Question No. 1

Which of the following is the main objective of vendor rating?

ATo provide a measurement of performance of a contract

BTo make sure that the lowest possible cost is achieved

CTo reduce risk to both parties

DTo achieve the highest possible quality.

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Correct Answer: A

Question No. 2

The main purpose of a PEST analysis is to identify which of the following?

AThe strengths and capabilities of an organization

BThe weaknesses of an organization

CThe core competences of an organization

DThe opportunities and threats presented by the external environment.

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Correct Answer: D

Question No. 3

Which of the following, according to Porter, is an area for concern in identifying the competitive position of an organization?

AEconomic environment

BProduct life cycle analysis

CThe extent of rivalry in a market

DComparative earned value analysis.

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Correct Answer: C

Question No. 4

'Bottleneck' items in the supply positioning model are best described by which of the following?

AImportant purchases that are made in a market where there are many suppliers but where the value is high

BImportant purchases made in a market where there are few suppliers and the value is low

CImportant purchases made in a market where there are few suppliers but the value is high

DImportant purchases made in a market where there are many suppliers and the value is low.

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Correct Answer: B

Question No. 5

Which of the following would be most likely to support a successful strategy of narrow differentiation for an organization?

AOffering a standardised product produced at a very low cost

BOffering a standardised product where the brand name had been heavily promoted

COffering a non-standardised product to satisfy the particular needs of a small market segment

DOffering a non-standardised product to cater for the needs of a wide market segment.

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Correct Answer: C

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