QUESTION 54
ABC is a company which sources a vital component from a supplier. There are only a few suppliers in the industry and without this component, ABC would not be able to produce their final product. What type of relationship should ABC seek to develop with their supplier?

QUESTION 55
Which of the following are not a valid reasons to terminate a relationship with a supplier? Select TWO.

QUESTION 56
When outsourcing, which legislation details the rights of employees who may find themselves now working for the outsourcing company?

QUESTION 57
In a partnership who is responsible for decision making?

QUESTION 58
Mendelow’s Stakeholder Matrix categorises stakeholders into four groups and provides insight into how these stakeholders should be managed. What is a limitation to using this Matrix to categorise stakeholders?

QUESTION 59
Sandra is a buyer for a large supermarket and has been increasing unhappy with the performance of a long-term supplier of bananas. Over time the deliveries have become unreliable and this has had impacts on the supermarket’s profitability. What should Sandra do first?

QUESTION 60
Fashion buyer Kamal Sumai is working closely with a key overseas supplier and is monitoring and forecasting cost volatility within the fabric market. Kamal has decided it is the right time to raise a purchase order with his supplier for a greater quantity of fabric than he currently needs. Kamal is attempting to avoid an imminent price increase. What is this tactic known as?

QUESTION 61
Lee is a procurement manager at Real Pirates Ltd and he has a contract with Peg Leg Industries for the supply of fake, wooden legs for his team of Pirates. Real Pirates Ltd have been working with Peg Leg Industries for almost 10 years but recently Lee has discovered he will need to terminate the contract due to ‘Contract Frustration’. What could be the reason for this?

QUESTION 62
Intellectual Property Rights (IPR) include items such as copywrite and trademarks. A buyer is considering entering into a partnership with their supplier to create a new product which will be released in two years’ time. Should IPR be included into a contract between partners?

QUESTION 63
Richie has come up with a new idea for sourcing items for the business but feels that it will have mixed reviews within the team. He thinks that some people will be in favour of the idea, and some will be against it. He doesn’t think the CEO will have a strong opinion either way. In order to decide whether to put a business case together and present his idea to the CEO- what should Richie do?

QUESTION 64
Partnership relationships are long-term relationships without a defined end period. Is this statement TRUE?

QUESTION 65
In the 1990s, a manufacturer of portable music players partnered with a mini-disk producer. The aim of the partnership was to reduce the size and cost of the devices and enhance flexibility. Sales of the product after launch were low due to a competitive launch of small digital players, which offered better flexibility to customers at a comparable price. The partners suffered substantial loss and never recovered the investment. In order to mitigate the risk described, what should both partners have considered before investing in the product? Select the TWO that apply.

QUESTION 66
Which of the following would not affect rivalry in a marketplace? Select TWO.

QUESTION 67
Janet runs a factory which produces 1 million bread rolls every day. It requires a large amount of flour, and for this to be delivered regularly- in time with manufacturing operations. There are very few suppliers in the market place that can deliver the quality of flour Janet requires in the quantities required. Janet has just established a contract with Friendly Flour Limited – what type of supplier is Friendly Flour Limited to Janet?

QUESTION 68
Achieving value for money can often be described as the three Es? What are these?

QUESTION 69
Which of the following documents can be used at the selection stage of a tender process to ensure that short listed bidders meet the requirements of the buying organisation? Select TWO.

QUESTION 70
You work at XYZ manufacturers and a competitor has just released a rival washing machine to the product that you make. This model is proving popular with customers. What competitive force is at play?

QUESTION 71
Which of the following are recognised organisational culture types? Select THREE

QUESTION 72
Lion Manufacturing is about to enter into a partnership with Penguin Logistics, who will provide delivery to and from Lion Manufacturing’s factories and warehouses. In this relationship, what type of negotiation strategy should Lion manufacturing use?

QUESTION 73
A common reason attributed to many partnerships failing is …

QUESTION 74
Value for money in the private sector is concerned with what?

QUESTION 75
Which of the following is an advantage for the suppler of entering into a partnership with a buyer?

QUESTION 76
Cigarettes and alcohol are often described as having an ‘inelastic price’. What does this mean?

QUESTION 77
A supplier is working with a buyer who represents a large percentage of his business. Without this particular buyer, the supplier would likely go out of business. There has been a dispute in the last invoice which the buyer is not happy about. What technique should the supplier use when talking to the buyer about this?

QUESTION 78
Under what circumstances should a competitive tender not be completed? Select TWO.