L4M5 EXAM CRAM & L4M5 CERTIFICATION EXAM DUMPS

L4M5 Exam Cram & L4M5 Certification Exam Dumps

L4M5 Exam Cram & L4M5 Certification Exam Dumps

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Tags: L4M5 Exam Cram, L4M5 Certification Exam Dumps, L4M5 Exam Syllabus, Reliable L4M5 Study Notes, L4M5 Exam Questions And Answers

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CIPS Commercial Negotiation Sample Questions (Q110-Q115):

NEW QUESTION # 110
Champion Toys (CT) is negotiating a large order of luxury toys with its supplier, Top Teds. CT has identified that lead times, order quantities, and delivery locations are tradeables that could be used in this negotiation. At which negotiation stage should CT introduce these tradeables?

  • A. Bargaining
  • B. Opening
  • C. Proposing
  • D. Closure

Answer: A

Explanation:
Bargaining is the negotiation stage where tradeables are typically introduced and discussed. During this phase, both parties exchange offers and concessions, using tradeables such as lead times and order quantities to find a mutually acceptable agreement. This aligns with CIPS's guidance on the stages of negotiation.


NEW QUESTION # 111
SBL provides contract bathroom furniture and fittings for a wide variety of domestic and commercial clients.
To some suppliers, SBL spend claims 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?

  • A. Win and keep business with SBL at any costs, even without profits
  • B. Drop the business with SBL immediately
  • C. Charge a higher price to compensate for all the pain SBL has put
  • D. Hold on and keep SBL happy but make sure that the business is profitable

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 # 112
Which of the following are most likely to help buyer become preferred customer in supplier's perspective?
Select TWO that apply.

  • A. Reduction in delivery errors
  • B. Ensuring an increased number of repeat orders
  • C. Compliance with agreed repair lead time
  • D. Shorter payment period
  • E. Onerous supplier terms and conditions

Answer: B,D

Explanation:
Explanation
Becoming a preferred customer to supplier's perspective can increase the purchaser's leverage in negotiation.
Beside the size of buying organisation or its spend, the following may be sufficient to differentiate the buyer from other buying organisations:
- Simple procurement processes
- Simple contracting processes
- Clear and concise documentation
- Absence of onerous supplier terms and conditions (onerous supplier terms and conditions mean that obligations imposed on suppliers are greater than their gains)
- On-time payment: The reduction in hassle for both supplier and the buyer, if bills are paid on time, is significant. From the customer's perspective it could also be the opener to agreeing preferential payment terms. A supplier may weigh up that payment on time at 60 days is worth taking, over the current 30-day terms that slip to 90 days and beyond.
-Transparent processes
- Ethical behavior
LO 1, AC 1.3


NEW QUESTION # 113
A skilled negotiator will use a range of questioning techniques in a negotiation. If they wished to explore options with the other party without making any formal commitment, which type of question style would they use?

  • A. Hypothetic
  • B. Leading
  • C. Reflective
  • D. Multiple

Answer: A

Explanation:
Hypothetical questions are used to explore options or scenarios without making commitments. This technique allows negotiators to understand the other party's preferences and limitations by presenting hypothetical situations, as recommended in CIPS guidelines for negotiation questioning techniques.


NEW QUESTION # 114
Which of the following stages of the CIPS Procurement Cycle are typically where commercial negotiations take place?
Contract management and improvement
Develop tender documentation
Market sector analysis
Contract award and implementation

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

Answer: C

Explanation:
Commercial negotiations commonly take place during Contract Management and Improvement (1) and Contract Award and Implementation (4) stages. During these stages:
Contract Management and Improvement (1): Ongoing negotiations may be required to adjust terms and conditions as part of managing the contract lifecycle.
Contract Award and Implementation (4): Initial negotiations finalize terms, setting the foundation for successful contract execution.
These stages are pivotal in ensuring both initial and ongoing alignment, as outlined in the CIPS Procurement Cycle.


NEW QUESTION # 115
......

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