BONUS!!! Download part of Exam4Tests L4M5 dumps for free: https://drive.google.com/open?id=1qEtOztkUfd39cm3yym1rG4eLcvyIH4u_
Exam4Tests attaches great importance on the quality of our L4M5 real test. Every product will undergo a strict inspection process. In addition, there will have random check among different kinds of L4M5 study materials. The quality of our L4M5 study materials deserves your trust. The most important thing for preparing the exam is reviewing the essential point. Because of our excellent L4M5 Exam Questions, your passing rate is much higher than other candidates. Preparing the L4M5 exam has shortcut.
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Understand key approaches in the negotiation of commercial agreements with external organisations | 35% | - Application of commercial negotiations in procurement and supply
|
| Topic 2: Understand how commercial negotiations should be undertaken | 30% | - Tactics and influencing methods
|
| Topic 3: Know how to prepare for negotiations with external organisations | 35% | - Economic and market factors
|
It's time to take the CIPS L4M5 practice test for self-assessment once you have prepared with L4M5 PDF questions. Taking Exam4Tests's web-based CIPS L4M5 practice test is the best method to feel the real CIPS L4M5 Exam scenario. Exam4Tests offers the customizable web-based CIPS L4M5 practice test that is compatible with all browsers like MS Edge, Chrome, Firefox, etc.
NEW QUESTION # 369
An organisation is developing the specification for a capital purchase project. An important stakeholder has doubt on the draft specification. The buyer invites him to the product function meetings. In these meeting the attendees can raise their concerns, the specification development team takes in all the concerns and adjusts the specification accordingly. What kind of technique is the specification development team using?
Answer: B
Explanation:
In the scenario, anyone who has concerns can join a meeting to raise their thoughts. The project team takes the stakeholders' ideas into account. This isknown as coalition: A group of people or organisations come together and work collaboratively to achieve some goals. Specifically in this scenario, the goal is creating a high-quality and unified specification for an important project.
NEW QUESTION # 370
Which of the following is most likely to be a reason why a supplier charges its customer higher price after it has reached the break-even point?
Answer: A
Explanation:
'Supplier may want to encourage buyer's demand': the buyer tends to prefer lower price, if supplier wants to encourage its customers to buy more, it needs to offer discount at bulk amount. So this option is not acceptable.
'Supplier may have high fixed cost - variable cost ratio': Supplier with high fixed cost needs high volumes to break even, but once achieved, it may be able to offer significant discounts for bulk orders
'The supplier may have reached economy of scale': when economy of scale is reached, cost per unit will be minimal which often leads to more favourable price.
'Supplier may need to open new facilities to meet increasing customer's demand': Increasing customer's demands may excess supplier's current capacity. Therefore, supplier may need to extend its capacity by investing more in facilities. To cover these fixed cost investment, supplier may charge higher price.
LO 2, AC 2.1
NEW QUESTION # 371
Professional buyer is planning for the next negotiation of a simple one-off contract. This negotiation is typified by which of the following? Select TWO that apply.
Answer: A,C
Explanation:
:
Professional buyers, when planning or engaging in negotiation with suppliers, should always be aware of where the intended and actual relationship with this supplier is positioned on the 'spectrum' or 'continuum' of commercial relationships. The relationship spectrum describes the range of commercial relationships between a buyer and supplier based on richness of communication, longevity and mutual dependence.
Timeline Description automatically generated
In the question, the contract is simple one-off (or spot buy), which means the relationship will likely to be more transactional. In such relationship, price is the most important criteria and buyer may adopt arm's-length approach.
NEW QUESTION # 372
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: A,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 # 373
Which of the following are variable costs?
Answer: B
Explanation:
Packaging is considered a variable cost because it fluctuates with the level of production or sales activity.
Variable costs change directly in relation to the volume of output or service. In contrast:
Rent (A), Loan repayments (B), and Insurance (C) are fixed costs, as they generally do not vary with production levels within a certain range. These are recurring costs that remain constant over time, aligning with CIPS's cost classification in procurement.
NEW QUESTION # 374
......
Exam4Tests is a website to provide CIPS certification exam training tool for people who attend CIPS certification exam examinee. Exam4Tests's training tool has strong pertinence, which can help you save a lot of valuable time and energy to pass L4M5 certification exam. Our exercises and answers and are very close true L4M5 examination questions. IN a short time of using Exam4Tests's simulation test, you can 100% pass the exam. So spending a small amount of time and money in exchange for such a good result is worthful. Please add Exam4Tests's training tool in your shopping cart now.
L4M5 Related Exams: https://www.exam4tests.com/L4M5-valid-braindumps.html
P.S. Free & New L4M5 dumps are available on Google Drive shared by Exam4Tests: https://drive.google.com/open?id=1qEtOztkUfd39cm3yym1rG4eLcvyIH4u_