If the value of the British Pound in other currencies is strong, which of the following is most likely to occur?

• A.The price of UK products in the UK will rise
• B.The price of UK products in the UK will fall
• C.The price of UK products abroad in foreign currency will fall
• D.The price of UK products abroad in foreign currency will rise

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Which of thefollowing should be the final step of a negotiation process if both parties cannot reach an agreement?

• A.Reflecting on performance
• B.Tempting TOP to reopen the negotiation
• C.Asking TOP for another concession
• D.Celebrating publicly about the deal

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Which of the following are tools that help procurement visualise cost breakdowns of products and services purchased from supplier?
1. Spend candlesticks
2. Spend tree
3. Aggregate expenditure model
4. Spendwaterfall

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

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Which of the following are most likely to be the potential cultural differences that can make transactions with an international supplier more problematic that with local suppliers? Select TWO that apply.

• A.Incoterms and logistics difficulties
• B.The use and interpretation of body language
• C.Currency exchange fluctuation
• D.The importance of timescales
• E.Payment mechanism

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Which of the following best describes Leverage quadrant in Kraljicmatrix?

• A.Low risk, high importance
• B.High value, high complex
• C.Low risk, low importance
• D.High complex, low importance

Correct Answer: A

Explanation
In 1983, Peter Kraljic devised a means to segment the supplier base in the article in HBR. In this, heargued that supply items should be mapped against two key dimensions: risk and profitability.
Risk relates to the likelihood for an unexpected event in the supply chains to disrupt operations. For instance, in important areas of spend, such as tire suppliers for an automotive are business critical, and should a disruption occur, the auto company is likely itself to face substantial problems.
Profitability describes the impact of a supply item upon the bottom line. For certain areas of spend, such as stationery, supplies have only a negligible effect on profits. In other categories, a single source of supply can make or break a business.
Putting these two dimensions together yields a classic two-by-two matrix.
Diagram Description automatically generated

Source: Peter Kraljic, HBR

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