CIPS A7 Exam Questions Instant Access - No Installation Required

Question 1

Which of the following might be best included in a definition of corporate strategy?

ADecisions that will affect the scope of an organizations' activities

BDecisions that will concern only a few areas of an organization

CDecisions that will affect only one area of an organization

DDecisions that will have very little impact on any area of an organization.

Answer : A

Question 2

Which of the following tools of analysis is most suited to establishing the targets for an internal cost reduction programme?

APareto analysis

BValue chain analysis

CPorters 'five forces' analysis

DAnsoffs analysis.

Answer : A

Question 3

Which of the following applies best to the quote: The law of the trivial many, but important few?

AThe Taguchi loss function

BWynstras supplier involvement model

CParetos 80/20 rule

DBensaous supplier profile matrix.

Answer : C

Question 4

When using the supplier positioning model to help determine purchasing strategies, which of the following best describes routine purchases?

ALow-expenditure purchases where supply is plentiful and there is little risk for the buying organization

BHigh-expenditure purchases which carry a significant degree of risk for the buying organization

CLow-expenditure purchases where supply is limited and there is some degree of risk for the buying organization

DHigh-expenditure purchases where there is a large number of suppliers in the marketplace.

Answer : A

Question 5

A Porter's 'five forces' analysis would enable an organization to understand which of the following?

AIts strengths and weaknesses

BIts resource use

CIts purchasing efficiency

DIts competitive position.

Answer : D

Question 6

Select the answer that best fills the gap in the following sentence:

The stage of conceptual design in new product development saves ______________ amount of money in a cost reduction programme.

Athe least

Ba substantial

Ca moderate

Dthe most.

Answer : C

Question 7

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.

Answer : D

CIPS An Introduction to Purchasing Strategy A7 Exam Questions