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| Section | Objectives |
|---|
| Topic 1: Understand how to prepare for negotiations in procurement and supply | - Analyze the factors that impact on the approach to commercial negotiations
- 1. Ownership and stakeholder perspectives
- 2. Policies, procedures and protocols
- 3. The position of buyers and sellers
- 4. The impact of time limits and deadlines
- Understand how to prepare for a negotiation
- 1. Defining objectives and variables
- 2. The best alternatives to a negotiated agreement (BATNA)
- 3. Zones of potential agreement (ZOPA)
- 4. The use of bargaining mixes and trade-offs
|
| Topic 2: Understand the stages of commercial negotiations in procurement and supply | - Understand the stages of a commercial negotiation
- 1. Closure and agreement implementation
- 2. Defining the ground rules
- 3. Preparation and planning
- 4. Bargaining and problem solving
- 5. Clarification and justification
- Analyze the types of approaches that can be pursued in commercial negotiations
- 1. Integrative (win-win) approaches
- 2. The influence of power and trust in negotiations
- 3. Distributive (win-lose) approaches
- 4. Pragmatic and principled approaches
|
| Topic 3: Understand the interpersonal skills required for effective negotiation | - Analyze the interpersonal skills required for effective negotiation
- 1. Assertiveness
- 2. Questioning and listening skills
- 3. Body language and non-verbal communication
- 4. Influencing and persuasion skills
- Understand the behavioral aspects of negotiation
- 1. Conflict handling styles
- 2. Perception and bias
- 3. Concessions and trade-offs
- 4. Ethical and unethical practices
|
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2026 CIPS Realistic Passing L4M5 Score Free PDF
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CIPS Commercial Negotiation Sample Questions (Q384-Q389):
NEW QUESTION # 384
A buyer is approaching a negotiation where the company is in a low-power negotiating position in relation to the supplier. How can the buyer improve leverage and power with the supplier?
- A. 2 and 3 (Understand supplier costs and take a distributive approach)
- B. 1 and 4 (Consolidate expenditure and limit communication)
- C. 1 and 2 (Consolidate expenditure and understand supplier costs)
- D. 3 and 4 (Take a distributive approach and limit communication)
Answer: C
Explanation:
Reference: CIPS L4M5 Study Guide, Section 1.3 - Sources of Power in Negotiation
NEW QUESTION # 385
Which of the following are examples of variable costs?
- A. 1 and 3 (Building and site rent and Raw materials expenditure)
- B. 2 and 3 (Annual insurance premium and Raw materials expenditure)
- C. 3 and 4 (Raw materials expenditure and Delivery costs for materials)
- D. 1 and 4 (Building and site rent and Delivery costs for materials)
Answer: C
NEW QUESTION # 386
A skilled negotiator will use a range of questioning techniques in a negotiation. If they wished to explore options with the other party without making any formal commitment, which type of question style would they use?
- A. Reflective
- B. Leading
- C. Hypothetical
- D. Multiple
Answer: C
NEW QUESTION # 387
The National Schools Purchasing Forum (NSPF) is a procurement organisation that purchases goods and services on behalf of schools on a national scale. NSPF is close to concluding negotiations in a meeting with Hygienics For All (HFA) for the supply of consumables to school washrooms. Both parties have reached an agreeable position and NSPF feels it is important that they conclude the negotiation at this point. What type of questions should NSPF ask HFA to achieve this?
- A. Open questions
- B. Closed questions
- C. Hypothetical questions
- D. Probing questions
Answer: B
NEW QUESTION # 388
Which of the following will shift the supply curve to the right?
- A. Decreased market price of substitute products
- B. New disruptive technology
- C. Increased customers' disposable income
- D. Changes in customer taste
Answer: B
Explanation:
The following graph shows the factors that shift the supply curve to the left and to the right.
Reference:
- CIPS study guide page 103
- Principles of Microeconomics 2e, 2017, Open Stax - Rice University.
LO 2, AC 2.2
NEW QUESTION # 389
......
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