L4M2 Exam Dumps - Defining Business Needs

Explanation

Benchmarking is 'the pursuit by organisations of enhanced performance by learning from the suc-cessful practices of others. Benchmarking is a continuous activity; key internal processes are adjusted, performance is monitored, new comparisons are made with the current best performers and further changes are explored. Where information about these key processes is obtained through a co-operative partnership with specific organisations (rather than via a third party such as an independently-maintained database), there is an expectation of mutual benefit over a period of time.

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Comprehensive and Detailed Explanation (from CIPS L4M2 – Market Entry Barriers)

Aerospace manufacturing demands high capital investment (robotics, technology, safety).

This creates a strong barrier to entry, limiting new competitors.

Industries like hospitality or insurance require far less fixed investment.

Relevant L4M2 references:

“Capital intensity and technological barriers in markets”

“Examples of entry barriers in industrial sectors”

Explanation

Internal stakeholders may contribute to defining needs and drafting the specification by using their technical expertise. In this scenario, IT team may consult procurement team on the technical specification of the software, including compatibility with company's current IT system.

Detailed Explanation:

A (Production materials): These are directly tied to the production of goods and are variable costs.

D (Manufacturing staff wages): Labour directly involved in the production process is a direct cost.

Indirect costs like salaries, depreciation, and insurance are related to overheads and not directly tied to production. Reference: CIPS Level 4, Cost Structures.