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CIPS L4M5 - Commercial Negotiation

Page: 12 / 12
Total 395 questions

Information generated through Purchase Price Cost Analysis can be useful to the purchaser, by helping to identify which of the following costs relating to the supplier? Select the THREE that apply.

A.

External costs

B.

Profit

C.

Material costs

D.

Market costs

E.

Budgeted costs

F.

Depreciation on equipment

Which of the following are hardball tactics in negotiations? Select TWO that apply.

A.

Expand the pie

B.

Snow job

C.

Good cop, bad cop

D.

Sweetening the deal

E.

Bridging

Logibox Ltd is releasing a new range of stackable storage boxes. It has adopted a pricing strategy that aims to sell at a price the consumer is prepared to pay.

Which of the following is it using?

A.

Skimming pricing

B.

Penetration pricing

C.

Market pricing

D.

Premium pricing

Colin Smith is preparing for a negotiation with a supplier that provides a chemical for grass fertiliser. Colin has been given an action to secure a commercial deal that achieves his organisation's objective of 'ethical and sustainable procurement.' As part of his negotiation plan, Colin is using the ‘must, intend, like (MIL)’ framework to prepare for the negotiation. Colin would categorise his organisation's objective within the negotiation plan as ...

A.

Intend to have

B.

Like to have

C.

Must have

D.

Likely to have

Jasmine and the IHL sales team have a negotiation scheduled with one of AB’s lead buyers, Samuel, at AB’s premises. This is one of the biggest negotiations that Jasmine has been involved in and is eager not to make any mistakes. Jasmine has heard from a colleague that Samuel tends to adopt an integrative negotiation style. IHL senior management decides to send a team of three members to the negotiation. Jasmine is among the team and she is assigned to check body language, reactions, feeds insight to her leader and to record important comments and information from the meeting for minutes. Which of the following are roles of Jasmine in the forthcoming negotiation? Select TWO that apply.

A.

Secretary(Correct)

B.

Commercial expert

C.

Technical expert

D.

Chief negotiator

E.

Observer

Which of the following is the purpose of using stakeholder support level scale?

A.

To identify stakeholder level of influence and interest and plot them on stakeholder map

B.

To identify stakeholder's needs and expectations

C.

To estimate the gap and the progress towards desired levels of support

D.

To identify key stakeholders

During a negotiation, Jose Gomez, the salesperson for a strategic supplier, states that his sales director will not approve discounts against initial purchases. However, Jose offers a 5% discount against the aftercare package, which will provide the same monetary saving. Sally Pampas requires both the product and the aftercare package and has an objective to achieve a 5% discount off the purchase price. To achieve a win-win (integrative) negotiation, Sally should:

A.

Ask Jose to apply the 5% discount against the purchase price

B.

Decline the offer and walk away from the negotiation

C.

Ask Jose to apply a discount against the price

D.

Accept the offer of a discount against the aftercare package

The procurement manager of a private healthcare provider is running an IT project. Who would be the stakeholders?

General public

Pharmaceutical suppliers

Senior Management

Software support developers

A.

2 and 4 only

B.

1 and 3 only

C.

1 and 2 only

D.

3 and 4 only