1. What should be done in a situation where a negotiation over a vendorƒ??s price is stalled?ÿbecause the vendor is insisting that the lowest they will go is $200,000 for the work and the purchaser is holding the line at paying $185,000?
A) Get both parties to agree to use an independent assessment of fair market value as the basis for the price.
B) Simply give the vendor one more day to decide and, if the offer is not accepted, restart the RFP process.
C) Contact a different bidder and threaten to go with that bidder if the $185,000 offer is not immediately accepted.
D) Pay the $200,000.
2. After losing an important business contract with an overseas client, a negotiator learns that her counterpart felt she rushed the process. The business negotiator thought she was being efficient with their time. Which approach would allow her to improve her cross-cultural negotiation skills?
A) Rely?ÿon cultural stereotypes to formulate quick reactions to a counterpart's behavior.
B) Insist?ÿon the use of objective criteria during any future negotiation process.
C) Study?ÿthe context and the person opposite of her at the bargaining table.
D) Clarify time management issues at the start of the negotiation?ÿprocess.
3. Refer to the following scenario for the next 4 questions. A pharmaceutical company has been struggling over the past year. The CEO announced his planned retirement at the beginning of the year, and the board of directors recently hired a replacement who is from the hospitality industry. Sales have been flat, and the board and stakeholders are looking for growth. They believe that the experience the new CEO brings will be successful in creating growth. In his second week with the company, the new CEO visits the chief human resources officer (CHRO) and advises her that he wants a particular training company to train all the sales staff. He has used this training company in the past and believes this will improve sales. He advises the CHRO to call them and tell them he referred her and to get on this quickly. He then leaves. The CHRO knows that this violates the company's procurement policy of requiring three bids. She is also concerned that the training company may not be familiar with the legal regulations of pharmaceutical companies. In addition, the CHRO is not certain that a lack of training is really the solution to the problems the company has been experiencing. The CHRO learns that the competition has changed significantly?ÿover the past year, with much lower-priced options on the market. The sales team has also shared with the CHRO that the vice president of sales refuses to compete on price. Which is the best course of action that the CHRO should take with the information received?
A) A. Discount the information until the training has been completed and then determine if the feedback is still valid and needs to be addressed.
B) B. Advise the salespeople to begin sending e-mails directly to the marketing department, with specific examples of business lost because of price.
C) C. Validate with the VP of sales why the feedback has not been acted on or?ÿbrought to the senior leadership team meetings.
D) D. Notify the CEO that the likely source of the problem has been identified, and it does not appear to be training.
4. The VP of sales agrees with the CEO that sales training would be helpful but says there is no way the sales team has time for it before the end of this year. If there is any hope of achieving their sales quotas, they have to be out selling full-time through year-end. Which steps should the CHRO take to influence the VP of sales to begin the training sooner?
A) A. Postpone the training until Q1, so that sales do not further decline.
B) B. Consult with the CEO on this, but do not include the VP of sales.
C) C. Recommend that she and the VP of sales discuss these concerns with the CEO.
D) D. Schedule the training as planned, and inform the CEO that it will be done.
5. The VP of sales?ÿhas requested that he conduct the new sales training as part of a phased retirement plan. The VP argues that this would allow a search for a high-potential replacement immediately, while the VP could stay gainfully employed as a trainer. Given the state of affairs in the sales department, the CHRO has concerns about the VP's capability and effectiveness in performing either of these roles. Which recommendation should the CHRO make to address the VP's request?
A) A. Recommend that the VP of sales discuss the proposal with the CEO.
B) B. Explore?ÿother phased retirement options with the VP of sales and the CEO.
C) C. Rule?ÿout the idea immediately and take a strong position against it.
D) D. Concede, and proceed with plans for the VP of sales to teach the course.
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