ExpertMedium2 marksMultiple Choice
ACCA · Question 24 · Syllabus E: Personal effectiveness and communication in business
BioGrow, an agricultural supplier, is negotiating a contract with a large farming cooperative. Instead of arguing over the price per ton of fertilizer, BioGrow offers to provide free soil testing services if the cooperative signs a three-year contract. Both parties leave the negotiation feeling they have gained significant value.
Which negotiation strategy has been employed here?
BioGrow, an agricultural supplier, is negotiating a contract with a large farming cooperative. Instead of arguing over the price per ton of fertilizer, BioGrow offers to provide free soil testing services if the cooperative signs a three-year contract. Both parties leave the negotiation feeling they have gained significant value.
Which negotiation strategy has been employed here?
Answer options:
A.
Distributive bargaining (Win-Lose)
B.
Integrative bargaining (Win-Win)
C.
Accommodation (Lose-Win)
D.
Avoidance (Lose-Lose)
How to approach this question
Look at the outcome: both parties gained value by adding new terms to the deal. This is a classic win-win scenario.
Full Answer
B.Integrative bargaining (Win-Win)✓ Correct
Integrative bargaining (or principled negotiation) seeks a win-win outcome. Instead of haggling over a single variable (price), negotiators introduce multiple variables (services, duration) to find mutually beneficial trade-offs.
Common mistakes
Confusing distributive and integrative. Distributive is dividing a fixed amount; integrative is creating more value.
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