Question 1

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 2

Which of the following will you put into box 4?

Options :

A : Threat of New Entrants - Low

B : Threat of Substitutes - Low

C : Bargaining Power of Buyer- Low

D : Competitive Rivalry- High

Answer: B

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

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 5

Which of the following will you put into box 8?

Options :

A :

leverage

B : strategic

C : bottleneck

D : non-critical

Answer: B

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