CIPS Updated L4M6 Exam Questions and Answers by siena

Explanation

This is differentiation as the target market is broad. Differentiation focus would be if the supermarket was targeting a niche market. There's a couple of questions on Porter's Generic Strategies in the exam- there's a useful diagram of this on P.13

Comprehensive and Detailed Explanation:

For one-off, low-value purchases that are readily available from multiple suppliers, anadversarialrelationship is often appropriate. This type of relationship is transactional, with minimal collaboration or long-term commitment. The focus is on obtaining the best price and terms for a specific purchase without investing in developing a deeper relationship.

Comprehensive and Detailed Explanation:

Partnering is most suitable in scenarios involving high-risk contracts, where the complexity, uncertainty, or strategic importance of the procurement necessitates close collaboration between the buyer and supplier. In such cases, a partnership allows for shared risk management, joint problem-solving, and mutual investment in achieving long-term objectives. This approach is less appropriate for low-cost, low-risk, or commoditized items where transactional relationships suffice.

Explanation

CIPS state the following reasons for the end of supplier relationships; the contract comes to a natural end, the contract is re-tendered, a material breach or the supplier becomes insolvent (p.15) In this case the only valid option is 'the contract has ended'.