Question

   Unrelated diversification is best for the

                1. Stockholder                    2. Long term profit              3. Financial Model

                                4. Middle management                      5. Top Management

   Buyer and supplier power is a concept of

                1. Financial Ratios                2. Numbers and organization

3. Generic             4. Regression        5. Strategic implementation

The trend in supply chains is to

                1.Eliminate players in the chain.       2. Reward individual achievement

                3. Reduce IT

                4. Start with existing culture             5. Reward unrelated diversification

Answer 1

ANS i) Unrelated diversification is best for the financial needs of the companies. It is the concept of diversifying into a new unrelated product line to earn profits for a period of time. For example a trade company opens a mobile store to expand activities and earn profits at peak seasons. So the correct answer is option 3. financial model.

ANS ii) As said buyer is the king of the market. Buyer power refers to the powers that buyer have in their hands and exerted on business enterprises in the form of improving quality and lowering prices etc.Supplier power refers to the power that suppliers can exert on business firms by raising prices,degrading quality or decreasing the availability of products. From the definitions of buyer and supplier powers it is clear that these are strategies that are applied by both to satisfy their needs. therefore the answer is option 5. strategic implementation.

ANS iii) Today the supply chains are more dependent on IT for continuous flow of goods. This helps them to work efficiently as well as eliminate the players in the supply chain which is important to reduce the costs. Circular supply chains are a new trend to lessen the transportation costs and achieve more sustainability. This tells us that your answer is option 1. eliminate the players in the chain.