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| Vendor: | CIPS |
|---|---|
| Exam Code: | L4M5 |
| Exam Name: | Commercial Negotiation |
| Exam Questions: | 395 |
| Last Updated: | April 15, 2026 |
| Related Certifications: | Level 4 Diploma in Procurement and Supply |
| Exam Tags: | Intermediate Level Procurement Analysts |
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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?
Investors or shareholders who have high level of influence but low interest belong to 'Keep satisfied' quadrant of Mendelow's Stakeholder Matrix.
You may read 2 versions from L4M1 and L4M5 here:
Table Description automatically generated
LO 1, AC 1.1
Which of the following are stages of a win-win approach to negotiations?
Find out where the interests of both parties align
Design new options, where everyone gets more of what they need
Limit the resources to a fixed number
Insist that the agreement includes subjective regulatory standards
A win-win (integrative) negotiation focuses on shared interests and joint value creation. The first step is identifying where both parties' interests align, followed by designing creative options that allow both sides to gain more of what they need. Limiting resources and imposing subjective standards are characteristics of distributive or adversarial approaches and restrict value creation. CIPS clearly distinguishes integrative negotiation as collaborative, interest-based, and solution-focused, particularly suitable for long-term and strategic supplier relationships.
Which one of these key approaches could be pursued for a successful negotiation of a commercial agreement?
Acollaborative win-win approachfocuses on mutual benefit and long-term value creation. This strategy is especially effective in strategic partnerships where trust, information sharing, and problem-solving are emphasized over competition.
''The collaborative win-win approach aims to create outcomes where both parties gain. This strengthens the relationship and leads to sustainable agreements built on trust and transparency.''
(L4M5 Commercial Negotiation, 2nd edition, Section 1.1 - Win-Win Negotiation Strategy)
Which of the following is important during the proposing stage of a negotiation?
Which of the following are most likely to harm trust between buyer and supplier in a commercial relationship? Select TWO that apply.
Trust-destroying behaviours:
- Rumours of partnership or relationship breaking down
- Emotion-based assessment of performance
- Avoiding accountability, passing the blame to others
- General mood -- resentment, distrust, frustration, etc
LO 1, AC 1.4
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