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CIPS L4M5 Exam Syllabus Topics:

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

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CIPS Commercial Negotiation Sample Questions (Q162-Q167):

NEW QUESTION # 162
Distributive approach in negotiation is typified by which of the following?

A. Distributive approaches are inherently inferior tointegrative approaches in commercial negotiation
B. Both parties share 50:50 of the 'pie'
C. Both parties understand each other's goals
D. Each party attempts to maximise the value obtained at other's expense

Answer: D

Explanation:
Distributive approach to negotiation used when the interested parties are attempting to divide something up or distribute something of value, also known as zero-sum approach or win-lose. Commercial situations often demand a distributive bargaining approach, if the 'pie' is inherently of a fixed size. In this case, any conflicts must be resolved by sharing it.
In win-lose approach, a negotiator wants to maximise the value obtained in a single deal, the relationship with the other party is not important. Therefore, a strong party may win more than 50% of the metaphorical 'pie'.
It should not be assumed that win-win can be applied to all commercial negotiations, or that win-lose approaches are inherently inferior.

NEW QUESTION # 163
When is the best time for buyer to propose the negotiation agenda to potential supplier?

A. Atconclusion stage
B. At opening stage
C. At preparation stage
D. At testing stage

Answer: C

Explanation:
A business negotiation agenda is a formal agreed upon list of goals to be achieved or items to be discussed in a particular order during a meeting or negotiation. Agendascan be formal and obvious, or informal and subtle in negotiations.
The agenda is one of the main structural elements of negotiation, in addition to such questions as site, identification of participants, and elements of timing. Together, they answer the who, what, when, and where questions. As with other aspects of negotiation, the agenda can be used either manipulatively to enhance leverage or to improve the prospects for agreement and the possibilities for mutual gain. In most cases, it will be used bothways, reflecting the nature of negotiation as a "mixed-motive" situation.
Although it can be instrumental to [research] volunteer as a sole source to write the agenda, in most cases it becomes a joint activity to construct a consensual basis for subsequent negotiation. In these situations, agenda-building becomes one of the pre-negotiation activities that set the tone for the relationship (Saunders,
1985). In other situations, the parties may engage in actual negotiation without a formal or written agenda.When this occurs, the risks and uncertainties may be high but the party who appreciates the importance of the informal agenda has a tremendous advantage.
Whether one plans it or not, during the course of negotiation the parties will discuss a finite set of issues in some sequence and from a particular perceptual framework. Consciousness of the universality and centrality of the agenda is prerequisite to guiding negotiation to a successful conclusion.

NEW QUESTION # 164
A negotiation is coming to the end. Both parties haven't had any official commitments. Right before leaving the room, the buyer strongly disagrees with supplier's set up prices and requests a discount. The supplier doesn't reply but nods and smiles. Can the buyer consider these actions as an acceptance?

A. No, because nodding and smiling are not clear signs of neither acceptance nor rejection
B. Yes, because negotiator should rely on non-verbal communications only
C. No, because nodding and smiling are etiquette of polite rejection
D. Yes, because smiling shows supplier's readiness in signing the deal off

Answer: A

Explanation:
Good negotiators are attuned to all stimuli and not just the verbal and written information exchanged. Tone of voice, body language, facial expressions and other clues from TOP are noticed, and with experience and knowledge, interpreted correctly. This interpretation may also involve knowledge of culture norms and values. A smile, a 'yes' and the type of hospitality received, (in the business context), can mean very different things in different international business cultures.
Trained negotiators will consider non-verbal communication (such as nodding and smiling) and body language as one source of signal from TOP, but will rarely rely wholly on this as a guide to what TOP is thinking or feeling. Furthermore, international and regional cultural considerations must be included here to avoid errors in interpretation. Emotional intelligence also has an important role in forming a more holistic perspective of what TOP may be thinking or feeling.

NEW QUESTION # 165
Finding the middle ground between buyer and supplier by moving towards each other's position is a satisfactory way to complete contract negotiations and maintain ongoing relations for future negotiations. Is this statement correct?

A. No, because it will damage your credibility in contract negotiations
B. Yes, because both parties will get as close to their end result as possible
C. No, because the other party will take advantage if you move your position
D. Yes, because the buyer will always move further than the supplier

Answer: B

Explanation:
Finding a middle ground, also known ascompromise or convergence, is a hallmark of collaborative or integrative negotiation. It allows both parties to secure partial wins, supports longer-term relationships, and promotes ongoing goodwill for future dealings.
"Negotiators must balance assertiveness with cooperation. Meeting halfway can lead to agreements that meet minimum needs of both parties while preserving the relationship." (L4M5 Commercial Negotiation, 2nd edition, Section 1.1 - Collaborative Approaches to Negotiation)

NEW QUESTION # 166
Which type of question should be used to receive affirmation on statement?

A. Closed
B. Leading
C. Narrow
D. Open

Answer: A

Explanation:
Different questioning styles can be used to elicit desired responses:
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NEW QUESTION # 167
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