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CIPS L4M5 Exam Syllabus Topics:

SectionObjectives
Negotiation planning and preparation- Preparation techniques
  • 1. Setting objectives and targets
    • 2. Information gathering and analysis
      • 3. BATNA and reservation points
        Negotiation fundamentals- Principles of commercial negotiation
        • 1. Definition and purpose of negotiation
          • 2. Types of negotiation (distributive vs integrative)
            Negotiation strategies and tactics- Approaches to negotiation
            • 1. Collaborative and competitive strategies
              • 2. Tactical behaviours and influence techniques
                • 3. Concession strategies
                  Power, ethics and communication in negotiation- Influencing factors
                  • 1. Communication and interpersonal skills
                    • 2. Sources of negotiation power
                      • 3. Ethical considerations in negotiation

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                        CIPS Commercial Negotiation Sample Questions (Q156-Q161):

                        NEW QUESTION # 156
                        A buyer is approaching a negotiation where the company is in a low-power negotiating position in relation to the supplier. How can the buyer improve leverage and power with the supplier?

                        Answer: C


                        NEW QUESTION # 157
                        AB Manufacturing seeks to buy a new materials resource planning (MRP) software system. At the 'defining the business need' stage of the procurement cycle, the procurement manager ensured that all the internal stakeholders involved had the power to contribute and sign off on requirements. For the MRP system, the procurement manager consulted the head of production planning of AB Manufacturing. The head of production contributed to demand levels, existing manufacturing planning, and existing staff levels. What type of power does the head of production demonstrate?

                        Answer: C


                        NEW QUESTION # 158
                        Which of the following is definition of elasticity of demand in microeconomics?

                        Answer: B

                        Explanation:
                        Elasticity refers to the responsiveness of quantity demanded or quantity supplied to a change in price or another factor:
                        The price of a product can be described as being elastic if a small change in price leads to a big change in demand.
                        The price of a product can be described as being inelastic if a big change in price leads to a small change in demand.
                        The formulae of elasticity of demand is known as the following:
                        Text Description automatically generated with low confidence


                        NEW QUESTION # 159
                        An organisation is developing the specification for a capital purchase project. An important stakeholder has doubt on the draft specification. The buyer invites him to the product function meetings. In these meeting the attendees can raise their concerns, the specification development team takes in all the concerns and adjusts the specification accordingly. What kind of technique is the specification development team using?

                        Answer: D

                        Explanation:
                        :
                        In the scenario, anyone who has concerns can join a meeting to raise their thoughts. The project team takes the stakeholders' ideas into account. This is known as coalition: A group of people or organisations come together and work collaboratively to achieve some goals. Specifically in this scenario, the goal is creating a high-quality and unified specification for an important project.


                        NEW QUESTION # 160
                        Which of the following is a description of mark-up?

                        Answer: A

                        Explanation:
                        Mark-up is defined as profit expressed as a percentage of the cost. It calculates the profit margin based on the cost price rather than the selling price, which allows companies to determine how much they are earning over their production or purchase costs. This aligns with standard accounting and CIPS definitions of mark-up in procurement contexts.


                        NEW QUESTION # 161
                        ......

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