CPSM EXAM #3 2025 QUESTIONS AND
ANSWERS
Identifying, Acquiring, Accessing, Positioning - ANS Supply Management's primary mission is
to support organizational needs through:
1. Stay abreast of market conditions
2. Ensure supplier competitiveness
3. Identify new suppliers
4. Develop value-adding relationships
5. Improve supplier performance - ANS 5 Aspects of Supply Management Capabilities
Influence - ANS The degree to which supply management influences organizational decisions
depends on the degree to which supply is seen as integral to organization success
Organizational Synergy - ANS a mutually advantageous conjunction, where the whole is
greater than the sum of its parts. Ex: A cross-functional new-product development team could
likely bring the product to market faster than by using the old step-by-step approach
5 ways corporate goals are defined - ANS 1. Broad statements of ideal future conditions
2. Statements of anticipated or projected outcomes
3. Specific objectives relating to specific time periods
4. Objectives made specific in terms of time and degree
5. The object of plans
4 Ways supplier should understand the differences in goals are: - ANS 1. Strategic and
operational goals
2. Amounts of employee input
1
Page
3. Level of goal difficulty
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, 4. Quantitative and qualitative goals
Operational Goal - ANS -More specific than strategic goals
-Usually related to lower level organizational goals
-Usually have shorter time frames
In regards to goal difficulty, goals should be: - ANS -Attainable
-Require focused effort
-Stretch employee comfort zones
Vision Statement - ANS The overarching purpose of the organization and its role in society
Mission Statement - ANS -Who are we?
-What need do we want to meet?
-How will we meet those needs?
-What are our central values?
Value Statement - ANS Sets forth value in:
-Hiring practice
-Resource Allocation
-Performance Measurement
-Treatment of suppliers
-Treatment of employees
3 types of strategies - ANS 1. Corporate Strategies
2. Business Unit Strategies
3. Supply Management Strategies
The Planning Hierarchy (5 Stages) - ANS 1. Vision
2. Mission
3. Strategy
4. Goals
5. Plans
2
Page
4 Questions Business Plans should answer - ANS 1. What is our business?
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, 2. Who are our customers?
3. Where are we going?
4. How will we get there?
7 Key Areas of Business Planning - ANS 1. Overview of Business
2. Marketing Plan
3. Marketing Strategy-Value proposition
4. Management and Human Capital
5. Operations Capabilities
6. Financial Plan
7. Critical business risks
Tactical Plans - ANS -Typically for time frames up to a year
-Provide control and measurement mechanisms
Standing Plans - ANS -Used over and over until changed
-Examples include policies and procedures
Single-use Plans - ANS -Created for a particular situation
-End when goals are reached
-May be long or short term
Ex: Increase capacity
Market-Based Pricing Structure - ANS -Requires consumer research
-Requires market research on competitors
-Goal is to set a price that optimizes revenue and profit
Cost Approach to Pricing - ANS -Determines selling price by examining cost structure and
adding reasonable profit
-Dominant in free market
-Common when a fixed price is not appropriate
-Buyers should ensure accurate seller costs and reasonable profit
3
Loss Leader Pricing - ANS -Seeks to recover variable cost
Page
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ANSWERS
Identifying, Acquiring, Accessing, Positioning - ANS Supply Management's primary mission is
to support organizational needs through:
1. Stay abreast of market conditions
2. Ensure supplier competitiveness
3. Identify new suppliers
4. Develop value-adding relationships
5. Improve supplier performance - ANS 5 Aspects of Supply Management Capabilities
Influence - ANS The degree to which supply management influences organizational decisions
depends on the degree to which supply is seen as integral to organization success
Organizational Synergy - ANS a mutually advantageous conjunction, where the whole is
greater than the sum of its parts. Ex: A cross-functional new-product development team could
likely bring the product to market faster than by using the old step-by-step approach
5 ways corporate goals are defined - ANS 1. Broad statements of ideal future conditions
2. Statements of anticipated or projected outcomes
3. Specific objectives relating to specific time periods
4. Objectives made specific in terms of time and degree
5. The object of plans
4 Ways supplier should understand the differences in goals are: - ANS 1. Strategic and
operational goals
2. Amounts of employee input
1
Page
3. Level of goal difficulty
@COPYRIGHT SIRJOEL 2025/2026
, 4. Quantitative and qualitative goals
Operational Goal - ANS -More specific than strategic goals
-Usually related to lower level organizational goals
-Usually have shorter time frames
In regards to goal difficulty, goals should be: - ANS -Attainable
-Require focused effort
-Stretch employee comfort zones
Vision Statement - ANS The overarching purpose of the organization and its role in society
Mission Statement - ANS -Who are we?
-What need do we want to meet?
-How will we meet those needs?
-What are our central values?
Value Statement - ANS Sets forth value in:
-Hiring practice
-Resource Allocation
-Performance Measurement
-Treatment of suppliers
-Treatment of employees
3 types of strategies - ANS 1. Corporate Strategies
2. Business Unit Strategies
3. Supply Management Strategies
The Planning Hierarchy (5 Stages) - ANS 1. Vision
2. Mission
3. Strategy
4. Goals
5. Plans
2
Page
4 Questions Business Plans should answer - ANS 1. What is our business?
@COPYRIGHT SIRJOEL 2025/2026
, 2. Who are our customers?
3. Where are we going?
4. How will we get there?
7 Key Areas of Business Planning - ANS 1. Overview of Business
2. Marketing Plan
3. Marketing Strategy-Value proposition
4. Management and Human Capital
5. Operations Capabilities
6. Financial Plan
7. Critical business risks
Tactical Plans - ANS -Typically for time frames up to a year
-Provide control and measurement mechanisms
Standing Plans - ANS -Used over and over until changed
-Examples include policies and procedures
Single-use Plans - ANS -Created for a particular situation
-End when goals are reached
-May be long or short term
Ex: Increase capacity
Market-Based Pricing Structure - ANS -Requires consumer research
-Requires market research on competitors
-Goal is to set a price that optimizes revenue and profit
Cost Approach to Pricing - ANS -Determines selling price by examining cost structure and
adding reasonable profit
-Dominant in free market
-Common when a fixed price is not appropriate
-Buyers should ensure accurate seller costs and reasonable profit
3
Loss Leader Pricing - ANS -Seeks to recover variable cost
Page
@COPYRIGHT SIRJOEL 2025/2026
