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CIPS L6M2 Exam Syllabus Topics:

Topic
Details

Topic 1

• 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 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 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 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.

 

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CIPS Global Commercial Strategy Sample Questions (Q26-Q31):

NEW QUESTION # 26
SIMULATION
Assess benchmarking as an approach to analysing an organisations performance.

Answer:

Explanation:
Benchmarking as an Approach to Analyzing Organizational Performance
Introduction
Benchmarking is a performance measurement tool used by organizations to compare their processes, products, or services against industry standards, competitors, or best practices. It helps organizations identify performance gaps, set improvement targets, and enhance competitive advantage.
There are different types of benchmarking, including internal, competitive, functional, and generic benchmarking, each serving different strategic objectives.
1. Types of Benchmarking
Organizations can adopt different benchmarking approaches based on their goals:

2. How Benchmarking Helps in Performance Analysis
Benchmarking provides quantifiable insights to assess and improve organizational performance in key areas:
✅ Identifies Performance Gaps - Highlights areas where an organization lags behind competitors or industry best practices.
✅ Improves Operational Efficiency - Helps streamline supply chain, production, and customer service processes.
✅ Enhances Strategic Decision-Making - Supports data-driven decisions for resource allocation, pricing strategies, and process optimization.
✅ Drives Continuous Improvement - Encourages a culture of innovation and best practice adoption.
✅ Boosts Competitive Advantage - Enables organizations to stay ahead in their market by implementing superior processes.
Example: A retail chain benchmarking delivery speed against Amazon may adopt AI-driven inventory management to reduce delays.
3. Advantages of Benchmarking
✅ Objective Performance Measurement - Uses industry data to provide realistic performance targets.
✅ Encourages Best Practice Adoption - Helps companies learn from successful competitors.
✅ Enhances Cost Efficiency - Identifies areas for cost reduction and resource optimization.
✅ Facilitates Strategic Growth - Helps companies improve customer experience, product innovation, and market positioning.
Example: McDonald's benchmarked Starbucks' digital loyalty program, leading to the launch of MyMcDonald's Rewards, improving customer retention.
4. Limitations of Benchmarking
❌ Limited to Available Data - Confidential industry data may not always be accessible.
❌ Lack of Context - Differences in business models, resources, and market conditions can make direct comparisons misleading.
❌ Focus on Imitation Over Innovation - Firms may focus too much on copying competitors rather than developing unique strategies.
❌ Resource-Intensive - Conducting in-depth benchmarking requires time, expertise, and financial investment.
Example: XYZ Construction benchmarking against a large multinational may find certain strategies unrealistic due to scale differences.
5. Application of Benchmarking in Different Sectors
Organizations across industries use benchmarking for performance analysis:

Conclusion
Benchmarking is an effective performance analysis tool that helps organizations identify gaps, adopt best practices, and enhance competitiveness. However, it must be used carefully to avoid blind imitation and consider contextual differences. When integrated with other strategic models (e.g., SWOT, Balanced Scorecard), benchmarking provides a powerful framework for continuous improvement and strategic growth.

 

NEW QUESTION # 27
SIMULATION
Evaluate the following approaches to strategy formation: intended strategy and emergent strategy

Answer:

Explanation:
Evaluation of Intended Strategy vs. Emergent Strategy
Introduction
Strategy formation is a critical process that determines how businesses achieve their objectives. Two contrasting approaches exist:
Intended Strategy - A deliberate, planned approach, where management defines a clear course of action.
Emergent Strategy - A flexible, adaptive approach, where strategy evolves in response to external changes.
Both approaches have advantages and constraints, and organizations often combine both to maintain strategic direction while adapting to market uncertainties.
1. Intended Strategy(Planned Approach to Strategy Formation)
Definition
An intended strategy is a structured, pre-planned approach where an organization sets long-term goals and develops a roadmap to achieve them.
✅ Key Characteristics:
Clearly defined mission, vision, and objectives.
Top-down decision-making with structured implementation plans.
Focus on forecasting, market research, and competitor analysis.
Example:
McDonald's follows an intended strategy by expanding its franchise model using structured business plans and operational guidelines.
Advantages of Intended Strategy
✔ Provides a clear vision and direction - Ensures all departments align with corporate goals.
✔ Supports long-term resource allocation - Helps in budgeting and investment planning.
✔ Enhances risk management - Allows organizations to prepare for potential challenges.
✔ Ensures consistency - Ideal for stable industries with predictable market conditions.
Constraints of Intended Strategy
❌ Inflexible in dynamic markets - Struggles with unforeseen changes (e.g., economic crises, technology shifts).
❌ Can lead to missed opportunities - Focuses on execution rather than adaptation.
❌ Slow response time - Delays decision-making in fast-changing industries.
Key Takeaway: Intended strategy works best in stable environments where long-term planning can be executed without major disruptions.
2. Emergent Strategy(Flexible & Adaptive Approach to Strategy Formation) Definition An emergent strategy is a responsive, flexible approach where businesses adapt their strategies based on real-time changes in the market.
✅ Key Characteristics:
Strategy emerges from trial and error, experimentation, and learning.
Encourages bottom-up decision-making, allowing employees to contribute.
Focuses on short-term flexibility and continuous adjustments.
Example:
Amazon's move into cloud computing (AWS) was an emergent strategy, as it originally started as an online bookstore but adapted to market opportunities.
Advantages of Emergent Strategy
✔ Highly adaptable - Allows businesses to pivot in response to market shifts.
✔ Encourages innovation and experimentation - Promotes new ideas and flexible problem-solving.
✔ Reduces risk of failure - Companies can adjust strategies before fully committing to large-scale investments.
✔ Works well in unpredictable environments - Essential for industries like technology, fashion, and e-commerce.
Constraints of Emergent Strategy
❌ Lack of clear direction - Can create confusion in organizations with no defined strategic goals.
❌ Resource inefficiency - Constant adjustments may lead to wasted time and investment.
❌ Difficult to scale - Unstructured decision-making can cause inconsistencies.
Key Takeaway: Emergent strategy is ideal for fast-changing industries where adaptability is more valuable than rigid planning.
3. Comparison: Intended Strategy vs. Emergent Strategy

Key Takeaway: Most successful organizations blend both approaches, using intended strategy for stability and emergent strategy for adaptability.
4. Conclusion
Both intended and emergent strategies have strengths and weaknesses.
✅ Intended strategy is best for structured, long-term growth in stable industries.
✅ Emergent strategy allows for rapid adaptation in volatile markets.
✅ Most businesses use a combination of both approaches, balancing planning with flexibility.
By integrating intended and emergent strategies, organizations can maintain stability while responding effectively to market changes.

 

NEW QUESTION # 28
SIMULATION
XYZ is a large manufacturing organisation which employs 200 skilled staff in its factory in Bolton. It has a large global supply chain with raw materials sourced from Asia and Africa. Discuss five areas of policy that can affect the people working in the supply chain

Answer:

Explanation:
Five Areas of Policy Affecting People in the Supply Chain - XYZ Manufacturing Introduction A global supply chain involves multiple stakeholders, including suppliers, logistics providers, and factory workers. Policies at corporate, national, and international levels impact the working conditions, rights, and well-being of people within the supply chain.
For XYZ, a large manufacturing company with a factory in Bolton and suppliers in Asia and Africa, key policy areas affecting its workforce and supply chain workers include labor rights, health and safety, wages, environmental regulations, and ethical sourcing.
1. Labor Laws and Workers' Rights Policies
Policies related to employment laws, working hours, and fair treatment impact supply chain workers' rights.
✅ Key Areas of Impact
Child labor and forced labor laws ensure ethical sourcing.
Working hours and overtime regulations prevent worker exploitation.
Freedom of association (e.g., the right to join trade unions) allows collective bargaining.
Example: The International Labour Organization (ILO) conventions set global labor standards, influencing suppliers in Asia and Africa.
✅ Impact on XYZ
Must audit suppliers to ensure compliance with fair labor policies.
Risk of reputational damage if suppliers engage in unethical labor practices.
2. Health and Safety Regulations
Policies ensuring safe working conditions in manufacturing and supply chain operations protect employees from hazards.
✅ Key Areas of Impact
Workplace safety (e.g., protective equipment, fire prevention, accident reporting).
Factory compliance with OSHA (Occupational Safety and Health Administration) standards.
COVID-19 and pandemic-related health protocols in global supply chains.
Example: Bangladesh's Rana Plaza factory collapse (2013) highlighted the dangers of weak safety regulations, prompting global reforms in factory safety policies.
✅ Impact on XYZ
Needs to conduct supplier audits to ensure compliance with safety laws.
May need to invest in better safety training for factory workers in Bolton.
3. Wages and Fair Pay Policies
Regulations and policies on minimum wages, equal pay, and fair compensation influence worker conditions in global supply chains.
✅ Key Areas of Impact
Minimum wage laws in supplier countries affect labor costs.
Fair pay policies ensure workers are not underpaid or exploited.
Gender pay equity promotes inclusive employment practices.
Example: The UK's National Minimum Wage ensures fair pay, but wages in Asia and Africa may be significantly lower.
✅ Impact on XYZ
Needs to ensure suppliers pay living wages to avoid reputational risks.
Could face supply chain disruptions if wage disputes lead to strikes or protests.
4. Environmental and Sustainability Policies
Environmental policies regulate how businesses source raw materials, manage waste, and reduce carbon emissions.
✅ Key Areas of Impact
Deforestation and raw material sourcing laws (e.g., FSC-certified timber, conflict minerals regulations).
Carbon emissions policies affect logistics and transportation.
Waste disposal and pollution regulations impact factory operations.
Example: The EU's Carbon Border Adjustment Mechanism (CBAM) affects importers sourcing from high-carbon-emitting regions.
✅ Impact on XYZ
Must ensure suppliers meet environmental standards to avoid legal penalties.
Needs to reduce carbon footprint by choosing sustainable transport and materials.
5. Ethical Sourcing and Corporate Social Responsibility (CSR) Policies
Ethical sourcing policies ensure companies buy from responsible suppliers that uphold human rights and environmental protection.
✅ Key Areas of Impact
Modern Slavery Act (UK, 2015) requires firms to report on anti-slavery efforts.
Fairtrade and ethical certification policies ensure responsible supply chain practices.
CSR commitments require businesses to engage in community welfare programs.
Example: Nestlé has an Ethical Sourcing Program for cocoa, ensuring child labor-free supply chains.
✅ Impact on XYZ
Needs to conduct supplier due diligence to comply with ethical sourcing laws.
Ethical policies can enhance brand reputation and customer trust.
Conclusion
Policies on labor rights, health and safety, fair wages, environmental sustainability, and ethical sourcing directly impact people working in XYZ's supply chain. To ensure compliance, XYZ must adopt robust supplier audits, transparent reporting, and ethical business practices to protect workers' rights while maintaining a resilient and responsible supply chain.

 

NEW QUESTION # 29
SIMULATION
XYZ is a toilet paper manufacturer based in the UK. It has 2 large factories employing over 500 staff and a complex supply chain sourcing paper from different forests around the world. XYZ is making some strategic changes to the way it operates including changes to staffing structure and introducing more automation. Discuss 4 causes of resistance to change that staff at XYZ may experience and examine how the CEO of XYZ can successfully manage this resistance to change

Answer:

Explanation:
Causes of Resistance to Change & Strategies to Manage It - XYZ Case Study When XYZ, a UK-based toilet paper manufacturer, implements strategic changes such as staff restructuring and automation, employees may resist change due to uncertainty, fear, and disruption to their work environment. Below are four key causes of resistance and how the CEO can manage them effectively.
Causes of Resistance to Change
1. Fear of Job Loss
Cause: Employees may fear that automation will replace their jobs, leading to layoffs. Factory workers and administrative staff may feel particularly vulnerable.
Example: If machines take over manual processes like paper cutting and packaging, employees may see this as a direct threat to their roles.
2. Lack of Communication and Transparency
Cause: When management fails to communicate the reasons for change, employees may speculate and assume the worst. Unclear messages lead to distrust.
Example: If XYZ's CEO announces restructuring without explaining why and how jobs will be affected, employees may feel insecure and disengaged.
3. Loss of Skills and Status
Cause: Some employees, especially long-serving workers, may feel their skills are becoming obsolete due to automation. Managers may resist change if they fear losing power in a new structure.
Example: A production line supervisor may oppose automation because it reduces the need for human oversight, making their role seem redundant.
4. Organizational Culture and Habit
Cause: Employees are accustomed to specific ways of working, and sudden changes disrupt routine. Resistance occurs when changes challenge existing work culture.
Example: XYZ's employees may have always used manual processes, and shifting to AI-driven production feels unfamiliar and uncomfortable.
How the CEO Can Manage Resistance to Change
1. Effective Communication Strategy
✅ What to do?
Clearly explain why the changes are necessary (e.g., cost efficiency, competitiveness).
Use town hall meetings, emails, and team discussions to provide updates.
Address employee concerns directly to reduce uncertainty.
Example: The CEO can send monthly updates on automation, ensuring transparency and reducing fear.
2. Employee Involvement and Engagement
✅ What to do?
Involve staff in decision-making to give them a sense of control.
Create cross-functional teams to gather employee input.
Provide opportunities for feedback and discussion.
Example: XYZ can form a worker's advisory panel to gather employee concerns and address them proactively.
3. Training and Upskilling Programs
✅ What to do?
Offer training programs to help employees adapt to new technologies.
Provide reskilling opportunities for employees whose jobs are affected.
Reassure staff that automation will create new roles, not just eliminate jobs.
Example: XYZ can introduce digital skills training for workers transitioning from manual processes to automated systems.
4. Change Champions & Support Systems
✅ What to do?
Appoint change champions (influential employees) to advocate for change.
Offer emotional and psychological support (e.g., HR consultations, career guidance).
Recognize and reward employees who embrace change.
Example: XYZ can offer bonuses or promotions to employees who successfully transition into new roles.
Conclusion
Resistance to change is natural, but the CEO of XYZ can minimize resistance through clear communication, employee involvement, training, and structured support. By managing resistance effectively, XYZ can ensure a smooth transition while maintaining employee morale and operational efficiency.

 

NEW QUESTION # 30
SIMULATION
Explain how culture and historic influences can impact upon a business's strategic decisions and positioning within the marketplace

Answer:

Explanation:
How Culture and Historic Influences Impact Strategic Decisions and Market Positioning A business's strategic decisions and positioning within the marketplace are shaped by both organizational culture and historical influences. These factors affect how a company develops strategy, interacts with customers, manages employees, and competes globally.
1. The Role of Organizational Culture in Strategic Decisions
Organizational culture is the shared values, beliefs, and behaviors within a company. It influences decision-making, innovation, and competitive advantage.
How Culture Affects Strategy
✅ Risk Appetite - A culture that embraces innovation (e.g., Google) will invest in R&D, while risk-averse cultures (e.g., traditional banks) focus on stability.
✅ Decision-Making Speed - Hierarchical cultures (e.g., Japanese firms) rely on consensus, while Western firms (e.g., Apple) may have centralized decision-making.
✅ Customer Engagement - A customer-centric culture (e.g., Amazon) leads to investment in personalization and AI-driven recommendations.
Example:
Toyota's Kaizen Culture (Continuous Improvement) has shaped its lean manufacturing strategy, giving it a competitive advantage in cost efficiency.
2. How Historic Influences Shape Business Strategy
Historical events, past business performance, economic trends, and industry evolution shape how businesses position themselves in the marketplace.
How History Affects Strategy
✅ Legacy of Innovation or Conservatism - Companies with a history of innovation (e.g., IBM, Tesla) continuously push boundaries, while firms with traditional roots (e.g., British banks) focus on risk management.
✅ Economic Crises and Financial Stability - Businesses that survived financial crises (e.g., 2008 recession) tend to develop risk-averse financial strategies.
✅ Market Reputation and Consumer Perception - A strong historical reputation can be leveraged for branding (e.g., Rolls-Royce's luxury image).
Example:
Lego nearly went bankrupt in the early 2000s, leading it to redefine its strategy, focus on digital gaming partnerships, and revive its brand.
3. The Influence of National and Corporate Culture on Global Positioning When expanding globally, businesses must align their strategies with different cultural expectations.
How Culture Affects Global Market Entry
✅ Consumer Preferences - Fast food chains adapt menus for local cultures (e.g., McDonald's in India offers vegetarian options).
✅ Negotiation & Communication Styles - Business negotiations in China emphasize relationships ("Guanxi"), while Western firms prioritize efficiency.
✅ Leadership and Management Approaches - German firms emphasize engineering precision, while Silicon Valley firms prioritize agility and experimentation.
Example:
IKEA modifies store layouts in different countries-small apartments in Japan vs. large home spaces in the U.S.
4. Strategic Positioning Based on Cultural & Historic Factors
A company's historical and cultural influences define its positioning strategy:

Conclusion
A business's strategic decisions and market positioning are deeply influenced by organizational culture, national culture, and historical performance. Companies that leverage their cultural strengths and adapt to market history can achieve long-term competitive advantage.

 

NEW QUESTION # 31
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