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CIPS L4M2 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Legal and regulatory considerations10-15%- Sustainability and ethical requirements
  • 1. Environmental, social, ethical criteria
- Legislation affecting requirements definition
  • 1. Procurement regulations, competition law, standards
Topic 2: Stakeholder management in defining needs15-20%- Communicate and consult with stakeholders
  • 1. Resolving conflicting requirements
  • 2. Methods for gathering requirements
- Identify and classify stakeholders
  • 1. Power/interest matrix and engagement strategies
  • 2. Internal vs external stakeholders
- Align needs with organisational objectives
  • 1. Strategic alignment and value contribution
Topic 3: Devise a business case for requirements sourced externally20-25%- Estimate costs and prices for procurement activities
  • 1. Market data sources for cost/price information
  • 2. Direct and indirect costs
  • 3. Total cost of ownership / whole life costing
  • 4. Cost estimation and budgeting methods
- Interpret financial budgets for purchase control
  • 1. Purpose and structure of budgets
  • 2. Cash flow and cost entries
  • 3. Budget performance and variance management
- Influence of business needs on procurement decisions
  • 1. Types of purchase: new, modified rebuy, straight re-buy
  • 2. Impact of business needs on purchase types
  • 3. Procurement's role in developing business cases
- Criteria for creating business cases
  • 1. Costs, benefits, options, alignment, timescales
  • 2. Benchmarking requirements
Topic 4: Use specifications in procurement and supply20-25%- Sources for developing specifications
  • 1. Suppliers, industry benchmarks, regulatory requirements
  • 2. Internal stakeholders, technical experts, standards bodies
- Advantages and limitations of specification types
  • 1. Risk, cost, flexibility, supplier innovation impact
- Types of specifications
  • 1. Drawings, samples, brands, technical standards
  • 2. Conformance vs performance specifications
  • 3. Output/outcome-based specifications
Topic 5: Market management in procurement and supply20-25%- Analyse market structures and competition
  • 1. Impact of market structure on procurement strategies
  • 2. Perfect competition, monopoly, oligopoly, monopolistic competition
- Assess market forces and trends
  • 1. Supply and demand dynamics
  • 2. Global vs local market conditions
  • 3. Technological, legal, economic, social factors
- Evaluate market information sources
  • 1. Industry reports, government data, trade journals
  • 2. Supplier intelligence and market research

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CIPS Defining Business Needs 認定 L4M2 試験問題 (Q28-Q33):

質問 # 28
A manufacturing organisation has initiated a project focusing on costs, with a view to making significant savings. A procurement manager is leading the project. The initial data sources have focused on the cost of raw materials. Which of the following describes this cost?

正解：B


質問 # 29
Buyers can ascertain the prices by examining information provided by primary and secondary sources of market data. Which of the following is a secondary source of market data?

正解：B

解説：
Detailed Explanation:Price comparison websites are secondary sources as they aggregate data collected from multiple suppliers. Primary sources (like RFQs and brochures) come directly from the supplier.
Reference: CIPS Level 4, Market Data Analysis.


質問 # 30
As the lead procurement manager you have been asked to compile a business case for a large project. Which of the following should you include in the business case?
* Costs and risks
* List of large suppliers
* Business benefits
* Informal recommendation

正解：B

解説：
Comprehensive and Detailed Explanation (from CIPS L4M2 - Business Case Development) A robust business case must:
* Quantify costs and risks (financial, operational, environmental).
* Identify and justify business benefits (savings, value, compliance, performance).
Supplier lists or informal notes are not appropriate inclusions.
Thus, Option A (1 and 3 only) is correct.
Relevant L4M2 references:
* "Structure and content of a business case"
* "Cost, risk, and benefit evaluation in justification"


質問 # 31
Company A sells a product for $100. The total unit variable costs are $60. Fixed costs as in its ac-count are
$20,000. How many products does the company have to sell to achieve break-even point?

正解：A

解説：
Break even point = Fixed costs/(Price-variable cost). In this case, break even point = 20,000/(100-60) = 500 Reference: CIPS study guide page 28-29 LO 1, AC 1.2


質問 # 32
At which stage of product life cycle, price competition between sellers will be the most intense?

正解：D

解説：
The term product life cycle refers to the length of time a product is introduced to consumers into the market until it's removed from the shelves. The life cycle of a product is broken into four stages-introduction, growth, maturity, and decline.

Source: https://blueoceanoutsource.co.ke/the-product-life-cycle-concept/ At maturity stage, price competition sets in as more and more supply capacity has been added by new entrants, then the competition will be the most intense.
Reference:
LO 2, AC 2.2


質問 # 33
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