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 approaches to cost is the least transparent?

Options :

A : price management

B : price acceptance

C :

cost down

D : cost out

Answer: B

Question 3

CEB Research states that there are 6 competencies which drive strategic performance in Procurement. The ability to stay calm under pressure and handle criticism is which of the following competencies?

Options :

A : influencer

B : adaptor

C : innovator

D : results seeker

Answer: B

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

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