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Pscm 432:Negotiations In Procurements And Supply Question Paper

Pscm 432:Negotiations In Procurements And Supply

Course:Business Administration

Institution: Kenya Methodist University question papers

Exam Year:2012

KENYA METHODIST UNIVERSITY

END OF 3''RD ''TRIMESTER 2012 (EVENING) EXAMINATIONS
SCHOOL : BUSINESS AND ECONOMICS
DEPARTMENT : ACCOUNTING, FINANCE & INVESTMENTS
UNIT CODE : PSCM 432
UNIT TITLE : NEGOTIATIONS IN PROCUREMENT SUPPLY

TIME: 2 HOURS

Instructions: Answer Questions ONE and any TWO other Questions.

Question One

Wang Consultants is a registered company in Kenya dealing with consultancies in Real Estate. They were contacted by an upcoming institution of higher learning who are in the process of buying a facility to set up their institution within the peripheries of Nyeri County. They identified some premises and they required some due diligence done. Wang Consultants was identified to undertake the negotiation process on behalf of the seller. The Directors in Wang appointed a few staff members to handle the process. Among them was the accountant, estate manager and a few other junior staff. Some of the staff had personality shortcomings but were appointed all the same. To the directors negotiations was easy, "It’s just a matter of stating figures/facts, and the other party has the obligations of take or leave". In any case, anyone can negotiate. To him, Wang Consultant should take the "red color stand".

They did not prepare for anything and went ahead to make a date for negotiation. Surprisingly, that was the first day they all met as a team. On their first encounter with the buying party, they seemed not aware where to begin and all had different views of the same issues. The buyer arrived prepared to start the negotiations, but as it were, it could not start.

What advice would you give Wang consultant to help them get to negotiate.

Do you agree with the directors thoughts that negotiation is a matter of stating facts? Support your answer.

(10 Marks)

What do we understand by a Win win situation?

(10 Marks)

Question Two

In negotiation, there are THREE steps that must be completed before signing of an agreement. What are the matters that must be considered at the pre-negotiation stage.

(10 Marks)

Differentiate between substance goals and relationship goals, outlining what is involved in each element.

(10 Marks)

Question Three

In detail, explain collaborative partnership in negotiation and state why it is necessary.

(10 Marks)

Purchasing is said to take 75% of an investment inventory. Negotiation seals the deal. Explain why purchasing officers need/must be knowledgeable about negotiation.

(10 Marks)

Question Four

Discuss the factors that influence a sellers negotiating strengths and weaknesses.

(10 Marks)

Write short notes on the following:

Buyers as a sole negotiator

(2 Marks)

Buyer as a team negotiator

(3 Marks)

Distributive approach in negotiation

(5 Marks)

Question Five

Discuss the basic characteristics of a successful negotiator.

(10 Marks)

It’s not that oral agreements aren’t as binding as written ones, they are just harder to prove. Explain why you need to write agreements.

(10 Marks)

Pscm 432:Negotiations In Procurements And Supply Question Paper

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