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NEW QUESTION 35
Which of the following is not a stage in the relationship life-cycle?

• A. on-boarding
• B. performance management
• C. qualification
• D. design the specification

Answer: D

Explanation:
Designing the specification is not a stage in the relationship cycle- this would be done before the relationship begins. There are 6 stages of the relationship cycle; on-boarding, qualification, segmentation and risk management, performance management, development and innovation, phase out. P.13

NEW QUESTION 36
Why is it more difficult for buyers in the public sector to build relationships with suppliers?

• A. Buyer power is strong in the public sector
• B. Buyer power is weak in the public sector
• C. There are regulations prohibiting public sector buyers from developing relationships
• D. There are regulations that state competitive tender processes must be undertaken regularly

Answer: D

Explanation:
It can be difficult for buyers in the private sector to build relationships with suppliers because of rules that state competitive tenders must be undertaken every few years (within the EU this is usually every 4). This means that both parties aren't as invested in developing the relationship as it's possible the contact will end shortly. Competitive tendering is a requirement in the public sector to ensure value for money for taxpayers. See p.79 for further details. There are no rules stating Public Sector organisations can't have good relationships with suppliers, and in fact most will have good relationships with their current suppliers- the issue is that neither party can get too invested in the relationship as everyone knows it may end shortly. There are rules, however, against entering into Partnership relationships (which is discussed in chapter 3).

NEW QUESTION 37
What is the correct order of the stages of team development?

• A. Forming, storming, norming, performing
• B. Storming, forming, norming, performing
• C. Forming, norming, performing, storming
• D. Storming, forming, performing, norming

Answer: A

Explanation:
The correct answer is Forming, storming, norming, performing (p.91). Note; some people add on two additional stages to this; mourning and adjourning. The study guide forgets to mention this, but the exam may ask you about these additional stages. So I strongly recommend doing some further reading on this (it's called the Tuckman Group Development Model)

NEW QUESTION 38
A garden centre has recently purchased some lollypop sticks to use as plant labels. The staff have written the name of the plant on the lollypop stick and put it next to the plant. This helps them identify which plant is which. However, after a couple of weeks, the lollypop sticks have become mouldy and the writing has faded. Staff are now struggling to identity their plants. The Manager of the garden centre is considering returning the lollypop sticks and asking for a full refund as they were not fit for purpose. Can the Manager do this?

• A. No- the manager cannot prove that the product is faulty
• B. Yes- so long as the manager kept the receipt
• C. No- as this was not the lollypop sticks intended purpose
• D. Yes- the lollypop sticks have gone mouldy- this is unacceptable

Answer: C

Explanation:
The correct answer is 'no- as this was not the lollypop sticks intended purpose'. When deciding if something is fit for purpose, you must consider its intended and common purpose. In this case it would be for making lollypops. As the garden centre is using them for something other than their intended purpose, they can't complain if it doesn't work. Fit for purpose is discussed on p.65 p.s. there's a Question: like this in the real exam - it's just not lollypop sticks ; )

NEW QUESTION 39
When developing a supplier partnership, a buyer can take either a strategic or reactive approach. What would be a reason for a reactive approach?

• A. The buyer wishes to create a new product and requires input from a supplier
• B. You discover that the supplier has a high profit margin
• C. It will allow for consolidation in the supply chain
• D. Sudden changes in the marketplace

Answer: D

Explanation:
The correct answer is 'Sudden changes in the marketplace' - this is a reason a buyer would be reactive. Reactive is when something happens to you and it forces you to act in a certain way. The other options would be strategic rather than reactive. P. 163

NEW QUESTION 40
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