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| Section | Objectives |
|---|
| Topic 1: Power, ethics and communication in negotiation | - Influencing factors
- 1. Communication and interpersonal skills
- 2. Ethical considerations in negotiation
- 3. Sources of negotiation power
|
| Topic 2: Negotiation planning and preparation | - Preparation techniques
- 1. Setting objectives and targets
- 2. Information gathering and analysis
- 3. BATNA and reservation points
|
| Topic 3: Negotiation strategies and tactics | - Approaches to negotiation
- 1. Collaborative and competitive strategies
- 2. Tactical behaviours and influence techniques
- 3. Concession strategies
|
| Topic 4: 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 (Q37-Q42):
NEW QUESTION # 37
Which of the following are examples of variable costs?
- A. 1 and 4 (Building and site rent and Delivery costs for materials)
- B. 1 and 3 (Building and site rent and Raw materials expenditure)
- C. 3 and 4 (Raw materials expenditure and Delivery costs for materials)
- D. 2 and 3 (Annual insurance premium and Raw materials expenditure)
Answer: C
Explanation:
Reference: CIPS L4M5 Study Guide, Section 2.2 - Cost and Price Analysis
NEW QUESTION # 38
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.
- A. Incoterms and logistics difficulties
- B. The importance of timescales
- C. Currency exchange fluctuation
- D. Payment mechanism
- E. The use and interpretation of body language
Answer: B,E
Explanation:
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
NEW QUESTION # 39
An adversarial style of negotiation is appropriate where the buyer has greater bargaining power over the supplier. In what other situations may the buyer adopt this style of negotiation?
- A. In a market that is full of alternative sources and substitute products
- B. Where there is a single sourcing strategy to eliminate the competing suppliers and retain only one
- C. In a market where the buyers are competing for fewer supply sources
- D. When the supplier is a monopolist and some advantages need to be gained from the agreement
Answer: A
Explanation:
An adversarial negotiation style is more suitable in a market with many alternative sources and substitutes (B). When there are multiple suppliers, buyers have the upper hand and can adopt a competitive stance without risking supply continuity. This aligns with CIPS guidance on the use of adversarial styles in competitive markets with numerous alternatives.
NEW QUESTION # 40
Which of the following can be prepared before negotiation to achieve an agreement that benefits both parties?
* Zone of potential agreement (ZOPA)
* Attendee list
* Walk-away point
* Venue for the talks
- A. 1 and 3
- B. 2 and 3
- C. 3 and 4
- D. 1 and 2
Answer: A
Explanation:
The ZOPA defines the range of outcomes acceptable to both parties, while the walk-away point defines the minimum acceptable deal for the buyer. Together, these guide negotiation planning to avoid unfavourable agreements. Attendee lists and venues are logistical details, important but not central to negotiation value creation. Preparation of ZOPA and walk-away ensures structured, strategic decision-making and protects against poor deals.
Reference: CIPS L4M5 (2nd ed.), LO 2.2 - Planning tools: BATNA, ZOPA, walk-away points.
NEW QUESTION # 41
What are the potential sources of conflict between the buyer and supplier? Select TWO that apply.
- A. Persistent late payment of the supplier's invoices
- B. Planning scheduled visits to the supplier site
- C. Unequal sharing of gains, risks and costs with the supplier
- D. Scheduling agreed supplier delivery dates
- E. Requesting early supplier involvement
Answer: A,C
Explanation:
Late paymentsdamage trust and strain supplier cash flow, becoming a direct source of conflict. Similarly, when gains, risks, or costs arenot equitably shared, perceptions of unfairness can destabilize the relationship.
"Persistent late payments not only threaten supplier cash flows but can significantly erode trust. Additionally, disproportionate sharing of risks or benefits can create resentment and hinder collaboration." (L4M5 Commercial Negotiation, 2nd edition, Section 1.3 - Causes and Management of Conflict in Procurement)
NEW QUESTION # 42
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