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| Section | Weight | Objectives |
|---|---|---|
| Know how to prepare for negotiations with external organisations | 35% | - Planning and resources
|
| Understand key approaches in the negotiation of commercial agreements with external organisations | 35% | - Power dynamics in negotiation
|
| Understand how commercial negotiations should be undertaken | 30% | - Review and improvement
|
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All these three TestKingFree L4M5 exam questions formats contain valid, updated, and real Commercial Negotiation exam questions. The CIPS L4M5 exam questions offered by the TestKingFree will assist you in L4M5 Exam Preparation and boost your confidence to pass the final CIPS L4M5 exam easily.
NEW QUESTION # 164
Ben Dunne is a procurement manager and is responsible for a contract that supplies translation services to his organisation. Ben has the authorisation to extend the contract for a further two years, but has aimed for a further 2% discount. Ben is aware that the supplier's previous performance has been inconsistent, but during the negotiation Ben asks the supplier to present their performance to date on this contract. Which stage of the negotiation cycle is this?
Answer: B
Explanation:
The testing stage of the negotiation cycle is where each party explores and validates information provided by the other side. By asking the supplier to present their performance to date, Ben is testing claims, checking credibility, and assessing whether the supplier's performance supports or undermines their position in the negotiation. This is distinct from preparation (which happens before the meeting), bargaining (where concessions and tradeables are exchanged), and agreement (where final terms are confirmed). CIPS highlights that testing allows negotiators to challenge assumptions, clarify evidence, and strengthen their position before moving into bargaining or closure.
Reference: CIPS L4M5 Commercial Negotiation (CORE), 2nd edition - LO 2.2: Stages of the negotiation cycle, including testing and validation.
NEW QUESTION # 165
According to Mendelow's Matrix, how should stakeholders with high interest but low power be managed?
Answer: A
Explanation:
Mendelow's Matrix categorises stakeholders by power and interest. High-interest, low-power stakeholders must be kept informed, as they care about outcomes but lack direct influence. Keeping them informed builds trust and reduces resistance. By contrast, high power/interest stakeholders are key players, while low power
/low interest require minimal effort. This tool ensures negotiation strategies align with stakeholder dynamics, preventing overlooked risks or conflicts.
Reference: CIPS L4M5 (2nd ed.), LO 3.1 - Stakeholder mapping using Mendelow's Matrix.
NEW QUESTION # 166
Which of the following is an example of non-verbal communication?
Answer: C
Explanation:
Reference: CIPS L4M5 Study Guide, Section 3.2 - The Negotiation Process
NEW QUESTION # 167
Sumitomo Rubber Industries (SRI) is a Japan-based tyre manufacturer. In order to increase production, SRI is sourcing rubber from Southeast Asian firms. Which of the following micro factors are most likely to shift the balance of power to supplier? Select TWO that apply
Answer: B,E
Explanation:
There are many factors that can influence the balance of power in a negotiation. These factors are classified into 3 levels:
Macro level: STEEPLE framework: social, technological, economic, environment, political, legal and ethical Micro level: Porter's five forces:
Diagram Description automatically generated
One-to-one buyer-supplier dynamics.
The question asks about the micro factors that increases supplier's bargaining power. Among 5 answers, only
2 are likely to increase buyer's power:
There are no close substitutes for rubber: the buyer has to buy rubber, not any other material.
Costs of changing suppliers are high: buyer entails a large barrier if they want to switch supplier.
Other answers cannot be correct because:
SRI sets up its own rubber plantation: Buyer secures its own supply
SRI's purchase amount makes significant proportion of supplier revenue: Suppliers are reliant on buyer. If the buyer stops buying from them, they can face serious cash flow problems Rubber from different suppliers is virtually similar: undifferentiated product would shift the power balance towards buyer.
NEW QUESTION # 168
In a negotiation for a new contract, the supplier suggests the buyer to shorten payment period from 45 days to
15 days because they are investing in new facilities to expand the supply capacity. The buyer replies that she can only sign off the deal if the payment period is 30 days or more since it often takes at least 30 days for her company to collect the payment from customers. A permission from senior management is required for this suggestion. In order to ensure that supplier understands the matter, she reiterates it throughout the meeting.
Which tactics is she using?
1. Outrageous initial demand
2. Salami slicing
3. Lack of authority
4. Broken record
Answer: D
Explanation:
:
In the scenario, the buyer states that permission from senior management is required to shorten payment period and she only has authority to sign off a deal in which the payment period lasts at least 30 days. The buyer is using lack of authority. The buyer also repeats the matter again throughout the negotiation. This is a common tactic known as broken record.
NEW QUESTION # 169
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