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CIPS Commercial Negotiation L4M5 Question # 113 Topic 12 Discussion

CIPS Commercial Negotiation L4M5 Question # 113 Topic 12 Discussion

L4M5 Exam Topic 12 Question 113 Discussion:
Question #: 113
Topic #: 12

IHL has been supplying to XYZ Ltd for months. XYZ Ltd procurement manager Diana realises that the IHL's input prices are dropping and this is a good time to re-negotiate the price of the contract. She invites IHL representative to XYZ headquarter to make a bargain on the current price. At the opening stage of the negotiation, Diana requests a 10% reduction in price with an increase in volume purchased.

Is Diana's action appropriate in the opening phase?


A.

Yes, because the negotiation should be done as quick as possible


B.

Yes, because Diana's proposal is a fair trade for both parties


C.

No, because Diana should state exactly the increasing quantity


D.

No, because Diana has put the markers down too soon


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