Question 1

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 2

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

Question 3

Which of the following are potential consequences for an organisation which fails to identify and address risk? Select TWO

Options :

A : lawsuits

B : corruption

C :

damage to brand image

D : financial loss

Answer: C,D

Question 4

What is contract leakage?

Options :

A : when spend with a supplier is more than was stated in the contract

B : when spend with a supplier is less than was forecast

C : the gap between proposed KPI levels and those actually achieved by the supplier over the course of a contract

D : the gap between benefits identified in the pre-award stage of the contract and those actually achieved

Answer: D

Question 5

According to studies completed by Reeves, Moose and Venema in 2014, which of the following was proven to be true with regards to the BCG matrix?

Options :

A :

companies nowadays have more 'cash cow' items than in the past

B : products move through the four quadrants faster nowadays than in the past

C : there is a higher correlation between share leaders and profit leaders nowadays than in the past

D : there is a longer time between innovation and adoption nowadays than in the past

Answer: B

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