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CIPS L4M5 Exam Syllabus Topics:

SectionObjectives
Negotiation planning and preparation- Preparation techniques
  • 1. Setting objectives and targets
    • 2. BATNA and reservation points
      • 3. Information gathering and analysis
        Negotiation fundamentals- Principles of commercial negotiation
        • 1. Definition and purpose of negotiation
          • 2. Types of negotiation (distributive vs integrative)
            Negotiation strategies and tactics- Approaches to negotiation
            • 1. Tactical behaviours and influence techniques
              • 2. Collaborative and competitive strategies
                • 3. Concession strategies
                  Power, ethics and communication in negotiation- Influencing factors
                  • 1. Sources of negotiation power
                    • 2. Ethical considerations in negotiation
                      • 3. Communication and interpersonal skills

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                        CIPS Commercial Negotiation Sample Questions (Q173-Q178):

                        NEW QUESTION # 173
                        SBL provides contract bathroom furniture and fittings for a wide variety of domestic and commercial clients.
                        To some suppliers, SBL spendclaims a large portion of their revenue. But SBL is famous for imposing draconian obligations on these suppliers. Which of the following is most likely to be overarching objective of these suppliers to SBL?

                        Answer: C

                        Explanation:
                        According to Paul Steele's 'The Seller's Perspective', customer can be classified into 4 categories as below:
                        Chart, treemap chart Description automatically generated

                        In this scenario, although SBL's spend claims large portion in suppliers' revenues, their draconian treatment will reduce SBL's attractiveness in supplier's perspective.SBL falls into Exploit quadrant. With exploitable customers, suppliers tend to 'milk' the customer and charge a high price to compensate for all the pain customer put on them.


                        NEW QUESTION # 174
                        Stalemate is more likely to happen if both parties trade more variables in a commercial negotiation. Is this assumption true?

                        Answer: C

                        Explanation:
                        Negotiation variables such as price or contract length, etc are that can be traded with TOP in a negotiation.
                        The more variables you can identify, the better. The more variables you can identify and articulate, the lower the chances of the negotiation reaching deadlock as more possibilities are facilitated regarding more creative solutions.
                        Below are examples of negotiation tradeables in buying professional services:
                        LO 2, AC 2.3


                        NEW QUESTION # 175
                        A procurement professional is preparing for a negotiation of purchasing non-critical commodity products. He knows that the product can be easily replaced by other substitutes in the market. The negotiation for these products is typified by which of the following?

                        Answer: B

                        Explanation:
                        With non-critical commodity products, the relationship will be transactional. Buyer should not spend too much time and effort into the negotiation.
                        Table Description automatically generated

                        LO 1, AC 1.4


                        NEW QUESTION # 176
                        Which of the following are behaviours that builds trust between the buyer and the supplier in business relationship? Select TWO that apply.

                        Answer: A,C

                        Explanation:
                        :
                        Trust-building behaviours are as following:
                        Joint-effort issue resolution
                        Open sharing of information
                        Open and honest discussion on root cause of failures
                        Joint planning focusing on value for money and risk sharing
                        Commercial transparency and co-proposition of cost reduction and service improvement programmes Joint recognition and celebration of successes


                        NEW QUESTION # 177
                        Which of the following tactics would be appropriate in an integrative negotiation?

                        Answer: D

                        Explanation:
                        Reference: CIPS L4M5 Study Guide, Section 1.2 - Approaches to Negotiation


                        NEW QUESTION # 178
                        ......

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