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NEW QUESTION 47
A buying organisation may not have technical capability to produce a highly complex specification. Which of the following are sources of information that can be used to create the specification? Select TWO that apply
- A. Industry standards
- B. Suppliers' know-how
- C. Name cards
- D. Constitution
- E. Standard terms and conditions
Answer: A,B
Explanation:
If an organisation doesn't have capability to produce a technical specification, they can draft one based on standards or consulting the suppliers.
Reference:
LO 3, AC 3.1
NEW QUESTION 48
Which of the following bodies provides standards for the products and services in the US?
- A. BSI
- B. ISO
- C. AFNOR
- D. ANSI
Answer: D
Explanation:
ANSI is the American National Standards Institute. It is responsible for providing technical stand-ards in the US LO 3, AC 3.1
NEW QUESTION 49
Which of the following are recognised competitive strategies?
1. Winning new business at all cost
2. Getting more customers' attention
3. Creating stand-out products and brands
4. Focusing on niche market
5. Acquiring competitors
- A. 1 and 2 only
- B. 2 and 5 only
- C. 3 and 5 only
- D. 3 and 4 only
Answer: D
Explanation:
"A firm's relative position within its industry determines whether a firm's profitability is above or below the industry average. The fundamental basis of above average profitability in the long run is sustainable competitive advantage. There are two basic types of competitive advantage a firm can possess: low cost or differentiation. The two basic types of competitive advantage combined with the scope of activities for which a firm seeks to achieve them, lead to three generic strategies for achieving above average performance in an industry: cost leadership, differentiation, and focus." (Reference: Porter, Michael E., "Competitive Advantage". 1985, Ch. 1, pp 11-15. The Free Press. New York.) Creating stand-out products and brands is considered as Differentiation. An organisation that is not clear about which of these three strategies to use is described as 'stuck in the middle' LO 2, AC 2.1
NEW QUESTION 50
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