Question 1

Given that Wilkinson Ltd operates in a market where customers are highly budget-conscious, what is the likely implication for the bargaining power of suppliers and buyers?

Options :

A : Suppliers’ bargaining power will increase, while buyers’ bargaining power will decrease.

B : There will be no significant change in the bargaining power of either suppliers or buyers.

C : Both suppliers’ and buyers’ bargaining power will decrease.

D : Suppliers’ bargaining power will decrease, while buyers’ bargaining power will increase.

Answer: D

Question 2

Which of the following specific markets is most likely to require enormous investment in machineries and access to skilled workforce?

Options :

A : Agriculture

B : Construction

C : Retail

D : Manufacturing

E : Finance

Answer: D

Question 3

To strengthen its market presence, ABC Group decided to develop a new product. A cross-functional team was formed to discuss the scope and the functions of the product. They will also survey the potential customers to see what they like, what they love, and what they dislike. What is this process called?

Options :

A : Cash flow analysis

B : Product standardisation

C : Value engineering

D : Value analysis

Answer: C

Question 4

Which of the following are most likely to be considered when developing specifications based on information on the Internet? Select TWO that apply:

Options :

A :

Methodology

B : Subjectivity

C : Objectivity

D : Responsiveness

E : Information flow

Answer: A,C

Question 5

A procurement manager needs to identify business requirements in terms of outputs and functions to give potential suppliers the opportunity to propose innovative solutions or to simply to be more creative in their proposals. Which of the following models should be used by procurement manager?

Options :

A : Kraljic’s matrix

B : RACI

C : RAQSCI

D : SCAMPER

Answer: C

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