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

CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. A direct external change trigger is:

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

2. 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 plans to combat competition would be considered as a 'structure' factor according to the McKinsey 7 S model.
B) Understanding which day-to-day behaviors to reinforce within the training programme, is about 'routines and rituals' according to the Cultural Web.
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) The change would be classified as a 'revolutionary change' according to Balogum and Hope Hailey.

3. SDC is a medium sized IT systems development company. SDC employs highly qualified and experienced systems development experts. It invests heavily in staff training and development and as a result, staff are highly motivated and staff turnover is low. SDC has a strong culture of team work and innovation, which the senior managers believe is the basis of SDC's success. The senior managers, who are also the founders of SDC, are highly experienced and have a strong vision for the business.
Which THREE of the following factors would be the main focus of a resource audit for SDC? (Choose three.)

A) Management
B) Markets
C) Make-up
D) Money
E) Machinery
F) Manpower

4. According to Porter's Five Forces model, which of the following would be evidence of high buyer power?

A) There is a low probability of backward integration.
B) There is a concentration of buyers.
C) Buyers are fragmented and act independently of each other.
D) Products are not standardized and buyers cannot easily switch to another product.

5. Directors have a duty to shareholders and other stakeholders and are required to promote the success of the company.
Which THREE of the following are valid roles and responsibilities of directors? (Choose three.)

A) To be responsible for keeping all external stakeholders satisfied.
B) To have regard for the interests of the company's employees.
C) To avoid conflicts of interest and of duties.
D) To consider the likely consequences of any decision in the long term.
E) To focus only on maximizing company profits.

Solutions: