What Is the First Step in the Procurement Process

question 6

Multiple Choice

What is the first step in the procurement process?

• A) negotiate price
• B) qualify the seller and its products
• C) issue a purchase order
• D) search for suppliers

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Definitions:

Market Niche

A specific segment of the market that a business targets, often characterized by unique preferences or needs.

Broader Market

Describes the extensive and wider aspects of the market, encompassing a large range of products, services, and customers.

Low-Cost Strategy

A competitive strategy where a company offers products or services at a lower price than competitors, focusing on efficiency and cost minimization.

Cost-Based Advantages

Competitive benefits derived from being able to operate at a lower cost compared to competitors, allowing for better pricing strategies or profit margins.