Simulation ISM LEAD Questions, Hottest LEAD Certification
Simulation ISM LEAD Questions, Hottest LEAD Certification
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ISM Leadership and Transformation in Supply Management Sample Questions (Q65-Q70):
NEW QUESTION # 65
A chief procurement officer (CPO) notices that while buyers in regional offices work well together, tension mounts between the regional and global buying teams at the inception of any new global project. The CPO believes there is a need to improve trust and collaboration between the teams. Which of the following is the FIRST step the CPO should take to improve the situation?
- A. Consult human resources for advice on how to improve relationships between the regional and global teams
- B. Launch a change management initiative and develop a detailed plan to achieve the desired changes
- C. Address the matter with each direct report and tie improvement targets to individual performance goals
- D. Hold a team meeting to highlight the successful outcomes of prior global projects and recognize key contributors
Answer: D
Explanation:
Situation Analysis:
Tension exists between regional and global buying teams during new global projects.
The CPO aims to improve trust and collaboration.
First Steps to Improve Collaboration:
Consulting HR: Valuable for long-term strategies but not immediate action.
Launching Change Management Initiative: Effective but time-consuming and may not address immediate concerns.
Holding a Team Meeting: Immediate action to build trust and showcase successful collaboration.
Addressing with Direct Reports: Targets individuals but does not address team dynamics immediately.
Best First Step:
Holding a Team Meeting: Celebrates past successes, recognizes contributions, and fosters a sense of unity and shared purpose. This can immediately boost morale and encourage collaboration.
Conclusion: A team meeting is an effective initial step to highlight successes, recognize contributions, and promote a collaborative culture.
Reference:
"Leading Teams: Setting the Stage for Great Performances" by J. Richard Hackman Team building and collaboration strategies from Harvard Business Review
NEW QUESTION # 66
A subsidiary of a medical equipment company buys raw materials from suppliers contracted through the central commodity management group, which is located at corporate headquarters. The president of the local woman-owned merchants association contacts the firm's supply manager and asks why the firm does not support the local economy, as some of the raw materials are available from nearby woman-owned suppliers. Which of the following is the BEST way for the supply manager to address this concern?
- A. Request authority to contract locally for a portion of the requirements
- B. Refer the question to senior management and ask them to contact the association
- C. Explain that sourcing policies are set by corporate headquarters
- D. Discuss purchasing social responsibility with supply management staff at headquarters
Answer: D
Explanation:
Addressing concerns about local economic support and diversity requires discussing purchasing social responsibility with the supply management staff at headquarters. This approach aligns the company's sourcing practices with broader corporate social responsibility (CSR) goals. By engaging in this discussion, the supply manager can advocate for the inclusion of local, woman-owned suppliers, thereby supporting the local economy and diversity initiatives. This step is proactive and demonstrates the firm's commitment to social responsibility, which can enhance its reputation and community relationships.
Reference:
Carter, C. R., & Jennings, M. M. (2004). The Role of Purchasing in Corporate Social Responsibility: A Structural Equation Analysis. Journal of Business Logistics.
Porter, M. E., & Kramer, M. R. (2006). Strategy and Society: The Link Between Competitive Advantage and Corporate Social Responsibility. Harvard Business Review.
NEW QUESTION # 67
A supply management employee's performance has deteriorated, and the employee now exhibits disregard for organizational policies and procedures. The department manager decides to take progressive disciplinary measures. However, before proceeding, the manager wants to be sure that these actions are defensible. Which of the following would provide the BEST support for the manager's position?
- A. Beginning with verbal reprimands and moving to written warnings only if necessary
- B. Ensuring that the employee has a positive example to emulate
- C. Documenting and responding immediately to the employee's next offense
- D. Documenting that the employee was aware of the rules prior to the infraction
Answer: D
Explanation:
To ensure that progressive disciplinary actions are defensible, it is crucial to document that the employee was aware of the organizational policies and procedures before the infraction occurred. Leadership and transformation management documents emphasize the importance of clear communication and documentation in managing employee performance and disciplinary actions. This documentation serves as evidence that the employee was informed of the rules and expectations, which is essential for justifying any disciplinary measures taken. Reference from leadership literature highlight the need for thorough and accurate documentation to support managerial decisions and to protect the organization in case of disputes or legal challenges.
NEW QUESTION # 68
XYZ, Inc. is in the due diligence phase of an upcoming merger. The team is involved in assessing the cost synergies that can be realized from the merger. Which of the following can be regarded as potential cost synergies?
I . Reduced competition
II . Sharing of marketing channels
III . Increased purchasing power
IV . Elimination of redundancies
- A. I and IV only
- B. III and IV only
- C. I, II, III and IV
- D. II and III only
Answer: B
Explanation:
* Cost Synergies in Mergers: Cost synergies refer to the potential cost savings and efficiencies that can be achieved when two companies merge. This typically includes increased purchasing power and the elimination of redundancies.
* Increased Purchasing Power: By merging, the companies can combine their purchasing volumes, leading to better negotiation power with suppliers and reduced procurement costs.
* Elimination of Redundancies: The merger allows the companies to eliminate duplicate functions, systems, and processes, leading to significant cost savings.
* Not Potential Synergies: Reduced competition is not a cost synergy; it's a market effect. Sharing marketing channels is more of a revenue synergy than a cost synergy.
* Reference: This categorization is supported by merger and acquisition literature, including studies from the Harvard Business Review and the Institute of Mergers, Acquisitions, and Alliances (IMAA).
NEW QUESTION # 69
Which of the following requires a working knowledge of payback and net present value?
- A. Direct materials and services budget
- B. Indirect (MRO) budget
- C. Capital expenditures budget
- D. Purchasing and supply operating budget
Answer: C
Explanation:
A working knowledge of payback and net present value (NPV) is required for managing a capital expenditures budget. These financial concepts are essential for evaluating the profitability and financial viability of capital projects. Leadership and transformation management documents emphasize the importance of financial acumen in making informed decisions about significant investments. Understanding payback periods and NPV helps supply managers assess the return on investment and make strategic decisions that align with the organization's long-term goals. Reference highlight that proficiency in these financial tools is critical for managing capital expenditures effectively.
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NEW QUESTION # 70
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