L4M6 Exam Dumps : Supplier Relationships

Explanation

Equity is the fourth E- this means the extent to which the service is available. See p.65 for details on the 4 Es

Intense rivalry occurs when suppliers are equally balanced and face high barriers to exit, leading to aggressive competition to retain market share, as described in Porter’s Five Forces model.

Explanation

The correct answer is ‘Yes- partnership sourcing can improve performance which will ultimately satisfy the end customer’. The important thing to note in this QUESTION NO: is the word ‘monopolistic’. This means that there are no alternative suppliers- so the ‘no’ options are wrong- there are no alternative suppliers and no opportunity to outsource. The other answer is incorrect as sales figures isn’t Andrew’s concern – it’s the complaints and quality of the product. Improving performance to satisfy end customers is therefore his main driver for considering a Partnership. See p. 127 for more information on Drivers of Partnership Sourcing. This comes up a lot in the exam