CIPS L4M6 Exam - Topic 1 Question 73 Discussion

Actual exam question for CIPS's L4M6 exam

Question #: 73
Topic #: 1

[All L4M6 Questions]

Andrew runs a factory that makes cakes. Vanilla Extract is a vital ingredient in Andrew's cakes and this is a monopolistic market. Andrew has noticed recently that the quality of the supplier's product has reduced, and this has led to several complaints from customers. Andrew is considering entering into a Partnership with this supplier as he believes this will help increase the supplier's performance. Is this the correct thing to do?

DNo- Andrew should outsource the vanilla extract.

AYes- partnership sourcing can improve performance which will ultimately satisfy the end customer

BYes- partnership sourcing will improve sales figures

CNo- Andrew should use an alternative supplier

Show Suggested Answer

Suggested Answer: A

The correct answer is 'Yes- partnership sourcing can improve performance which will ultimately satisfy the end customer'. The important thing to note in this QUESTIO N NO: is the word 'monopolistic'. This means that there are no alternative suppliers- so the 'no' options are wrong- there are no alternative suppliers and no opportunity to outsource. The other answer is incorrect as sales figures isn't Andrew's concern -- it's the complaints and quality of the product. Improving performance to satisfy end customers is therefore his main driver for considering a Partnership. See p. 127 for more information on Drivers of Partnership Sourcing. This comes up a lot in the exam

by Vilma at Jan 28, 2026, 11:14 AM

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Lorean

1 day ago

This is a tough call. On one hand, the supplier's quality has declined, but a partnership could help turn that around. I'd need more details to make a fully informed decision.

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Darell

6 days ago

The question doesn't provide enough information about the potential benefits of the partnership. If it can truly improve the supplier's performance and address the quality issues, then it might be worth considering.

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Keena

12 days ago

I think Andrew should explore other options first, like finding a new supplier or negotiating better terms with the current one. A partnership might not be the best solution.

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Merri

17 days ago

Entering a partnership with the supplier seems like a risky move. The supplier's performance has already declined, so I'm not sure that will improve things.

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An

22 days ago

I think it could work if they set clear quality standards in the partnership. But I wonder if there are other options, like finding a new supplier?

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Annelle

27 days ago

This feels a bit risky. If the supplier's quality is already declining, how can Andrew be sure that a partnership will fix that?

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Naomi

2 months ago

I remember a case study where a similar partnership actually improved product quality. But it really depends on the supplier's willingness to change.

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Sabra

2 months ago

I'm not sure if partnering with the supplier is the best move. It might just lead to more dependency on their quality issues.

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Justine

2 months ago

Hmm, I'm a bit torn on this one. The quality problems are a big deal, but is a partnership really the best fix? I'd want to explore other alternatives as well before committing to that approach.

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Percy

2 months ago

This seems like a classic risk-reward scenario. Partnering with the supplier is a bit of a gamble, but it could pay off if it solves the quality issues. I'd need to do a thorough analysis of the potential upsides and downsides.

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Dana

2 months ago

I think entering a partnership could be a good move here. If it helps improve the supplier's performance and quality, that would directly benefit Andrew's business. But I'd want to make sure the partnership terms are favorable.

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Mozelle

3 months ago

I'm a bit unsure about this one. On the one hand, the quality issues are a major problem that needs to be addressed. But is a partnership really the best solution? I'd want to explore other options as well.

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Kanisha

3 months ago

Hmm, this is a tricky one. I'd need to carefully weigh the pros and cons of entering a partnership with the supplier. Quality issues are a big concern, but a partnership could potentially help resolve that.

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