MNP_3701 Exam with Notes.

MNP_3701 Exam with Notes. In your portfolio, (a) write down the number of the question, (b) the option representing your answer, and (c) reasons for choosing that option. Example: Question 8.1 Under which market structure is there only one supplier that can provide a product or service? [a] oligopoly [b] perfect competition [c] monopoly [d] recession Question 8.1 Option [c] monopoly is correct, as this market structure is characterised by a single seller selling unique products in the market. In a monopoly market, the seller faces no competition, as they are the sole seller of goods, with no substitutes. They enjoy the power of setting the price of their goods. Please note – no marks will be given for the theory or explanation if it is copied and pasted out of the prescribed book. Your answers in section A should not exceed two pages in total. QUESTION 1.1 Observe the following depiction of the portfolio analysis and then answer the question that follows. Business risk 4. Routine 3. Bottleneck Category value Low Low High High 1. Leverage 2. Strategic CONFIDENTIAL Page 6 of 15 MNP3701 JULY 2020 In which quadrant does the supplier have more power than the buyer? [1] [a] leverage [b] strategic [c] bottleneck [d] routine QUESTION 1.2 Under which circumstance will organisations use the learning curve? [1] [a] When a supplier produces a new part for an aircraft [b] When downturns in market demand occur [c] For individual products and services that are set to enhance the sales of the overall product line QUESTION 1.3 Barriers to supplier development may originate in the interface between the buyer and supplier. Solutions have to be found. Organisations should create a supplier ombudsman if _______. [1] [a] confidentiality inhibits information sharing [b] the supplier does not trust the buying organisation [c] the supplier is reluctant to share information on costs or processes QUESTION 1.4 Under which conditions will an organisation go for bidding, rather than negotiations? [1] [a] When the buyer required early supplier involvement [b] When the specification or requirements are clear to the seller [c] When the buyer cannot determine the risks and costs CONFIDENTIAL Page 7 of 15 MNP3701 JULY 2020 QUESTION 1.5 Organisations will typically do a price analysis using market forces as strategic cost-management approach for _______. [1] [a] commodities [b] unique products [c] generic products ____________________________________________________________________________ END OF SECTION A 6 SECTION B: ESSAY-TYPE QUESTIONS All the questions in section B are compulsory. You need to read the case study to be able to answer the questions asked in section B of this assessment. Guidelines for answering the questions in section B: Pay attention to the marks allocated to a particular question, as this will guide you in terms of how much time you should spend on the question and the amount of detail that is required. Structure your answer by using headings and bullets, and by underlining (or highlighting) the important elements. In discussing the case-study questions, you can use the theory as a basis to explain the appropriate citation from the case. Please note: All the questions are based on the case study. You must justify your answers based on the case study or make relevant assumptions. You will be penalised if you copy and paste the theory out of your prescribed book – no marks will be given for the theory or explanation if it is copied and pasted out of the prescribed book. Your answers must include the question number, followed by your answer. Please note that there is no need for an introduction and conclusion in section B. Your answers to section B should not exceed two (2) pages in total.