SHEET 2026 CRITICAL PURCHASING NEEDS
AND CONTRACT STANDARD MARKS
⫸ Results Oriented Budgeting. Answer: Attempts to link a resource
allocation to performance criteria
⫸ Budget Cycle. Answer: 1. Planning 2. Formalization 3.
implementation 4. evaluation
⫸ Procurement Cards. Answer: payment method whereby internal
customers are empowered to deal directly with suppliers using a
credit card
⫸ Four principles of negotiation. Answer: 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. Answer: differences of perception,
emotions, communications
,⫸ differences of perception. Answer: it is crucial for both sides to
understand the other's viewpoint
⫸ emotions. Answer: negotiation can be a frustrating process
⫸ communications. Answer: negotiators may not be speaking to each
other, but may simply be grandstanding for their respective
constituencies
⫸ establish a BATNA. Answer: The Best Alternative To a Negotiated
Agreement
⫸ stonewalling. Answer: this occurs when one side has no intention
of reaching an agreement unless there is an irresistible offer.
⫸ good samaritan. Answer: 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. Answer: 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. Answer: when the other side has made its final
offer and says it will no longer negotiate
⫸ splitting the difference. Answer: this involves offering to cut the
dollar difference in half, thus avoiding the discussion of the details of
the deal
⫸ nickel and dime. Answer: the other side wants to negotiate each
and every point
⫸ good/bad cop. Answer: this tactic is used to elicit feelings of
sympathy and understanding in order to get concessions
⫸ pity me. Answer: this tactic is designed to rely on the sense of fair
play and make it hard to walk away
⫸ piece-by-piece. Answer: this tactic is used to negotiate each item of
a contract
⫸ total package. Answer: this tactic is used when an offer is
acceptable, but one or two major elements still need to be negotiated.
⫸ refusal to negotiate. Answer: in this tactic the other side wants a
concession even to talk
, ⫸ status. Answer: 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.
⫸ escalating demands. Answer: extreme demands may be made to
persuade you to lower your expectations for a final agreement.
⫸ divide and conquer. Answer: this is used to persuade various
members of the team to accept the opposition's position
⫸ defense. Answer: this tactic tries to keep the other side on the
defensive
⫸ negotiation tactics. Answer: win/win, spiraling agreements,
changing of position, gathering information, making the cake bigger
⫸ win/win. Answer: the goal of principled negotiation is that the
interests of both parties are satisfied
⫸ spiraling agreements. Answer: 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. Answer: formulate the proposals in a
different way, without changing the final result