Cips dumpscollection vce L4m5 Questions Latest by Gwen q32 vce pdf

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Exam Name:	Commercial Negotiation
Exam Code:	L4M5 Dumps
Vendor:	CIPS	Certification:	CIPS Level 4 Diploma in Procurement and Supply
Questions:	395 Q&A's	Shared By:	gwen

Question 96

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?

Options:

When the supplier is a monopolist and some advantages need to be gained from the agreement

In a market that is full of alternative sources and substitute products

Where there is a single sourcing strategy to eliminate the competing suppliers and retain only one

In a market where the buyers are competing for fewer supply sources

Discussion

Question 97

One of the most important steps in preparing for negotiations is to appraise the relative power of the parties. The buying organisation must assess its bargaining power against that of the supplier it intends to negotiate with. This information is necessary in facilitating the preparation, the negotiation team and the negotiation strategy.

In what situation is the bargaining power of buyers likely to be high relative to suppliers?

Options:

The supplier’s product is critical to the buyer’s business

There are fewer buyers relative to suppliers

The buyer’s requirement is urgent and cannot be postponed

There are few suppliers relative to buyers

Discussion

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Question 98

A procurement professional is preparing for a negotiation of purchasing non-critical commodity products. He knows that the product can be easily replaced by other substitutes in the market. The negotiation for these products is typified by which of the following?

Options:

The buyer should focus on wider costs and risk elements

The approach must be collaborative

There will be only limited negotiation

There will be regular structured negotiations

Discussion

Question 99

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?

Note taker

Expert

Observer

Chair

Options:

1 and 2

1 and 3

2 and 3

3 and 4