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CIPS L4M2 Exam - Topic 10 Question 30 Discussion

Posted by Ashlyn on Mar 18, 2024 at 05:44 AM

When analysing competitive forces in a market, which of the following can be seen as a supplier having low bargaining power? Select TWO that apply.

Suggested Answer: A

Cracks on the jet engine is a closed-end problem. A typical problem solving process has 8 steps:

Step 1: Define the Problem

- What is the problem?

- How did you discover the problem?

- When did the problem start and how long has this problem been going on?

- Is there enough data available to contain the problem and prevent it from getting passed to the next process step? If yes, contain the problem.

Step 2: Clarify the Problem

- What data is available or needed to help clarify, or fully understand the problem?

- Is it a top priority to resolve the problem at this point in time?

- Are additional resources required to clarify the problem? If yes, elevate the problem to your leader to help locate the right resources and form a team.

- Consider a Lean Event (Do-it, Burst, RPI, Project).

- Ensure the problem is contained and does not get passed to the next process step.

Step 3: Define the Goals

- What is your end goal or desired future state?

- What will you accomplish if you fix this problem?

- What is the desired timeline for solving this problem?

Step 4: Identify Root Cause of the Problem

- Identify possible causes of the problem.

- Prioritize possible root causes of the problem.

- What information or data is there to validate the root cause?

Step 5: Develop Action Plan

- Generate a list of actions required to address the root cause and prevent problem from getting to others.

- Assign an owner and timeline to each action.

- Status actions to ensure completion.

Step 6: Execute Action Plan

- Implement action plan to address the root cause.

- Verify actions are completed.

Step 7: Evaluate the Results

- Monitor and Collect Data.

- Did you meet your goals defined in step 3? If not, repeate th 8-Step Process.

- Were there any unforeseen consequences?

- If problem is resolved, remove activities that were added previously to contain the problem.

Step 8: Continuously Improve

- Look for additional opportunities to implement solution.

- Ensure problem will not come back and communicate lessons learned.

- If needed, repeat the 8-Step Problem Solving Process to drive further improvements.

ANA has already known what is going on, the next step they should adopt is collecting more infor-mation on the problem. If the airline is hurry to the solution, it may choose 'Generate options ad-dressing the issue'. The crack on turbine blade can be welded, or the airline replaces a new blade. However, jumping to solution without knowing the root cause does not completely solve the prob-lem. The root cause is unaddressed, then it may occur in the future. Therefore, the airline should still collect information to find the root cause, then remove it.


LO 1, AC 1.1

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30 comments · newest first
IL
Ilona 11 months ago
Totally agree with A and B, makes sense!
MI
Michael 11 months ago
Surprised that high quality products don't give suppliers more power!
LO
Lorean 12 months ago
Low switching costs? That sounds off to me.
AN
Angella 12 months ago
I think C should be included too.
YO
Yoko 1 year ago
A and B are definitely the right choices.
VE
Vernell 1 year ago
I practiced a similar question where low innovation was linked to low supplier power, so I might consider E as well.
SH
Shoshana 1 year ago
I’m torn between A and B, but I feel like low competition could actually mean higher supplier power?
PE
Percy 1 year ago
I remember that having a high number of substitutes usually weakens supplier power, so I’d go with B for sure.
CA
Carissa 1 year ago
I think low switching costs might indicate low bargaining power for suppliers, but I'm not sure about the second option.
NA
Nakita 1 year ago
Okay, I've got this. Low switching costs and a high number of substitutes mean the buyer has more options, so the supplier has less power. Those are the two that apply here.
CA
Carman 1 year ago
Hmm, I'm a bit unsure about this one. I know low bargaining power means the supplier has less control, but I'm not sure if low competition or high quality products would fit that. Let me think this through a bit more.
SH
Shenika 1 year ago
This question is testing our understanding of supplier bargaining power. I think low switching costs and a high number of substitutes would indicate the supplier has low bargaining power.
CR
Cristina 1 year ago
I'm pretty confident on this one. The key is identifying factors that reduce the supplier's bargaining leverage. Low switching costs and lots of substitutes fit that criteria, so those are the right answers.
KR
Kris 1 year ago
I've got a strategy for this. If I change the rate to 50, the progress bar should move much more quickly, but I'll need to double-check that it doesn't cause any errors or unexpected behavior.
GE
Gerri 1 year ago
I practiced questions related to Altman's Model last week, and I feel like two of these might be wrong, but I can't recall which ones.
MA
Margurite 1 year ago
I'm pretty sure the Product Owner(s) can change the priority of items in the Product backlog, so I'll go with option C.
CR
Cristy 1 year ago
I bet the answer involves some kind of 'low' or 'high' situation. Like 'low' switching costs and 'high' number of substitutes. Gotta love these logic puzzles!
ER
Eric 1 year ago
↳ replying to Cristy
B) A high number of substitutes available
IL
Ilda 1 year ago
↳ replying to Cristy
A) Low switching costs between products
MA
Madonna 2 years ago
Wait, isn't low innovation a sign of a stagnant market? I'd think that would actually increase supplier power, not decrease it. This question is trying to trip us up!
LE
Lezlie 1 year ago
↳ replying to Madonna
B) A high number of substitutes available
KI
Kimbery 1 year ago
↳ replying to Madonna
A) Low switching costs between products
DA
Dacia 2 years ago
High quality products? That's a new one. I would have thought the opposite - that low-quality suppliers would have less leverage. This is tricky!
YO
Yolando 1 year ago
↳ replying to Dacia
High quality products can actually indicate a supplier with high bargaining power, as customers may be willing to pay more for them.
RE
Reta 1 year ago
↳ replying to Dacia
Low switching costs between products and A high number of substitutes available can both be seen as a supplier having low bargaining power.
LA
Lashawn 2 years ago
Hmm, I'm not so sure about C. Wouldn't low competition actually give suppliers more power to dictate prices and terms? Gotta think this through carefully.
JE
Jennie 2 years ago
A and B seem like the obvious choices here. Low switching costs and lots of substitutes would definitely give suppliers less bargaining power.
RI
Ria 2 years ago
I disagree. I think C) Low competition in the marketplace and D) High quality products can also indicate low supplier bargaining power. When there's less competition, suppliers have less leverage, and high quality products can make customers less likely to switch.
VI
Virgina 2 years ago
I agree with Troy. When switching costs are low, customers can easily switch to other suppliers. And if there are many substitutes, the supplier's power is reduced.
TR
Troy 2 years ago
I think A) Low switching costs and B) A high number of substitutes.
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