E3 - Strategic Management Question Tutorial - CIMAPRO15-E03-X1-ENG Exam Practice Test

Question 1

DRAG DROP
QR is a conglomerate with two divisions, A and B.
Given the information below, select the most appropriate strategy for each division to implement.
Select and Place:

Correct

Correct Answer:

Explanation/Reference:

Question 2

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

A. Acquisitions, disposals and diversification.

B. Meeting the needs of key customers.

C. Entering new industries.

D. Leaving existing industries.

E. Avoiding competitive disadvantages.

F. Achieving advantage over competitors.

Correct Answer: A,B,E

Question 3

Which THREE of the following statements apply to Lynch's performance pyramid? (Choose three.)

A. The right-hand side of the pyramid contains measures which are predominantly non-financial.

B. The business unit level includes measures which relate to internal systems needed to meet customers' needs.

C. The business operating systems level includes the market-related Critical Success Factors.

D. The left-hand side of the pyramid contains measures which have an external focus.

E. The performance pyramid is designed to ensure that all activities support the organization's vision.

F. The lowest level of the pyramid contains the day-to-day operational measures.

Correct Answer: B,C,D

Question 4

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 consider the likely consequences of any decision in the long term.

B. To have regard for the interests of the company's employees.

C. To avoid conflicts of interest and of duties.

D. To focus only on maximizing company profits.

E. To be responsible for keeping all external stakeholders satisfied.

Correct Answer: A,B,C

Question 5

DRAG DROP
PQ is an international airline.
In accordance with Porter's Value Chain, select "Primary" or "Support" for each of the activities listed below:
Select and Place:

Correct

Correct Answer:

Explanation/Reference:

Question 6

Which THREE of the following frameworks are used solely to evaluate the external environment of an organization? (Choose three.)

A. SWOT analysis

B. Porter's Diamond

C. Porter's Value Chain

D. Kaplan and Norton's Balanced Scorecard

E. Porter's Five Forces Model

F. PEST Analysis

Correct Answer: C,E,F

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CIMA E3 - Strategic Management Question Tutorial - CIMAPRO15-E03-X1-ENG Exam Practice Test

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