Ryan Phillips Ryan Phillips's Página de perfil

Ryan Phillips Ryan Phillips

0 Inscritos en el curso • 0 Curso completado

Biografía

100% Pass Quiz 2025 Newest CIPS Test L6M2 Passing Score

We have three versions of CIPS L6M2 learning materials available, including PDF, Software and APP online. The most popular one is PDF version of CIPS L6M2 study guide can be printed into papers so that you are able to write some notes or highlight the emphasis. On the other hand, Software version of our CIPS L6M2 Practice Questions is also welcomed by customers, especially for windows users.

CIPS L6M2 Exam Syllabus Topics:

Topic
Details

Topic 1

Understand financial aspects that affect procurement and supply: This section measures the skills of Financial Analysts in assessing how costs, funding, and economic objectives impact supply chains. It includes managing currency volatility through exchange rate instruments like forwards or derivatives and addressing commodity price fluctuations using futures or hedging. A critical skill assessed is managing financial risks in global supply chains effectively.

Topic 2

Understand strategy formulation and implementation: This section evaluates the skills of Strategic Planners in understanding how corporate and business strategies impact supply chains. It covers strategic directions, diversification, portfolio matrices, and methods for pursuing strategies like mergers or alliances. It also examines aligning supply chains with organizational structures and managing resources like people, technology, and finance. A key skill measured is implementing strategies under uncertain conditions.

Topic 3

Understand and apply the concept of commercial global strategy in organizations: This section measures the skills of Global Strategy Analysts and focuses on evaluating the characteristics of strategic decisions in organizations. It includes understanding strategic versus operational management, strategic choices, and the vocabulary of strategy. A key skill measured is effectively differentiating between strategic and operational management.

Topic 4

Understand and apply tools and techniques to address the challenges of global supply chains: This section targets Supply Chain Analysts and covers methods for analyzing global supply chains, such as STEEPLED analysis, benchmarking, and performance metrics. It also evaluates regulatory influences, including import
export controls, tariffs, and employment regulations like equality, health, and safety. A critical skill assessed is applying STEEPLED analysis to supply chain challenges.

>> Test L6M2 Passing Score <<

L6M2 Latest Exam Questions & L6M2 Reliable Test Materials

Our website offer a smart and cost-efficient way to prepare L6M2 exam tests and become a certified IT professional in the IT field. There are L6M2 free download study materials for you before purchased and you can check the accuracy of our L6M2 Exam Answers. We not only offer you 24/7 customer assisting support, but also allow you free update L6M2 test questions after payment.

CIPS Global Commercial Strategy Sample Questions (Q22-Q27):

NEW QUESTION # 22
SIMULATION
Explain the characteristics of strategic decisions. At what level of a business are strategic decisions made and why?

Answer:

Explanation:
Characteristics of Strategic Decisions
Strategic decisions are long-term, high-impact choices that shape a company's future direction. These decisions differ from operational and tactical decisions in several key ways:
Long-Term Focus - Strategic decisions determine the future direction of a business, often spanning several years.
Example: A company deciding to expand into international markets.
Significant Impact - They affect the entire organization, influencing growth, profitability, and market positioning.
Example: A shift from a brick-and-mortar retail model to an e-commerce-based approach.
Resource Intensive - They require large financial, human, and technological resources to implement.
Example: Investing in AI-driven supply chain automation.
High Risk and Uncertainty - These decisions involve considerable risks due to market changes, competition, and external factors.
Example: Entering an emerging market with regulatory and political risks.
Difficult to Reverse - Strategic decisions are not easily changed without significant costs or consequences.
Example: Mergers and acquisitions require extensive planning and are challenging to undo.
Cross-Functional Involvement - They require input from multiple departments (finance, marketing, operations, IT).
Example: A new product launch involves R&D, marketing, supply chain, and finance teams.
Aimed at Gaining Competitive Advantage - The goal is to improve the company's market position and long-term success.
Example: Tesla's focus on electric vehicle technology and charging infrastructure.
At What Level Are Strategic Decisions Made?
Strategic decisions are made at the corporate and business levels, typically by senior management and executives. The three levels of decision-making in a company are:
1. Corporate-Level Decisions (Top Management)
Made by the CEO, Board of Directors, and Senior Executives.
Concerned with the overall direction of the company.
Focuses on long-term objectives, market expansion, mergers & acquisitions.
Example: Amazon's decision to acquire Whole Foods to expand into the grocery industry.
2. Business-Level Decisions (Middle Management)
Made by Divisional Heads, Business Unit Managers, and Senior Functional Leaders.
Focuses on how to compete effectively within a specific industry or market.
Covers areas such as pricing, product differentiation, and operational efficiency.
Example: Netflix shifting from a DVD rental business to a streaming service.
3. Functional-Level Decisions (Operational Managers)
Made by Department Heads, Operational Managers, and Team Leaders.
Concerned with day-to-day implementation of strategic and business-level plans.
Focuses on efficiency, productivity, and execution of company strategy.
Example: A supply chain manager optimizing inventory levels to reduce costs.
Why Are Strategic Decisions Made at the Corporate and Business Levels?
Require Vision and Expertise - Senior executives have the big-picture perspective needed for long-term planning.
Affect the Entire Organization - These decisions impact multiple departments, requiring cross-functional coordination.
High-Risk and Costly - Strategic choices involve financial investments, brand reputation, and market positioning.
Long-Term Focus - Corporate-level leaders ensure that decisions align with the company's mission, vision, and goals.
Conclusion
Strategic decisions shape the company's future, requiring careful planning, significant investment, and risk assessment. They are made at the corporate and business levels because they impact the entire organization, require expert leadership, and have long-term consequences.

NEW QUESTION # 23
SIMULATION
Provide a definition of a commodity product. What role does speculation and hedging play in the commodities market?

Answer:

Explanation:
Commodity Products and the Role of Speculation & Hedging in the Commodities Market
1. Definition of a Commodity Product
A commodity product is a raw material or primary agricultural product that is uniform in quality and interchangeable with other products of the same type, regardless of the producer.
✅ Key Characteristics:
Standardized and homogeneous - Little differentiation between producers.
Traded on global markets - Bought and sold on commodity exchanges.
Price determined by supply & demand - Subject to market fluctuations.
Examples of Commodity Products:
Agricultural Commodities - Wheat, corn, coffee, cotton.
Energy Commodities - Crude oil, natural gas, coal.
Metals & Minerals - Gold, silver, copper, aluminum.
Key Takeaway: Commodities are essential goods used in global trade, where price is the primary competitive factor.
2. The Role of Speculation in the Commodities Market
Definition
Speculation involves buying and selling commodities for profit rather than for actual use, based on price predictions.
✅ How Speculation Works:
Traders and investors buy commodities expecting price increases (long positions).
They sell commodities expecting price declines (short positions).
No physical exchange of goods-transactions are purely financial.
Example:
A trader buys crude oil futures at $70 per barrel, expecting prices to rise. If oil reaches $80 per barrel, the trader sells for profit.
Advantages of Speculation
✔ Increases market liquidity - More buyers and sellers improve trading efficiency.
✔ Enhances price discovery - Helps determine fair market value.
✔ Absorbs market risk - Speculators take risks that producers or consumers avoid.
Disadvantages of Speculation
❌ Creates excessive volatility - Large speculative trades can cause price spikes or crashes.
❌ Detaches prices from real supply and demand - Can inflate bubbles or cause artificial declines.
❌ Market manipulation risks - Speculators with large holdings can distort prices.
Key Takeaway: Speculation adds liquidity and helps price discovery, but can lead to extreme volatility if unchecked.
3. The Role of Hedging in the Commodities Market
Definition
Hedging is a risk management strategy used by commodity producers and consumers to protect against price fluctuations.
✅ How Hedging Works:
Producers (e.g., farmers, oil companies) use futures contracts to lock in a price for future sales, reducing the risk of price drops.
Consumers (e.g., airlines, food manufacturers) hedge to secure stable input costs, avoiding sudden price surges.
Example:
An airline hedges against rising fuel costs by buying fuel futures at a fixed price for the next 12 months. If fuel prices rise, the airline is protected from increased expenses.
Advantages of Hedging
✔ Stabilizes revenue and costs - Helps businesses plan with certainty.
✔ Protects against price swings - Reduces exposure to unpredictable market conditions.
✔ Encourages long-term investment - Producers and buyers operate with confidence.
Disadvantages of Hedging
❌ Reduces potential profits - If prices move favorably, hedgers miss out on gains.
❌ Contract obligations - Hedgers must honor contract terms, even if market prices improve.
❌ Hedging costs - Fees and contract costs can be high.
Key Takeaway: Hedging protects businesses from commodity price risk, ensuring stable revenue and cost control.
4. Speculation vs. Hedging: Key Differences

Key Takeaway: Speculation seeks profit from price changes, while hedging minimizes risk from price fluctuations.
5. Conclusion
✅ Commodity products are standardized raw materials traded globally, with prices driven by supply and demand dynamics.
✅ Speculation brings liquidity and price discovery but can increase volatility.
✅ Hedging helps businesses stabilize costs and revenues, ensuring financial predictability.
✅ Both strategies play essential roles in ensuring a balanced, functional commodities market.

NEW QUESTION # 24
SIMULATION
Evaluate the role of strategic human management in creating competitive advantage for an organisation

Answer:

Explanation:
Evaluation of the Role of Strategic Human Resource Management (SHRM) in Creating Competitive Advantage Introduction Strategic Human Resource Management (SHRM) is the proactive alignment of HR policies with business strategy to achieve long-term success. It focuses on developing talent, leadership, culture, and employee engagement to enhance organizational performance and competitiveness.
By implementing effective SHRM practices, companies can create a sustainable competitive advantage through a highly skilled and motivated workforce.
1. The Role of SHRM in Creating Competitive Advantage
1.1 Talent Acquisition and Workforce Planning
✅ Why it matters?
Recruiting and retaining highly skilled employees is essential for innovation and efficiency.
Workforce planning ensures the right people are in the right roles at the right time.
Example: Google's strategic hiring approach focuses on attracting top AI and engineering talent, driving innovation in tech.
✅ Competitive Advantage Created:
✔ Builds an expert workforce that competitors cannot easily replicate.
✔ Reduces turnover costs by ensuring long-term retention.
1.2 Employee Development and Training
✅ Why it matters?
Continuous learning and skills development enhance employee productivity and innovation.
Upskilling employees keeps companies ahead in fast-changing industries.
Example: Amazon's Career Choice Program invests in employee training to develop future leaders and improve workforce capabilities.
✅ Competitive Advantage Created:
✔ Enhances organizational agility by equipping employees with emerging skills.
✔ Creates a culture of continuous improvement and innovation.
1.3 Performance Management and Employee Engagement
✅ Why it matters?
Effective performance management systems ensure employees align with business goals.
Engaged employees are more productive, motivated, and committed to company success.
Example: Salesforce's focus on employee engagement through leadership development and internal career growth has resulted in high retention and innovation.
✅ Competitive Advantage Created:
✔ Drives high workforce productivity and efficiency.
✔ Reduces costs related to poor performance and disengagement.
1.4 HR Technology and Data-Driven Decision-Making
✅ Why it matters?
Digital HR tools (e.g., AI-driven recruitment, performance analytics, HR automation) optimize talent management.
Data-driven HR strategies help predict workforce trends and talent gaps.
Example: Unilever uses AI-driven HR analytics to identify high-potential employees and enhance leadership succession planning.
✅ Competitive Advantage Created:
✔ Enables data-driven workforce planning for future growth.
✔ Increases efficiency and reduces hiring biases.
1.5 Employee Well-being and Diversity & Inclusion
✅ Why it matters?
Work-life balance policies, mental health support, and DEI (Diversity, Equity, Inclusion) programs improve workplace culture.
Diverse teams enhance creativity, problem-solving, and innovation.
Example: Microsoft's Diversity & Inclusion programs have strengthened its brand and innovation by fostering a more inclusive workforce.
✅ Competitive Advantage Created:
✔ Attracts top global talent who seek inclusive workplaces.
✔ Strengthens brand reputation and employee loyalty.
2. Advantages of Strategic HRM in Competitive Positioning
✅ Develops Unique Talent & Expertise - Hard for competitors to replicate.
✅ Enhances Productivity & Efficiency - Skilled, engaged employees drive better results.
✅ Supports Business Agility & Innovation - Workforce is adaptable to market changes.
✅ Builds Strong Employer Brand - Attracts and retains high-quality talent.
Key Takeaway: SHRM transforms HR from an administrative function to a strategic asset that creates long-term value.
3. Challenges & Risks of SHRM
❌ Implementation Costs - Advanced HR technology and training require investment.
❌ Resistance to Change - Employees may resist new HR policies.
❌ Measuring ROI Can Be Complex - Talent development impacts long-term but is hard to quantify.
❌ Legal & Compliance Risks - Global HR policies must align with labor laws across different countries.
Solution: Businesses must integrate HR analytics, leadership buy-in, and cultural change strategies to overcome these challenges.
4. Conclusion
Strategic Human Resource Management (SHRM) is a key driver of sustainable competitive advantage by:
✅ Attracting and retaining top talent.
✅ Developing a highly skilled, engaged, and innovative workforce.
✅ Leveraging HR technology and data-driven insights.
✅ Promoting employee well-being, diversity, and inclusion.
Companies that prioritize SHRM create a dynamic, future-ready workforce, ensuring long-term success in competitive markets.

NEW QUESTION # 25
SIMULATION
Describe four drivers of internationalisation

Answer:

Explanation:
Four Key Drivers of Internationalisation
Introduction
Internationalisation refers to the process of expanding business operations into international markets. Companies expand globally to increase market share, access resources, reduce costs, and enhance competitiveness.
Several factors drive internationalisation, but the four key drivers are:
Market Drivers - Demand from global consumers.
Cost Drivers - Reducing production costs.
Competitive Drivers - Gaining an edge over rivals.
Government & Regulatory Drivers - Trade policies and incentives.
These factors influence business strategy, supply chain management, and operational efficiency in international markets.
1. Market Drivers(Demand and Market Expansion)
Definition
Market drivers relate to consumer demand, global branding opportunities, and standardization of products across different markets.
✅ Why It Drives Internationalisation?
Companies seek new customers and revenue streams beyond domestic markets.
Global branding creates strong market presence and customer loyalty.
Similar customer preferences allow for product standardization and scalability.
Example: McDonald's expands globally by offering consistent branding and adapted menus to match local tastes.
Key Takeaway: Businesses expand internationally to tap into new markets, increase sales, and leverage brand recognition.
2. Cost Drivers (Reducing Production and Operational Costs)
Definition
Cost drivers involve reducing manufacturing, labor, and supply chain costs by operating in lower-cost regions.
✅ Why It Drives Internationalisation?
Labor cost savings - Companies move production to low-cost countries (e.g., China, Vietnam, Mexico).
Economies of scale - Expanding operations globally lowers per-unit costs.
Access to cheaper raw materials - Firms relocate to resource-rich countries for lower procurement costs.
Example: Apple manufactures iPhones in China due to lower labor costs and supplier proximity.
Key Takeaway: Companies internationalise to optimize costs, increase profit margins, and improve supply chain efficiency.
3. Competitive Drivers (Gaining Market Advantage)
Definition
Competitive drivers push firms to expand internationally to stay ahead of rivals, access new technologies, and strengthen market positioning.
✅ Why It Drives Internationalisation?
Competing with global players forces firms to expand or risk losing market share.
First-mover advantage - Entering new markets early builds brand dominance.
Access to innovation - Expanding to regions with advanced R&D and skilled talent enhances competitiveness.
Example: Tesla expanded into China to compete with local EV manufacturers and dominate the world's largest electric vehicle market.
Key Takeaway: Businesses internationalise to outperform competitors, access innovation, and capture strategic markets.
4. Government & Regulatory Drivers(Trade Policies & Incentives)
Definition
Government policies, trade agreements, and financial incentives influence how and where businesses expand internationally.
✅ Why It Drives Internationalisation?
Free Trade Agreements (FTAs) reduce tariffs, making exports/imports more attractive.
Government incentives (e.g., tax breaks, subsidies) encourage foreign investments.
Favorable regulations allow easier market entry and operations.
Example: Car manufacturers set up plants in Mexico due to NAFTA trade benefits and lower import tariffs into North America.
Key Takeaway: Businesses internationalise when government policies support market entry, trade facilitation, and investment incentives.
Conclusion
Internationalisation is driven by market demand, cost efficiencies, competitive pressures, and regulatory factors. Companies expand globally to:
✅ Access new customers and increase revenue.
✅ Reduce costs through cheaper production and labor.
✅ Stay competitive and gain market leadership.
✅ Leverage government trade policies for easier market entry.
Understanding these drivers helps businesses make informed global expansion decisions while managing risks effectively.

NEW QUESTION # 26
SIMULATION
Discuss the role and influence of industry regulators and international bodies in the business environment.

Answer:

Explanation:
The Role and Influence of Industry Regulators and International Bodies in the Business Environment Introduction Industry regulators and international bodies play a critical role in shaping the business environment by enforcing regulations, setting industry standards, and ensuring fair competition. These organizations influence how businesses operate, impacting areas such as trade, finance, environmental sustainability, labor practices, and consumer protection.
Companies must comply with regulations set by both domestic industry regulators and global institutions to maintain legal and ethical business operations.
1. Role of Industry Regulators
Industry regulators are government-appointed or independent organizations that oversee specific sectors to ensure compliance with laws and standards. Their key functions include:
✅ Enforcing Compliance - Ensuring companies adhere to legal requirements (e.g., financial reporting, safety regulations).
✅ Promoting Fair Competition - Preventing monopolies and anti-competitive practices.
✅ Consumer Protection - Safeguarding consumer rights and ensuring product/service quality.
✅ Regulating Market Entry and Operations - Setting standards for licensing, pricing, and ethical conduct.
Example of Industry Regulators

Case Example: The UK's Competition and Markets Authority (CMA) blocked Microsoft's acquisition of Activision Blizzard due to concerns over market dominance in cloud gaming.
2. Role of International Bodies
International bodies set global regulations, trade policies, and ethical standards that influence businesses operating across borders.

Case Example: The WTO's intervention in Brexit trade negotiations affected tariffs and supply chain costs for UK-based companies.
3. Influence of Industry Regulators and International Bodies on Business Strategy Businesses must align their strategies with regulatory and international frameworks to ensure compliance and avoid financial or reputational risks.

Example: The EU's General Data Protection Regulation (GDPR) forced global companies to enhance data protection policies or face heavy fines.
4. Advantages and Disadvantages of Regulatory and International Influence
✅ Advantages
Promotes Stability & Fair Competition - Reduces market manipulation and corruption.
Protects Consumers & Employees - Ensures safety, fair wages, and ethical standards.
Encourages Innovation & Sustainability - Businesses invest in R&D to meet regulatory requirements.
Facilitates Global Trade - International trade agreements create business opportunities.
❌ Disadvantages
Regulatory Burdens & Compliance Costs - Strict laws increase operational costs.
Trade Barriers & Bureaucracy - Lengthy regulatory approval processes slow down market entry.
Risk of Overregulation - Too many rules can stifle competition and innovation.
Example: The EU Emissions Trading System (EU ETS) requires manufacturers to pay for carbon emissions, increasing operational costs.
Conclusion
Industry regulators and international bodies shape the business environment by enforcing laws, ensuring ethical practices, and facilitating global trade. Companies must proactively monitor regulatory changes, integrate compliance into strategic planning, and adapt to international standards to maintain market competitiveness and sustainability.

NEW QUESTION # 27
......

Each of the formats is unique in its own way and helps every CIPS certification exam applicant prepare according to his style. All of these formats are user-friendly and very helpful to clear the CIPS L6M2 Exam exam on the first try. CIPS L6M2 dumps are packed with multiple benefits that will help you prepare CIPS L6M2 Exam successfully in a short time. In case of new updates, CIPS L6M2 dumps will immediately provide you with up to 1 year of free questions updates. These free updates will save your time in case of CIPS L6M2 Exam real exam changes.

L6M2 Latest Exam Questions: https://www.certkingdompdf.com/L6M2-latest-certkingdom-dumps.html