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ACCA Applied Knowledge · Business and Technology · Sources of conflict and techniques for conflict resolution

A procurement manager is negotiating with a supplier. She focuses on the underlying needs of both sides, such as reliable delivery for her firm and steady volumes for the supplier, and looks for terms that benefit both. Which negotiation approach is she using?

She is using integrative, or win-win, negotiation. It focuses on the underlying interests of both parties and seeks terms that benefit each, rather than treating the deal as a fixed pie where one side's gain is the other's loss.

  1. ADistributive bargaining over a fixed price
  2. BIntegrative (win-win) negotiationCorrect
  3. CForcing the supplier to accept her terms

Explanation

Integrative negotiation looks at the interests behind positions and seeks solutions that create value for both sides. Distributive bargaining treats the issue as a fixed pie, where one side's gain is the other's loss. Forcing is a competing style that ignores the other party's needs.

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