GM Typically Solicits Bids from Global Suppliers to Produce a Component

question 60

Multiple Choice

GM typically solicits bids from global suppliers to produce a component and awards a 1-year contract to the supplier that submits the lowest bid. At the end of the year, a contract is once again put out for bid, and once again the lowest cost supplier is most likely to win the bid. Which of the following is GM using?

• A) Strategic outsourcing
• B) Competitive bidding
• C) Strategic bidding
• D) Long-term alliance
• E) Hostage taking

Learn strategies for negotiators to abandon committed positions.

Define the concept of bargaining mix.

Identify and understand the three properties of commitment statements in negotiations.

Recognize the disadvantages of making extreme opening offers in negotiations.

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Definitions:

Layoffs

The act of temporarily suspending or permanently terminating employees from their jobs, often due to economic downturns or organizational restructuring.

Strike Notice

A formal announcement made by employees or a labor union of their intention to cease work in protest against their employer over certain grievances.

Bargaining Session

A period of negotiation between parties, such as employers and employees, aiming to reach agreement on issues of mutual interest.

Marathon Negotiations

Extended and often intense negotiation sessions that require stamina and persistence, typically used to describe efforts to resolve complex or critical issues.