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Study Guide for Chapter 6

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Study Guide for Chapter 6:

1. What is a spend analysis?

2. Describe the strategic sourcing process from start to finish.

3. Describe the portfolio analysis matrix tool and how it is used to develop supply management strategies.

4. What are the major types of supply management strategies?

5. Why must organizations develop suppliers? Is supplier development a long-term trend? Explain.

6. What do you think are the reasons why there are so few companies classified as Stage 4 companies?

7. What are the tools to conduct market research on suppliers? Briefly explain each.

8. A/An _____ refers to a specific family of products or services that is used in delivering value to the end customer.

a. spend analysis

b. decentralized structure

c. category *

d. centralized structure

e. hybrid structure

9. A _____ is concerned with (1) the scope or boundaries of each business and the links with corporate strategy and (2) the basis on which the business unit will achieve and maintain a competitive advantage within an industry.

a. commodity strategy

b. corporate strategy

c. business unit strategy *

d. functional strategy

e. supply management strategy

10. A/An _____ is an annual review of a firm’s entire set of purchases.

a. cost analysis

b. price analysis

c. make-buy analysis

d. technology roadmap

e. spend analysis *

11. Which of the following is not one of Porter’s five forces?

a. Buyer bargaining power.

b. Switching costs. *

c. Threat of new entrants.

d. Market internal competition.

e. Supplier bargaining power.

12. The _____ is a solicitation document that is used by organizations to obtain general information about services, products, or suppliers and is used...

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