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NEW QUESTION 54
What is collaborative inertia?

• A. When a partnership is unable to create new ideas
• B. the concept that the value and performance of two companies combined will be greater than the sum of the separate individual parts
• C. A situation when the apparent output from collaboration is considerably less than expected
• D. Where a third party is invited to join a partnership.

Answer: C

Explanation:
The correct answer is 'A situation when the apparent output from collaboration is considerably less than expected'. This is verbatim the definition given in the study guide on p.166 A synergy is the concept that the value and performance of two companies combined will be greater than the sum of the separate individual parts.

NEW QUESTION 55
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. You discover that the supplier has a high profit margin
• B. Sudden changes in the marketplace
• C. It will allow for consolidation in the supply chain
• D. The buyer wishes to create a new product and requires input from a supplier

Answer: B

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 56
In an oliogopy market, what would a regulator do?

• A. ensure health and safety standards
• B. ensure value for money for buyers
• C. stop the market becoming a monopoly
• D. prevent price fixing and collusion

Answer: D

Explanation:
In an oliogopy, supplier power is strong. Sometimes regulators are required in the market to prevent the group of suppliers conspiring together to artificially increase prices. See p.40 for more information on Oligopy markets.

NEW QUESTION 57
Gabriel is a procurement manager who wishes to explore a new avenue to procure products for his company. His manager has told him that he should invite internal stakeholders to a meeting to get their feedback. Who should Gabriel invite? Select THREE.

• A. legal department
• B. customers
• C. suppliers
• D. employees
• E. end-users

Answer: A,D,E

Explanation:
Internal stakeholders are those who work within the business so include the legal department, employees and end-users. End-users mean those people and departments who will be using the product or service. For example if Gabriel is procuring new software- an end-user would be anyone who would be using that software (whether they're employees, volunteers or agencies). CIPS outlines types of stakeholders on p.64

NEW QUESTION 58
The Pareto Principle is sometimes also known as what?

• A. JIT
• B. Cost Engineering
• C. ABC Analysis
• D. Five Forces

Answer: C

Explanation:
Pareto is the 80:20 rule- this can be adapted to talk about supplier relationships, where instead of having 2 categories there are now 3 (A B and C). CIPS use the terms Pareto and ABC interchangeably. See p.16 for further information

NEW QUESTION 59
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