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

CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. 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

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

3. HHH is an international distribution company which operates a number of large distribution warehouses. HHH employs over 10,000 staff who operate the warehouses 24 hours per day and process over 500,000 packages and parcels each day. HHH operates in a highly competitive market and the senior management team recognize the importance of focusing upon its Critical Success Factors (CSF's). However, some senior managers are confused as to the difference between CSF's and Key Performance Indicators (KPI's).
Which of the following are Critical Success Factors for HHH? (Choose all that apply.)

A) Percentage of stock damaged.
B) Market share percentage.
C) Time taken to load and unload deliveries.
D) Continual maintenance of warehouse facilities.
E) Efficient staff planning systems.
F) Customer satisfaction.

4. Which THREE of the following issues relate to the Corporate Strategy of an organization? (Choose three.)

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

5. Which of the following statements is NOT a role for Management Accountants involved in the strategy development process?

A) Assist the Board in determining risk appetite.
B) Consider and raise awareness of the ethical impact of proposed strategic decisions.
C) Writing the Annual Report.
D) Integration of financial and non-financial information.

Solutions: