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Achieving Competitive Advantage Through the Supply Chain Questions 11–15 (page: 4)

Updated On: 10-Feb-2026

Which of the following departments within an organisation form part of the Value Chain?

Select THREE.

  1. Logistics
  2. Operations
  3. Marketing
  4. Procurement
  5. Human Resources

Answer(s): A,B,C

Explanation:

According to Michael Porter's Value Chain, primary activities include inbound logistics, operations,

outbound logistics, marketing and sales, and service. Procurement and HR are support activities.

Short cited term: "primary activities ­ logistics, operations, marketing and sales" (L5M7 Study Guide, p. 76).


Reference:

CIPS L5M7 Study Guide, p. 76.



Why would a company use a Process Mapping Technique? Select TWO.

  1. To increase market share
  2. To assist with budgeting
  3. To identify where waste and inefficiency exist
  4. To establish what is currently happening and why

Answer(s): C,D

Explanation:

Process mapping visually defines how processes operate, revealing inefficiencies, duplication, and waste, and clarifies the current process flow and responsibilities.

Short cited term: "identifies inefficiencies and highlights process waste" (L5M7 Study Guide, p. 73).


Reference:

CIPS L5M7 Study Guide, p. 73.



In what way has the increase in the use of technology affected buyer­supplier relationships?

  1. It has reduced the bargaining power of suppliers as buyers now have access to a wider pool of suppliers and product information.
  2. It has increased the bargaining power of suppliers as they can provide faster quotations.
  3. It has reduced the bargaining power of buyers because there are fewer suppliers.
  4. It has increased the bargaining power of buyers because technology has increased operational costs.

Answer(s): A

Explanation:

Technology enhances buyer access to data, broadening supplier choice and transparency, which reduces supplier power.

Short cited term: "technology has reduced suppliers' bargaining power" (L5M7 Study Guide, p. 66).


Reference:

CIPS L5M7 Study Guide, p. 66.



A strategy in which an organisation concentrates its resources on a narrow market or industry segment is which of Porter's Generic Strategies?

  1. Cost Leadership
  2. Focus
  3. Differentiation
  4. Cost Certainty

Answer(s): B

Explanation:

Porter's Focus Strategy involves targeting a niche market to meet unique needs better than competitors.

Short cited term: "focus ­ targeting a narrow market segment" (L5M7 Study Guide, p. 52).


Reference:

CIPS L5M7 Study Guide, p. 52.



Which of the following describes an Adhocracy organisational structure? Select TWO.

  1. Has a vertical structure where managers maintain control
  2. Highly formalised structure
  3. Can respond quickly to change
  4. Low levels of centralisation
  5. Highly documented routine processes

Answer(s): C,D

Explanation:

An adhocracy is flexible, decentralised, and able to respond rapidly to change, though it may lack formal control systems.

Short cited term: "low formalisation, high adaptability" (L5M7 Study Guide, p. 64).


Reference:

CIPS L5M7 Study Guide, p. 64.



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