CIPS Professional Stage – Core Subjects
Strategy and Strategic Procurement 

Aim

To provide students with the information and knowledge needed for an understanding of the nature of strategy within the organisation, and to develop knowledge of the specific contribution that strategic management of the supply chain can make to overall business success.

Rationale

Organisations are increasingly under pressure to operate efficient and effective strategies within the international market. They rely heavily upon the supply of goods and services to maintain competitive advantage. It is essential that purchasing professionals develop an awareness of how strategies are developed and executed within the business, and the impact of strategic purchasing and supply chain management upon the success of such strategies.

1. Strategy and Strategic Procurement

a) The concept of strategy
b) Strategy development
c) Corporate purpose and scope for organisations
d) Levels of strategy in the organisation
e) Strategic management
f) The nature of strategic supply chain management
g) Strategic purchasing and supply chain models
h) The role, basis and influence of customer perception

Learning outcomes

In the assessment the candidate may be required to:

1.1 Explain the concept of strategy and appraise alternative views of strategy
development
1.2 Appraise the corporate purpose and scope for organisations and describe the
levels of strategy operating within the organisation
1.3 Outline the relationship between approaches adopted by business to strategy
development and how this affects their approach to strategic management
1.4 Analyse how strategic management operates in different business sectors
1.5 Evaluate the nature of strategic supply chain management and appraise the
role of the purchasing and supply chain function within it
1.6 Analyse how strategic purchasing and supply chain process models for private
and public sectors and discuss their implication on the organisation, including the
CIPS model, EC Procurement Directives model, and the MoD (UK) acquisition
process model
1.7 Outline the basis of customer perceptions, and assess their influences on
customer requirements and how these perceptions and influences affect customer
responses

(weighting 15%)


2. Strategic Management

a) Strategic analysis, purpose and nature
b) Utilisation of strategic analysis in business
c) Definition of the basis of strategic choice
d) Generic strategies
e) Strategic direction options including consolida-tion and market penetration
f) Strategic method options including internal development and joint alliances
g) Evaluation and selection of strategic options
h) Implementation of strategies
i) Development, management and control of resources
j) Organisational design
k) Organisational structures
l) Purchasing and supply function structures

Learning outcomes

In the assessment the candidate may be required to:

2.1 Evaluate the nature and purpose of strategic analysis
2.2 Categorise the various tools of strategic analysis
2.3 Assess how the strategic tools of analysis permit knowledge of the organisation and its environment to be assessed
2.4 Identify and evaluate the drivers that underpin strategy development
2.5 Debate the basis for strategic choice within the organisation critically examining relevant generic strategies
2.6 Appraise the various strategic directions that a business could deploy
2.7 Appraise the various strategic methods an organisation could deploy
2.8 Outline the relationship between the strategic choices a business can adopt, the strategic direction it may choose to follow and the strategic methods it may deploy
2.9 Evaluate the financial implications of strategic analysis and implementation
2.10 Assess the approach to evaluation and selection of strategy that business can take
2.11 Evaluate the process and challenges with the implementation of strategies and the management of change in business
2.12 Compare and contrast how different organisations develop, manage and
control resources from a corporate strategic level within the organisation
2.13 Consider the effect of IT on strategic choice
2.14 Judge the impact of changes in strategic direction for the business upon the
organisational design of the business
2.15 Define and assess different approaches to organisational structures within the various types of organisation
2.16 Define and appraise different approaches to purchasing and supply function
structures
2.17 Appraise the relationship between organisational and purchasing and supply
function structures

(weighting 45%)


3. Strategic Supply Chain Management

a) Development and evolution of the purchasing and supply function in business
b) Role, objectives and contribution of supply chain strategies to corporate
strategy
c) The strategic supply chain planning process
d) Strategic supply chain frameworks
e) The operation of supply chain strategies through all functions of business
f) Configuration and co-ordination of the supply chain
g) Control and creation of added value in supply chain management
h) Innovation in supply chain management
i) Designing products and services through
strategic supply chain
j) Managing environmental procurement within strategic supply chain management

Learning outcomes

In the assessment the candidate may be required to:

3.1 Outline the development and evolution of the purchasing and supply function
3.2 Debate the role, objectives and contribution of supply chain strategies to corporate strategy and the strategic planning process
3.3 Critically review strategic supply chain frame-works and the operation of supply
chain strategies through all functions of business
3.4 Evaluate the configuration and co-ordination of the supply chain in different
markets
3.5 Evaluate where strategic supply chain manage-ment can create and control added value for the organisation as a whole
3.6 Assess the role and impact of innovation on supply chain management
3.7 Outline the role for the strategic supply chain in the design of products and
services, product/service development, product design process models, product life cycles
3.8 Define what is meant by environmental procurement and evaluate the
implications for strategic management of the supply chain

(weighting 40%)