[2025] Pass CIPS L6M9 Premium Files Test Engine pdf - Free Dumps Collection
New 2025 Realistic L6M9 Dumps Test Engine Exam Questions in here
NEW QUESTION # 27
XYZ Ltd is aretail organisationselling various hair care products. Themarketing teamis reviewingsales figuresfrom the past year and wants to determinewhich products should receive extra marketing.
One product haslow market sharebut exists in ahigh-growth market.
According to theBoston Consultancy Group (BCG) Matrix, which category does this product fall under?
- A. Cash Cow
- B. Problem Child
- C. Star
- D. Dog
Answer: B
Explanation:
#Problem Child(also calledQuestion Mark) refers to a product withlow market sharein ahigh-growth market.
#BCG Matrix Categories:
* Dog##Low market share, low market growth
* Cash Cow##High market share, low market growth
* Star##High market share, high market growth
* Problem Child (Question Mark)##Low market share, high market growth
#Exam Tip:The BCG Matrix is frequently tested. Be aware that "Problem Child" is sometimes called
"Question Mark"in other versions of the matrix!
(See LO 2.3, p.130)
NEW QUESTION # 28
Alexandra is the new Chief Procurement Officer at Wet Lettuce Incorporated, a manufacturing organisation that uses a tiered supply structure. She has asked to see the contracts with all thesuppliers and has been told that it is not common practice to have contracts with the full range of suppliers. What should Alexandra do?
- A. Set up meetings with the tier-one suppliers and assess the contracts with these suppliers
- B. Amend the supply structure so that contracts are put in place with all suppliers
- C. Ensure contracts are immediately put in place with all suppliers within the tiered supply structure
- D. Do nothing-if it is not common practice within the organisation, she should not change things
Answer: A
Explanation:
SinceWet Lettuce Incorporatedoperates atiered supply structure, it is common for contracts to be in place only with tier-one suppliers, while sub-contractors in lower tiers are managed by those suppliers. Instead of changing the entire structure, Alexandra should ensure that contracts and relationships withtier-one suppliers are well managed. (See p.195)
NEW QUESTION # 29
Which of the following areexamples of Linear Programming (LP) solvers? SelectALLthat apply.
- A. Excel
- B. Lindo
- C. LPX
- D. MATLAB
- E. CPLEX
Answer: A,B,D,E
Explanation:
Excel, Lindo, MATLAB, and CPLEXare all realLinear Programming (LP) solversused foroptimization problems.
#LPX is made up-it does not exist. (See LO 1.3, p.47)
NEW QUESTION # 30
Joy is a Senior Accountant at Big Fish Ltd. The organisation is a manufacturing company that specialises in sporting and camping goods such as tents, fishing rods, and archery equipment. These items are produced using imported raw materials from a variety of suppliers, many of whom arebased in low-cost countries. Joy is assessing the extent to which the organisation may be vulnerable to cost increases and fluctuating currency values. What is Joy completing?
- A. Investment Appraisal
- B. Gearing Ratio
- C. Sensitivity Analysis
- D. Background Check
Answer: C
Explanation:
This is a sensitivity analysis-checking how sensitive the organisation is to changes in finance caused by price rises or currency fluctuations. (See p.165)
NEW QUESTION # 31
ZYX Ltd creates products to meet customer demands. Each product created isunique to the customer's specification. What is the name of the workflow pattern used by ZYX Ltd?
- A. Configured to order
- B. Made to order
- C. Engineered to order
- D. Produced to order
Answer: C
Explanation:
* Engineered to order (ETO): Each product isuniquely designedbased on customer specifications.
* Made to order (MTO): The same product is made only when there is a demand.
* Configured to order (CTO): A hybrid approach where customers choose from predefined configurations (e.g., furniture with different color options).
* Produced to order: This is not a standard term for this type of workflow.
SinceZYX Ltdcreates products that are uniquely specified by each customer,engineered to order (ETO)is the correct answer. (See p.205)
NEW QUESTION # 32
Andrea is the Chief Financial Officer at Big Corporation and is completing aVariance Analysis. She has reviewed the production costs of creating item B, and this month's costs show avariance to budget of £-200.
What does this mean?
- A. More money was spent than expected
- B. Less money was spent than expected
- C. The organisation has gained £200
- D. The organisation has lost £200
Answer: B
Explanation:
Anegative varianceto budget means that the companyspent £200 less than expected, which is apositive outcome. While it may seem counterintuitive, a negative variance inthis context indicates cost savings rather than overspending.Option D is incorrectbecause the organisation has saved £200, not gained it. (See p.198)
NEW QUESTION # 33
Risks are always present within organisational strategies, and it is important that they are assessed. Which of the following arestrategies for dealing with risk?
- A. Track, control, mitigate, reduce
- B. Terminate, escape, eliminate, destroy
- C. Escape, eliminate, evade, end
- D. Avoid, eliminate, reduce, transfer
Answer: D
Explanation:
Thefour risk management strategiesare often remembered asTEAR:
* Transfer: Shift the risk to another party (e.g., insurance, outsourcing).
* Eliminate: Remove the risk entirely where possible.
* Avoid: Choose not to engage in activities that introduce the risk.
* Reduce: Take measures to minimize the impact or likelihood of the risk occurring.
(See p.200)
NEW QUESTION # 34
The Improvement Gap Analysis can be utilised to manage trade-offs in operational strategy. Which of the following is measured by the IGA? Select ALL that apply.
- A. Return on investment
- B. Customer dissatisfaction levels
- C. Churn rate
- D. Customer return rate
- E. Profit margin
Answer: B
Explanation:
The Improvement Gap Analysis measures customer dissatisfaction levels. It describes the current state of an organisation and what needs to be done to reach the desired state. The gap between these states represents customer dissatisfaction. The IPA matrix by Piccolo et al categorises dissatisfaction into four quadrants, helping organisations determine whether action is needed. (See p. 137)
NEW QUESTION # 35
Gill runs the operations department of amanufacturing organisationin Wales. The departmentemulates best practicesfrom competitors throughbenchmarkingand has recently introducedSix Sigmato prevent operational problems. Which of the following best describes Gill's approach to operations function?
- A. Externally neutral
- B. Internally neutral
- C. Externally supportive
- D. Internally supportive
Answer: A
Explanation:
This aligns withexternally neutral, which includes:
* Benchmarking against competitors
* Adopting best practices(Lean, Six Sigma, BPR, TQM)
* Emulating successful industry models
(LO 2.1, See p.99)
NEW QUESTION # 36
What is the purpose ofsupplier development?
- A. To add value to the supply chain
- B. To lower prices, which will increase the profit margin
- C. To ensure that there are no logistics or delivery issues within the supply chain
- D. To reduce the number of suppliers upon which a business would become dependent
Answer: A
Explanation:
The primary goal ofsupplier developmentis toadd valueto the supply chain, not just to reduce costs.
* Option A is incorrectbecause supplier development is not solely about cost reduction-it also focuses onquality and efficiency.
* Option B is incorrectbecause reducing suppliers is not always the goal; sometimes businesses want a widersupplier base.
* Option D is incorrectbecause no system caneliminatelogistics risks entirely-there will always be uncertainties.
(See LO 1.1, p.2)
NEW QUESTION # 37
Which of the following are Porter's strategies that can help an organisation create competitive advantage in the marketplace?Select ALL that apply
- A. Become an organisation that is meaningfully different from competitors
- B. Become a specialised provider
- C. Provide exceptional customer service
- D. Be a low-cost provider
- E. Ensure a large product range
Answer: A,B,D
Explanation:
Porter's three strategies are low-cost, differentiation, and niche. These options are just worded slightly differently but align with Porter's competitive strategies. (See p.151)
NEW QUESTION # 38
XYZ Ltd is a perfume manufacturer based in France. They have created a new perfume and research has shown that demand for the perfume will outstrip supply. The Chief Operating Officer (COO) and the Chief Financial Officer (CFO) are meeting to discuss this. The COO believes that the organisation needs to reallocate resources in order to meet demand. Are there any exceptions to when this may be the case?
- A. Yes - there are exceptions, but these are always outside of the organisation's control
- B. Yes - there are occasions when an organisation would choose not to fulfil customer demand
- C. No - organisations should always aim to meet customer demand or resources will be underutilised
- D. No - this would negatively affect the profit the organisation could make
Answer: B
Explanation:
While organisations generally try to fulfil customer demand, there are times when theystrategicallychoose not to. A common reason is maintaining a premium image-limiting supply can increase desirability and justify a higher price. For example, luxury brands often limit product availability. (See p.169)
NEW QUESTION # 39
Which of the following describes aProprietary Network?
- A. A network that has both horizontal and vertical structures
- B. The sharing of materials in an informal setting
- C. A privately owned and controlled group
- D. A relationship that is one-sided
Answer: C
Explanation:
AProprietary Networkis aprivately owned and controlled group.
* Option Brefers to aSocial Network
* Option Cdescribes aBureaucratic Network
* Option Drefers to anAsymmetric Network
Tip:Learn these definitions well, as they frequently appear in exam questions! (See LO 1.1)
NEW QUESTION # 40
Maxi Ltd is a medium-sized manufacturing organisation in the automotive industry that creates engines for cars. It has traditionally worked well with its suppliers, with strong relationships and regular meetings. There are currently around 15 suppliers who provide parts to Maxi Ltd.
Due to changing customer demands, Maxi Ltd will, from next month, modify the manufacturing of some of its products. Product X is being made more environmentally friendly, with output of CO2 being reduced by 32%. The product will take longer to produce, but there will be no additional cost to customers for this.
Maxi ltd are considering outsourcing the manufacturing of Product Y as it is not a product which is routinely ordered by customers. This will allow Maxi Ltd to focus on other products which generate higher revenues for the company. The concern within the Board of Directors is that if demand increases for this product, an outsourced company may not be able to cope with higher numbers of orders.
Product Z is an extremely popular item and oftentimes Maxi Ltd does not have the capacity to fulfil all orders. Consideration has been given to increasing the size of the factory, but this has been discarded as risky as demand is not guaranteed. The product has been available on the marketplace for a short amount of time and sales are continuing to increase, but the company believes this will soon plateau. To deal with current demand, the marketing team is working on campaigns to invite customers to make orders for this product at certain times of the year when product X is not being created in the factory.
This means resources can be reallocated to the creation of product Z.
Whatarea of the product lifecycleis product Z in?
- A. Maturity
- B. Growth
- C. Decline
- D. Introduction
Answer: B
Explanation:
Product Z has been available fora short amount of time, andsales are still increasing. Since thedemand is growing but has not yet stabilized, it is in thegrowth stageof the product lifecycle. (LO 2.2)
NEW QUESTION # 41
Manuel has created an Efficient Frontier diagram mapping six options his organisation can take. Is it possible for there to be two curves on this diagram?
- A. Yes - the second curve can represent what is achievable should the organisation engage in continuous improvement
- B. No - only one curve is needed as this plots the trade-offs and level of risk
- C. No - the diagram should only have straight lines, not curves
- D. Yes - there should always be at least two curves on the graph to demonstrate different timescales for the options
Answer: A
Explanation:
AnEfficient Frontier diagramcan have multiple curves. The first curve shows potential return on investment under current conditions, while the second curve models improvements if the organisation engages in continuous improvement. A third curve may represent a long-term vision, but this is less common. (See p.
136)
NEW QUESTION # 42
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