Latest [Jun 06, 2022] Real CIPS L4M5 Exam Dumps Questions [Q25-Q41]

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Latest [Jun 06, 2022] Real CIPS L4M5 Exam Dumps Questions

L4M5 Dumps To Pass CIPS Level 4 Diploma in Procurement and Supply Exam in One Day (Updated 165 Questions)

CIPS L4M5 Exam Syllabus Topics:

Topic	Details
Topic 1	Differentiate between the types of approaches that can be pursued in commercial negotiations Distributive win-lose, distributive approaches to negotiation
Topic 2	Analyse how to assess the process and outcomes of negotiations to inform future practice Protecting relationships after the negotiation
Topic 3	Macroeconomics and its influence on commercial negotiations Contrast the economic factors that impact on commercial negotiations
Topic 4	Costing methods such as absorption, marginal or variable and activity based costing Know how to prepare for negotiations with external organisations
Topic 5	Setting objectives and defining the variables for a commercial negotiation Use of telephone, teleconferencing or web based meetings
Topic 6	Team management and the influence of stakeholders in negotiations Definitions of commercial negotiation
Topic 7	Building relationships based on reputation, and trust Repairing a relationship The relationship spectrum
Topic 8	Identify the different types of relationships that impact on commercial negotiations Pragmatic and principled styles of negotiation
Topic 9	Organisational power: comparing the relative power of purchasers and suppliers Explain how the balance of power in commercial negotiations can affect outcomes
Topic 10	How purchasers can improve leverage with suppliers The importance of power in commercial negotiations
Topic 11	Analyse the application of commercial negotiations in the work of procurement and supply Negotiation in relation to the stages of the sourcing process
Topic 12	How behaviours should change during the different stages of a negotiation Compare the key communication skills that help achieve desired outcomes
Topic 13	Setting targets and creating a best alternative to a negotiated agreement (BATNA) Collaborative win-win integrative approaches to negotiations

NO.25 An oil refinery plant imports much of its crude oil from overseas. A procurement manager in the refinery suggests that fixing the crude oil contract price for 36 monthswould be beneficial for the company. Would this be a right thing to do?

Yes, financial budgeting task would be a lot easier with fixed pricing arrangement

No, fixed price should be only applied to contracts that last 60 months or longer

No, the refinery would not be able to reap the benefits from falling commodity price and currency rates

Yes, the supplier would bear the risk when the material price increased

NO.26 An experienced procurement professional is developing strategies for forthcoming negotiations with her key supplier. To avoid negotiation deadlocks, she identifies the reasons whynegotiations could fail. Which of the following are most likely to be reasons for negotiation failures? Select TWO that apply.

Underlying interests of TOP are overlooked

MIL objectives are well established

Both parties focus on common interests

Buyer helps to create a co-operative atmosphere

Unachievable objectives were set up

NO.27 Whenimplementing value analysis or value engineering, which of the following acronyms reminds both buyer and supplier of ideas on removal, substitution and design-out of cost elements?

SMART

STOPS WASTE

OWN-IT

SAMOA

NO.28 Which of the following are macroeconomic factors that may have influence to the commercial negotiation?
Select TWO that apply

Equilibrium price

Supply curve

Unemployment rate

Bargaining power of supplier

Rising import tariffs

NO.29 End users are the only stakeholders that are involved in the preparation of a negotiation. Is this statement true?

Yes, because end-users have greaterexpert power

Yes, because only end-users understand their demand

No, because end-users are external stakeholders

No, because budget holders also play an important role

NO.30 Which of the following are the most typical characteristics of integrative approach to negotiation? Select TWO that apply.

Positional-based

Claiming value

Interest-based

Short-term wins

Creating more value

NO.31 A senior buyer analyses the supply market and he realises that his organisation is treated asExploit according to supplier’s perspective model. What does he need to do?

Adopt opaque processes

Increase the spend value

Raise the transactional costs to do business

Pay the suppliers on time

NO.32 Which of the following types of questions should be used most often in the proposing phase?

Hypothetical questions

Probing questions

Closed questions

Open questions

NO.33 At the first stage of CIPSProcurement and Supply Cycle (Understand need), which of the following is the most important duty of procurement professional?

Demand management

Evaluating the interests from suppliers

Undertaking ‘reverse marketing’

Deciding whether RFQ or ITT should be used

NO.34 What is the most likely outcome when two organisations with adversarial relationship negotiate with each other?

Deadlocked

Lose lose

Win lose

Win win

NO.35 Which of the following may help the procurement professional increase expert power in commercial negotiation? Select TWO that apply.

Personality

Official positions

Insights

Ability to compensation

Expertise knowledge

NO.36 The buyer’s bargaining power tends to berelatively higher than supplier’s bargaining power in which of the following circumstances?

The buyer does not have the option to move to an alternative supplier

The buyer’s spend takes up a small proportion of supplier revenue

The buyer demand isso urgent that it can’t be postponed

The buyer is large in size relative to its suppliers

NO.37 When is the best time to adopt accommodating style according to Thomas-Kilmann conflict mode instrument?

When both buyer and supplier want to find anintegrative solution as their concerns are too important to be compromised

When buyer needs to gather more information to gain more advantages in later negotiations

When preserving harmony and avoiding disruption with supplier are especially important

When buyer and supplier have equal power but are strongly committed to mutually exclusive goals

NO.38 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?

Engage and keep them satisfied

Engage and consult with them regularly

Keep these people inform through general communication media

Manage them closely

NO.39 Which of thefollowing are signs indicating that TOP is using coercive power in commercial negotiation?
Select TWO that apply.

Demonstrating fairness and respect

Withdrawal of benefits

Use of guilt

Technical expertise

Positive references

NO.40 A procurement professional is preparing for anegotiation 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?

MIL

RAQSCI

TIMWOOD

PPCA

NO.41 An organisation is developing the specification for a capital purchase project. An important stakeholder has doubt on the draft specification. The buyer invites him to the product function meetings. In these meeting the attendees can raise their concerns, the specification development team takes in all the concerns and adjusts the specification accordingly. What kind of technique is the specification development team using?

Directive

Persuasive reasoning

Coalition

Visionary