Pass Guaranteed 2025 CIPS First-grade L4M2: Defining Business Needs Latest Test Questions

BTW, DOWNLOAD part of BootcampPDF L4M2 dumps from Cloud Storage: https://drive.google.com/open?id=1SWadBJCUWfzIqWbDwmDwr1G4YNE2ryJM

Our L4M2 exam dumps are compiled by our veteran professionals who have been doing research in this field for years. There is no question to doubt that no body can know better than them. The content and displays of the L4M2 Pass Guide Which they have tailor-designed are absolutely more superior than the other providers.

Achieving the Defining Business Needs certification demonstrates a professional's commitment to developing their skills and knowledge in procurement and supply chain management. It also provides a benchmark for employers to evaluate the capabilities of their procurement and supply chain teams. By earning this certification, professionals can enhance their career prospects and contribute to the success of their organization.

To prepare for the CIPS L4M2 Exam, candidates need to have a good understanding of procurement principles and practices, as well as a strong knowledge of the business environment. Study materials and exam preparation courses are available from CIPS, as well as from a range of other providers.

>> L4M2 Latest Test Questions <<

L4M2 Regualer Update - Valid L4M2 Real Test

You do not worry about that you get false information of L4M2 guide materials. According to personal preference and budget choice, choosing the right goods to join the shopping cart. The 3 formats of L4M2 study materials are PDF, Software/PC, and APP/Online. Each format has distinct strength and shortcomings. We have printable PDF format prepared by experts that you can study our L4M2 training engine anywhere and anytime as long as you have access to download. We also have installable software application which is equipped with L4M2 simulated real exam environment.

CIPS Defining Business Needs Sample Questions (Q67-Q72):

NEW QUESTION # 67
Robert is a senior buyer at MMC Construction Ltd. His company is doing multiple development projects in the country, which increases procurement workload significantly. Meanwhile, most of the tasks are handled manually, which causes bottlenecks in the workflows. The procurement team is overwhelmed by the workload and complains from other departments. From previous experience, Robert knows that electronic system may help his procurement team. He writes a business case to submit to the senior management, in which he insists on the possible productivity improvement by adopting e-system in procurement. Is Robert's action reasonable?

A. Yes, productivity improvement is a mandatory element in every business case
B. No, there's no need to make a business case for new purchase
C. No, adopting e-system may make procurement department jobless
D. Yes, his reason may appeal the senior management

Answer: D

Explanation:
Composing a compelling business case requires the proposer to write in the language of the approvers.
Generally, approvers are business executives or important shareholders whose major interest is the profitability of the firm. Business case proposer may embed the following contents:
- Return on investment: according to Investopedia, Return on Investment (ROI) is a performance measure used to evaluate the efficiency of an investment or compare the efficiency of a number of different investments. ROI tries to directly measure the amount of return on a particular investment, relative to the investment's cost. A business case would seem more attractive if the proposal is expected to have high ROI.
- Time to market: Time-to-market (TTM) refers to the time from which a company initially con-ceives a product or service idea to the point when the actual product or service is accessible to buyers in the market (Afonso et al., 2008). The speed at which companies can introduce products into the market is critical for sustaining competitive advantage, and the reduction of product development cycle time has become a strategic objective for many technology-driven firms.
- Customer satisfaction: Keeping existing customer to stay in the business can affect greatly on the profit margin of a firm. A new proposal that finds the way to innovate while keeping the current customers satisfied may gain the interest of senior management.
- Improving productivity: Productivity is the measure of how efficient and effective a firm is. Im-proving the productivity means that with the same or lesser input, better output is generated. In-creasing productivity also improves the profitability of a company.
- Risk management: Any business activity contains inherent risks. For example, for a mining company to be truly responsible, it must keep all of its workers safe, healthy and motivated, meet the expectations of the local community and government for the region in which it is operating, ensure it impacts on the environment positively if at all, as well as achieve the financial objectives set by its investors for both the short and long term. Managing risks well improves the production throughput and maintains customer satisfaction.
In the scenario, Robert is trying to convince the senior management to adopt e-procurement system by insisting on potential productivity improvement. This is the right approach. A business plan should engage and please senior management and directors. An appealing business case tells them how important things to the business (such as productivity, return on investment, customer satisfaction or costs) are affected by the plan.

NEW QUESTION # 68
Which of the following are recognised competitive strategies?
1. Winning new business at all cost
2. Getting more customers' attention
3. Creating stand-out products and brands
4. Focusing on niche market
5. Acquiring competitors

A. 3 and 4 only
B. 3 and 5 only
C. 2 and 5 only
D. 1 and 2 only

Answer: A

Explanation:
"A firm's relative position within its industry determines whether a firm's profitability is above or below the industry average. The fundamental basis of above average profitability in the long run is sustainable competitive advantage. There are two basic types of competitive advantage a firm can possess: low cost or differentiation. The two basic types of competitive advantage combined with the scope of activities for which a firm seeks to achieve them, lead to three generic strategies for achieving above average performance in an industry: cost leadership, differentiation, and focus." (Reference: Porter, Michael E., "Competitive Advantage". 1985, Ch. 1, pp 11-15. The Free Press. New York.) Creating stand-out products and brands is considered as Differentiation. An organisation that is not clear about which of these three strategies to use is described as 'stuck in the middle' LO 2, AC 2.1

NEW QUESTION # 69
A company is planning the procurement of an IT system and wants to agree a through-life contract with the supplier to ensure ongoing system support. The first step in producing that specification should be to:

A. Prepare tendering documents
B. Define the user requirements
C. Identify the IT system supplier
D. Build a design

Answer: B

Explanation:
Writing a high-quality specification is very crucial in every purchase. In through-life management, it is even more important since the assets often have very high value. Defining user requirement is the first step to write a specification. Without doing this right, many problems may arise in later stages.
Reference:
LO 3, AC 3.2

NEW QUESTION # 70
When a procurement manager considers a substitution, the number and nature of additional func-tions that substitute provides should be taken into account carefully. Which of the following ratio could help the procurement manager to make the right decision?

A. Reserve requirement ratio
B. Price to book value ratio
C. Value to price ratio
D. Price to Earnings ratio

Answer: C

Explanation:
One product substitutes for another if it offers buyers an inducement to switch that exceeds the cost or overcomes the resistance to doing so. A substitute offers an inducement to switch if the substitute provides the buyer with more value relative to its price than the product currently being used. There is always some cost of switching to a substitute because of the disruption and potential reconfiguration of buyer activities that must result, however. The threat of a substitute will vary depending on the size of the inducement relative to the required switching costs.
In addition to relative value to price and switching cost, the pattern of substitution is influenced by what I term the buyer's propensity to switch. Faced with equivalent economic inducements for substitution, different buyers will often evaluate substitution differently. The threat of substitution, then, is a function of three factors:
* The relative value/ price of a substitute compared to an industry's product
* The cost of switching to the substitute
* The buyer's propensity to switch
Porter, Michael E.. Competitive Advantage: Creating and Sustaining Superior Performance (p. 278). Free Press. Kindle Edition.
The price-to-book ratio compares a company's market value to its book value. The market value of a company is its share price multiplied by the number of outstanding shares. The book value is the net assets of a company.
The price-to-earnings ratio (P/E ratio) is the ratio for valuing a company that measures its current share price relative to its earnings per share (EPS). The price-to-earnings ratio is also sometimes known as the price multiple or the earnings multiple.
The reserve ratio is the portion of reservable liabilities that commercial banks must hold onto, rather than lend out or invest. This is a requirement determined by the country's central bank, which in the United States is the Federal Reserve. It is also known as the cash reserve ratio.
LO 2, AC 2.2

NEW QUESTION # 71
Thani Ltd is a fast growing logistics company with a fleet of 20 tractors. To meet Net Zero objec-tive, the company needs to electrify its fleet. Angelica is assigned to investigate the market price of electrifying services. After the investigation, she realises that the current market price is very expensive and unsustainable for her company. She decides to break down the costs before negotiating with the suppliers. Which internal stakeholders may help Angelica estimate the breakdown of costs? Select TWO that apply.

A. Sales and Marketing department
B. Finance department
C. Suppliers
D. Commercial agency
E. Engineering department

Answer: B,E

Explanation:
Despite of its importance, cost analysis is often a daunting task for procurement professionals. In order to analyse supplier's costs effectively, procurement may need the input from other depart-ments. Normally, technical (or engineering) department may help them to identify the direct costs of the product/service (how much material is required to make the product, or how many people are needed to perform the job, etc), while finance (or accounting) department may have ideas on the overheads of the supplier.
In this scenario, engineering department may provide insights on the components needed and the tasks to perform. Similarly, finance may know how much supplier pays for the overheads.
On the other hand, while commercial agency and suppliers are external stakeholders, Sales and marketing is unlikely to provide valuable information in this case.

NEW QUESTION # 72
......

Our technology and our staff are the most professional. What are the L4M2 practice materials worthy of your choice, I hope you spend a little time to find out. First of all, after you make a decision, you can start using our L4M2 Exam Questions soon. We will send you an email within five to ten minutes after your payment is successful. You can choose any version of L4M2 study guide, as long as you find it appropriate.

L4M2 Regualer Update: https://www.bootcamppdf.com/L4M2_exam-dumps.html

P.S. Free 2025 CIPS L4M2 dumps are available on Google Drive shared by BootcampPDF: https://drive.google.com/open?id=1SWadBJCUWfzIqWbDwmDwr1G4YNE2ryJM

Max Stone Max Stone

Biography

Pass Guaranteed 2025 CIPS First-grade L4M2: Defining Business Needs Latest Test Questions

L4M2 Regualer Update - Valid L4M2 Real Test

CIPS Defining Business Needs Sample Questions (Q67-Q72):

About Us

Quick Links

Recent Trainings

Get intouch

Contact Us

UK

Nigeria