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Free CIPS L4M5 Exam Braindumps (page: 34)

Page 10 of 70
PDF with 275 Questions

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?

  1. Yes, characteristics include risk management and strategic planning
  2. No, this can be classified as adversarial
  3. Yes, characteristics include arm's length transactions and minimal communication
  4. No, collaboration does not require commitments from either side

Answer(s): A

Explanation:

A collaborative relationship is characterized by mutual commitment, which enhances risk management and strategic planning between buyer and supplier. High levels of trust and commitment enable both parties to work closely to achieve shared objectives, creating a beneficial negotiation environment. This approach aligns with CIPS's principles of collaborative procurement relationships.



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

Hearing
Interpreting
Rapport
Influencing

  1. 1 and 2 only
  2. 2 and 3 only
  3. 1 and 3 only
  4. 2 and 4 only

Answer(s): A

Explanation:

Listening involves both hearing (1) and interpreting (2) the information shared by the other party. Effective listening is an active process that goes beyond simply hearing words; it involves interpreting meaning, understanding the speaker's intent, and responding accordingly. CIPS emphasizes these steps as part of effective communication in negotiations.



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?

  1. Bargaining
  2. Closure
  3. Proposing
  4. Opening

Answer(s): 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.



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

  1. The buyer spend is a low proportion of the supplier's revenue
  2. The buyer does not have the option to make as an alternative to buy
  3. The buyer demand is urgent and cannot be postponed
  4. The buyer is large in size relative to the supplier

Answer(s): D

Explanation:

The bargaining power of buyers increases when the buyer is large relative to the supplier. A large buyer can leverage its size to negotiate more favorable terms due to its significant impact on the supplier's business. CIPS notes that a buyer's size and purchasing volume are key factors that enhance its negotiating power in buyer-supplier relationships.






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