CIPS l4m8 Exam Questions And Answers

CIPS l4m8 Exam Questions And Answers S in STEEPLED - ANS Socio Cultural T in STEEPLED - ANS Technological 3 Es in STEEPLED - ANS Economic Environmental Ethical P in STEEPLED - ANS Political L in STEEPLED - ANS Legal D In STEEPLED - ANS Demographic factors The STEEPLED analysis - ANS Popular tool for analysing the macro environment 5 forces model - ANS Threat from new entrants Threat from substitutes Buyers bargaining power Suppliers bargaining power Competitive rivalry within the industry perfect competition - ANS Represents set of conditions in which no supplier has the market power to influence the price of a goods Monopoly - ANS A situation in which no competition exists at all because a single producer supplies the whole market. The producer has ultimate market power Monopolistic competition - ANS Form of imperfect competition, there is competition between a large number of suppliers producing goods which are slightly different in some way Oligopoly - ANS Another form of imperfect competition , describes a situation where there is competition between a small number of large suppliers of differentiated goods. Suppliers will usually work together to keep prices stable Demand - ANS Quantity of goods that consumers are willin and able to buy, varies with price. As price goes up demand goes down Supply - ANS Amount that firms are willing and able to sell, this varies with price in general as the market price of goods rises supply also rises Equilibrium price - ANS Producers wish to sell the same amount as consumers wish to buy Product lifecycle - ANS Concept that products pass through various stages in their sales life. Product development Introduction Growth Maturity Decline SWOT analysis - ANS Strengths & weaknesses of internal aspects of the business Opportunities and threats are factors of the external environment Ansoff growth strategies - ANS Market penetration Market development Product development Diversification Kraljic matrix - ANS Measures -importance to the org of the item being purchased -complexity of the supply market The make / do or buy decision - ANS Deciding whether to make the product ourself or pay supplier to do it