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

CIMA E3 - Strategic Management Question Tutorial Sample Questions:

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

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

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

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

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

5. Which THREE of the following issues relate to the Corporate Strategy of an organization? (Choose three.)

A) Meeting the needs of key customers.
B) Achieving advantage over competitors.
C) Acquisitions, disposals and diversification.
D) Leaving existing industries.
E) Entering new industries.
F) Avoiding competitive disadvantages.

Solutions: