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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 issues relate to the Corporate Strategy of an organization? (Choose three.)

A) Avoiding competitive disadvantages.
B) Achieving advantage over competitors.
C) Leaving existing industries.
D) Entering new industries.
E) Meeting the needs of key customers.
F) Acquisitions, disposals and diversification.

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

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

3. YZ operates a national mobile phone (cell phone) network in one country. It is considering upgrading its network to 4th Generation (4G) by providing an improved bandwidth that will enable its customers faster access to the Internet.
This investment will cost S29 million which YZ's institutional investors have agreed to provide by subscribing to a rights issue. This is due to management having informed institutional investors that a rival is already offering
4G and that this is taking customers away from YZ because its network is now regarded as too slow. YZ's remaining customers have shown a willingness to pay extra for 4G and overall the investment will have a positive net present value.
Which of the following statements are correct? (Choose all that apply.)

A) It provides a market development opportunity for YZ.
B) There is stakeholder approval for the investment.
C) It is essential given the strategic threats to YZ.
D) There are sufficient investment funds available
E) YZ will gain a first mover advantage.

4. You have been given responsibility, as a newly qualified management accountant, for delivering an ambitious project to centralize and computerize the accounts function within a medium-sized, geographically dispersed business. The timetable also requires the project to be delivered within a very short timescale with limited resources. You have built a team to deal with these proposed changes.
With regard to effective teams and change, which THREE of the following statements are correct? (Choose three.)

A) Teams should continue after their purpose has been served.
B) Teams play minor roles in institutional change.
C) Teams enhance learning and address change directly through creating recommendations and new ideas.
D) Teams that cross departmental boundaries can develop new performance criteria.
E) Teams that cross departmental boundaries can destroy shared values.
F) Individuals must become more than they were when working alone and must develop new commitments and behaviors.

5. TTT recently appointed a new Chief Executive, R, to lead it through a period of major change. R immediately set up a change management team which consisted of several senior managers and directors from across the organization. Together, they formulated an overall goal for change and then spent several weeks presenting the need for change to all of the staff through a series of staff meetings. At these meetings R involved staff and built their ideas into the final change strategy.
R also set a series of interim goals to encourage ongoing performance throughout the change process. When the organization reached these goals, R widely publicized these achievements to help motivate staff.
However, after six months, TTT had failed to reach most of the interim goals that had been set. Most of the members of the change management team had not maintained a significant interest in the change process and many of the staff felt that there had been a lack of communication and reward following the initial few weeks of the change process.
Kotter suggested that there were eight steps required to successfully lead change.
Which TWO of the following did R fail to achieve? (Choose two.)

A) Empower broad based action
B) Generate short term wins
C) Develop a change vision
D) Never letting up
E) Incorporate change into the culture

Solutions: