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  1. Home
  2. CIPS Certification
  3. L4M6 Exam
  4. CIPS.L4M6.v2023-05-24.q44 Dumps
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Question 31

The Public Sector in the UK is unable to enter into formal partnership relationships with any supplier. Is this statement TRUE?

Correct Answer: A
The correct answer is 'Yes- the Public Sector is regulated by EU procurement regulations which prohibits this'. This is stated on p.122. Please note that this study guide and exam were written before Brexit. Once Brexit happens, nobody knows what will happen with this.
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Question 32

Kinky Boots Ltd provides high heeled shoes in large sizes. Their target market are Drag Queens. There are a couple of rival shoe manufacturers in this market and Kinky Boots Ltd offer the cheapest high heels. What strategy is Kinky Boots Ltd employing in terms of competitive advantage?

Correct Answer: C
This is 'cost focus' - Kinky Boots is both focusing on being a cost leaser (by providing the cheapest products) and focusing on a niche market (drag queens). When these two strategies are combined it is called 'cost focus'. There's a couple of questions on Porter's Generic Strategies in the exam- there's a useful diagram of this on P.13
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Question 33

Which of the following are NOT one of the four key principles of procurement in the EU?

Correct Answer: B
Value for money is not a principle of EU procurement. The four key principles are; transparency, non-discrimination, proportionality and equality of treatment. The principles are basically about ensuring the procurement process is fair. See p.75
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Question 34

Which of the following are elements of a business that can develop a company's competitive advantage? Select THREE.

Correct Answer: C,D,E
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
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Question 35

Polly Manufacturing is a company which manufactures bicycle parts. It has several factories around the country and is one of the leading suppliers of wheels, bells and pedals. Which of the following is Polly Manufacturing likely to outsource? Select TWO options.

Correct Answer: C,D
They could outsource cleaning and facilities management. These are auxiliary services. The manufacturing of bike parts is their 'core' business so they should retain this in-house
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