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CIPS L4M5 Exam Syllabus Topics:

SectionObjectives
Understand how to prepare for negotiations in procurement and supply- Understand how to prepare for a negotiation
  • 1. Defining objectives and variables
  • 2. Zones of potential agreement (ZOPA)
  • 3. The best alternatives to a negotiated agreement (BATNA)
  • 4. The use of bargaining mixes and trade-offs
- Analyze the factors that impact on the approach to commercial negotiations
  • 1. Ownership and stakeholder perspectives
  • 2. The impact of time limits and deadlines
  • 3. Policies, procedures and protocols
  • 4. The position of buyers and sellers
Understand the interpersonal skills required for effective negotiation- Understand the behavioral aspects of negotiation
  • 1. Conflict handling styles
  • 2. Concessions and trade-offs
  • 3. Perception and bias
  • 4. Ethical and unethical practices
- Analyze the interpersonal skills required for effective negotiation
  • 1. Assertiveness
  • 2. Influencing and persuasion skills
  • 3. Questioning and listening skills
  • 4. Body language and non-verbal communication
Understand the stages of commercial negotiations in procurement and supply- Analyze the types of approaches that can be pursued in commercial negotiations
  • 1. Pragmatic and principled approaches
  • 2. The influence of power and trust in negotiations
  • 3. Integrative (win-win) approaches
  • 4. Distributive (win-lose) approaches
- Understand the stages of a commercial negotiation
  • 1. Defining the ground rules
  • 2. Preparation and planning
  • 3. Bargaining and problem solving
  • 4. Closure and agreement implementation
  • 5. Clarification and justification

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CIPS Commercial Negotiation L4M5 Prüfungsfragen mit Lösungen (Q242-Q247):

242. Frage
Leitax is a consumer electronics firm with headquarters in the US and with a global sales presence. The company maintains seven to nine models in its product portfolio, each of which has multiple SKUs. Product life ranges from fifteen to nine months and is getting shorter. The demand planning and master planning processes at the company were ill-defined. Data relevant to forecasting were usually inaccurate, incomplete, or unavailable and the lack of objectives and monitoring mechanisms for the demand planning process meant that process improvement could not be managed. Support for supply management was equally ill-defined, as master production schedules were sporadic and unreliable and suppliers had learned to mistrust them. Leitax's newly appointed Supply chain director, Jessica realises that the "buy-in" of different functional groups was critical to the improvement of demand planning. She invites relevant stakeholders to a meeting so that they can express their opinions openly. What tactic is Jessica using?

Antwort: C

Begründung:
There are nine commonly used influence tactic:
1. Rational persuasion includes using facts, data, and logical arguments to try to convince others that your point of view is the best alternative. This is the most commonly applied influence tactic.
2. Legitimating
3. Personal appeals
4. Exchange
5. Ingratiation
6. Pressure refers to exerting undue influence on someone to do what you want or else something undesirable will occur.
7. Coalitions refer to a group of individuals working together toward a common goal to influence others.
8. Inspirational appeals
9. Consultation refers to the influence agent's asking others for help in directly influencing or planning to influence another person or group.
In the scenario, there is a problem with demand forecasting and supply chain planning in Leitax. The new Supply chain director invites the stakeholders to a meeting to find the solution. She is using coalition tactics.
Reference:
- CIPS study guide page 163-168
- Cross-Functional Alignment in Supply Chain Planning: A Case Study of Sales and Operations Planning
- 13.3 The Power to Influence - Organizational Behavior (umn.edu)
LO 3, AC 3.2


243. Frage
Which of the following are most likely to be the potential cultural differences that can make transactions with an international supplier more problematic that with local suppliers? Select TWO that apply.

Antwort: B,C

Begründung:
The question requires student to detect factors of cultural differences. Problems may occur on the international scene with such things as the importance of extending courtesy between cultures, the importance of timescales, the use of negotiating ploys, the sense of 'fair play', the use and interpretation of body language, the role of women in negotiations (or indeed, in business in general), the importance of status, the role of conflict, standards of dress and deportment and the readiness to ignore or uphold contract terms and conditions.
LO 3, AC 3.3


244. Frage
XYZ Ltd is importing goods from overseas. They prefer to pay theirsupplier in their own currency. Which of the following is a true statement?

Antwort: C

Begründung:
Explanation
The effect of a change of relative exchange rates will be determined by which currency you pay your supplier in.
Table Description automatically generated

LO 2, AC 2.2


245. Frage
The trust is built based on the other party's professional qualifications or proven or certified technical capability or experience is known as...?

Antwort: D

Begründung:
Trust is the expectation that the other party will behave in a predictable and mutually acceptable way. In inter-firm relationships, the presence and absence of trust can affect the level of cost in a relationship. The existence of trust is taught to lower the transaction cost in a relationship. Dr. Mari Sako identified taxonomy of
3 types of trust in commercial relationship, which is very useful from the perspective of procurement.
Contractual trust: Trust based on the contract with TOP. This is potentially the weakest source of trust if there is nothing else to base the trust on, but it is the quickest to establish.
Competence trust: Trust based on TOP's professional qualifications or proven or certified technical capability or experience.
Goodwilltrust: Trust based on knowing TOP has your interest at heart and will not behave opportunistically.
This is potentially the strongest type of trust, but it takes the longest time to build.


246. Frage
Lina Rawlins, a senior buyer, asks a supplier: "Can you tell me exactly what you are doing to ensure quality?" What type of question is this?

Antwort: A

Begründung:
A probing question seeks deeper information, clarifying specifics beyond surface-level responses. Lina's question is factual, detailed, and investigative - designed to uncover processes and commitments.
Hypothetical questions test options ("what if..."), reflective restate or summarise to confirm understanding, and leading steer the respondent toward a desired answer. Probing is essential in negotiations to validate claims, identify risks, and build persuasive arguments.
Reference: CIPS L4M5 (2nd ed.), LO 3.2 - Questioning techniques: probing, hypothetical, leading, reflective.


247. Frage
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