Free Defining Business Needs Exam L4M2 Exam Practice Test

Halfords is a major bicycle and car parts retailer with long history in the market. Its suppliers are plentiful and there is no threat of forward integration. Some other smaller retailers are applying 3D-printing technology to make personalized bicycle parts but their market share is relatively low. 3D-printing technology is an example of which competitive force?

• Bargaining power of buyer
• Threat of substitute
• Rivalry within the industry
• New entrants may enter the market

Which of the following specific markets is most likely to have the lowest entry barrier?

• Retail
• Manufacturing
• Financial
• Agriculture
• Services

To strengthen its market presence, ABC Group decided to develop a new product. A cross-functional team was formed to discuss the scope and the functions of the product. They will also survey the potential customers to see what they like, what they love, and what they dislike. What is this process called?

• Value analysis
• Cash flow analysis
• Product standardisation
• Value engineering

Which of the following agencies can produce a technical standard?

• House of Lords
• Marketing department
• BSI
• Department of State

Which of the following is an advantage of competitive benchmarking over other types of bench-marking?

• Limited access to competitor's data
• Similarity among processes
• Different corporate culture
• Cost effectiveness

Lider Ltd is a leading bathroom furniture manufacturer in India. The company has more than 30 years experience in the market with extended knowledge of engineering and customers' taste. Lider is planning to launch a new type of bath fitting next year which offers Bluetooth connectivity and thermostat display. The company gathers a team of multi-disciplines, including engineering, procurement, sales and marketing. At the first team meeting, the project leader tells the team to discuss which functions will be valued by the customers, and how to deliver those functions with the lowest costs possible. Which of the following describes the process that the project team is undertaking?

• Cost analysis
• Standardisation
• Value engineering
• Just in time

Why is the specification considered as the most important document in procurement?

• It provides a mean to appraise the performance of supplier
• It helps the buyer to gain at supplier's loss
• It eliminates all possible supply risks
• It always shifts the balance of bargaining power in favour of the buyer

Company A sells a product for $100. The total unit variable costs are $60. Fixed costs as in its ac-count are $20,000. How many products does the company have to sell to achieve break-even point?

• 600
• 550
• 400
• 500

Which of the following statements is the best definition of 'value engineering?

• Analysing perceived value after the product is available for sale
• Building value into a new product from design stage onwards
• Producing good value products right first time.
• Value achieved by an engineering department

What is the output of regression analysis?

• Forecasting process
• Dependent variables
• Line of best fit
• Independent variables