L4M5 Dumps Updated (V10.02) – Check the CIPS L4M5 Free Dumps (Part 1, Q1-Q40) Online to Verify Your Up-to-Date Exam Questions

1. Which of the following occur within the planning and preparation stage in a negotiation process? Select THREE that apply.

2. A purchasing organisation is discussing its approach to an upcoming negotiation with a key supplier over a contract for critical new services. They have decided they want to find a Win/Win (integrative) solution.

Which TWO of the following would be appropriate in this scenario?

3. Maria is a professional services category buyer within the National Health Service. Due to the severe financial budget cutbacks the National Health Service is facing, the procurement team has been tasked with achieving cost savings so that funding available can be spent on patient care. Maria plans to achieve savings with one of her collaborative suppliers.

Which negotiation approach should she undertake?

4. Hammad Alsuwaidi is a procurement professional leading a negotiation for a vehicle rental contract. Hammad has a clear goal to negotiate a two-year contract in exchange for a minimum of a 20% discount. During the negotiation, Hammad presents to the supplier the facts, figures, and justification for a 20% discount.

Which of the persuasion methods below has Hammad chosen?

5. Which of the following are variable costs?

6. For a commercial negotiation to be effective, the organisation has to identify resources required for negotiation.

Which one of the following could help?

7. What are the potential sources of conflict between the buyer and supplier? Select TWO that apply.

8. When developing a negotiation approach, according to recognised theory (for example, Mendelow), how should stakeholders with high interest but low power be managed?

9. A procurement professional is dissatisfied with how a recent negotiation was concluded.

What could they do to improve their negotiation approach?

1. Seek feedback from the supplier on their recent performance

2. Prepare for all negotiations with a WIN/LOSE (distributive) approach

3. Involve lots of people in future negotiations

4. Undertake reflective practice after each negotiation

10. Maria has adopted an adversarial style relationship with her stationery supplier.

This relationship style can be characterised by which of the following? Select the TWO that apply.

11. Which of the following stages of the CIPS Procurement Cycle are typically where commercial negotiations take place?

1. Contract management and improvement

2. Develop tender documentation

3. Market sector analysis

4. Contract award and implementation

12. A supplier can produce a product for $160. The supplier sells the product to their client for $240, making a profit before tax of $80 on the transaction.

What is the mark-up profit percentage earned by the supplier on this transaction?

13. A wide range of factors may be taken into account by suppliers when setting or negotiating prices.

Which of the following are external factors in pricing decisions? Select TWO that apply.

14. Which of the following roles would support negotiations with an external supplier when planning a negotiation for a low-value, routine purchase? Select TWO that apply.

15. The stages of commercial negotiation involve which of the following characteristics?

16. Which of the following constitutes a key element to developing high-trust supplier relationships?

17. The sourcing manager has decided to adopt an adversarial style of negotiation to take advantage of the buyer's greater bargaining power over the suppliers.

In what other circumstances should an adversarial relationship be used?

18. 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?

19. Where a negotiator uses numerical reasoning with facts as part of their negotiation approach, which of the following techniques will they be adopting?

20. Which of the following is a description of mark-up?

21. Fast & Easy Limited, a global fast food retailer, is in a negotiation with its major meat supplier. The supplier is asking for a 2% price increase, which Fast & Easy is strongly resisting. The supplier justifies this increase by stating that currency fluctuations, an unstable economic climate, and rising transport costs have necessitated this increase.

Which influencing tactic is the supplier using?

22. A procurement manager has been asked to procure 1,000 pens. He suggests to his manager that to obtain the best value for money, they should undertake a competitive bidding process.

Would this be the best course of action?

23. When is an adversarial style of negotiation appropriate?

24. The National Schools Purchasing Forum (NSPF) is a procurement organisation that purchases goods and services on behalf of schools on a national scale. NSPF is close to concluding negotiations in a meeting with Hygienics For All (HFA) for the supply of consumables to school washrooms. Both parties have reached an agreeable position, and NSPF feels it is important that they conclude the negotiation at this point.

What type of questions should NSPF ask HFA to achieve this?

25. Which of the following are microeconomic factors? Select THREE that apply.

26. Which of the following can be prepared before a negotiation with a supplier to achieve an agreement to benefit both parties?

1. Zone of potential agreement

2. Attendee list for the negotiation talks

3. Walk-away point

4. Venue for the negotiation talks

27. Effective listening is important in integrative negotiations. Is this statement correct?

28. A procurement expert has been asked to ensure they consider emotional intelligence in their negotiation strategy. They have agreed to this and have started planning their approach.

Which of the following describes emotional intelligence?

29. Which of the following would be considered appropriate influencing techniques in contract negotiation? Select TWO that apply.

30. When might a buyer decide to use a distributive approach to a negotiation with a supplier?

31. Mike is a junior buyer who has been working for a manufacturing organisation for two years, specializing in purchasing research. Over this time, he has built good relationships within his team and with other departments.

Which of the following sources of power is Mike most likely to possess?

32. A procurement manager is considering negotiating variable pricing for a contract duration of 12 months.

Would this be the right thing to do?

33. Where there are high levels of commitment to relationships between both the buyer and supplier, this is seen as collaborative and beneficial to negotiations. Is this statement correct?

34. The activity of listening in a negotiation includes which of the following processes?

1. Hearing

2. Interpreting

3. Rapport

4. Influencing

35. 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?

36. The bargaining power of buyers is likely to be high in relation to suppliers in which of the following situations?

37. Procurement gets involved in negotiating purchase requisitions only when there is a value analysis to ensure that only value-adding aspects are included. Is this statement true?

38. Which of the following is a source of information on microeconomic factors?

39. Which of the following would describe a push approach to influencing?

1. Exerting power or authority

2. Extensive use of open questioning

3. The party being influenced is fully aware of the process occurring

4. The party being influenced may not be aware of the process happening

40. Which of the following are features of a single-sourced type of relationship on the relationship spectrum?

1. Exclusivity granted in relation to a particular product

2. The supplier is an oligopoly market structure

3. The supplier is trusted and collaborative

4. Framework contracts are used to identify the supplier