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 of the following would be likely to encourage an organization to use Scenario Planning? (Choose all that apply.)

A) Competitor's are increasingly using Scenario Planning as part of their strategy formulation process.
B) The organization has achieved all of its objectives and operates within a stable external environment.
C) The organization often experiences 'group-think', leading to a narrow view of the future.
D) The organization has not previously experienced any major surprises or expensive strategic mistakes.
E) Uncertainty in the industry is high, relative to management's ability to predict or adjust to change.

2. SDC is a medium sized IT systems development company. SDC employs highly qualified and experienced systems development experts. It invests heavily in staff training and development and as a result, staff are highly motivated and staff turnover is low. SDC has a strong culture of team work and innovation, which the senior managers believe is the basis of SDC's success. The senior managers, who are also the founders of SDC, are highly experienced and have a strong vision for the business.
Which THREE of the following factors would be the main focus of a resource audit for SDC? (Choose three.)

A) Markets
B) Money
C) Management
D) Machinery
E) Manpower
F) Make-up

3. SSS University wishes to introduce a new Car Park Management Strategy (CPMS). The aim of this strategy is to reduce the use of private cars and to encourage sustainable transport, such as cycling and public transport, by staff and students. SSS has decided to reduce the number of car parking spaces and introduce parking charges.
The Management Accountant has decided to use the Balanced Scorecard to help prepare a performance management system to assess the performance of the new CPMS.
Which of the following is an example of the Innovation and Learning perspective of a Balanced Scorecard for SSS?

A) Easy access to car parking spaces.
B) Reduction in complaints from customers.
C) Speed of processing the payment for parking charges.
D) Number of days of training for car park attendants.

4. Which of the following would be correct considerations when evaluating the Feasibility of a strategy? (Choose all that apply.)

A) Will the strategy maintain competitive advantage?
B) Will the business be able to deal with the responses of its competitors to the strategy?
C) Will there be sufficient time to implement the strategy?
D) Will customers object to the strategy?
E) Will the strategy exploit the core competencies of the business?

5. LLL is an international oil and gas exploration company. It is considering investing S300 million in developing new oil fields in Country D.
For this it will need to obtain a license from the government of Country D.
These new oil fields will bring much wealth to Country D because a large proportion of the revenue from the production of oil will be paid to the government as part of the licensing agreement.
However, oil production in Country D will have some undesirable social effects, such as the threat of pollution, congestion to the roads and pressure on local amenities such as housing, electricity and clean water.
Which of the following approaches to stakeholder management should LLL NOT undertake in order to enter Country D?

A) Undertake stakeholder mapping to identify the interests of the most powerful players in the decision to grant a license to LLL.
B) Issue free shares in a Joint Venture to develop oil fields to government ministers from Country D.
C) Develop and circulate a promotional video showing the benefits enjoyed by other countries in which LLL operates.
D) Commit to improving the local amenities and roads as a part of the application for a license in Country D.

Solutions: