a priority action of the agency?

70. Which of the following are examples of non-verbal negotiation? Select THREE that apply.