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Purchasing agents negotiate price concessions or discounts is an example of:

A) Strategic planning
B) Cost leadership
C) Value chain analysis
D) Price negotiation

1 Answer

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Final answer:

The purchasing agents negotiating price concessions or discounts is an example of Price negotiation, and while it can contribute to a cost leadership strategy, it is more a specific operational tactic than a broad strategic approach.

Step-by-step explanation:

The act of purchasing agents negotiating price concessions or discounts is an example of Price negotiation. This activity is directly linked to the operational strategies of a company, which aims to reduce costs and increase efficiency. It is not related to strategic planning, which is about setting long-term company goals, nor value chain analysis, which is the study of the activities that create value in a business. It is closest to cost leadership in the sense that gaining price concessions can contribute to a cost leadership strategy, which involves being the lowest cost producer in an industry. Still, price negotiation is a more specific practice within that strategy or other strategic approaches.

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