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Exam (elaborations)

CPPB Exam Questions and Answers 2024/2025

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Procurement Technology  Helps accelerate business improvements Results Oriented Budgeting  Attempts to link a resource allocation to performance criteria Budget Cycle  1. Planning 2. Formalization 3. implementation 4. evaluation Procurement Cards  payment method whereby internal ...

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  • October 10, 2024
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  • 2024/2025
  • Exam (elaborations)
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  • CPPB
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CPPB Exam Questions and Answers
2024/2025
Procurement Technology

 Helps accelerate business improvements


Results Oriented Budgeting

 Attempts to link a resource allocation to performance criteria


Budget Cycle

 1. Planning 2. Formalization 3. implementation 4. evaluation


Procurement Cards

 payment method whereby internal customers are empowered to deal directly with
suppliers using a credit card


Four principles of negotiation

 1. separate people from the problem
2. create a variety of options before deciding which to pursue

3. focus on interests, not positions

4. use objective criteria




people elements to negotiation


 differences of perception, emotions, communications


differences of perception

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 it is crucial for both sides to understand the other's viewpoint


emotions


 negotiation can be a frustrating process


communications

 negotiators may not be speaking to each other, but may simply be grandstanding for
their respective constituencies


establish a BATNA

 The Best Alternative To a Negotiated Agreement


stonewalling


 this occurs when one side has no intention of reaching an agreement unless there is an
irresistible offer.


good samaritan

 the other side is using this technique when it acts as if it is doing you a favor or making
a great sacrifice with its offer in order to put you off guard and persuade you to
accept it


opposition negotiation tactics


 stonewalling, good samaritan, take it or leave it, splitting the difference, nickel and
dime, good/bad cop, pity me, piece-by-piece, total package, refusal to negotiate,
status, escalating demands, divide and conquer, defense, win/win


take it or leave it

 when the other side has made its final offer and says it will no longer negotiate


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splitting the difference

 this involves offering to cut the dollar difference in half, thus avoiding the discussion of
the details of the deal


nickel and dime

 the other side wants to negotiate each and every point


good/bad cop


 this tactic is used to elicit feelings of sympathy and understanding in order to get
concessions


pity me

 this tactic is designed to rely on the sense of fair play and make it hard to walk away


piece-by-piece

 this tactic is used to negotiate each item of a contract


total package


 this tactic is used when an offer is acceptable, but one or two major elements still need
to be negotiated.


refusal to negotiate

 in this tactic the other side wants a concession even to talk


status

 sometimes the party you are negotiating with is perceived to have a higher status,
such as when the president of a company personally negotiates with a buyer.


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escalating demands

 extreme demands may be made to persuade you to lower your expectations for a
final agreement.


divide and conquer

 this is used to persuade various members of the team to accept the opposition's
position


defense

 this tactic tries to keep the other side on the defensive


negotiation tactics

 win/win, spiraling agreements, changing of position, gathering information, making
the cake bigger


win/win


 the goal of principled negotiation is that the interests of both parties are satisfied


spiraling agreements

 begin by reaching a minimum agreement even though it is not related to the
objectives and build, bit by bit, on this first agreement


changing of position

 formulate the proposals in a different way, without changing the final result


gathering information

 ask for information from the other party to clarify their position


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