LATEST L4M5 TEST DUMPS & L4M5 LATEST EXAM TESTKING

Latest L4M5 Test Dumps & L4M5 Latest Exam Testking

Latest L4M5 Test Dumps & L4M5 Latest Exam Testking

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CIPS Commercial Negotiation Sample Questions (Q96-Q101):

NEW QUESTION # 96
The sourcing manager has decided to adopt an adversarial style of negotiation to take advantage of the buyer' s greater bargaining power over the suppliers. In what other circumstances should an adversarial relationship be used?

  • A. When the issues concerned are non-negotiable, for example, health and safety commitments
  • B. When the supplier is likely to respond with further concessions to maintain a long-term relationship
  • C. In a monopoly market as the supplier will respond by conceding quantity discounts
  • D. In all forms of negotiation as each party is always trying to gain advantage over the other

Answer: A


NEW QUESTION # 97
Sumitomo Rubber Industries (SRI) is a Japan-based tyre manufacturer. In order to increase production, SRI is sourcing rubber from Southeast Asian firms. Which of the following micro factors are most likely to shift the balance of power to supplier? Select TWO that apply

  • A. There are no close substitutes for rubber
  • B. SRI's purchase amount makes significant proportion of supplier revenue
  • C. Costs of changing suppliers are high
  • D. SRI sets up its own rubber plantation
  • E. Rubber from different suppliers is virtually similar

Answer: A,C

Explanation:
There are many factors that can influence the balance of power in a negotiation. These factors are classified into 3 levels:
Macro level: STEEPLE framework: social, technological, economic, environment, political, legal and ethical Micro level: Porter's five forces:
Diagram Description automatically generated
One-to-one buyer-supplier dynamics.
The question asks about the micro factors that increases supplier's bargaining power. Among 5 answers, only
2 are likely to increase buyer's power:
There are no close substitutes for rubber: the buyer has to buy rubber, not any other material.
Costs of changing suppliers are high: buyer entails a large barrier if they want to switch supplier.
Other answers cannot be correct because:
SRI sets up its own rubber plantation: Buyer secures its own supply
SRI's purchase amount makes significant proportion of supplier revenue: Suppliers are reliant on buyer. If the buyer stops buying from them, they can face serious cash flow problems Rubber from different suppliers is virtually similar: undifferentiated product would shift the power balance towards buyer.


NEW QUESTION # 98
Which of the following best describes Leverage quadrant in Kraljicmatrix?

  • A. Low risk, high importance
  • B. High value, high complex
  • C. Low risk, low importance
  • D. High complex, low importance

Answer: A

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 # 99
Which of the following would describe a push approach to influencing?
Exerting power or authority
Extensive use of open questioning
The party being influenced is fully aware of the process occurring
The party being influenced may not be aware of the process happening

  • A. 3 and 4 only
  • B. 1 and 3 only
  • C. 1 and 2 only
  • D. 2 and 4 only

Answer: B

Explanation:
A push approach typically involves exerting authority or power (1) with the party being influenced generally aware of the influence process (3). This method involves overtly directing or persuading the other party, often through explicit information or directives, as per CIPS's understanding of push influence techniques.


NEW QUESTION # 100
Which of the following is categorised as fixed cost?

  • A. Land rental paid in advance
  • B. Additional pallet hires due to higher demand in year-end season
  • C. Governments taxes
  • D. Raw materials for next year production

Answer: A

Explanation:
An organisation's expense can be categorised into three groups:
Fixed Costs - costs that do not change with output.
Variable Costs - costs that vary in direct proportion to output.
Semi-variable costs - costs that are a combination of the above, with both a fixed and variable element.
Among the four options:
"Land rental paid in advance": This is fixed cost. The rental won't increase when the production increases.
"Additional pallet hires due to higher demand in year-end season": This can be identified as semi-variable cost (or step cost).
"Governments taxes": The taxes are often levied by a percentage of income or revenue. Therefore, it is variable
"Raw materials for next year production": This is obviously variable cost.
Reference:
CIPS study guide page 79-84
Study tips: Fixed variable and semi-variable costs - AAT Comment


NEW QUESTION # 101
......

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