Page 157 - BA1 Integrated Workbook STUDENT 2018

Supplementary objective test questions

CHAPTER 11 – CUSTOMERS, SUPPLIERS AND SUPPLY CHAINS

11.1 FRT manufactures novelty toys and joke items. It currently sells to individual
consumers through a small chain of stores. The market that FRT operates
within is very small and FRT is aware that there is little scope for sales growth.
However, FRT does have a number of rivals and the company is concerned that
it is failing to create customer loyalty.

FRP’s owner, U, has recently been considering whether to increase the
organisation’s use of information technology in its downstream supply chain.

Which ONE of the following uses of information technology would be
most suitable for FRT’s downstream supply chain?

A Disintermediation

B Electronic data interchange (EDI)

C Use of a website to increase sales volume

D Creation of a reward scheme for customers

11.2 PLL is a civil engineering company which has a large number of ongoing
projects from both private companies and public, government funded initiatives.
PLL is concerned that some of its government funded projects have a much
heavier administrative burden and it is unsure if it should continue trying to win
government business.

Which ONE of the following methodologies would be most appropriate for
PLL to use to analyse the value of its government contracts?

A Customer account profitability (CAP)

B Customer relationship management (CRM)

C SERVQUAL

D Propensity modelling

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