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CIPS L4M5 Exam Syllabus Topics:

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

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CIPS Commercial Negotiation Sample Questions (Q79-Q84):

NEW QUESTION # 79
Which of the following are most likely to be macro factorsthat may influence the balance of power in commercial negotiation? Select THREE that apply.

Answer: B,E,F

Explanation:
Explanation
All one-to-one commercial negotiations between a specific purchaser and a specific supplier take place within an industrial market and a larger business environment characterised by multiple forces which both parties typically have little control over. STEEPLE framework highlights the 6 main external influences on a business:
Table Description automatically generated

LO 1, AC 1.3


NEW QUESTION # 80
Which of the following would be considered appropriate influencing techniques in contract negotiation?
Select TWO that apply.

Answer: B,D

Explanation:
Framing and re-framing (C) and Anchoring (E) are powerful influencing techniques:
Framing and re-framing (C): This technique shapes how information is presented to make specific aspects more compelling or relevant.
Anchoring (E): Anchoring sets an initial reference point, which influences how subsequent information is perceived.
These techniques help negotiators control the flow and focus of discussions, aligning with CIPS recommendations for strategic influence in negotiations.


NEW QUESTION # 81
There are no commitments in hypothetical questions. Is this statement true?

Answer: C

Explanation:
There are four types of questions that can be used in a commercial negotiation:
Hypothetical questions, where you ask about a possible situation or abstract concept, are very useful at the testing and proposal phases. Hypothetical question does not state any commitment as it is only about 'if something happens, then ...'. This type of question can be useful at giving suggestion.
Text Description automatically generated

LO 3, AC 3.3


NEW QUESTION # 82
An integrative negotiation style involves ...

Answer: A

Explanation:
Integrative negotiation focuses on collaboration, transparency, and the pursuit of shared benefits. It emphasizes mutual problem-solving and long-term value creation rather than short-term wins.
Reference: L4M5 Commercial Negotiation 2nd edition (CORE), Section 1.1 - Integrative Negotiation Approach


NEW QUESTION # 83
Freefields Housing Authority (FHA) is a housing provider that has outsourced a range of management services using fixed-price long-term contracts. FHA's regular supplier credit reviews have identified that some key outsourced service suppliers are at risk of insolvency due to high inflation rates observed in the macroeconomic climate. Which of the following actions would enable FHA to reduce this risk for the lifetime of the affected contracts?

Answer: C


NEW QUESTION # 84
......

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