GVCGlobal Value Chain - Final Check Answer Key Additional Questions (Not Featured in Textbook

Module 1 International Procurement: Purchasing and Outsourcing in the Global Marketplace.

1. 1. A typical strategic procurement process involves which of the seven major sequenced steps shown below

a. (1) Collect Supplier Information; (2) Assess the Suppliers' Market; (3) Conduct an Internal Needs Analysis; (4) Develop a Sourcing Strategy; (5) Implement the Sourcing Strategy; (6) Negotiate with Suppliers and Select the Winning Bid; (7) Implement a Transition Plan

b. (1) Conduct an Internal Needs Analysis; (2) Develop a Sourcing Strategy; (3) Assess the Suppliers' Market; (4) Collect Supplier Information; (5) Negotiate with Suppliers and Select the Winning Bid; (6) Implement the Sourcing Strategy; (7) Implement a Transition Plan

c. (1) Conduct an Internal Needs Analysis; (2) Develop a Sourcing Strategy; (3) Collect Supplier Information; (4) Assess the Suppliers' Market; (5) Implement the Sourcing Strategy; (6) Negotiate with Suppliers and Select the Winning Bid; (7) Implement a Transition Plan

d. (1) Conduct an Internal Needs Analysis; (2) Assess the Suppliers' Market; (3) Collect Supplier Information; (4) Develop a Sourcing Strategy; (5) Implement the Sourcing Strategy; (6) Negotiate with Suppliers and Select the Winning Bid; (7) Implement a Transition Plan

2. What is the purpose of an internal needs analysis in the strategic procurement process?

a. To benchmark current performance and identify areas of operational weaknesses in order to organize outsourcing

b. To benchmark current performance, resources used, costs for all departments, and growth projections in order to identify procurement needs

c. To benchmark current performance and identify the areas of the business that use the most resources in order to arrange outsourcing at a lower cost

d. To benchmark current performance and identify the production costs in order to find lower cost suppliers

3. The decision to source raw materials and supplies internationally or to outsource manufacturing and services offshore is linked to the competitive forces and the overall business strategy of the organization. A company that is solely focused on reducing the cost of organizational outputs (so they are less than competitors) is using what type of approach?

a. Low-cost leadership

b. Best-cost provider

c. Differentiation

d. Focus strategy

4. El-mar Industries LLC produces marine navigation equipment, and they are currently considering the possibility of sourcing some of their subcomponents internationally. From a marketing perspective, the company is concentrating on a narrow market segment and positioning their products as being more durable and longer lasting than competing equipment (as their primary means of gaining competitive advantage). What type of marketing approach is this company taking?

a. Low-cost leadership

b. Best-cost provider

c. Differentiation

d. Focus strategy

5. Glen-For Industries Inc. produces LED lighting equipment for the forestry industry, and they are currently considering the possibility of sourcing some of their subcomponents internationally. From a marketing perspective, the company claims their product is higher quality than their competitors but at a lower price (as their primary means of gaining competitive advantage). What type of marketing approach is this company taking?

a. Low-cost leadership

b. Best-cost provider

c. Differentiation

d. Focus strategy

6. When globally sourcing or outsourcing, an in-house cost analysis (part of the internal needs analysis) should be compared with which of the following analysis to assist the strategic sourcing team in its decisions?

a. A Total Acquisition Cost analysis

b. A Marginal Cost Analysis

c. A Variable Cost Analysis

d. An Overhead Allocation analysis

7. When making global sourcing/outsourcing decisions, thoroughly investigating potential suppliers, checking the business practices of potential suppliers to identify any possible problems, and conducting an in-depth risk assessment are all part of what activity?

a. Input Factor Analysis

b. Due Diligence

c. SWOT Analysis

d. Porters Five-Forces4. El-mar Industries LLC produces marine navigation equipment, and they are currently considering the possibility of sourcing some of their subcomponents internationally. From a marketing perspective, the company is concentrating on a narrow market segment and positioning their products as being more durable and longer lasting than competing equipment (as their primary means of gaining competitive advantage). What type of marketing approach is this company taking?

a. Low-cost leadership

b. Best-cost provider

c. Differentiation

d. Focus strategy

5. Glen-For Industries Inc. produces LED lighting equipment for the forestry industry, and they are currently considering the possibility of sourcing some of their subcomponents internationally. From a marketing perspective, the company claims their product is higher quality than their competitors but at a lower price (as their primary means of gaining competitive advantage). What type of marketing approach is this company taking?

a. Low-cost leadership

b. Best-cost provider

c. Differentiation

d. Focus strategy

6. When globally sourcing or outsourcing, an in-house cost analysis (part of the internal needs analysis) should be compared with which of the following analysis to assist the strategic sourcing team in its decisions?

a. A Total Acquisition Cost analysis

b. A Marginal Cost Analysis

c. A Variable Cost Analysis

d. An Overhead Allocation analysis

7. When making global sourcing/outsourcing decisions, thoroughly investigating potential suppliers, checking the business practices of potential suppliers to identify any possible problems, and conducting an in-depth risk assessment are all part of what activity?

a. Input Factor Analysis

b. Due Diligence

c. SWOT Analysis

d. Porters Five-Forces