BONUS!!! Download part of BraindumpsPass L4M2 dumps for free: https://drive.google.com/open?id=1QrHb9VPkO0TBcJdLh80DI4dynvvp_f6V
Our L4M2 exam dumps are famous for instant access to download, and you can receive the downloading link and password within ten minutes, so that you can start your practice as soon as possible. Moreover, we offer you free demo to have a try, so that you can know what the complete version is like. We are pass guarantee and money back guarantee for L4M2 Exam Dumps, if you fail to pass the exam, we will give refund. Online and offline chat service are available, they possess the professional knowledge for L4M2 exam materials, and if you have any questions, you can consult us.
| Section | Objectives |
|---|---|
| Understand market management in procurement and supply | - Compare the competitive forces that influence markets
|
| Understand the use of specifications in procurement and supply | |
| Understand how to develop a business case for requirements to be sourced from external suppliers | - Analyse how market factors affect procurement |
>> L4M2 Authorized Test Dumps <<
BraindumpsPass's study material is available in three different formats. The reason we have introduced three formats of the Defining Business Needs (L4M2) practice material is to meet the learning needs of every student. Some candidates prefer L4M2 practice exams and some want Real L4M2 Questions due to a shortage of time. At BraindumpsPass, we meet the needs of both types of aspirants. We have CIPS L4M2 PDF format, a web-based practice exam, and Defining Business Needs (L4M2) desktop practice test software.
NEW QUESTION # 228
Lucy, a junior procurement analyst, has been asked to assess the competitive forces in the garden furniture market. XYZ Ltd is the largest producer of garden furniture in the country. It produces 70% of all the garden furniture manufactured, while the second largest manufacturer produces less than 5% of the garden furniture for the country. Which power does XYZ Ltd possess?
Answer: A
Explanation:
This is a classic example of supplier bargaining power. If one company controls a large share of supply (in this case, 70%), it can influence pricing, terms, and buyer conditions.
According to the CIPS L4M2 Study Guide, Chapter 2: Porter ' s Five Forces, supplier power is increased when:
"There are few suppliers, and they dominate the market. This allows them to exert control over pricing, availability, and terms due to lack of competition." Option analysis:
* A. Purchasing power - This applies to buyers, not suppliers.
* B. Substitute power - Not relevant. There's no mention of alternative products.
* C. Supplier bargaining power - Correct. XYZ Ltd dominates the market and can influence terms.
* D. Buyer bargaining power - This would apply if the buyers had more influence, which they don't in this scenario.
Correct answer: C
CIPS Study Guide Reference:
* Module: L4M2 - Defining Business Needs
* Chapter 2: Market Management
* Section: Porter's Five Forces - Supplier Bargaining Power
NEW QUESTION # 229
Which of the following statements is true about product life cycle?
Answer: B
Explanation:
A product's life cycle portrays the length of time a product is in the market; from the beginning of its introduction to consumers until it is removed from shelves and phased out. This cycle is often divided into four phases: introduction, growth, maturity, and decline. Depending on the relevant stage, companies will set an according strategy to achieve their desired targets. Pricing and promotions play a pivotal role in the design of these product life cycle strategies. Therefore, product life cycle management, the process of strategizing ways to continuously support and maintain a product, is seen more and more at pricing mature players and could bring real value to your company.
Introduction phase: during the introduction phase, the new product is introduced to consumers and a substantial amount of money is invested in advertising and marketing campaigns to bring awareness of the product to the customer. In this phase competition is low, but units sold will also correspondingly be quite low as well still. Consumers need to be convinced of the benefits of the product. Lots of articles never make it beyond this phase: e.g. 3D televisions.
Profits in the introduction stage tend to be low or there may even be a loss. This is because the cost of marketing to establish product awareness plus distribution costs can be far higher than the revenue received from sales. This can be offset to a degree by 'skimming' price in the very early stages. Skimming a price is where a business charges the highest price that it thinks the market will bear initially until product recognition brings in other buyers and then the price drop.
Growth phase: when it's shown there is proven demand for the product and consumers are buying it, the next stage will be its growth phase. This phase is punctuated by increasing demand, increas-ing production and an increase in the competitive landscape. Availability of the product is under-standably paramount during this phase, going out of stock is unthinkable during the growth period.
The electric car is an example of a product that is currently in the midst of the growth phase.
Maturity phase: normally the maturity phase is the phase that is characterized by declining production and marketing costs due to synergies and economies of scale. During this phase the first signs of market saturation occur and most consumers or households already own the product. Sales numbers still grow, but at a slower pace. In the maturity phase, price competition becomes intense, a broader range of distribution channels are deployed and competition is more focused on competitive pricing, marginal product differences or the difference in services or promotions. This period in the PLC is often said to be the 'cash-cow period'.
That being said, the idea of 'Maturity from the start' also exists. This occurs when a brand decides to launch a product extension and directly follows up the maturity phase of an earlier version of the product. For example, the iPhoneX followed up from the 'normal' iPhone-series and therefore the iPhoneX never had to undergo the introduction or growth phase, but immediately started in its maturity phase.
Decline phase: the final phase of the PLC is entered once the product loses market share to other, newer products and the competitive landscape becomes too hard to survive. During this stage, de-mand declines, companies are left with overstock with prices and margins getting depressed. Therefore retailers and brands normally start stunting with promotions during the decline of the PLC to sell their final stock.
A well-known example of a product that has been through the decline phase were the Nokia phones; sales results dramatically decreased after the introduction of the iPhone.
NEW QUESTION # 230
To improve the productivity, Plantation Ltd is planning to purchase a tractor, which it has never bought before. The project must be quick to catch up with the next growing season. Leanne, a jun-ior procurement staff at the company, assumes that she could skip market analysis stage to save time. Is this assumption reasonable?
Answer: C
Explanation:
Market analysis is a stage in CIPS Procurement and Supply Cycle. This stage informs the purchaser about the number of suppliers, the average pricing, and product trends. Even urgent purchase should undergo market analysis. Without undertaking this stage, the buying organisation may not purchase the right product, or they may purchase at higher price.
NEW QUESTION # 231
Which of the following are considered as direct costs in a construction company? Select TWO op-tions
Answer: B,D
Explanation:
Direct costs are directly associated with the production of a good or service. In this question, 'An employee is hired to work on a project, either exclusively or for an assigned number of hours' and 'Raw materials' are directly related to producing the product.
Indirect costs are the general costs of the organisation - these costs cannot easily be attributed to specific products or services (also known as overheads). 'The materials and supplies needed for the company's day-to- day operations' or 'Clerical assistants who maintain the office' or 'Advertising and marketing communication' is example of indirect cost.
NEW QUESTION # 232
According to Porter's value chain, which of the following activities is categorised as support activity?
Answer: C
Explanation:
Primary activities consist of inbound logistics, operations, outbound logistics, sales & marketing, service.
Second activities consist of firm infrastructure, human resource management, technology development and procurement Graphical user interface, diagram Description automatically generated
Support activities (also known as secondary activities) include Firm infrastructure, Human resource management, Technology development and Procurement. Developing digital SRM technology to manage suppliers better is Technology development.
LO 1, AC 1.2
NEW QUESTION # 233
......
Our product provides the demo thus you can have a full understanding of our L4M2 prep torrent. You can visit the pages of the product and then know the version of the product, the updated time, the quantity of the questions and answers, the characteristics and merits of the L4M2 test braindumps, the price of the product and the discount. There are also the introduction of the details and the guarantee of our L4M2 prep torrent for you to read. You can also know how to contact us and what other client’s evaluations about our L4M2 test braindumps. The pages of our product also provide other information about our product and the exam.
New L4M2 Exam Dumps: https://www.braindumpspass.com/CIPS/L4M2-practice-exam-dumps.html
P.S. Free & New L4M2 dumps are available on Google Drive shared by BraindumpsPass: https://drive.google.com/open?id=1QrHb9VPkO0TBcJdLh80DI4dynvvp_f6V