CIPS Updated L4M6 Exam Questions and Answers by romie

In the Kraljic Purchasing Portfolio Matrix, bottleneck items are:

Low value/low spend (low importance to profit impact).

High supply risk (complex or limited supplier market).

Even though the spend is low, their absence can halt production because alternatives are limited. This makes them strategically significant despite their low financial importance.

Explanation

In a monopoly there is only one supplier- therefore their power is strong. Buyers in this market are price takers and their power is weak. There is generally a strong barrier to entry into a monopoly market so the threat of new entrants is low. There is no rivalry. There are many questions in the exam on Porter's 5 Forces - see p. 39

Explanation

This is one of those questions you have to read carefully- it asks for 'elements of a business'. Cost focus and cost leadership are ways a company can improve their competitive advantage, but they're not elements of a business. The other three options are. Porter created a list of elements of a business that can help a company's competitive advantage- these can be found on p.33-34

Negative leaders and promoters hold the most influence. Negative leaders can sway opposition, while promoters can actively advocate for project success. Managing these stakeholders effectively is crucial in procurement projects.