Question 1

Which of the following will you put into box 8?

Options :

A :

leverage

B : strategic

C : bottleneck

D : non-critical

Answer: B

Question 2

Joan is a Category Manager at a packaging plant in Birmingham, UK. Her company creates and supplies different forms of packaging to manufacturers in the food and retail sectors. She is creating a Profile of the Category she manages in order to identify the spend category. By obtaining data on her Category, which of the following will Joan be able to do?

Options :

A : Find alternative suppliers

B : Prepare projections and budgets for the future

C : Competitive Supplier Selection

D : Benchmarking

Answer: B

Question 3

On the BCG Matrix, what is a cash cow?

Options :

A :

high market share, high market growth

B : high market share, low growth

C : low market share, low growth

D : low market share, high growth

Answer: B

Question 4

According to Porter's 5 Forces, supplier power is strong in industries where which of the following is true? Select THREE

Options :

A : no substitutes are available

B : supplier-s customers are fragmented

C : switching costs are low

D : forward integration is possible

E : the product is undifferentiated

Answer: A,B,D

Question 5

In order for Category Management to be a success, it is important to have business commitment and stakeholder buy-in. Is this TRUE?

Options :

A :

Yes- if the organisation is to realise the benefits of Category Management, it must be fully endorsed and supported by top management

B : Yes- Category Management is a tactical approach to sourcing and therefore requires cross-functional teamworking to succeed

C : No- Categories can work independently of each other and therefore do not require stake-holder buy-in.

D : No- business commitment is only required for high spend categories

Answer: A

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