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

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

2. RRR is a medium sized company, which has built family homes in Country D' for twenty years. The Board of RRR wishes to expand company operations and start building homes in the neighboring country. The Board of RRR wishes to undertake a position audit to help in this decision.
Which of the following strategic analysis tools would be used in a position audit for RRR?

A) Gap Analysis
B) Five Forces
C) SWOT
D) PEST

3. CCC is a software design company. The Board of CCC has always openly encouraged partnerships with a wide range of designers and other organizations in its industry in order to continually develop and enhance the services it offers and to utilize the expertise and knowledge of a range of individuals and organizations. CCC's staff have also been highly creative and innovative in the design services they provide. CCC regularly analyses and keeps up to date with changes in the environment in which it operates. CCC operates a sophisticated website to promote its services and keep in touch with its service users.
Which TWO of the following attributes of a change adept organization, as defined by Kanter, has CCC demonstrated? (Choose two.)

A) Openness to collaborate
B) Imagination to innovate
C) Environmental awareness
D) Continual service development
E) Sophisticated systems

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

5. You have been given responsibility, as a newly qualified management accountant, for delivering an ambitious project to centralize and computerize the accounts function within a medium-sized, geographically dispersed business. The timetable also requires the project to be delivered within a very short timescale with limited resources. You have built a team to deal with these proposed changes.
With regard to effective teams and change, which THREE of the following statements are correct? (Choose three.)

A) Teams that cross departmental boundaries can develop new performance criteria.
B) Teams should continue after their purpose has been served.
C) Teams play minor roles in institutional change.
D) Individuals must become more than they were when working alone and must develop new commitments and behaviors.
E) Teams enhance learning and address change directly through creating recommendations and new ideas.
F) Teams that cross departmental boundaries can destroy shared values.

Solutions: