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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?

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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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Naomi
5 days 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
10 days 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
15 days 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
20 days 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
26 days 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
1 month 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
1 month 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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