CIMA E3 - Strategic Management Question Tutorial : CIMAPRO15-E03-X1-ENG

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CIMA CIMAPRO15-E03-X1-ENG Exam Syllabus Topics:

CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. Which THREE of the following statements apply to Lynch's performance pyramid? (Choose three.)

A) The business operating systems level includes the market-related Critical Success Factors.
B) The lowest level of the pyramid contains the day-to-day operational measures.
C) The left-hand side of the pyramid contains measures which have an external focus.
D) The business unit level includes measures which relate to internal systems needed to meet customers' needs.
E) The right-hand side of the pyramid contains measures which are predominantly non-financial.
F) The performance pyramid is designed to ensure that all activities support the organization's vision.

2. Company TTT produces a range of products, including products T1 and T5.
Product T1: Profitability has declined in recent years, although small profits continue to be made as the market contracts due to changing customer preferences. Overall market share is low and continues to reduce.
However, in addition to external sales T1 is also used as a component of product T5.
Product T5: A market leader within a low growth market, sources components both externally and from TTT's other subsidiaries. T5 benefits from significant economies of scale and TTT has recently considered modernizing its T5 production line but following a cost benefit analysis, decided not to proceed.
Which of the following is an appropriate strategy for TTT to adopt?

A) Divest both product T1 and product T5.
B) Divest product T1 and Harvest product T5.
C) Harvest both product T1 and product T5.
D) Harvest product T1 and Divest product T5.

3. As a CIMA qualified management accountant working within a manufacturing company, you are subject to both CIMA's Code of Ethics and your company's Code of Business Conduct.
Which TWO of the following statements are TRUE? (Choose two.)

A) Where there is a difference between CIMA's Code of Ethics and the company's Code of Business Conduct, the company's Code of Business Conduct takes priority.
B) Both CIMA's Code of Ethics and the company's Code of Business Conduct include references to Confidentiality. Disclosure on public interest grounds is therefore prohibited.
C) As a CIMA qualified Management Accountant you must follow CIMA's Code of Ethics.
D) Both CIMA's Code of Ethics and the company's Code of Business Conduct must be based on a set of basic principles.
E) A company's Code of Business Conduct can be rules based.

4. A direct external change trigger is:

A) A general increase in the use of the Internet by society.
B) A powerful competitor forcing an organization to cut its prices.
C) The introduction of new environmental protection policies by the government.
D) An economic recession in an organization's home country.

5. M has been appointed as an external change agent to lead and implement a large scale re-structuring strategy which is being undertaken by a large bank. M has been appointed due to his extensive experience in a wide range of organizational re-structuring programmes. This re-structuring strategy will involve a large number of redundancies and the implementation of a new organization-wide management reporting system. M will need to work with staff from all departments and levels of the organization. The Board of Directors of the bank believes that an external change agent will bring more benefits to the change process than using an internal change agent.
Which of the following are the most likely benefits that could be achieved by the bank by appointing an external change agent to lead and implement the re-structuring strategy? (Choose all that apply.)

A) The external change agent will have better relationships with the bank employees than an internal change agent.
B) The change process should be less costly if an external change agent is appointed.
C) As a dedicated resource, the external change agent can give more time to the change process.
D) The bank can exploit the specialist expertise of the external change agent.
E) The speed of delivery of the change process will be quicker when using an external change agent.
F) The external change agent will be more objective in decision-making than an internal change agent.

Solutions: