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

CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. 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 skills, abilities and competences of the organization's employee's are a 'hard' factor according to the McKinsey 7 S model.
B) The plans to combat competition would be considered as a 'structure' factor according to the McKinsey 7 S model.
C) The change would be classified as a 'revolutionary change' according to Balogum and Hope Hailey.
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.

2. TTT recently appointed a new Chief Executive, R, to lead it through a period of major change. R immediately set up a change management team which consisted of several senior managers and directors from across the organization. Together, they formulated an overall goal for change and then spent several weeks presenting the need for change to all of the staff through a series of staff meetings. At these meetings R involved staff and built their ideas into the final change strategy.
R also set a series of interim goals to encourage ongoing performance throughout the change process. When the organization reached these goals, R widely publicized these achievements to help motivate staff.
However, after six months, TTT had failed to reach most of the interim goals that had been set. Most of the members of the change management team had not maintained a significant interest in the change process and many of the staff felt that there had been a lack of communication and reward following the initial few weeks of the change process.
Kotter suggested that there were eight steps required to successfully lead change.
Which TWO of the following did R fail to achieve? (Choose two.)

A) Develop a change vision
B) Empower broad based action
C) Never letting up
D) Generate short term wins
E) Incorporate change into the culture

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

4. LLL is an international oil and gas exploration company. It is considering investing S300 million in developing new oil fields in Country D.
For this it will need to obtain a license from the government of Country D.
These new oil fields will bring much wealth to Country D because a large proportion of the revenue from the production of oil will be paid to the government as part of the licensing agreement.
However, oil production in Country D will have some undesirable social effects, such as the threat of pollution, congestion to the roads and pressure on local amenities such as housing, electricity and clean water.
Which of the following approaches to stakeholder management should LLL NOT undertake in order to enter Country D?

A) Undertake stakeholder mapping to identify the interests of the most powerful players in the decision to grant a license to LLL.
B) Develop and circulate a promotional video showing the benefits enjoyed by other countries in which LLL operates.
C) Commit to improving the local amenities and roads as a part of the application for a license in Country D.
D) Issue free shares in a Joint Venture to develop oil fields to government ministers from Country D.

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

Solutions: