Master CIPS L6M9 Exam with Reliable Practice Questions
Upgrade to PremiumWhich of the following statements about Demand Chain Management (DCM) are TRUE? Select ALL that apply.
Correct : C, D, E, F
Correct statements about DCM:
(C) Cash flow and profitability are key drivers.
(D) It is a strengths-based approach, focusing on leveraging competitive advantages.
(E) There is a long-term focus rather than just short-term efficiency.
(F) Uses forecasts and planning to understand customer demand.
Incorrect statements:
(A) False -- A company CAN be both efficient and effective.
(B) False -- Supply Chain Management (SCM) focuses on cost minimisation, while Demand Chain Management (DCM) focuses on customer value.
(See LO 2.3, p.125)
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XYZ Ltd is a retail organisation selling various hair care products. The marketing team is reviewing sales figures from the past year and wants to determine which products should receive extra marketing.
One product has low market share but exists in a high-growth market.
According to the Boston Consultancy Group (BCG) Matrix, which category does this product fall under?
Correct : D
Problem Child (also called Question Mark) refers to a product with low market share in a high-growth market.
BCG Matrix Categories:
Dog Low market share, low market growth
Cash Cow High market share, low market growth
Star High market share, high market growth
Problem Child (Question Mark) Low market share, high market growth
Exam Tip: The BCG Matrix is frequently tested. Be aware that 'Problem Child' is sometimes called 'Question Mark' in other versions of the matrix!
(See LO 2.3, p.130)
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In a bottom-up process for planning and control, who would make the strategic plan?
Correct : A
Operational staff would make the plan and pass this up to senior managers for approval. This is the opposite of a top-down approach, where senior managers make the plan and tell the operational staff what to do. (See p.187)
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Sandeep is the Chief Financial Officer at Brass Knuckles Ltd. He has attended a meeting with the Head of Operations who has shown him several options of potential changes that can be made to the operations department of the business. These options have been plotted on the Efficiency Frontier. What is the purpose of using the Efficiency Frontier to evaluate these options?
Correct : D
The Efficiency Curve plots options (or trade-offs) on a graph based on the level of risk and ROI. The options that are closest to the curve are the best---these ones represent the best ROI with the same level of risk. (See p.133)
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Which of the following are Porter's strategies that can help an organisation create competitive advantage in the marketplace? Select ALL that apply
Correct : A, D, E
Porter's three strategies are low-cost, differentiation, and niche. These options are just worded slightly differently but align with Porter's competitive strategies. (See p.151)
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