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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. Company TTT produces a range of products, including products T1 and T5.
Product T1: Profitability has declined in recent years, although small profits continue to be made as the market contracts due to changing customer preferences. Overall market share is low and continues to reduce.
However, in addition to external sales T1 is also used as a component of product T5.
Product T5: A market leader within a low growth market, sources components both externally and from TTT's other subsidiaries. T5 benefits from significant economies of scale and TTT has recently considered modernizing its T5 production line but following a cost benefit analysis, decided not to proceed.
Which of the following is an appropriate strategy for TTT to adopt?

A) Divest both product T1 and product T5.
B) Harvest product T1 and Divest product T5.
C) Divest product T1 and Harvest product T5.
D) Harvest both product T1 and product T5.

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

3. Information Systems (IS) strategy is correctly defined as:

A) The planning, organizing, investment and control of information applications in the organization.
B) The roles and structure of information specialists in the organization and their relationship with users.
C) Decisions on the hardware, software and communications solutions used in the organization.
D) Identifying the information needs of the organization and aligning development to them.

4. BCA is a long established international airline. Which of the following represent Threats to BCA's business?
(Choose all that apply.)

A) Greater popularity of long-haul holidays.
B) A higher level of private car ownership.
C) A shortage of trained pilots in BCA.
D) A sudden increase in international terrorism.
E) A substantial rise in the price of oil.

5. Z is a medium-sized UK based accounting practice. Z operates a graduate training scheme. The trainees are given an induction and then placed on a three-year training programme designed to help develop professional skills and experience.
The training programme has been in existence for many years. However, there is no clear consensus amongst the partners of Z about what the trainees should be able to do on completion of the programme and therefore what the training programme should emphasize. This lack of clarity is affecting the morale and commitment of the trainees and significant numbers are failing the programme or leaving to join a rival firm.
Z's HR Department recognizes the need for committed and well motivated accountants to meet the increased expectations of clients and the competition from rival firms. The HR Department has identified changes to the training programme that can be implemented gradually through a series of initiatives.
Which TWO of the following statements regarding the change required in Z are correct? (Choose two.)

A) The change would be classified as a 'revolutionary change' according to Balogum and Hope Hailey.
B) The plans to combat competition would be considered as a 'structure' factor according to the McKinsey 7 S model.
C) The skills, abilities and competences of the organization's employee's are a 'hard' factor according to the McKinsey 7 S model.
D) The need to manage the competitive position is an example of an 'external direct trigger' for change.
E) Understanding which day-to-day behaviors to reinforce within the training programme, is about 'routines and rituals' according to the Cultural Web.

Solutions: