CIPS Level 3 Module 1 Test Questions and Correct Answers

What does STEEPLED stand for? (External factors - macro environment) Sociological, technological, economic, environmental, political, legal, ethical, demographic How many employees does a micro business have? Less than 10 How many employees does a small business have? Less than 50 How many employees does a medium business have? 250 or fewer What are the support activities of porters value chain model? Firm infrastructure, human resource management, technology development and procurement What are the primary activities of porters value chain model? Logistics, operations, marketing and sales and after sales service What is a BRD? Business requirements definition - it answers the "what to buy" question and is based on the needs analysis from operations What does RAQSCI stand for? (a model for identifying business requirements) Regulatory, assurance of supply, quality, service, cost and innovation What are the two types of field research? Quantitative research (statistical information) and qualitative research (peoples opinions) What are the 4 categories of the Kraljic matrix? Critical, strategic, tactical and leverage What is a situation target proposal (STP)? It is a statement that describes the current situation, paints the vision of the target and lists the elements to be used to get to the target What are SMART objectives? Specific, Measurable, Achievable, Realistic, Timely What is force majeure? Force majeure is a powerful and unexpected event, such as hurricane or other disaster, which prevent a contract from being fulfilled What is commissioning? It is the process of deciding what to spend money on in the public sector What is the restricted procedure? This is used when the it js anticipated that interest (in bidding) from the supply market will be high. This allows a two stage selection process where inappropriate suppliers are discounted after completing a pre qualification questionnaire What is the competitive dialogue procedure? This is used when an authority is unsure of their requirements so they engage with suppliers in an attempt to get clarity around their requirements What is cost reimbursable pricing arrangement? The supplier is reimbursed all of its costs as well as an agreed amount for profit. This is commonly used when the amount of work required isn't clear at the start of the project. What is gain share pricing? When the supplier achieves a level of performance above what would be expected and the buyer and seller share the savings. What is incentive based pricing? When the price is tied to the achievement of an agreed level of performance. What is a letter of credit? A letter from the bank guaranteeing that payment will be made in full on the due date. What is lean thinking? A business methodology that aims to create more value with fewer resources. What are economies of scale? reductions in unit cost resulting from production being increased What is a SWOT analysis? a study undertaken by an organization to identify its internal strengths and weaknesses, as well as its external opportunities and threats. What are Porter's Five Forces? (Analyse supply market data) 1. Buyer Power 2. Supplier Power 3. Threat of substitute products or services 4. Threat of new entrants 5. Rivalry among existing competitors