What is the purpose of supplier development?
Answer(s): C
The primary goal of supplier development is to add value to the supply chain, not just to reduce costs.Option A is incorrect because supplier development is not solely about cost reduction--it also focuses on quality and efficiency.Option B is incorrect because reducing suppliers is not always the goal; sometimes businesses want a wider supplier base.Option D is incorrect because no system can eliminate logistics risks entirely--there will always be uncertainties.(See LO 1.1, p.2)
Dev is creating an Operations Strategy for his healthcare consultancy business. Which of the following describes an Operations Strategy? Select ALL that apply.
Answer(s): B,C
Option B is correct because Operations Strategy helps build a competitive advantage for the organisation.Option C is correct because Operations Strategy must align with the overall organisational goals. Option A is incorrect--it is Supply Chain Management that focuses on external processes. Option D is incorrect because Operations Strategy is long-term, not short-ranged.(See LO 2.1, p.63)
Liedtka (1998) describes five attributes necessary for a procurement professional to develop strategic thinking. What are these?
Answer(s): A,C,D,E,F
The correct five attributes of strategic thinking are:Systems perspectiveIntent focusedIntelligent optimismThinking in timeHypothesis drivenOption B (Risk awareness) is incorrect--it is not one of Liedtka's five attributes.(See LO 2.1, p.65)
An organisation may have several different business-level strategies. Is this TRUE?
The statement is TRUE, so we can immediately eliminate A and B. Option C is correct because large organisations often have multiple business-level strategies depending on market conditions.Example: McDonald's has different menus and marketing strategies in different countries. Option D is incorrect--business-level strategies do not necessarily contradict each other.(See LO 2.1, p.75)
Which of the following statements about Dynamic Capability Theory are TRUE? Select ALL that apply.
Answer(s): A,B,D
Option A is correct--Dynamic Capability Theory helps companies adjust their competencies to market changes.Option B is correct--Dynamic capabilities contribute to competitive advantage. Option D is correct--Information sharing within the supply chain is key to building dynamic capabilities.Option C is incorrect--Dynamic Capability Theory does not focus on cost reduction, but rather on agility and responsiveness to market changes.Note: This section also covers Porter's 5 Forces, STEEPLE, and the Product Life Cycle, which are important topics for revision!(See LO 2.1, p.88)
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