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NEW QUESTION 21 A procurement manager consolidates the company expense on printing and office supplies into broader range of spend category. Other senior managers are concerned that it may increase company's spend. Is that concern justified?

• A. Yes, because the consolidation may create a large contract that costs more than placing each purchase order
• B. Yes, because the suppliers can't provide a broader range of products and they will fail to deliver
• C. No, because the broader range of spend category can increase the value of the contract and the buyer may get volume discount
• D. No, because the consolidation will help the supplier to shorten deliver time.

Answer: C Explanation: Printing and office supplies are often considered as low risk, low value items. Consolidation low value, low risk items into a broader range will dramatically increases the value of the contract and leverage of buying organisation in the negotiation. Reference: LO 1, AC 1.1   NEW QUESTION 22 Due to the growth of consumer electronics market, semiconductor industry develops exponentially. However, the industry is dominated by a dozens of manufacturer. Chipset need to be built in factories with highly controlled environments. New chip factories cost billions of dollars and can take two years to build. Right now, factories are running at full capacity, which produce almost perfect yields, meaning basic chipset can be made for less than a dollar and more advanced versions for not much more. What are the barriers to new entrants in the semiconductor industry? 1. Poor industry growth 2. High set-up costs 3. Economies of scale 4. Low switching costs

• A. 1 and 4 only
• B. 2 and 4 only
• C. 2 and 3 only
• D. 3 and 4 only

Answer: C Explanation: Barriers to entry is an economics and business term describing factors that can prevent or impede newcomers into a market or industry sector, and so limit competition. The most obvious barriers to entry are high start-up costs and regulatory hurdles which include the need for new companies to obtain licenses or regulatory clearance before operation. Also, industries heavily regulated by the government are usually the most difficult to penetrate. Other forms of barrier to entry that prevent new competitors from easily entering a business sector include special tax benefits to existing firms, patent protections, strong brand identity, customer loyalty, and high customer switching costs. In the scenario, the new factory for chipset manufacturing costs billions of dollars, which indicates high set-up costs. Also, the incumbent manufacturers have reached economies of scale, allowing them to produce the components at optimal price. The above descriptions are compiled from recent reports on current chip shortage (2021). Reference: - Barriers to Entry Definition (investopedia.com) - CIPS study guide page 96-97 LO 2, AC 2.2   NEW QUESTION 23 Which of the following are the focuses of ISO 14001:2015?

• A. 1. Life cycle
• Process
• Capacity
• Information security 2 and 4 only
• B. 3 and 4 only
• C. 1 and 2 only
• D. 2 and 3 only

Answer: C Explanation: ISO 14001:2015 specifies the requirements for an environmental management system that an or-ganization can use to enhance its environmental performance. ISO 14001:2015 is intended for use by an organization seeking to manage its environmental responsibilities in a systematic manner that contributes to the environmental pillar of sustainability. ISO 14001:2015 helps an organization achieve the intended outcomes of its environmental man-agement system, which provide value for the environment, the organization itself and interested parties. Consistent with the organization's environmental policy, the intended outcomes of an environmental management system include: * enhancement of environmental performance; * fulfilment of compliance obligations; * achievement of environmental objectives. ISO 14001:2015 is applicable to any organization, regardless of size, type and nature, and applies to the environmental aspects of its activities, products and services that the organization determines it can either control or influence considering a life cycle perspective. ISO 14001:2015 does not state specific environmental performance criteria. ISO 14001:2015 can be used in whole or in part to systematically improve environmental manage-ment. Claims of conformity to ISO 14001:2015, however, are not acceptable unless all its require-ments are incorporated into an organization's environmental management system and fulfilled without exclusion. In conclusion, ISO 14001:2015 focuses on: management system (including roles, leadership and processes) and the life cycle of product or service. Life cycle is defined as "consecutive and inter-linked stages of a product (or service) system, from raw material acquisition or generation from natural resources to final disposal. [...] The life cycle stages include acquisition of raw materials, design, production, transportation/ delivery, use, end-of-life treatment and final disposal." The answer is process and life cycle. Reference: - ISO 14001:2015 Environmental management systems - Requirements with guidance for use LO 3, AC 3.1   NEW QUESTION 24 ...... P.S. Free 2022 CIPS L4M2 dumps are available on Google Drive shared by ITPassLeader: https://drive.google.com/open?id=1ZFRIDiw40H4JknJ8W1bPv6zCJvIeniVX