Important CIPS L6M9 Exam Questions

Answer: D

Explanation:

A forcefield diagram identifies forces (e.g., people or factors) that support or oppose change. This model, developed by Kurt Lewin, helps organisations assess and manage resistance to change. (See p.196)

Answer: A

Explanation:

An Efficient Frontier diagram can have multiple curves. The first curve shows potential return on investment under current conditions, while the second curve models improvements if the organisation engages in continuous improvement. A third curve may represent a long-term vision, but this is less common. (See p.136)

Answer: A, B, D

Explanation:

Option A is correct---Dynamic Capability Theory helps companies adjust their competencies to market changes.

Option B is correct---Dynamic capabilities contribute to competitive advantage.

Option D is correct---Information sharing within the supply chain is key to building dynamic capabilities.

Option C is incorrect---Dynamic Capability Theory does not focus on cost reduction, but rather on agility and responsiveness to market changes.

Note: This section also covers Porter's 5 Forces, STEEPLE, and the Product Life Cycle, which are important topics for revision!

(See LO 2.1, p.88)

Answer: A, B

Explanation:

Strategic stocking decisions change when external factors shift, such as a competitor going out of business (leading to increased demand) or a vulnerability in raw material supply (e.g., a bad harvest). Short lead times and low demand do not necessarily change stocking decisions but rather influence how stock is currently managed. (See p. 159)

Answer: C

Explanation:

Foster's land management-based approach suggests that business strategy should not be dictated from the top down. Instead, it should involve both formal and informal groups throughout the organisation. This helps prevent artificial decision-making and misalignment between leaders and employees.

(LO 2.1, See p.77)