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CIPS L4M5 Exam Syllabus Topics:

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

>> L4M5 Prüfungsaufgaben <<

L4M5 Prüfungsmaterialien - L4M5 Prüfungen

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CIPS Commercial Negotiation L4M5 Prüfungsfragen mit Lösungen (Q340-Q345):

340. Frage
Jane is planning for a forthcoming negotiation with a key supplier. She has learned what are important to the supplier and what are important to her company from previous contracts between them. In order to avoid negotiation deadlocks, she has set up several concession plans. But Jane has little experience in dealing with suppliers and doesn't know when to trade these concessions. When is the best time in a negotiation to trade concessions?

Antwort: B

Begründung:
Explanation
The question asks about the point in time when Jane should make concessions with the supplier. These concessions should be traded afterpreliminary stages such as opening, testing and proposing are over and proposals move from being tentative and general to being more definite and specific. This stage is called bargaining phase. The bargaining phase is the 'meat' of the negotiation meeting.
LO 3, AC 3.1


341. Frage
Which of the following is definition of elasticity of demand in microeconomics?

Antwort: D

Begründung:
Elasticity refers to the responsiveness of quantity demanded or quantity supplied to a change in price or another factor:
The price of a product can be described as being elastic if a small change in price leads to a big change in demand.
The price of a product can be described as being inelastic if a big change in price leads to a small change in demand.
The formulae of elasticity of demand is known as the following:
Text Description automatically generated with low confidence


342. Frage
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

Antwort: B,D

Begründung:
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.


343. Frage
In a detailed cost breakdown, a company has a salary cost of 9%, raw materials cost 51% and overheads cost
24%. Which of the following represents themark-up of that company?

Antwort: C

Begründung:
Explanation
Mark-up is the amount added to the cost of an item to get to its selling price and is expressed as a percentage.
Mark-up(%) = (Price - Cost) / Cost x 100
= (100 - 9 - 51 - 24) / (9 +51 +24) x 100 = 16 / 84 x 100 = 19.04%
LO 2, AC 2.1


344. Frage
How can having a best alternative to a negotiated agreement (BATNA) support the buyer in a negotiation?
Select THREE options that apply.

Antwort: C,D,F

Begründung:
Having a BATNA:
Increases assertiveness (A): Knowing the fallback position empowers the buyer to negotiate more confidently.
Reduces the chance of a poor agreement (B): A BATNA ensures the buyer does not feel pressured to accept suboptimal terms.
Identifies walk-away points (F): It sets a clear boundary, allowing the buyer to exit negotiations if terms don't meet minimum requirements.
These align with CIPS's guidance on using BATNA to strengthen negotiation strategies.


345. Frage
......

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