ACCA Applied Knowledge · Business and Technology · Sources of conflict and techniques for conflict resolution
In a negotiation over a supplier contract, the buyer's team focuses on the underlying needs of both sides, such as reliable delivery and predictable cash flow, and looks for options that benefit both. Which negotiation approach is this?
This is integrative, or win-win, negotiation. The parties look at underlying interests such as delivery reliability and cash flow and seek options benefiting both sides. Distributive bargaining by contrast treats the outcome as fixed, so one party's gain is the other's loss.
- ADistributive bargaining over a fixed price
- BIntegrative (win-win) negotiationCorrect
- CAdjudication by a third party
- DUnilateral imposition of terms
Explanation
Integrative negotiation explores underlying interests and creates value so both parties gain. Distributive bargaining treats the outcome as a fixed pie, where one side's gain is the other's loss. Adjudication and imposition involve no joint problem solving.
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