The Bargaining Leverage of Suppliers Is Greater When

question 107

Multiple Choice

The bargaining leverage of suppliers is greater when

• A)the suppliers' products/services account for a small percentage of industry members' costs.
• B)industry members incur low costs in switching their purchases from one supplier to another.
• C)industry members account for a big fraction of supplier's sales.
• D)there is extensive seller-supplier collaboration.
• E)the supplier industry is composed of a large number of relatively small suppliers.

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Definitions:

Project Uncertainty

The degree of unpredictability in achieving the project outcomes due to unknown variables or factors that can affect the project's scope, schedule, cost, and quality.

Ordered System

A structured arrangement of components or processes according to a specific sequence or set of rules.

Technological Uncertainty

The uncertainty faced by a project relating to the feasibility, stability, or reliability of the technology being implemented or developed.

System Scope

The extent, range, or breadth of areas that a system will cover or operate within, often defining its limitations and capabilities.