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

CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. QWE is a private company belonging to a famous former sports professional. It operates gyms and fitness clubs across its home country. Each gym or fitness club is treated as a profit center and the manager of each center is paid bonuses based on its financial performance.
QWE introduced multidimensional performance measures into its management control systems 3 years ago.
These measure competitiveness, financial performance, capacity utilization, innovation and the flexibility of its centers to cope with changing demands.
The managers of QWE's centers have been leaving at a very high rate over the last 2 years. They have claimed that the measures are too open to interpretation and when they think they are improving their center's performance they are told they are doing the wrong things. They also complain that the managers in the centers near big cities find it much easier to reach their targets than the managers of other centers.
According to Fitzgerald and Moon's Building Block model, where does the problem lie?

A) Standards, Dimensions and Rewards
B) Dimensions and Standards
C) Standards and Rewards
D) Dimensions and Rewards

2. A leading retail chain is undertaking environmental scanning as it is concerned that it is becoming uncompetitive and profits have started to fall. The Board of Directors is concerned that it will need to have a viable strategy to present to its shareholders at the next annual general meeting, in order to prevent shareholders' protests.
The company has been reluctant in the past to offer an Internet shopping service. It now believes, however, that by offering this service and introducing customer relationship marketing (CRM), this will produce a strategy that will help it to improve its competitiveness.
Which of the following statements apply to CRM? (Choose all that apply.)

A) The company must be prepared to take customers' needs into account and be able to meet these needs.
B) The CRM process needs to include increasing the range of products that will be offered to customers.
C) CRM is about marketing to customers to obtain their loyalty, so customer research is not needed.
D) CRM utilizes marketing resources to retain, rather than simply attract new customers.
E) In mature markets, existing customers provide the most likely source of future earnings.

3. M has been appointed as an external change agent to lead and implement a large scale re-structuring strategy which is being undertaken by a large bank. M has been appointed due to his extensive experience in a wide range of organizational re-structuring programmes. This re-structuring strategy will involve a large number of redundancies and the implementation of a new organization-wide management reporting system. M will need to work with staff from all departments and levels of the organization. The Board of Directors of the bank believes that an external change agent will bring more benefits to the change process than using an internal change agent.
Which of the following are the most likely benefits that could be achieved by the bank by appointing an external change agent to lead and implement the re-structuring strategy? (Choose all that apply.)

A) As a dedicated resource, the external change agent can give more time to the change process.
B) The bank can exploit the specialist expertise of the external change agent.
C) The change process should be less costly if an external change agent is appointed.
D) The external change agent will have better relationships with the bank employees than an internal change agent.
E) The speed of delivery of the change process will be quicker when using an external change agent.
F) The external change agent will be more objective in decision-making than an internal change agent.

4. A direct external change trigger is:

A) An economic recession in an organization's home country.
B) The introduction of new environmental protection policies by the government.
C) A powerful competitor forcing an organization to cut its prices.
D) A general increase in the use of the Internet by society.

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

Solutions: