Free L4M6 Exam Braindumps (page: 13)

Page 13 of 31

Kinky Boots Ltd provides high heeled shoes in large sizes. Their target market are Drag Queens. There are a couple of rival shoe manufacturers in this market and Kinky Boots Ltd offer the cheapest high heels.
What strategy is Kinky Boots Ltd employing in terms of competitive advantage?

  1. cost leadership
  2. differentiation
  3. cost focus
  4. differentiation focus

Answer(s): C

Explanation:

This is 'cost focus' - Kinky Boots is both focusing on being a cost leaser (by providing the cheapest products) and focusing on a niche market (drag queens).
When these two strategies are combined it is called 'cost focus'. There's a couple of questions on Porter's Generic Strategies in the exam- there's a useful diagram of this on P.13



Partnership sourcing is often considered a `high-risk' strategy for a buyer.
Which of the following is not a risk generally associated with partnership sourcing?

  1. Sharing commercially sensitive data with another party
  2. Single-sourcing may leave the buyer without a supply if the supplier goes into liquidation
  3. Reduced waste in the supply chain
  4. Supplier may become complacent

Answer(s): C

Explanation:

The correct answer is `Reduced waste in the supply chain' ­ this is not a risk, this is a benefit P.134



The Queen Victoria is a traditional British pub which serves a range of alcoholic beverages. It has a partnership relationship with a local brewery which supplies several types of beer and cider. Logistics is a key concern for the Queen Victoria as deliveries must be made when there is room in the cellar to store the barrels of beer and cider. In what ways could the logistics risk be reduced?

  1. Using several suppliers instead of one
  2. Batch ordering
  3. Sharing up-to-date information
  4. Issuing POs electronically.

Answer(s): C

Explanation:

The logistics risk can be reduced by `Sharing up-to-date information'. If the Pub tells the supplier when it's running low, they can then time the deliveries more accurately. P. 136. A lot of the questions on the `Partnerships' chapters of the book are common-sense questions like this. It involves reading the question and using logic, rather than relying on your knowledge of procurement. If you found this question easy ­ that's a good sign for the exam.



A restricted market is a market where there are only a small number of capable and competent suppliers.
Which of the following is not a reason for a marketplace to be restricted?

  1. Low levels of profitability
  2. High barriers to entry
  3. Strong governmental regulation
  4. The product is easy to source elsewhere

Answer(s): D

Explanation:

The correct answer is `The product is easy to source elsewhere'. The other three are given as reasons a marketplace might be restricted on p.138. Other reasons also include; brand loyalty, difficult access to distribution channels, and companies colluding.



Page 13 of 31



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