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CIPS L4M5 Certification Exam is recognized by employers around the world as a mark of excellence in commercial negotiation. Commercial Negotiation certification demonstrates that a candidate has the knowledge and skills necessary to succeed in negotiating commercial contracts and agreements. Employers often require this certification for individuals in procurement and supply chain management roles, as it is a key indicator of competence and professionalism.
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CIPS Commercial Negotiation Sample Questions (Q364-Q369):
NEW QUESTION # 364
Which of the following is the most appropriate approach to investors or shareholders who have high level of influence but low interest in the running of business?
- A. Engage and consult with them regularly
- B. Engage and keep them satisfied
- C. Manage them closely
- D. Keep these people inform through general communication media
Answer: B
Explanation:
Investors or shareholders who have high level of influence but low interest belong to 'Keep satisfied' quadrant of Mendelow's Stakeholder Matrix.
You may read 2 versions from L4M1 and L4M5 here:
Table Description automatically generated
LO 1, AC 1.1
NEW QUESTION # 365
A competitive win-lose distributive approach to a negotiation is seeking to:
- A. Obtain the largest possible share of resources or benefits at the expense of the other party
- B. Maximise joint gains for both parties so that resources and benefits are equally shared
- C. Foster collaboration and trust between the parties to enable joint problem solving
- D. Compromise and split the difference so that both parties do not get what they want
Answer: A
NEW QUESTION # 366
Which of the following are intangible values created by trust in business relationships? Select TWO that apply.
- A. Positive feedbacks from customers
- B. More focus on core business
- C. Increasing response time to request
- D. Frequent conflict escalation
- E. Higher revenues
Answer: A,B
Explanation:
Trust may create value as following:
Text Description automatically generated with low confidence
LO 1, AC 1.4
NEW QUESTION # 367
Which of the following is the process enabling the buyer to sharewith the supplier their purposes and needs to focus on some specific areas such as quality, cost, social and environmental standards, etc in the supplier's bids?
- A. Supplier conditioning
- B. Supplier selection
- C. Supply positioning
- D. Supplier appraisal
Answer: A
Explanation:
Supplier conditioning is the process of influencing a supplier or suppliers to behave in a certain way, or to accept certain circumstances. Within a negotiation, the buyer needs to make sure that the supplier has a number of messages in mind, about the outcomes that the buyer needs to achieve and about the shared sense of purpose that buying organisation has in achieving these outcomes.
Supplier appraisal is a process of evaluating a supplier's ability to carry out a contract in term of quality, delivery, price and other contributing factors.
Supplier positioning is the process of classifying spend with a supplier in terms of the profit potential and supply risk and assists in prioritising categories of spend and developing the rightstrategy.
Supplier selection is the process of selecting a supplier to acquire the necessary materials to support the outputs of organisations. Selection of the best and/or the most suitable suppliers is based on assessing supplier capabilities (Shih et al., 2004).
NEW QUESTION # 368
Which of the following are behaviours that builds trust between the buyer and the supplier in business relationship? Select TWO that apply.
- A. Conducting transparent procurement process
- B. Over-inflated contingency funds
- C. Tendency to blame other party
- D. Commercial espionage
- E. Allowing supplier to involve in early product development
Answer: A,E
Explanation:
:
Trust-building behaviours are as following:
Joint-effort issue resolution
Open sharing of information
Open and honest discussion on root cause of failures
Joint planning focusing on value for money and risk sharing
Commercial transparency and co-proposition of cost reduction and service improvement programmes Joint recognition and celebration of successes
NEW QUESTION # 369
......
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