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L5M6 Category Management - paper *6.
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1.
A new category head (CH) has recently joined Health Care International (HCI), a large private healthcare organisation.
The category management concept is new to the organisation and a number of important stakeholders have yet to fully embrace it. The CH has identified the stakeholders and has analysed theirinvolvements and needs. They have so far had meetings with the two most important stakeholders. They first introduced themselves and immediately said to the CH “I'm interested in what you're going to tell me, but just so you know, I am the budget holder and ultimately I decide what happens”. The second stakeholder was less forceful saying “It’s good to meet you. I'm interested in hearing all about it and discovering what we can do to help each other”. These two stakeholders used different influencing techniques. Identify the two techniques.
1. Reciprocity
2. Scarcity
3. Consistency
4. Authority
2.
From the items listed below which of the following options is the earliest stage in establishing a category management approach?
3.
Tom is a procurement manager for Absolom & Sons, which is developing its procurement team to be a category management focused team.
It has been identified that a key area that needs improving for Absolom & Sons is its supplier relationship management process as currently suppliers are only contacted by procurement when new sourcing Bargaining power of buyers - Low Threat of substitute of products - Low Economic factor Technological factor Social factor Competitive rivalry - High Threat of new entrants - Low Environmental factor requirements arise or when internal stakeholders request procurement’s support in rectifying a quality issue. Tom is planning to use a Pareto analysis to initially segment Absolom & Sons’ spend. How will this help him to develop a supplier relationship strategy?
4.
Which of the following are key activities during the ‘kick off’ phase when implementing a category management approach from the CIPS category management model?
1. Defining the category scope
2. Evaluating potential benefits
3. Identifying the stakeholders
4. Prioritising identified opportunities
5.
When applying Porter’s Five Forces tool, which of the following will have the greatest impact on the likelihood of new entrants to the industry?
1. Stakeholders’ physical locations
2. Level of regulation and government control
3. Product packaging and design
4. Initial set-up costs
6.
The ‘cost of goods sold’ within a supplier’s financial statements show the supplier’s direct costs of producing finished goods. Is this correct?
7.
An effective technology route map will ensure the organisation is protected against cyber-crime and other high risk events. Is this correct?
8.
When applying total cost of ownership models, which of the following are relevant disposal costs? Select TWO that apply.
9.
Which of the following are economic factors that might have an impact on an organisation’s direct and indirect expenditures? Select THREE that apply.
10.
A large central government department is adopting a category management approach.
Resources have been allocated and a project team has been formed to commence the initial work. Different stakeholders have been identified and their respective roles and importance within the project have been assessed. Stakeholder A will be making all of the decisions and is ultimately in charge but will not be completing any of the tasks themselves. Stakeholder B will need to be kept updated on how the project is progressing but has no direct input into decision making. These two stakeholders are best described as which of the following?
1. Trustworthy
2. Accountable
3. Informed
4. Consulted
11.
Technical and behavioural skills are required to implement category management. Select behavioural skills from the following list of skills
1. Communication
2. Influencing,
3. Working with teams,
4. Cross functional working
5. Risk management
6. Financial management and cost analysis
7. Supply chain analysis
8. Supply base research
12.
When manging stakeholders, what actions would you take for stakeholders with high interest and high influence/power?
13.
The CEB research identified six competences that drive strategic performance in procurement. Those who think creatively, anticipate changes and produce solution are called ______
14.
Dixon knows that effective category management involves use of tools and techniques. He is faced with a situation where he has to make a decision regarding a task that is urgent but not important. What is the right decision is he expected to make?
15.
The combined segmentation approach which combines one matrix that considers supplies based on profit impact and supply risk and one that considers the willingness and capabilities of the supplier technically combines which two of the following tools or techniques?
16.
Which purchasing strategy aims to reduce the supply risks by seeking alternative suppliers or alternative products?
17.
What will happen in a situation where the importance of supplier’s goods/services and relationship to buyer is very high, and where the importance of buyers’ business and relationship to supplier is very high?
18.
In circumstances of ongoing strategic purchase requiring strategic alliance between the buyer and suppliers, what must meaningful strategies focus on?
19.
Supply chain mapping involves identifying and documenting the exact source of every material, process, and shipment involved in bringing goods to the market. Three main stages are required to map a supply chain. What does stage two comprise of?
20.
In implementing a STEEPLED analysis, factors such as growth or shrinking of economy, level of taxation, inflation, interest rates, growth rate for the industry and trends in international trade all refer to ____________ factors
21.
According to Alexander (2006), creating an effective technology route map requires four steps. At what stage must the technology be evaluated to ensure it means current business goals as well as capable of helping business future goals with minimum upgrades?
22.
Collecting, classifying and analysing expenditure data is skill that every category manager must know and do. This is known as _____________
23.
The 3rd step in the spend analytics process which aims to address data gaps prior to spend analytics to improve results reliability is which of the following steps
24.
Which one of the future demand patterns shows a smooth order volume which enables the supplier to operate at optimum capacity all the time?
25.
What useful way can a category manager use to measure current contracts and ensure that contract terms with suppliers are being used or applied?
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