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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 frameworks are used solely to evaluate the external environment of an organization? (Choose three.)

A) Porter's Five Forces Model
B) Porter's Diamond
C) PEST Analysis
D) SWOT analysis
E) Porter's Value Chain
F) Kaplan and Norton's Balanced Scorecard

2. STU is a hospital that is wholly funded by its national government. In the last five years it has seen its funding cut by over 30% due to budgetary pressure on the government, caused by a global recession. As a result, the senior management team of STU has had to make some very difficult decisions about prioritizing how it spends the funds it receives from the government. Its main strategies have been to reduce the number of administration staff and nursing staff by 20%, in order to reduce its costs. It has also stopped providing a number of services to patients, including its counselling services and its physiotherapy unit.
Which of the following strategies has STU adopted to manage its reduced funding? (Choose all that apply.)

A) Divestment
B) Liquidation
C) Facilitation
D) Turnaround
E) Retrenchment

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) Number of days of training for car park attendants.
D) Speed of processing the payment for parking charges.

4. DRAG DROP
YZ is a family-run business which manufactures and sells confectionery, employing almost 100 staff. It operates 10 shops in small towns in the north of country P.
Sales of YZ's products have decreased over the last 4 years due to competition from large supermarkets, internet shopping and a general economic downturn, which has hit the north of country P especially hard.
YZ's managing director has recently retired and the board decided to fill the vacancy with an external appointment. The new managing director plans to invest in new manufacturing technology, which would cut staffing levels by 15% and reduce wastage, allowing YZ to lower its prices. YZ's staff are very unhappy about these proposals, feeling that they will destroy YZ's family tradition and reputation that has developed over many years.
Select the correct descriptor for each of the forces for change below:
Select and Place:

Correct

5. BBB is a manufacturer that has been criticized in the financial press because it does not have a policy for sustainability.
Which THREE of the following elements would be crucial to BBB successfully embedding sustainability into its activities? (Choose three.)

A) BBB should give all its staff training in sustainability.
B) BBB should spend at least 0.1% of its Net Profit on sustainability projects.
C) BBB should employ a new public relations consultancy.
D) BBB's Board should make a commitment to sustainability.
E) BBB should include sustainability targets in performance appraisal.
F) BBB should investigate the costs and benefits of establishing a sustainability department.

Solutions: