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

CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. Ansoff has provided a product/market growth matrix which denotes possible strategic directions that an organization can follow.
Which of the following statements correctly describe the strategic options generated by the matrix? (Choose all that apply.)

A) Market penetration using existing products within existing markets.
B) Market penetration using existing products in new markets.
C) Diversification using new products in new markets.
D) Market development using existing products in new markets.
E) Market penetration using new products within existing markets.
F) Product development using new products in new markets.

2. RRR is an insurance company which maintains an extensive database of its customer transactions over the last 10 years. RRR is developing a new product and has carried out a SWOT analysis.
Within which of the following aspects of the SWOT analysis would RRR include its customer database?

A) Threat
B) Weakness
C) Opportunity
D) Strength

3. A direct external change trigger is:

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

4. Which THREE of the following statements apply to Lynch's performance pyramid? (Choose three.)

A) The business unit level includes measures which relate to internal systems needed to meet customers' needs.
B) The right-hand side of the pyramid contains measures which are predominantly non-financial.
C) The left-hand side of the pyramid contains measures which have an external focus.
D) The performance pyramid is designed to ensure that all activities support the organization's vision.
E) The lowest level of the pyramid contains the day-to-day operational measures.
F) The business operating systems level includes the market-related Critical Success Factors.

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

Solutions: