Which of the following factors would you use to analyse the macro-environment? Select THREE.
STEEPLE is what is used to analyse the macro-environment; the factors are; social, technological, economic, environmental, political, legislative and ethical. Details of this can be found on p.43-44
What is a valid reason for terminating a commercial relationship?
Contracts are normally terminated when their obligations have been fulfilled. Termination due to one late delivery or management changes would be unreasonable unless specified in the contract. Trading with other parties is common unless exclusivity clauses exist.
A partnership relationship can be described as any relationship between a buyer and supplier where there is a good level of communication and both parties are happy with each other's performance. Is this statement TRUE?
The correct answer is 'No- good levels of communication can exist in other types of relationships'. The study guide makes a point that not all good buyer: supplier relationships are partnerships. In fact 70% on supplier relationships will not be partnerships (according to Lambert who is quoted on p.131)
Effective cost modelling involves which of the following?
Data gathering
Analysis of facts
Supplier negotiation
Issuing a request for quotation
Comprehensive and Detailed
Effective cost modelling is a process that helps in understanding the cost structure of a product or service. It involves:
Data gathering:Collecting relevant data related to materials, labor, overheads, and other cost drivers.
Analysis of facts:Evaluating the collected data to understand cost behaviors and identify areas for cost reduction.
Supplier negotiation and issuing a request for quotation are subsequent steps that may utilize the insights gained from cost modelling but are not part of the modelling process itself.
CIPS L4M6 Study Guide
Varying levels of commitment is one reason why many partnerships fail. Why is this?
The correct answer is 'It can lead to a lack of trust' -- this is a quote from p.162. The other answers are all incorrect; in a partnership KPIs are joint between the parties-- so there wouldn't be a situation where one party doesn't fulfil their KPIs. Commitment doesn't necessarily have a direct correlation with profit so that answer is incorrect. 'Sufficient time and resources are put in' is a positive thing, so can't be a reason who a partnership fails.
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