ExpertMedium2 marksMultiple Choice
Syllabus E: Personal effectiveness and communication in businessSyllabus ENegotiationPersonal Effectiveness
ACCA · Question 17 · Syllabus E: Personal effectiveness and communication in business
[Section A] During contract negotiations, a procurement manager for a restaurant chain and a local vegetable supplier reach an agreement. The restaurant agrees to pay a slightly higher price per kilogram, and in return, the supplier agrees to deliver the produce washed and pre-chopped, saving the restaurant significant kitchen prep time. What type of negotiation outcome does this represent?
[Section A] During contract negotiations, a procurement manager for a restaurant chain and a local vegetable supplier reach an agreement. The restaurant agrees to pay a slightly higher price per kilogram, and in return, the supplier agrees to deliver the produce washed and pre-chopped, saving the restaurant significant kitchen prep time. What type of negotiation outcome does this represent?
Answer options:
A.
Win-Lose (Distributive)
B.
Lose-Lose
C.
Win-Win (Integrative)
D.
Compromise
How to approach this question
Assess the outcome for both parties. Did both achieve a beneficial result through collaboration?
Full Answer
C.Win-Win (Integrative)✓ Correct
Integrative (Win-Win) negotiation occurs when parties collaborate to find a 'larger pie'. By adding a new variable (pre-chopping the vegetables), both parties achieved their underlying interests (higher margins for the supplier, lower labor costs for the restaurant).
Common mistakes
Confusing Win-Win with Compromise. Compromise is 'meeting halfway' (e.g., splitting a price difference). Win-Win involves finding creative solutions that satisfy both parties fully.
Practice the full ACCA BT — Business & Technology Practice Exam 2
52 questions · hints · full answers · grading
More questions from this exam
Q01[Section A] A global non-governmental organization (NGO) providing clean water infrastructure in ...MediumQ02[Section A] 'NovaTech', a rapidly growing AI startup, was initially built around its charismatic ...MediumQ03[Section A] A multinational pharmaceutical company is implementing blockchain technology to track...MediumQ04[Section A] A newly assembled cross-border remote team of software developers is currently experi...EasyQ05[Section A] An emergency room administrator at a busy urban hospital uses the Urgent/Important ma...Medium