CIPS L4M8 Chapter 1- Questions and Answers 100% Solved
12 views 0 purchase
Module
CIPS
Institution
CIPS
CIPS L4M8 Chapter 1- Questions and Answers 100%
Solved
To fully understand the market pricing, procurement professionals should research the level
of competition. The .... .... ... model is an established way of assessing the competition
Correct Ans-Porter's Five Forces
CIPS L4M8 Chapter 1- Questions and Answers 100%
Solved
To fully understand the market pricing, procurement professionals should research the level
of competition. The .... .... ... model is an established way of assessing the competition
Correct Ans-Porter's Five Forces
Porter's Five Forces Model Correct Ans-- Threat of new entrants
- Threat of substitutes
- Bargaining power of buyers
- Bargaining power of suppliers
- Rivalry among existing Competitors
Core Competencies Correct Ans-The processes that are critical to an organisation achieving
success and competitive advantage
Make or buy decisions are about Correct Ans-whether a product or service should be
made within the organisation or bought-in from an external supplier
A procurement professional can use Carter's Outsource Matrix when Correct Ans-deciding
whether to make or buy
The four quadrants of Carter's Outsource Matrix Correct Ans-- Strategic Alliance
(High strategic importance/Low Contribution to operational performance)
Benefits of Outsourcing Correct Ans-- Saving money
- Reducing overheads
- Reducing headcount
- Using external knowledge
Focusing internally on core competencies
- Helping with shortfalls in labour/expertise
Disadvantages of Outsourcing Correct Ans-- Losing some control within an organisation
- Relying on external organisations
- Reducing quality
- Losing some internal knowledge
Procurment Cycle - Stage 3 - Develop strategy/plan Correct Ans-Once the decision to make
or buy has been made and the market has been evaluated, the next stage is to develop the
strategy or plan of how to achieve the procurement. Buyers should think about the external
, CIPS L4M8 Chapter 1- Questions and Answers 100%
Solved
environment when developing this plan and take several factors into account that could affect
their decisions (STEEPLE)
The 13 Stages of the Procurement Cycle Correct Ans-Stage 1 - Identify need and develop
spec.
Stage 2 - Market commodity/make or buy options.
Stage 3 - Develop Strategy/Plan
Stage 4 - Pre procurement market tests
Stage 5 - Prepare Documentation
Stage 6 - Supplier Selection
Stage 7 - Send ITT
Stage 8 - Receive & Evaluate Bids
Stage 9 - Award contract
Stage 10 - Warehouse/logistics prep
Stage 11 - Contract management
Stage 12 - Relationship management
Stage 13 - End of life/asset management
Procurement Cycle - Stage 1 - Understand need and develop a high-level specification
Correct Ans-The person generating the need should communicate with the buyer to
ensure there is no misinterpretation. Once the need is clearly understood, the procurement
professional should develop a specification
, CIPS L4M8 Chapter 1- Questions and Answers 100%
Solved
Two types of specification Correct Ans-Performance and conformance
Performance specifications Correct Ans-Specifies what the product or service will do or
achieve. This covers the outputs required, tolerances and any functions the product/service
may have to perform
Conformance specifications (technical) Correct Ans-Specifies which standards a
requirement must meet or exceed
Characteristics of Performance specifications Correct Ans-- Allow supplier innovation
- Promote competition in the marketplace
- The supplier bears the risk
- Buyer may not know exactly what they will be getting
- Shorter document
- Quicker to prepare
- Takes advantage of supplier expertise
Characteristics of Conformance specifications (technical) Correct Ans-- No supplier
innovation
- Reduce competition
- The buyer bears the risk
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller GOLDTUTORS. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £13.87. You're not tied to anything after your purchase.
