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L4M5 Exam Dumps : Commercial Negotiation

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Commercial Negotiation Questions and Answers

Question 1

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

Options:

A.

Asking the supplier to repeat their proposal

B.

Getting messages across with facial expressions

C.

/ Speaking softly with long pauses

D.

Communicating with the other party by using gestures

E.

Explaining to the supplier about the scope of the project

F.

Using the body language

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Question 2

Commercial negotiations on prices cover a range of aspects including pricing arrangements. A buyer may negotiate for a 'fixed price agreement'. Why is a fixed price agreement advantageous to the buyer?

Options:

A.

The buyer will benefit from the savings that the supplier makes from the efficient cost management of the contract

B.

The buyer will not need to monitor the supplier’s costs relating to the contract

C.

Suppliers always seek price agreements that include cost-sharing incentives

D.

Suppliers calculate prices using fixed costs which the buyer must counteract by pushing for a fixed price agreement

Question 3

A new manager has been appointed with responsibility for an organisation's category which has major impact on organisational cost base and there are little competitions in the supply market. They have an objective to improve supplier cost structures over time. Which of the following should they carry out first?

Options:

A.

Purchase price cost analysis

B.

Competitive rivalry analysis

C.

Volume concentration

D.

STEEPLE analysis