Question 1

A procurement professional is dissatisfied with how a recent negotiation was concluded. What could they do

to improve their negotiation approach?

Seek feedback from the supplier on their recent performance

Prepare for all negotiations with a WIN/LOSE (distributive) approach

Involve lots of people in future negotiations

Undertake reflective practice after each negotiation

Options :

A : 1 and 3

B : 2 and 3

C : 1 and 4

D : 3 and 4

Answer: C

Question 2

Economic growth can be measured by...?

Options :

A : The PPI

B : GDP

C : The CPI

D : SBLI

Answer: B

Question 3

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?

Options :

A : Yes, because the outcomes of negotiation are attributable to the buying organisation

B : No, because personal power of negotiators also attributes to the outcomes

C : No, because power of supplier is the only factor that influences the other party

D : Yes, because buyer's brand, reputation and purchasing spend largely determine the outcomes

Answer: B

Question 4

A wide range of factors may be taken into account by suppliers when setting or negotiating prices. Which of the following are external factors in pricing decisions? Select TWO that apply.

Options :

A : Competition in the market

B : Cost of production

C : Where the product is in its lifecycle

D : Customer perception of value

E : Costs of sales

Answer: A,D

Question 5

A procurement manager has decided to bring in a junior member of their team to a negotiation meeting.

Which of the following would be suitable roles for this junior member of the team?

Note taker

Expert

Observer

Chair

Options :

A : 1 and 2

B : 1 and 5

C : 2 and 3

D : 3 and 4

Answer: B

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