Test Questions & Answers Chapter 6 - The Supplier Domain

Chapter 06 - The supplier domain

Test Bank

Type: multiple choice question

Title: Chapter 06 Question 1

01) Suppliers form networks of multiple interfaces with other supplier firms that are usually also project-based forming complex project networks that are called:

a. Supply chain

b. Social networks

c. Project-based organisations

d. Project-based sectors

Type: true-false

Title: Chapter 06 Question 2

02) There is a number of project-based sectors which do not produce complex product systems (COPS) such as building, management consultancy, and film and TV production.

a. True

b. False

Type: matching question

Title: Chapter 06 Question 3

03) PBFs in the project-based sector come in many shapes and sizes, but they can be generically grouped into three different types:

Feedback:

First, and perhaps most importantly, are the specialist technology suppliers whose contributions are crucial to the creation of complex systems and are often protected by sustained levels of resource-based competitive advantage. These suppliers often have a significant investment in research and development and manufacturing facilities supplying components such as compressors and process control systems, or complete sub-systems such as catalytic crackers. The suppliers of the information systems that are increasingly embedded in infrastructure outputs as well as the software and hardware developers that enable digital transformation also fall into this category. The next group is contractors which provide more widely available commodity input to the delivery domain and usually compete on price. Often, these inputs are often provided by workers on a freelance basis rather than employment basis. Examples here include the more labour-intensive end of project delivery such as site execution in infrastructure and building, but also extras in the film sector and volunteers in Olympic and other major events. The final grouping is the myriad variety of designers and advisors which are often organized in professional service firms. These include technical designers such as architects, and more business-orientated advisors such as lawyers and financiers.

A-head reference: 6.2

a. The myriad variety of designers and advisors = whose contributions are crucial to the creation of complex systems and are often protected by sustained levels of resource-based competitive advantage; these often have significant investment in research and development and manufacturing facilities.

b. Contractors = which are often organized in professional service firms. These include technical designers such as architects, and more business-orientated advisors such as lawyers and financiers.

c. Specialist technology suppliers = provide more widely available commodity input to the delivery domain and usually compete on price. Often, these inputs are often provided by workers on a freelance basis rather than employment basis.

Type: true-false

Title: Chapter 06 Question 4

04) Suppliers are typically a distinctive type of firm called the project-based firm (PBF) which is characterized by its dynamic capability being project organizing.

a. True

b. False

Type: matching question

Title: Chapter 06 Question 5

05) PBFs require project delivery capabilities:

Feedback:

PBFs require dynamics capabilities in order to explore new opportunities and thereby grow and change. Operational capabilities revolve around two bundles of capability: relational capabilities required to manage across the commercial interface with the owner and project delivery capabilities that ensure that the PBF meets its obligations to the owner as part of the project coalition for delivery while also meeting its obligations to its shareholders as a profitable business.

A-head reference: 6.2

a. PBF Dynamic capabilities = revolve around two bundles of capability: relational capabilities required to manage across the commercial interface with the owner and project delivery capabilities that ensure that the PBF meets its obligations to the owner as part of the project coalition for delivery while also meeting its obligations to its shareholders as a profitable business.

b. Project delivery capabilities = are operational capabilities for PBFs

c. PBF Operational capabilities = In order to explore new opportunities and thereby grow and change.

Type: true-false

Title: Chapter 06 Question 6

06) Supplier configurations on projects are often more complex than in sectors such as manufacturing.

a. True

b. False

Type: matching question

Title: Chapter 06 Question 7

07) There are many ways in which the P-form Corporation makes its offer to the project owner:

Feedback:

There are many ways in which the P-form Corporation makes its offer to the project owner.

Owner value proposition for the owner in terms of whether the service offer is purely focused on the project output, or whether is also contributes to supporting the owner to achieve the project outcomes.

PBF value proposition for the PBF itself in terms of the sources of profitable revenue streams in the commercial relationship.

Increasingly, suppliers are making offers that are both relational and outcome based in the form of integrated solutions where the project-based firm takes responsibility for the facility through life and the owner contracts for output availability, rather than acquisition of the output itself, and may also provide the finance for the project.

A-head reference: 6.4

a. PBF value proposition = the project-based firm takes responsibility for the facility through life and the owner contracts for output availability, rather than acquisition of the output itself, and may also provide the finance for the project.

b. Owner value proposition = for the PBF itself in terms of the sources of profitable revenue streams in the commercial relationship.

c. Relational and outcome based in the form of integrated solutions = for the owner in terms of whether the service offer is purely focused on the project output, or whether is also contributes to supporting the owner to achieve the project outcomes.

Type: multiple choice question

Title: Chapter 06 Question 8

08) Type of project-based firm that is found in many sectors which is both a project-based firm and a professional practice:

a. Project-based sectors

b. Professional service firm (PSF)

c. Mergers and acquisitions

d. Joint venture

Type: true-false

Title: Chapter 06 Question 9

09) The PSF business model formula is:

Profits = Profits x Fees x Staff

Principals Fees Staff Principals

a. True

Profits = Profits x Fees x Staff

Principals Fees Staff Principals A-head reference: 6.5

b. False

Type: true-false

Title: Chapter 06 Question 10

10) Capture management is important for the PBF firm both in developing market penetration, and also seeking out base-moving projects to enter new markets through market or product development.

a. True

b. False