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?

• A. 2 and 3 (Expert and Observer)
• B. 1 and 3 (Note taker and Observer)
• C. 3 and 4 (Observer and an unspecified fourth option - assumed error)
• D. 1 and 2 (Note taker and Expert)

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

• A. Low risk, low importance
• B. High complex, low importance
• C. Low risk, high importance
• D. High value, high complex

A buyer is leading a negotiation with a supplier for plumbing parts for a large construction project with a five-year term. The buyer knows copper pipe costs will reduce after year two, while plastic component costs are forecast to rise significantly. In the negotiation, the buyer should seek to...

• A. Obtain a variable price for all components within the contract
• B. Fix the costs of the components within the contract after the third year
• C. Obtain a variable cost for copper and fix the remaining cost components
• D. Fix the costs of all components for the full five years

A procurement manager is about to lead an important negotiation with a new IT supplier and has insisted the first meeting takes place at the buying organisation's office. Will this give one party an advantage?

• A. Yes-the buyer, as the supplier is unfamiliar with the premises and may be less confident
• B. Yes-the supplier, as they can take time away from their usual workplace
• C. No-location is not important and does not impact leverage for either party
• D. No-the costs, time, and resource spent in attending by both parties will be equal

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?

• A. When the supplier is likely to respond with further concessions to maintain a long-term relationship
• B. In a monopoly market as the supplier will respond by conceding quantity discounts
• C. When the issues concerned are non-negotiable, for example, health and safety commitments
• D. In all forms of negotiation as each party is always trying to gain advantage over the other