Read L4M5 Free Dumps (Part 2, Q41-Q80) of V10.02 – Choose to Prepare for the CIPS Level 4 Commercial Negotiation L4M5 Exam

1. Different types of relationships impact commercial negotiations.

At a negotiation, which one of the following sources would help to support leverage for the buyer?

2. Which of the following are internal factors when a supplier is making its pricing decision?

1. Price elasticity of demand

2. Environmental legislation

3. Risk management

4. The stage in the product life cycle

3. Which of the following is active listening?

4. An adversarial style of negotiation is appropriate where the buyer has greater bargaining power over the supplier.

In what other situations may the buyer adopt this style of negotiation?

5. Lina Rawlins is a senior buyer working for a medical equipment company. Lina is in charge of the company’s largest supplier account, Great Barrington Gas (GBG), a medical equipment supplier. Recently, GBG's performance has declined, leading to an increasing number of rejected items. Lina is aware of the seriousness of this and has asked GBG to attend an urgent meeting. In the meeting, Lina asked the GBG representative, “Can you tell me exactly what you are doing to ensure quality?"

What type of question is Lina asking?

6. Langham Industries is seeking to expand its operations globally. The CEO has asked the procurement department to engage in a macroeconomic analysis for its potential new supply chain to meet organisational objectives and outcomes.

Which of the following would be a source of macroeconomic data?

7. Tony is undertaking a negotiation with a strategic supplier and is frustrated by the lack of progress. He proposes using threats to get what he wants from the negotiations.

Is this the correct course of action?

8. During a negotiation, Jose Gomez, the salesperson for a strategic supplier, states that his sales director will not approve discounts against initial purchases. However, Jose offers a 5% discount on the aftercare package, which will provide the same monetary saving. Sally Pampas requires both the product and the aftercare package and has an objective to achieve a 5% discount off the purchase price.

To achieve a win-win (integrative) negotiation, Sally should...

9. Any commercial negotiation process has only three potential stakeholders: procurement, the budget holders, and the users. Is this TRUE?

10. John Browne, a junior buyer for a corporation, is analyzing the global supply market before undertaking negotiations and is wondering whether foreign exchange rates are important to factor into his research.

Should John consider the foreign exchange rates?

11. A garden furniture supplier who is currently in negotiations for a high-value contract has offered the procurement manager a visit to their site. The supplier suggests that during this visit, they can undertake the contract negotiation.

What would be an appropriate response from the procurement manager?

12. An organization should develop different relationships which are appropriate to each supplier situation.

Which ONE of the following analysis methods could help to identify these?

13. What is a benefit to the buyer of having a BATNA (best alternative to a negotiated agreement) in a negotiation?

14. A procurement manager has decided to bring in a junior member of their team to a negotiation meeting.

Which of the following would be suitable roles for this junior member of the team?

1. Note taker

2. Expert

3. Observer

4. Chair

15. Which of the following types of questions are likely to be the most effective to check facts in negotiations?

16. How can having a best alternative to a negotiated agreement (BATNA) support the buyer in a negotiation? Select THREE options that apply.

17. Which of the following two are recognized strategies to achieve a win-lose outcome?

1. Making the other party lower its resistance point

2. Making the other party think this settlement is the best it can achieve

3. Employ empathy to gain mutual understanding

4. Using compromise and creativity tactics

18. Which of the following are examples of variable costs?

1. Building and site rent

2. Annual insurance premium

3. Raw materials expenditure

4. Delivery costs for materials

19. Which of the following are tools that help procurement visualise cost breakdowns of products and services purchased from supplier?

1. Spend candlesticks

2. Spend tree

3. Aggregate expenditure model

4. Spend waterfall

20. Premium pricing strategies used by suppliers are characterised by which of the following? Select TWO that apply.

21. A purchasing manager is having a negotiation with a supplier to extend the duration of the contract. In order to persuade the supplier to cut the cost by 10%, she promises to shorten the payment period from

45 days to 30 days for each delivery. The supplier's representative does not agree the offer and clearly states that his proposed price is already lower than the market price.

The purchasing manager has used which type of power?

22. According to Professor Gavin Kennedy, in which of the following forms of dispute resolution, both parties will voluntarily exchange their ideas and beliefs?

23. Sumitomo Rubber Industries (SRI) is a Japan-based tyre manufacturer. In order to increase production, SRI is sourcing rubber from Southeast Asian firms.

Which of the following micro factors are most likely to shift the balance of power to supplier? Select TWO that apply

24. Which of the following are most likely to be sources of conflict that can emerge from the process of commercial negotiations? Select TWO that apply.

25. In airline industry, suppliers prefer to adopt dynamic pricing in order to constantly monitor and change their fares in response to market conditions.

Dynamics pricing is based on which costing method?

26. The trust is built based on the other party's professional qualifications or proven or certified technical capability or experience is known as...?

27. Can a party gain huge advantages in negotiation from setting room layout?

28. Economic growth can be measured by...?

29. Which of the following is considered a strength of a ‘logical’ style negotiator?

30. Which of the following are most likely to turn buying organisation into an unattractive customer in supplier's perspective? Select TWO that apply.

31. Which type of question should be used to receive affirmation on statement?

32. According to Fiona Dent and Mike Brent, which of the following are characteristics of Push approach? Select TWO that apply.

33. Rose is a senior buyer from a skiing equipment retailer. Rose is concerned about the current ski boot shortage and the number of invoicing problems from a key supplier. She has decided to have a video conference with Victor, CEO of the supplier. Initially, she intends to threaten Victor with contract termination unless he can improve the situation. However, she is a little wary of doing this as the switching costs are high. Eventually, she decides to seek solutions by encouraging the other party to offer their views and ideas. Rose also prepares some ideas to discuss with Victor.

Which of the following is the persuasion method that Rose intends to use in the forthcoming conference?

34. During a negotiation, a procurement manager suggests that the two companies should split the difference which would benefit both the supplier and buyer.

Which persuasion method is she using?

35. Which of the following is the best description of direct cost?

36. A procurement professional is preparing for a negotiation with supplier. She is setting targets for price which her company is seeking to achieve.

Which of the following acronyms can help her identify limits before engaging in the negotiation?

37. Which of the following should be done when undertaking a reflection activity on negotiation? Select TWO that apply.

38. Which of the following is the definition of safety margin?

39. Which of the following can help both parties to break the vicious cycle of blame when a relationship needs repairing? Select TWO that apply.

40. An experienced procurement professional is developing strategies for forthcoming negotiations with her key supplier. To avoid negotiation deadlocks, she identifies the reasons why negotiations could fail.

Which of the following are most likely to be reasons for negotiation failures? Select TWO that apply.