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

CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. TUV had an employee turnover rate of 25% among new recruits and was becoming short of skilled workers.
The Board of TUV realized there was something dramatically wrong and called in consultants to assess the problem. The consultants recommended transformational change in that TUV should redesign the entire production system, change the placement of all equipment and the flow of work, redefine every job and give all workers new assignments.
Which type of change did the consultants recommend for TUV?

A) Adaptation
B) Evolution
C) Revolution
D) Reconstruction

2. DF Company is undertaking a strategic review of its activities and has asked you to explain how a Force Field analysis would assist in the review process.
Which of the following statements would be most appropriate?

A) As part of DF's strategic review, identify forces facilitating the need for proposed change.
B) Identify forces facing DF's activities that may create barriers and resistance to change.
C) Provide a framework for identifying forces for and against the proposed changes within DF.
D) Identify influential senior managers who will drive through changes in DF's strategic direction.

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

4. DRAG DROP
In order to organize the value-adding activities to support a chosen strategy, Porter's Generic Strategies are often applied within an organization's value chain.
Against each of the activities listed below, select the Generic Strategy which best defines the strategic approach being taken.
Select and Place:

Correct

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

Solutions: