When using competitive forces theory, suppliers are powerful in which of the following situations? Select THREE that apply.
A law firm is ending an agreement with a client they have represented for many years. What is the most important legal consideration to be taken before terminating?
Red Manufacturing work with around 40 different suppliers. One of these suppliers is Blue Business. Red Manufacturing order regularly from Blue Business, and have never had any issues with their performance. The materials Blue Business supply are of low value and there are several other suppliers of these materials in the market. What type of relationship should Red Manufacturing seek to have with Blue Manufacturing?
Construct Builders Ltd works very closely with a supplier called Solid Timber Co on house-building projects. They have a very close working relationship, sharing investment, setting pricing levels, and looking at sharing resources. The two companies also work closely together to set strategic directionsand explore new markets for long-term growth. There is no formal contract in place between the two companies. Using the relationship spectrum, what relationship does this scenario best describe?
A local council requires facilities management services for ten schools based in their region. This service is a high spend, high risk, critical contract. Which sourcing approach would be the most appropriate?
Francisco has entered a partnership with Pedro, who is a key supplier, and wants to ensure that the partnership achieves all of Francisco’s goals. As well as qualitative and quantitative KPIs, what other measures could Francisco take to ensure the partnership is a success?
Which of the following are typical drivers for a partnership between the buyer and the supplier? Select the THREE that apply.
A team within a manufacturing company have been tasked to develop a new product for production. Initially, the team had a lot of ideas but disagreed on the design. They have now agreed and finalised the design and have assigned roles within the team, but are yet to complete the first production run. What stage of development is the team?
An amicable style approach to ending a buyer-supplier relationship would be most appropriate in which of the following circumstances?
Where the potential pool of alternative suppliers is small
Where the buyer has to continue working with the supplier during the termination period
Where the buyer has adopted an arm's-length relationship throughout the contract
Where a material breach of the contract has been committed leading to the termination
