Leading global excellence in procurement and supply CIPS Negotiation Challenge Dilemmas Teacher pack with answers Name: Date:

Leading global excellence in procurement and supply You are in negotiation with your flatmates, trying hard to convince them you should have a party at your house on Saturday. You have been revising hard for crucial exams and feel you all deserve “just one night off”. You have presented your case well and think they might agree but an uneasy silence has developed as they look at each other to see who is going to respond. Which of the following would you do and in what order? 1.Go over your argument again 2.Ask them a question 3.Stress that if ALL your friends are invited it will be the best houseparty ever 4.Smile gently and say nothing 5.Excuse yourself for a comfort break for a couple of minutes. Party Animal

Leading global excellence in procurement and supply 4, 3, 1, 5, 2 4, Remember – silence is golden! The first person to break the silence in a negotiation generally concedes 3, Emotion is the most powerful of any persuasion methods 1, A credible logical argument supporting your issue is second in the power of persuasion 5, Taking a recess is another way of holding silence for longer and gives you time to review your strategy 2, Asking questions will simply re-open dialogue and remove any pressure. Party Animal

Leading global excellence in procurement and supply You are out shopping with a friend and see a great shirt which you have your heart set on. However, the shirt on display is the only one in your size and has a small black mark on the collar. You request a discount and the sales assistant wants more than you proposed. In order of priority which of the following would you do? 1.Ask for five minutes to think and discuss with your friend 2.Accept the deal 3.Stay silent, smile and maintain eye contact 4.Ask to speak to the Manager 5.Try to make him/her feel unreasonable 6.Say ‘No’ and decline Take it or leave it

Leading global excellence in procurement and supply 5, 3, 4, 1, 2&6 5 - The use of Emotion in a Negotiation is most powerful and when the other party feels unreasonable they will generally concede 3 - Silence is uncomfortable and the other party will mostly break the silence within 10 seconds with small movement 4 - Always ensure you are talking to the decision maker 1 -Taking time out to re-asses and consider any proposal from the other party is preferable to reacting to their offer immediately and without thought 2 - is acceptance which is non-assertive behaviour 6 - could escalate into conflict. Neither option 2 or 6 will get you the best deal. Take it or leave it

Leading global excellence in procurement and supply You need to replace your laptop prior to starting University. You are in a Negotiation in ‘Laptop World’ proposing a discount plus extras. The sales assistant insists it would be very difficult to give any discount so only token movement has been made. What would be the order of your preference of these 6 possible courses of action? 1.Ask a friend to return to the shop with you for moral support 2.Agree to move considerably from your opening proposal 3.Agree to move slightly from your opening proposal 4.Allow the Negotiation to go to deadlock and return home without the laptop 5.Be open about your feelings and the lack of movement 6.Explain to the sales assistant your reasons for asking for a discount. Still apart

Leading global excellence in procurement and supply 5, 6, 1, 3, 4, Emotion – The most powerful persuasion method has the best chance of getting you to the best possible outcome 6 - Logic – Get your logic in first with compelling argument to support your position and you will have a greater chance of gaining movement 1 - Change Negotiators – Sometimes changing personalities will help gain movement 3 - There is a cost to this option. Always get something back in return for any movement you make 4 - Threat – If threat is used be prepared to carry it through and use with care as it can damage relationships 2 - Compromise – The behaviour of last resort. The movement will be costly for you. Still apart

Leading global excellence in procurement and supply You are buying your first car with your savings. You have set your mind on a particular second hand model and have obtained prices from three garages. Garage A B C Price £5100 £5300 £5295 Write down your negotiation objectives for each garage – (three actual amounts, an Ideal price, a realistic price and a walk away price. The various features of the purchase (tax, mot, car mats, fuel etc) are identical for each. Fair and reasonable

Leading global excellence in procurement and supply Whatever target price you have decided to set through effective preparation and planning, your targets should be the same for each garage Garages B and C are simply conditioning you to change your starting point The make, model and various features of the purchase (tax, mot, car mats, fuel etc) are identical for each garage so therefore your target price should be the same E.g. Targets for Garages A, B and C –Ideal=£4335 Realistic=£4590 Walk-Away=£5000 The price students record is largely irrelevant. We are looking for a clear understanding on how to recognise prices as a conditioning tactic plus strategies to counter these tactics from each garage. Fair and reasonable

Leading global excellence in procurement and supply You are home alone and receive a phone call from your mobile phone provider about this years price increase. Which would you do and in what order? 1.Stay on the line in order to ascertain the specific details 2.Suggest you will go into your local mobile phone shop to discuss the situation 3.Tell the caller you will not be accepting any price increases 4.Request they send you the relevant information through the post or via 5.Express your disappointment and mention that you wanted to stay a loyal customer but this would make you consider taking your custom to another provider. A testing phone-in

Leading global excellence in procurement and supply 5, 3, 4, 2, 1 5 – Linking Emotion with a warm veiled threat will put you securely in a position of power within the negotiation 3 – Both warm with the caller and tough on the issue. Assertive behaviour will ensure your credibility throughout the negotiation. Getting your logic and reasoning in first will also add to your position of power. Care to use good, sound, logical reasoned argument 4 – This option simply delays the inevitable need to negotiate. That said, it allows you time to make comparisons with other providers 2 – Suggests you are willing to accept some kind of increase when you arrive at the shop. This option will however buy you time to plan and prepare 1 – You will react rather than respond and will not be in a position to drive a good deal due to lack of preparation and planning. A testing phone-in

Leading global excellence in procurement and supply You and 6 friends are enjoying an evening meal at the local Italian restaurant. The main meal was great but the service was poor and desert took over an hour to arrive. You complain and request a reduction in the bill. Which of the following responses suggests the waiter is prepared to reduce the cost of your meal? 1.We are prepared to offer you a free soft drink on the house but a reduction in the bill would be very difficult 2.Our standard policy is to apologise and offer a free drink on the house 3.Please accept our apologies. We do not give discounts as it is against company policy 4.I wouldn’t be in a position to offer you a discount I’m afraid 5.As you ate everything and haven’t mentioned the service until now it’s almost impossible for me to pass a reduction through the till. Mirror, signal, manoeuvre

Leading global excellence in procurement and supply 1, 2, 4, 5 1 – ‘Very difficult’ does not mean impossible and is a signal of movement from the other party 2 – ‘Standard policy’ means that with good negotiating skills the other party could be persuaded to move. With the service being so poor we were looking for much more than your ‘standard’ policy in terms of discount 4 – ‘I’ wouldn’t be in a position suggests someone else is the decision maker. Ask to speak to the manager 5 – ‘almost impossible’. A signal for movement as the waiter is not saying it is impossible. The skill is to master the art of listening and pick up on any signals of movements throughout a negotiation Mirror, signal, manoeuvre