A marketplace which is described as a `red ocean' has which of the following characteristics?
Answer(s): A
A Red Ocean market is highly competitive with many firms fighting for market share, leading to price wars and reduced margins.Short cited term: "red ocean = intense competition and saturated market." (L5M7 Study Guide, p.179)
CIPS L5M7 Study Guide, p. 179.
A Cost Leader is able to lower the price of an item or material within the marketplace. Is this true?
Answer(s): B
A Cost Leader determines the market price standard and can influence both price reductions and increases. Their efficiency allows them to lead pricing trends.Short cited term: "cost leader sets price standard in market." (L5M7 Study Guide, p. 179)
A car manufacturer that accommodates unique and desirable features into design at a premium cost is using which of the following strategies?
Answer(s): C
Differentiation Strategy involves offering products with unique attributes that customers value and are willing to pay more for, thus achieving competitive advantage.Short cited term: "differentiation unique product features at premium price." (L5M7 Study Guide, p. 177)
CIPS L5M7 Study Guide, p. 177.
Which of the following is a disadvantage of Just-In-Time (JIT) Manufacturing?
JIT removes stockholding benefits, meaning firms lose economies of scale from bulk ordering. Each order is small and frequent.Short cited term: "JIT limits bulk economies due to reduced inventory." (L5M7 Study Guide, p. 159)
CIPS L5M7 Study Guide, p. 159.
An agile supply chain focuses on the elimination of waste. Is this true?
Answer(s): D
Agile supply chains prioritise flexibility and responsiveness to change, whereas Lean focuses on waste elimination.Short cited term: "agile = responsive to demand; lean = waste removal." (L5M7 Study Guide, p. 155)
CIPS L5M7 Study Guide, p. 155.
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