L4M5 practice question 2 of 35

An experienced procurement professional is developing strategies for forthcoming negotiations with her key supplier. To avoid negotiation deadlocks, she identifies the reasons why negotiations could fail. Which of the following are most likely to be reasons for negotiation failures? Select TWO that apply.

Full set: 275 questions
Answer options
A: Underlying interests of TOP are overlooked Correct answer
B: MIL objectives are well established
C: Both parties focus on common interests
D: Buyer helps to create a co-operative atmosphere
E: Unachievable objectives were set up Correct answer
Correct Answer:
A. Underlying interests of TOP are overlooked; E. Unachievable objectives were set up
Explanation

Negotiation failures and deadlocks frequently stem from inadequate preparation and unrealistic expectations. Setting unachievable objectives from the outset creates a situation where no mutually acceptable agreement is possible, as the target is fundamentally out of reach for one or both parties. Furthermore, a failure to look beyond stated positions to understand the underlying interests of the other party (TOP) prevents the discovery of creative solutions or trade-offs that could satisfy both sides' core needs. Both of these factors block the path to a successful, negotiated outcome.

Why Incorrect

B. Well-established MIL (Must, Intend, Like) objectives are a cornerstone of good preparation and help prevent failure by clarifying priorities.
C. Focusing on common interests is a key strategy for successful integrative (win-win) negotiation, not a reason for failure.
D. A co-operative atmosphere facilitates communication and problem-solving, making a successful outcome more likely, not less.

References

CIPS. (2019). Commercial Negotiation L4M5 Study Guide. Profex Publishing. Page 51, Section 2.2, 'Setting objectives', warns against setting unrealistic objectives. Page 61, Section 2.4, discusses the importance of understanding the other party's position and interests.

Lax, D. A., & Sebenius, J. K. (1986). The Manager as Negotiator: Bargaining for Cooperation and Competitive Gain. Free Press. Chapter 5, 'Interests: The Measure of Negotiation', emphasizes that failing to address the other party's interests is a primary barrier to agreement.

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