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CIPS L4M5 Exam Syllabus Topics:

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

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CIPS Commercial Negotiation Sample Questions (Q328-Q333):

NEW QUESTION # 328
A negotiation meeting commences with the supplier asking the buyer 'How do you feel about the service you receive from us currently?' The supplier then asks 'What do you think about our latest products?' followed by
'How do we compare with other suppliers you use?' The supplier is using which type of questions?

Answer: C

Explanation:
Reference: CIPS L4M5 Study Guide, Section 3.2 - The Negotiation Process


NEW QUESTION # 329
Which of the following is an example of non-verbal communication?

Answer: B

Explanation:
Reference: CIPS L4M5 Study Guide, Section 3.2 - The Negotiation Process


NEW QUESTION # 330
Which of the following are types of non-verbal communication that could be used during a negotiation meeting? Select THREE that apply:

Answer: B,C,D


NEW QUESTION # 331
Commercial negotiations on prices cover a range of aspects including pricing arrangements. A buyer may negotiate for a 'fixed price agreement'. Why is a fixed price agreement advantageous to the buyer?

Answer: B

Explanation:
Afixed price agreementprovides the buyer withcost predictability. Once the price is agreed upon, the buyer is insulated from any cost increases on the supplier's side. The supplier bears the risk of fluctuating input prices, which simplifies cost control and contract administration for the buyer.
"With a fixed price arrangement, the buyer is protected from future price increases and does not need to monitor the supplier's ongoing costs. This is particularly useful for budgeting and forecasting." (L4M5 Commercial Negotiation, 2nd edition, Section 2.1 - Fixed Price Agreements)


NEW QUESTION # 332
What is the most likely outcome when two organisations with adversarial relationship negotiate with each other?

Answer: D

Explanation:
An adversarial relationship in purchasing and supply arises when identical or equivalent good or services are available from competing suppliers and buyers/sellers are trying to gain an advantage over each other. Low levels of trust are characteristic of adversarial relationships. The outcome when two organisations with adversarial negotiate is most likely to be win-lose.
Reference:
Adversarial purchasing - Wikipedia
CIPS study guide page 32-35


NEW QUESTION # 333
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