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CIPS Exam L4M2 Topic 10 Question 30 Discussion

Actual exam question for CIPS's L4M2 exam
Question #: 30
Topic #: 10
[All L4M2 Questions]

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.

Show Suggested Answer Hide Answer
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

Contribute your Thoughts:

Cristy
1 months 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!
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Eric
13 days ago
B) A high number of substitutes available
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Ilda
14 days ago
A) Low switching costs between products
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Madonna
2 months 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!
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Lezlie
15 days ago
B) A high number of substitutes available
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Kimbery
29 days ago
A) Low switching costs between products
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Dacia
2 months 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!
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Yolando
29 days ago
High quality products can actually indicate a supplier with high bargaining power, as customers may be willing to pay more for them.
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Reta
1 months ago
Low switching costs between products and A high number of substitutes available can both be seen as a supplier having low bargaining power.
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Lashawn
2 months 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.
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Jennie
2 months ago
A and B seem like the obvious choices here. Low switching costs and lots of substitutes would definitely give suppliers less bargaining power.
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Ria
2 months 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.
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Virgina
2 months 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.
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Troy
2 months ago
I think A) Low switching costs and B) A high number of substitutes.
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