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50 Cards in this Set
- Front
- Back
Explain FIVE differences between integrative and distributive approaches to negotiation. |
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Discuss TWO reasons why a buyer might develop a BATNA when preparing for a negotiation |
- Allow you to be more assertive during negotiation |
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Discuss how the balance of power may affect commercial negotiations |
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Explain why negotiators may develop a BATNA when planning for a commercial negotiation. |
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Suggest THREE situations when a distributive approach may be appropriate for commercial negotiations. |
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Explain FIVE ways a buying organisation can improve its leverage with suppliers in a commercial negotiation. |
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Examine FIVE types of supplier relationships, within the ‘relationship spectrum’, that can impact commercial negotiations. |
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Describe THREE sources of personal power that can be used in a commercial negotiation |
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Explain the reasons that lead to a monopoly supplier having high power relative to a purchaser in a commercial negotiation |
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What is Negotiation in the procurement context? |
A process of planning, reviewing and analysing used by a buyer and seller to reach acceptable agreements or compromises which include all aspects of the business transaction, not just price. |
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What are alternatives to negotiation?
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Competitive bidding, persausion, giving in, coercion, problem solving
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What are the two levels of negotiation?
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Strategic Tactical |
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What is strategic negotiation? |
less freqent and at a higher level by senior mgmt addressing long range issues
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What is Tactical Negotiation?
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more frequent at lower level by functional parties addressing short range issues
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What two roles do Procurement Professionals typically play in negotiations?
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1. the sole negotiator (for low value non critical items) 2. team leader of cross functional negotiating team
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Why can conflict be highly desirable?
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energise relationships, clarify issues, driver for negotiation
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What are sources of conflict?
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1. shared resources 2. difference in goals and values 3. power imbalanc 4. ambiguity
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Where may conflict be experienced?
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1. with other functions 2. within purchasing team 3. suppliers
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In what context would negotiation be required relating to employee relations and team management?
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1. grievance and conflict handeling 2. group problem solving 3. negotiating terms and conditions
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What serious problems can failed internal negotiation cause? According to Richard Morse
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1. resources will not be available 2. implementation will falter 3. there is a risk of internal resistance 4. risk of alienating supporters 5. risk of sabotage |
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what are objectives and outcomes in a negotiation?
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objectives are specific statements of what a negotiator wants to achieve from the process. Outcomes are a broadly, the results of the negotiation
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what are three possible outcome types of a negotiation
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1. win-lose: one party gets what he wants at the expense of the other 2. lose-lose: neither party gets what they want 3. win-win: both parties get as close as possible to what they want.
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Describe the two orientations to negotiation
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1. Distributive Bargaining: involves the distribution of limited resources, dividing up a fixed pie 2. Integrative negotiation: involves collaborative problem solving to increase the options avaliable (expanding the pie)
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Describe the conflict handeling styles
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1. avoiding 2. focing/competing 3. accomodating 4. compromising 5. collaborating
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What is the key objective of distributive bargaining?
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maximise our parties share of the particular deal
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what are the three strategies to achevie a win-lose outcome in distributive bargaining?
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1. pushing to settle as close as possible to the other parties resistance point 2. make the party lower its resistance point 3. make the other party think it’s the best settlement that could be agreed
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What are the tactics of distributive bargaining?
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1. presenting exaggerated opening bids and demands 2. exaggerating the initial distance between the two parties wants 3. withholding information highlighting weakness 4, using all levers to manipulate 5. offering no concessions in return |
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What are the steps to a win-win approach?
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1. be willing to create a free exchange of information 2. find out why each party needs what it wants 3. find out where the parties interests dovetail 4. design new options where everyone gets more of what they want 5. cooperate, treat the party as a partner not an opponent.
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what are the tacttcs of integrative negotiation?
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1. being open about needs, getting all cards on the table 2. collaboratively generating options 3. focusing on areas of common ground and mutual benefit 3. supporting the other party in accepting your proposals 4. maintaining flexibility |
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What are the characteristics of integrative negotiation?
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1. excellent listening skills 2. holistic orientation 3. added value thinking 4. integrity and trust 5. emotional intellegence |
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what is positional bargaining?
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each side takes a position arguing in its favour trying to get an outcome as close to that position as possible. Fosters win-lose or lose-lose outcome.
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What is principled negotiation?
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parties work collaborativley to maximise the opportunity of a shared problem. Hard on the problem, soft on the people. Shifts negotiation from distributive to integrative.
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What does principled negotiation require?
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1. seperating people and problem 2. focus on reconcilling interests 3. generating a variety of ideas and options 4. insisting the agreement reflect a fair standard
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Describe MIL?
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An approach to setting objectives by Gavin Kennedy. MUST = deal-breakers INTEND = Target for negotiation but not disasterous if lost LIKE = Icing on the cake
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What is a walk-away point?
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Best option is to walk away from negotiation as opposed to making further concessions to complete it. |
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What is the differnece between power and authority?
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Power is the ability to influence, authority is the scope and discretion given to make decisions by the organisation
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What is the use of power essential in negotiation?
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1. secure a win outcome 2. maximise overall gains 3. move the process forward 4. push through barriers 5. secure agreement and commitment
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What are the types of power in buyer/supplier relationship?
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1. OVERT = direct tactics, transparent & obvious 2. COVERT = indirect tactics, subtle & implied 3. STRUCTURAL = built into the situation
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What are the sources of power?
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according to French & Raven. 1. Legitimate 2. Expert 3. Reward 4. Referent 5. Coercive
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What source of power are buyers most likely to use?
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Reward power. As they are in the position to offer contracts
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What are the characterisitics of adversarial relationships?
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1. Lack or trust, little information sharing 2. short-term transactional focus 3. use of power and negotiation to get the best win outcome 4. enforced compliance to contract terms 5. little cooperation and recognition of mutual interests |
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What are the characteristics of a collaborative relationship |
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What factors effect what relationship type suits best? |
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what are the arguments for a transactional approcah? |
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What are the drivers for collaborative relationships? |
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What are relationship drivers? |
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What are the five key elements to developing high trust supplier relationships? |
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What are the key ethical issues in negotiations and SRM? |
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List the approaches to managing conflict |
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What are the approaches to repairing relationships and alternative dispute resolution? |
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