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NEW QUESTION 35
Brian Air is a company that is trying to break into the air transport market. Which of the following could be barriers to entry for Brian Air? Select THREE
Answer: A,B,D
Explanation:
Barriers to entry are economies of scale (in the air travel industry you can't just start off small and grow), access to capital (you need to already have a lot of money to buy airplanes) and licences and permits (you need to ensure you have the correct licences to fly planes). These are listed on p.41. Other barriers include; strong brand identity already dominant in the market, high switching costs for buyers, access to distribution networks and government policy.
NEW QUESTION 36
What is a disadvantage of including qualitative KPIs into a contract?
Answer: D
Explanation:
The correct answer is 'They are hard to measure' p.103
NEW QUESTION 37
In an oliogopy market, what would a regulator do?
Answer: B
Explanation:
In an oliogopy, supplier power is strong. Sometimes regulators are required in the market to prevent the group of suppliers conspiring together to artificially increase prices. See p.40 for more information on Oligopy markets.
NEW QUESTION 38
Which of the following are valid strategies for dealing with conflict? Select THREE
Answer: B,C,D
Explanation:
The three right answers are competing, collaborating and compromising. See the Thomas Kilmann Model on p.87. There are quite a few questions on this in the exam.
NEW QUESTION 39
Which of the following are not a valid reasons to terminate a relationship with a supplier? Select TWO.
Answer: B,C
Explanation:
Two invalid reasons are; one late delivery and a change in senior management. Valid reasons to terminate a relationship are listed on p.107 and include the three listed here, as well as a material breach, damage to reputation and the supplier merges or is acquired by another company.
NEW QUESTION 40
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