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CIPS L4M5 Exam Syllabus Topics:

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

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CIPS Commercial Negotiation L4M5 Prüfungsfragen mit Lösungen (Q14-Q19):

14. Frage
Citywide Developments Ltd (CDL) is a construction programme management company that delivers high- value property development schemes. CDL uses named consultant design services in contracts. Recently, consultancy day rates have increased. Which of the following tradeable concessions could CDL offer when negotiating with suppliers to achieve lower rates, without lowering service quality?

Antwort: A

Begründung:
By removing the requirement for named personnel, CDL could allow the supplier flexibility in allocating equally competent but possibly less expensive staff. This tradeable does not compromise on quality but helps control costs.
Reference: L4M5 Commercial Negotiation 2nd edition (CORE), Section 3.2 - Using Tradeables in Negotiation


15. Frage
Personal power is only used in distributive approach. Is this statement true?

Antwort: B

Begründung:
Power, or more precisely perceptions of power, are critically important in understanding the commercial negotiation process. From a commercial negotiation point of view (under any circumstances, either integrative or distributive approach), CIPS is interested in power from both a personal and organisational perspective.
When you are negotiating on behalf of your employer, you bring the power of your organisation (its brand, reputation and purchasing spend) as well your own personal power (6 sources of personal power, based on French and Raven's power base model) to the negotiation.
In both integrative and distributive approaches, personal power plays an important role. It helps both parties push through negotiating barriers and secure commitment and final agreement LO 1, AC 1.3


16. Frage
Which of the following is considered a weakness of a 'dealer' style negotiator?

Antwort: D

Begründung:
Explanation
A useful and simple shorthand for preferred negotiation styles is summarised by four simple descriptor:
'warm', 'tough', 'logical' and 'dealer', which can beapplied to describe individuals' dominant preferred style in most circumstances.
Warm - a people person
Tough - a hard-nosed negotiator
Logic - a numbers person
Dealer - a trader who loves bargaining
Strengths, weaknesses of dealer style are described below:
Table Description automatically generated

LO 2, AC 2.4


17. Frage
Which of the following is categorised as fixed cost?

Antwort: B

Begründung:
An organisation's expense can be categorised into three groups:
Fixed Costs - costs that do not change with output.
Variable Costs - costs that vary in direct proportion to output.
Semi-variable costs - costs that are a combination of the above, with both a fixed and variable element.
Among the four options:
"Land rental paid in advance": This is fixed cost. The rental won't increase when the production increases.
"Additional pallet hires due to higher demand in year-end season": This can be identified as semi-variable cost (or step cost).
"Governments taxes": The taxes are often levied by a percentage of income or revenue. Therefore, it is variable
"Raw materials for next year production": This is obviously variable cost.
Reference:
CIPS study guide page 79-84
Study tips: Fixed variable and semi-variable costs - AAT Comment


18. Frage
Which of the following is considered a strength of a 'logical' style negotiator?

Antwort: D

Begründung:
A useful and simple shorthand for preferrednegotiation styles is summarised by four simple descriptor: 'warm',
'tough', 'logical' and 'dealer', which can be applied to describe individuals' dominant preferred style in most circumstances.
Warm - a people person
Tough - a hard-nosed negotiator
Logic- a numbers person
Dealer - a trader who loves bargaining
Strengths, weaknesses of logical style are described below:
Table Description automatically generated


19. Frage
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