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Defining Business Needs

Last Update Nov 7, 2024
Total Questions : 204 With Comprehensive Analysis

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Defining Business Needs Questions and Answers

Questions 1

A market has a considerable number of buyers and suppliers. Analysis of the market reveals that loyalty from buyers is relatively low and switching to alternative providers is commonplace. Which of the following market characteristics is supporting this type of buyer behaviour?

Options:

A.

Supplier bargaining strength

B.

Barriers to market entry

C.

Increasing use of technology

D.

The availability of substitute products

Questions 2

Which of the following is a risk to buying organization when using conformance specification?

Options:

A.

Buyer is responsible for product failure

B.

Buyer may face liquidity risks

C.

Buyer cannot control the inputs

D.

Time to produce specification is shortened

Questions 3

Robert is a senior buyer at MMC Construction Ltd. His company is doing multiple development projects in the country, which increases procurement workload significantly. Meanwhile, most of the tasks are handled manually, which causes bottlenecks in the workflows. The procurement team is overwhelmed by the workload and complains from other departments. From previous experience, Robert knows that electronic system may help his procurement team. He writes a business case to submit to the senior management, in which he insists on the possible productivity improvement by adopting e-system in procurement. Is Robert's action reasonable?

Options:

A.

No, there's no need to make a business case for new purchase

B.

Yes, productivity improvement is a mandatory element in every business case

C.

No, adopting e-system may make procurement department jobless

D.

Yes, his reason may appeal the senior management