CIPS L4M2 Exam Questions-Shortcut To Success
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CIPS L4M2: Defining Business Needs is a certification exam offered by the Chartered Institute of Procurement and Supply (CIPS). L4M2 Exam is designed to test the knowledge and skills of procurement professionals in defining and analyzing business needs, as well as in developing procurement strategies to meet those needs.
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TorrentVCE Defining Business Needs (L4M2) questions in three formats are the go-to source for successful and quick preparation. Three formats of our study material are CIPS L4M2 exam PDF questions, desktop practice test software, and web-based L4M2 practice test. The philosophy behind offering these formats is simple: to create a world-class learning material that can help candidates achieve their Defining Business Needs (L4M2) preparation objectives. With the help of L4M2 exam questions in three formats, you can prepare successfully for the test according to your style.
To prepare for the CIPS L4M2 Exam, candidates are advised to review the official exam syllabus, which outlines the key topics and concepts that will be covered in the test. They can also take advantage of various study materials, such as textbooks, online courses, and practice exams, to help them prepare for the exam.
CIPS Defining Business Needs Sample Questions (Q134-Q139):
NEW QUESTION # 134
John has been asked to develop a business case before obtaining approval to purchase a large piece of capital equipment for a glove manufacturing unit. Is this the right thing to do?
- A. Yes, because this will help compare alternatives and options
- B. No, because this can lead to business-focused thinking
- C. Yes, because this will assist the purchase order
- D. No, because risk consideration is not John's responsibility
Answer: A
Explanation:
Detailed Explanation:A business case allows for the evaluation of alternatives and ensures alignment with strategic goals. It also assesses risks, benefits, and financial impact, providing a comprehensive basis for decision-making. Reference: CIPS Level 4, Capital Expenditure and Business Case Development.
NEW QUESTION # 135
Which of the following specific markets is most likely to have product shortage by nature?
- A. Retail
- B. Agriculture
- C. Financial
- D. Construction
- E. Services
Answer: B
Explanation:
Products used in agriculture can be subject to shortage due to natural disasters.
NEW QUESTION # 136
Which of the following is an assumption of Kano model?
- A. All types of customer requirements have the same impact on customer satisfaction
- B. Different types of customer requirements have different impact on customer satisfaction
- C. All customer requirements are basic requirements
- D. The relationship between product functionality and customer satisfaction is always linear
Answer: B
Explanation:
Kano model of excitement and basic quality (Kano et al, 1984; Berger et al, 1993; Matzler et al, 1996) brings a different perspective for the analysis of improvement opportunities in products and services because it takes in consideration the asymmetrical and non-linear relationship between performance and satisfaction. The Kano model classifies customers requirements in three categories (figure 3):
a) Basic Requirements. The basic requirements fulfill the basic functions of a product. If they are not present or their performance is insufficient, customers will be extremely dissatisfied. On the other hand, if they are present or have sufficient performance, they don't bring satisfaction. Customers see them as prerequisites. For instance, for luxury automobiles, "air bags" are considered basic. A customer won't feel satisfied if the automobile has "air bag", however he/she will not buy it if "air bag" is not present.
b) Performance Requirements. As for these requirements, satisfaction is proportional to the performance level
- the higher the performance, the higher the customer's satisfaction will be and vice-versa. Gas consumption in automobiles is an example of these requirements. Usually customers explicitly demand performance requirements.
c) Excitement Requirements. These requirements are key to customer satisfaction. If they are pre-sent or have sufficient performance, they will bring superior satisfaction. On the other hand, if they are not present or their performance is insufficient, customers will not get dissatisfied. For instance, a surprise gift at the end of a dinner in a restaurant will certainly bring satisfaction, but it will not cause dissatisfaction if not offered. These requirements are not demanded nor expected by customers.
Two other types of requirements may be identified in the Kano model: neutral and reverse ones. Neutral requirements do not bring either satisfaction or dissatisfaction. Reverse requirements bring more satisfaction if absent than if present.
Diagram Description automatically generated
Reference:
- Integrating Kano model and QFD for Designing New Products
- CIPS study guide page 171-172
NEW QUESTION # 137
Which of the following factors is most likely to be a barrier to new entrant in agriculture?
- A. Capital requirement
- B. High margins
- C. Reputation within the industry
- D. Brand recognition
Answer: A
Explanation:
Barriers to Entry to Agriculture: If stakeholders are going to address the need for new, conserva-tion-minded farmers, they must understand the barriers these farmers encounter when transitioning into the profession. A review of the literature revealed a number of barriers-most of them structural-to entry to agriculture. While each barrier is distinct, they are all interconnected. Though not an exhaustive list, the following barriers are ones that were most frequently mentioned in the literature:
- Access to Affordable Land
- Startup Capital
- Lack of Agricultural Knowledge and Experience
- Lack of Knowledge about Farm Business Planning
- Discrimination
- Student Loans
- Limited Access to Markets
- Affordable Housing and Affordable Healthcare
Source: Exploring the Barriers to Entry to Agriculture: Challenges Facing Beginning Farmers in North Carolina - Kelley Robbins-Thompson Reference: CIPS study guide page 80-81 LO 2, AC 2.2
NEW QUESTION # 138
When analysing a market, the availability of substitute products or suppliers is the only competitive force to consider. Is this statement correct?
- A. No, other forces include the threat of new entrants and bargaining strength of buyers and suppliers
- B. Yes, it is the only competitive force relevant to procurement
- C. No, availability of substitutes is not a competitive market force
- D. Yes, substitute products and therefore cost is the source of all competition
Answer: A
Explanation:
Detailed Explanation:
While substitute products are an important factor, other forces such as new entrants, buyer and supplier bargaining power, and industry rivalry also significantly influence market dynamics. These forces are part of frameworks like Porter's Five Forces used in market analysis. Reference: CIPS Level 4, Market Environment Analysis.
NEW QUESTION # 139
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