Exam Dumps L4M5 Practice Free Latest CIPS Practice Tests
L4M5 Exam Questions | Real L4M5 Practice Dumps
CIPS L4M5 Exam Syllabus Topics:
| Topic | Details |
|---|---|
| Topic 1 |
|
| Topic 2 |
|
| Topic 3 |
|
| Topic 4 |
|
| Topic 5 |
|
| Topic 6 |
|
| Topic 7 |
|
| Topic 8 |
|
| Topic 9 |
|
| Topic 10 |
|
| Topic 11 |
|
| Topic 12 |
|
NEW QUESTION 31
Active listening in negotiation includes which of the following activities?
1. Hearing
2. Interpreting
3. Rapport
4. Influence
- A. 2 and 3 only
- B. 1 and 2 only
- C. 1 and 3 only
- D. 3 and 4 only
Answer: B
Explanation:
Explanation
Listening is a hugely important skill in the world of work. It's a key part of effective communication [...].
Regarding active listening, there is a model called 'The SIER Hierarchy of Active Listening'. It details four key stages required for effective listening. As with all models associated with active listening, its purpose is to help the listener be a better, more effective listener who really hears what is being said, connects with the individual with whom they are communicating andbuilds effective relationships.
The model is a hierarchical model meaning that each stage builds on the stage before it. While the model is sometimes used for training in the sales arena, it is helpful in all walks of life. The stages of the model are:
Sensing (including hearing and watching body language), Interpreting, Evaluating and Responding.
Text Description automatically generated with low confidence
NEW QUESTION 32
Which of the following is most likely a consequence of falling interest rate?
- A. Decreaseconsumption
- B. Decrease investment
- C. Increase aggregate demand
- D. Increase savings
Answer: C
Explanation:
If interest rate are too low and credit is too, cheap rates can fund a spending boom with consumers and businesses buying (investment) more than they can afford to pay back.
NEW QUESTION 33
Which of the following are signs indicating that the trust between buyer and supplier has improved? Select TWO that apply.
- A. Less frequent communication on business requests
Duplication of effort - B. Decreasing percentage of missed delivery overtime
- C. Transparent decision makingprocess
- D. Cost overruns
Answer: B,C
Explanation:
Explanation
Signs of trust in business relationships
* Mutually agreed and managed objectives
* Sharing information
* Managing conflict through joint problem solving
* On time delivery of products and services
* High-performance teams that feel empowered to get the job done
* Supplier welcomes opportunity to innovate
* Both parties share ideas and insight
* Clear criteria for decision making
LO 1, AC 1.4
NEW QUESTION 34
Which of the following best describes Leverage quadrant in Kraljicmatrix?
- A. High value, high complex
- B. Low risk, low importance
- C. High complex, low importance
- D. Low risk, high importance
Answer: D
Explanation:
Explanation
In 1983, Peter Kraljic devised a means to segment the supplier base in the article in HBR. In this, heargued that supply items should be mapped against two key dimensions: risk and profitability.
Risk relates to the likelihood for an unexpected event in the supply chains to disrupt operations. For instance, in important areas of spend, such as tire suppliers for an automotive are business critical, and should a disruption occur, the auto company is likely itself to face substantial problems.
Profitability describes the impact of a supply item upon the bottom line. For certain areas of spend, such as stationery, supplies have only a negligible effect on profits. In other categories, a single source of supply can make or break a business.
Putting these two dimensions together yields a classic two-by-two matrix.
Diagram Description automatically generated
Source: Peter Kraljic, HBR
NEW QUESTION 35
A procurement manager is preparing fora negotiation with an important supplier. He plans to withhold some crucial information so that his company gains the upper hand in the negotiation. Is this correct when considering using integrative approach to the negotiation?
- A. Yes, the buying organisation must maximise its gain, even at the detriment of the other party
- B. No, this approach requires honest and open discussion
- C. Yes, the supplier must know what buyer wants and how to provide that even when the buyer is silent on these matters
- D. No,holding back information will prompt the supplier gain higher negotiation power
Answer: B
Explanation:
Integrative negotiation is a negotiation strategy in which the involved parties work together to find a solution that satisfies the needs and concernsof each. This process often involves group brainstorming and creative thinking for individuals to suggest different ideas that benefit both parties.
Compromising is often common in integrative negotiation, and both sides may need to give up certain needs to reach a solution. Honesty can also promote successful integrative negotiation because it can lead to a comprehensive understanding of the issue and what each party needs to be satisfied with the result.
NEW QUESTION 36
To buying organisation, savings can be achieved from different saving levers or tactics. Which of the following are means that deliver savings through optimising specifications?
- A. Value engineering
- B. Budgetlinkages
- C. Part substitution
- D. Compare total cost of ownership
- E. Volume pooling
Answer: A,C
Explanation:
If driving greater value and efficiency from your supply base is your end, you should remember that there are many ways to do this without seeking to negotiate lowerprices. Below are 7 types of saving levers:
Table Description automatically generated
NEW QUESTION 37
Procurement team is required to improve leverage with their suppliers through spend consolidation. To check whether there is any opportunity to consolidate spend, which of the following should be priority of procurement team?
- A. Price analysis
- B. Spend analysis
- C. Total cost analysis
- D. Value engineering
Answer: B
Explanation:
Explanation
In order to identify opportunities where you can increase your leverage with supplier, you need to understand your spend. Undertaking spend analysis of your accounts payable (AP) data is an essential first step here.
NEW QUESTION 38
Which type of question should be used to receive affirmation on statement?
- A. Closed
- B. Narrow
- C. Leading
- D. Open
Answer: A
Explanation:
Different questioning styles can be used to elicit desired responses:
Text Description automatically generated
NEW QUESTION 39
A good negotiator invests time in understanding the needs of the individuals in a negotiation. Is this statement true?
- A. Yes, because individual needs largely influence the outcomes of the negotiation
- B. Yes, because individuals' needs always unify with their own organisation's needs and wants
- C. No, becausenegotiator should attempt to satisfy the needs of the other organisation only
- D. No, because satisfying individual needs will lead to conflict of interest and unethical practices
Answer: A
Explanation:
Skilled negotiators seek to understand the needs of the other parties, as well as their own. In doing so, it allows them to determine a strategy that their own needs are met. Failing to understand the other party's needs is one of the most common reason for an unsuccessful negotiation. In the commercial negotiation, procurement team does not negotiate with organisation, they negotiate with individuals. It is therefore important to recognise that there are two levels of needs:
The organisation - What the organisation wants to achieve. This is generally well stated and understood The individual - what is in it for the individual? This is generally not stated, rarely discussed, but very motivational. It is vitally important therefore that time is invested in understanding the needs of the individual Skilled negotiators are aware of the needs that occur at both levels, and develop creative options and strategies that attempt to satisfy these needs.
NEW QUESTION 40
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.
- A. Line of the best fits
- B. Differences in culture
- C. Types of purchase
- D. Standard terms and conditions
- E. Differences in conflict management style
Answer: B,E
Explanation:
There are multiple sources of divergent positions that can arise in situations where money is exchange for goods and services. There are 2 different types of sources. Those that arise from the content or subject matter of the negotiation (what is being negotiated) and those that arise from the process of negotiation (how it is being negotiated).
Sources of divergent positions - the process of negotiation:
Table Description automatically generated
Line of best fits is the line that goes approximately through the middle of the data points with an equal number of data points above and below it. Line of best fits is a method of calculating medium value instatistics.
Standard terms and conditions are basic terms and conditions of business governing transactions that do not have a definitive contract, usually designed to be included in form documents such as orders. While there may be conflicts regarding standard terms and conditions, they are about the content of negotiation, not the process.
Type of purchase: when buying organisation makes an decision to purchase an item, a buyer is faced with three possible scenarios. The item to be bought could be a straight re-buy, a modified re-buy or a new purchase. Decision on type of purchase is purely an internal decision.
NEW QUESTION 41
Which of the following are macroeconomic factors that may have influence to the commercial negotiation?
Select TWO that apply
- A. Bargaining power of supplier
- B. Equilibrium price
- C. Rising import tariffs
- D. Unemployment rate
- E. Supply curve
Answer: C,D
Explanation:
Explanation
There are many macro economic factors that could influence procurement in general andcommercial negotiation in particular. Below are six factors that are agreed to be fairly significant:
* Economy growth rate
* Inflation rates
* Interest rates
* Currency exchange rate
* Unemployment rate
* Protectionism
LO 2, AC 2.2
NEW QUESTION 42
A new manager has been appointed with responsibility for an organisation's category which has major impact on organisational cost base and there are little competitions in the supply market. They have an objective to improve supplier cost structures over time. Which of the following should they carry out first?
- A. Purchase price cost analysis
- B. STEEPLE analysis
- C. Volume concentration
- D. Competitive rivalry analysis
Answer: A
Explanation:
The objective of the buyer here is to improve supplier cost structures over time, which requires them to have insight into supplier's current cost information. Purchase price cost analysis (PPCA) can help here. PPCA is a method for gathering, analysing and using price and cost information in asystematic way. The process allows the identification of future savings and opportunities to improve current costs.
STEEPLE analysis is used to analyse the macro environment that may have impact on an organisation.
Competitive rivalry is a part ofPorter's Five Forces which is a tool for strategy making.
Volume concentration is a way to increase the purchasing quantities in order for a buying organisation to improve its leverage in negotiation.
NEW QUESTION 43
An automotive company purchases high quality steel to produce components. The steel is an important raw material and the contract value is enormous. They sources the steel from oversea and contact some potential suppliers. One of the potential suppliers invites the procurement team to their premise for a new business opportunity. Should the procurement team accept the invitation?
- A. Yes, because this is an opportunity to assess the supplier's capacity
- B. No, because negotiating over telephone is enough to collect information on supplier's capability
- C. No, because the travel would incur unnecessary costs
- D. Yes, because the visit would increase the buyer's bargaining power
Answer: A
Explanation:
Explanation
In the scenario, the value of contract as well as the importance of purchased item justify the procurement's travel. Visiting a supplier at their HQ or operational facility may facilitate the procurement team in assessing, albeit briefly, the culture of the organisation, how busy they seem and how staff engage with each other. A visit is a good opportunity to assess supplier's capacity.
LO 2, AC 2.2
NEW QUESTION 44
Which of the following are hardball tactics in negotiations? Select TWO that apply.
- A. Good cop, bad cop
- B. Expand the pie
- C. Sweetening the deal
- D. Snow job
- E. Bridging
Answer: A,D
Explanation:
In difficult negotiations and disputes, hardball tactics like punishment and threats often seem like the only way to win concessions. Some negotiators seem to believe that hardball tactics are the key to success in any negotiation. They resort to extreme demands and even unethical behaviour to try to get the upper hand in a negotiation.
The following are 8 typical hardball tactics:
1. Good cop / Bad cop
2. Low ball / High ball
3. Bogey
4. The Nibble
5. Chicken
6. Intimidation
7.Aggressive Behaviour
8. Snow Job
You can read the details of each tactic here.
In the contrary to hardball tactics, negotiators can adopt integrative approach to the negotiation. Some of integrative tactics are:
1. Expand the Pie
2. Bridging
3. Post Settlement -Settlement
Et cetera
NEW QUESTION 45
Which of thefollowing is the purpose of using stakeholder support level scale?
- A. To identify key stakeholders
- B. To estimate the gap and the progress towards desired levels of support
- C. To identify stakeholder level of influence and interest and plot them on stakeholder map
- D. To identify stakeholder's needs and expectations
Answer: B
Explanation:
Explanation
In order to estimate the gap and the progress towards desired level of support, a stakeholder support scale can be used by the procurement internally. The support level scale measures stakeholder commitment. Current support level for the procurement/negotiation objectives should be gained from engagement with key stakeholders. The following is an example of stakeholder support level scale:
Graphical user interface, application Description automatically generated
LO 1, AC 1.1
NEW QUESTION 46
IHL has beensupplying to XYZ Ltd for months. XYZ Ltd procurement manager Diana realises that the IHL's input prices are dropping and this is a good time to re-negotiate the price of the contract. She invites IHL representative to XYZ headquarter to make a bargain on the current price. At the opening stage of the negotiation, Diana requests a 10% reduction in price with an increase in volume purchased.
Is Diana's action appropriate in the opening phase?
- A. No, because Diana should state exactly the increasing quantity
- B. Yes, because Diana's proposal is a fair trade for both parties
- C. Yes, because the negotiation should be done as quick as possible
- D. No, because Diana has put the markers down too soon
Answer: D
Explanation:
The opening stage of the negotiation coversthe very first few minutes when the parties meet and greet each other and are seated in the negotiation room in preparation for the main event.
Typical behaviours at the opening stage: 'dos' and 'don'ts'
Do's
Be punctual and well presented (welcome theirarrival)
Break the ice with small talks
Start the conditioning process
Check authority
Check agenda
Consider using visual aid to set out key objectives or make key points
Don'ts
Use strong, pushy, cold or tough style at the opening
Put down marker at thisstage
Criticise other organisations/TOP's previous contacts/third parties.
In this scenario, Diana has made her proposal right at the opening stage. This is an example of 'don'ts'. Good negotiators are very careful about 'red lines'. If she puts such barrier up too early, the supplier may not try to look for more creative solutions later in the negotiation.
NEW QUESTION 47
Which of the following are most likely to be direct costs of a steel manufacturer? Select THREE that apply.
- A. Insurance for production lines
- B. Coal
- C. Seniormanagement salary
- D. Scrap metal
- E. Cleaning services
- F. Hourly production wages
Answer: B,D,F
Explanation:
Direct costs are those costs of a product/service directly attributable/traceable to its production. Examples of direct costsincluding the following:
Materials and services bought-in: In steel manufacturer, raw materials are iron ores, scrap metal, coals, etc Labour or wages: money paid to staff for the work involved in producing the product.
Other expenses: other charges incurred that can be specifically attributed to a particular product, batch or service
NEW QUESTION 48
Stalemate is morelikely to happen if both parties trade more variables in a commercial negotiation. Is this assumption true?
- A. Yes, because more variables will cause more conflicts of interest
- B. No, because the party who offers more variables will have lower bargaining power
- C. Yes, because the negotiation will last endlessly if there aretoo many variables
- D. No, because more variables will facilitate more possible negotiated outcomes
Answer: D
Explanation:
Explanation
Negotiation variables such as price or contract length, etc arethat can be traded with TOP in a negotiation. The more variables you can identify, the better. The more variables you can identify and articulate, the lower the chances of the negotiation reaching deadlock as more possibilities are facilitated regarding more creative solutions.
Below are examples of negotiation tradeables in buying professional services:
Table Description automatically generated
Table Description automatically generated
LO 2, AC 2.3
NEW QUESTION 49
Which of the following are most likely to be fundamentals of Fisher & Ury's principled negotiation?
1. Depersonalise the argument
2. Focuson positions
3. Generate creative options
4. Using subjective criteria
- A. 1 and 3 only
- B. 2 and 3 only
- C. 2 and 4 only
- D. 1 and 4 only
Answer: A
Explanation:
Explanation
Principled negotiation is based on four fundamentals: people, interest, options andcriteria:
Diagram Description automatically generated
1st Principle: separate the people from the problem: Negotiator should depersonalise the situation and accepting that the subject matter of the negotiation. This can be difficult for untrained negotiators, but this is a key skill to develop
2ndprinciple: focus on interests, not positions: It is important in principled negotiations not to focus on their parties' positions (what are expressed during negotiations), but on the interests (underlying needs) behind them
3rd principle: invent options for mutual gains: this principle aims to help the parties find a solution that both would benefit from. The more options - or tradeables - that can be brought to the table the better.
4th principle: insist on using objective criteria: is about making sure that the negotiation stays focused on outcomes based on objective criteria and that it is productive.
LO 1, AC 1.2
NEW QUESTION 50
......
Verified L4M5 Exam Dumps Q&As - Provide L4M5 with Correct Answers: https://learningtree.actualvce.com/CIPS/L4M5-valid-vce-dumps.html