L4M5 practice question 17 of 35

Maria has adopted an adversarial style relationship with her stationery supplier. This relationship style can be characterised by which of the following? Select the TWO that apply.

Full set: 275 questions
Answer options
A: Minimal sharing of information Correct answer
B: Requirement to exceed expectations
C: Degree of mutual commitment
D: Use of power to seek the best possible deal Correct answer
E: Requirement to secure quality of supply
Correct Answer:
A. Minimal sharing of information; D. Use of power to seek the best possible deal
Explanation

An adversarial relationship, also known as a distributive or win-lose relationship, is characterized by a lack of trust and a focus on maximizing one's own gains, often at the expense of the other party. Key features include minimal and guarded information sharing to avoid giving the other side an advantage. Furthermore, parties often use their relative power (e.g., market position, volume of business) to force concessions and secure the best possible deal for themselves, with little regard for the supplier's profitability or the long-term health of the relationship.

Why Incorrect

Requirement to exceed expectations: This is a characteristic of collaborative or partnership relationships, where value-add is encouraged, not adversarial ones. Degree of mutual commitment: Adversarial relationships have very low mutual commitment; they are typically short-term and transactional. Requirement to secure quality of supply: Securing quality is a fundamental goal in all procurement relationships, not a unique characteristic of the adversarial style.

References

CIPS. (2019). Commercial Negotiation L4M5 Study Guide. Stamford, UK: Chartered Institute of Procurement & Supply. Chapter 1, Section 2, 'The relationship spectrum', describes adversarial relationships as having low levels of trust and information sharing.

Cox, A. (2004). The art of the possible: relationship management in power regimes and a new research agenda. Supply Chain Management: An International Journal, 9(5), pp.346-356. https://doi.org/10.1108/13598540410560705. This paper discusses power dynamics and adversarial approaches in buyer-supplier relationships.

Lysons, K., & Farrington, B. (2020). Procurement and Supply Chain Management (10th ed.). Pearson. Chapter 21 discusses the spectrum of supplier relationships, from adversarial to collaborative.

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