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| Certification Vendor: | CIPS |
|---|---|
| Exam Name: | Commercial Negotiation |
| Exam Number: | L4M5 |
| Certificate Validity Period: | CIPS qualifications do not typically expire once awarded |
| Passing Score: | 70% (typical CIPS objective test pass mark) |
| Available Languages: | English |
| Related Certifications: | CIPS Level 4 Diploma in Procurement and Supply |
| Real Exam Qty: | 60 (typical objective test format) |
| Exam Format: | Computer-based objective test, Multiple-choice questions |
| Exam Duration: | 120 minutes |
| Recommended Training: | CIPS Learning Support CIPS Official Study Resources |
| Exam Registration: | Find a CIPS Exam Centre / Booking CIPS Qualifications Information |
| Sample Questions: | CIPS L4M5 Sample Questions |
| Exam Way: | Computer-based exam (online proctored or test centre depending on provider) |
| Pre Condition: | No formal prerequisites, but CIPS Level 3 or equivalent knowledge is recommended as part of progression to Level 4 Diploma. |
| Official Syllabus URL: | https://www.cips.org/qualifications-and-training/level-4-diploma-in-procurement-and-supply/ |
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NEW QUESTION # 254
Which of the following are hardball tactics in negotiations? Select TWO that apply.
Answer: B,E
Explanation:
:
In difficult negotiations and disputes, hardball tactics like punishment and threats often seem like the only way to win concessions. Some negotiators seem to believe that hardball tactics are the key to success in any negotiation. They resort to extreme demands and even unethical behaviour to try to get the upper hand in a negotiation.
The following are 8 typical hardball tactics:
1. Good cop / Bad cop
2. Low ball / High ball
3. Bogey
4. The Nibble
5. Chicken
6. Intimidation
7. Aggressive Behaviour
8. Snow Job
You can read the details of each tactic here.
In the contrary to hardball tactics, negotiators can adopt integrative approach to the negotiation. Some of integrative tactics are:
1. Expand the Pie
2. Bridging
3. Post Settlement -Settlement
Et cetera
NEW QUESTION # 255
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?
Answer: D
Explanation:
Reference: CIPS L4M5 Study Guide, Section 1.3 - Sources of Power in Negotiation
NEW QUESTION # 256
Which of the following is an advantage of consultation as an influencing tactic?
Answer: D
Explanation:
Consultation involves actively involving stakeholders or counterparties in decision-making. By seeking input, it fosters a sense of ownership, increasing commitment to negotiated outcomes. It is particularly effective when the negotiator has low positional power, as it shifts dynamics from authority to collaboration. Unlike coercion or compliance tactics, consultation builds engagement and long-term trust, which is critical in complex procurement where buy-in is essential for contract success. CIPS stresses its role in building influence where direct authority is limited.
Reference: CIPS L4M5 (2nd ed.), LO 3.2 - Persuasion through consultation, collaboration, and influence.
NEW QUESTION # 257
When is the best time in procurement process in which procurement should get involved so that the cost- saving opportunities are the greatest?
Answer: C
Explanation:
The earlier procurement get involved in the procurement processes, the better. If procurement are involved in design at the specification stage they can feed in prices and costs to designer so they know the likely budget implication of choices made. Sending in a procurement team to negotiate at or close to the end of the procurement process effectively ties their hands and limits their negotiation leverage. This is illustrated in the graph below:
Chart Description automatically generated
LO 2, AC 2.1
NEW QUESTION # 258
Which of the following is the most appropriate approach to investors or shareholders who have high level of influence but low interest in the running of business?
Answer: A
Explanation:
Investors or shareholders who have high level of influence but low interest belong to 'Keep satisfied' quadrant of Mendelow's Stakeholder Matrix.
You may read 2 versions from L4M1 and L4M5 here:
Table Description automatically generated
LO 1, AC 1.1
NEW QUESTION # 259
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