CIPS L4M5 : Commercial Negotiation

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CIPS L4M5 Exam Syllabus Topics:

Reference: https://www.cips.org/learn/qualifications/diploma-in-procurement-and-supply/commercial-negotiation-l4m5/

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CIPS Commercial Negotiation Sample Questions:

Question #1
When is the best time to adopt accommodating style according to Thomas-Kilmann conflict mode instrument?

A. When buyer and supplier have equal power but are strongly committed to mutually exclusive goals
B. When preserving harmony and avoiding disruption with supplier are especially important
C. When buyer needs to gather more information to gain more advantages in later negotiations
D. When both buyer and supplier want to find an integrative solution as their concerns are too important to be compromised

Question #2
"A negotiation ends once the meeting finishes." Is this statement true?

A. No, best practice includes reflection after the meeting as part of the process
B. Yes, because both parties have the emotional intelligence to proceed
C. No, terms should continue after the meeting until signed by the supplier only
D. Yes, provided the meeting results in a win-win outcome

Question #3
Amelia needs to negotiate prices with a potential client that she has not met before. She was due to attend their offices next week, but the meeting has been cancelled. The potentialclient has offered a telephone call as an alternative, but Amelia has declined the offer as she feels negotiations cannot succeed without a face-to- face meeting. Is this the right decision?

A. Yes, because you can only do negotiations face-to-face to observe non-verbal cues
B. No, because it can be a useful introduction for conditioning expectations prior to a face-to-face meet
C. Yes, because when negotiating for the first time it is essential to meet face-to-face
D. No, because telephone negotiations enable stronger arguments which lead to better influence

Question #4
John suggests that a post-negotiation review must involve a meeting with all stakeholders as the most effective method. Is this statement correct?

A. Yes, it allows stakeholders to blame procurement for failings
B. No, John may only record what he believes is correct
C. Yes, as it allows all stakeholders to be physically present
D. No, there may be a more effective way to undertake the review

Question #5
Which of the following would describe a push approach to influencing?
Exerting power or authority
Extensive use of open questioning
The party being influenced is fully aware of the process occurring
The party being influenced may not be aware of the process happening

A. 1 and 2 only
B. 2 and 4 only
C. 3 and 4 only
D. 1 and 3 only

Solutions: