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    PracticeACCAACCA BT — Business & Technology Practice Exam 2Question 17
    Medium2 marksMultiple Choice
    Syllabus E: Personal effectiveness and communication in businessSyllabus ENegotiationPersonal Effectiveness

    ACCA · Question 17 · Syllabus E: Personal effectiveness and communication in business

    [Section A] During contract negotiations, a procurement manager for a restaurant chain and a local vegetable supplier reach an agreement. The restaurant agrees to pay a slightly higher price per kilogram, and in return, the supplier agrees to deliver the produce washed and pre-chopped, saving the restaurant significant kitchen prep time. What type of negotiation outcome does this represent?

    Answer options:

    A.

    Win-Lose (Distributive)

    B.

    Lose-Lose

    C.

    Win-Win (Integrative)

    D.

    Compromise

    How to approach this question

    Assess the outcome for both parties. Did both achieve a beneficial result through collaboration?

    Full Answer

    C.Win-Win (Integrative)✓ Correct
    Integrative (Win-Win) negotiation occurs when parties collaborate to find a 'larger pie'. By adding a new variable (pre-chopping the vegetables), both parties achieved their underlying interests (higher margins for the supplier, lower labor costs for the restaurant).

    Common mistakes

    Confusing Win-Win with Compromise. Compromise is 'meeting halfway' (e.g., splitting a price difference). Win-Win involves finding creative solutions that satisfy both parties fully.
    Question 16All questionsQuestion 18

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