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NEW QUESTION 48
According to Michael Porter, what is procurement?
- A. a primary activity which provides a source of competitive activity
- B. a secondary activity which provides value for money
- C. a support activity which provides a source of competitive advantage
- D. a primary activity which provides value for money
Answer: C
Explanation:
This question refers to Porter’s Value Chain (p.35). There’s a couple of questions on this in the exam so try to learn it. Procurement is a ‘support activity’ on this matrix along with firm infrastructure, HR and technology development
NEW QUESTION 49
Which of the following is characteristic of an adversarial relationship?
- A. The outcome of the deal is more important than the long term relationship
- B. The communication is always poor
- C. They are only used for one-off purchases
- D. The price is more important than the quality of the product
Answer: A
Explanation:
In an adversarial relationship “the outcome of the deal… is more important than maintaining the relationship over a long-term period” p.7. They can be characterised by poor communication and can be used for one-off purchases but be careful for words in answers such as ‘only’ and ‘always’, as these can be misleading; adversarial relationships aren’t always for one-off purchases, and communication isn’t always poor. The other answer is incorrect (price is more important) because it doesn’t describe the relationship, which is what the question asked.
NEW QUESTION 50
A ‘synergy’ within a partnership can lead to what?
- A. Greater creativity
- B. Increased costs
- C. Poor performance
- D. Miscommunications
Answer: A
Explanation:
The correct answer is ‘greater creativity’. A synergy is the concept that the value and performance of two companies combined will be greater than the sum of the separate individual parts. P.160
NEW QUESTION 51
Which of the following behaviours are you likely to see in a Partnership relationship?
- A. Opportunistic behaviour and strong levels of trust
- B. Secrecy and honest communication
- C. Honest communication and opportunistic behaviour
- D. Strong levels of trust and honest communication
Answer: D
Explanation:
The correct answer is ‘Strong levels of trust and honest communication’. The questions on Partnership in the exam tend to be quite straightforward, but if you’re struggling with this see p. 148 for further details of behaviour in Partnerships.
NEW QUESTION 52
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