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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

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

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

2. Which of the following would be likely to encourage an organization to use Scenario Planning? (Choose all that apply.)

A) Uncertainty in the industry is high, relative to management's ability to predict or adjust to change.
B) The organization has achieved all of its objectives and operates within a stable external environment.
C) The organization often experiences 'group-think', leading to a narrow view of the future.
D) The organization has not previously experienced any major surprises or expensive strategic mistakes.
E) Competitor's are increasingly using Scenario Planning as part of their strategy formulation process.

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

4. Which TWO of the following are advantages to an organization of using non-financial performance measures, rather than financial performance measures? (Choose two.)

A) They are not distorted by inflation.
B) They present a wider view of organizational performance than financial performance measures.
C) They are easier to measure than financial performance measures.
D) They are less expensive to measure than financial performance measures.
E) They are less subjective than financial performance measures.

5. A Service Level Agreement (SLA) defines exactly what services a service provider will provide and the required level or standard for those services.
Which of the following statements regarding Service Level Agreements is NOT correct?

A) Service Level Agreements should include the expected response time to technical queries.
B) Service Level Agreements should include the targets and benchmarks to be used and the consequences for failing to meet them.
C) Service Level Agreements should include the procedures for cancelling the contract.
D) Service Level Agreements should include a guarantee to provide 100% availability for complaint resolution.

Solutions: