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CIPS Exam L4M5 Topic 13 Question 69 Discussion

Actual exam question for CIPS's L4M5 exam
Question #: 69
Topic #: 13
[All L4M5 Questions]

In preparation for holding negotiation meetings with existing suppliers, category manager Stephen would like to appraise the bargaining strength of his organisation. Which of the following are examples of buyer power? Select TWO that apply:

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Suggested Answer: C

In the scenario, the value of contract as well as the importance of purchased item justify the procurement's travel. Visiting a supplier at their HQ or operational facility may facilitate the procurement team in assessing, albeit briefly, the culture of the organisation, how busy they seem and how staff engage with each other. A visit is a good opportunity to assess supplier's capacity.

LO 2, AC 2.2


by Blossom at Sep 13, 2024, 02:25 AM

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Natalie
1 months ago
E is a tricky one. High barriers to entry could actually limit buyer power, so I'd steer clear of that one.
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Frankie
3 days ago
I agree, E is a tricky one. High barriers to entry might not always mean more buyer power.
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Tomoko
9 days ago
D) Buyer is large in size relative to suppliers
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Myra
15 days ago
D) Buyer is large in size relative to suppliers
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Twana
29 days ago
A) Ability to easily switch suppliers
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Roy
1 months ago
A) Ability to easily switch suppliers
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Gracia
2 months ago
Haha, C is a good one! Collusion between suppliers would definitely work in Stephen's favor. Gotta love when the competition works together... against themselves!
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Dana
1 months ago
User 2: D) Buyer is large in size relative to suppliers
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Nobuko
1 months ago
User 1: A) Ability to easily switch suppliers
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Beckie
2 months ago
I'm not sure about D. I think E could also be an example of buyer power because high barriers of entry for new suppliers can give the buyer more control.
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Chan
2 months ago
I agree, A and D are the way to go. Switching suppliers easily and being a large buyer are definite signs of buyer power.
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Nadine
26 days ago
User 4: It's important to leverage buyer power to get the best deals for the organization.
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Chantay
1 months ago
User 3: Yeah, those two factors can really help in negotiations with suppliers.
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Jose
1 months ago
User 2: I agree, being able to switch suppliers easily and being a large buyer definitely give you an advantage.
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Cristina
1 months ago
User 1: I think A and D are the best examples of buyer power.
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Gilma
2 months ago
A and D seem like the most obvious choices here. As a category manager, Stephen needs to know how much bargaining power he has against his suppliers.
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Tiera
2 months ago
I agree with Kristel. A and D make sense because they show the ability to switch suppliers easily and being large in size relative to suppliers.
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Kristel
2 months ago
I think A and D are examples of buyer power.
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