ExpertEasy2 marksMultiple Choice
ACCA · Question 24 · Syllabus E: Personal effectiveness and communication in business
A smartphone manufacturer is negotiating with the sole global supplier of a critical microchip. The manufacturer needs lower prices, but the supplier needs guaranteed long-term volume. They agree to a 5-year contract with tiered pricing that satisfies both parties. What type of negotiation strategy is this?
A smartphone manufacturer is negotiating with the sole global supplier of a critical microchip. The manufacturer needs lower prices, but the supplier needs guaranteed long-term volume. They agree to a 5-year contract with tiered pricing that satisfies both parties. What type of negotiation strategy is this?
Answer options:
A.
Distributive (Win-Lose)
B.
Integrative (Win-Win)
C.
Accommodating (Lose-Win)
D.
Avoiding (Lose-Lose)
How to approach this question
Identify the outcome: both parties got what they needed by finding a creative solution.
Full Answer
B.Integrative (Win-Win)✓ Correct
Integrative negotiation (often called win-win) focuses on collaboration. Instead of fighting over a single variable (like price), parties trade across multiple variables (price vs. contract length) so both achieve their primary objectives.
Common mistakes
Confusing it with distributive negotiation, which is a zero-sum game (haggling over price alone).
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