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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. Which of the following would be likely to encourage an organization to use Scenario Planning? (Choose all that apply.)

A) Competitor's are increasingly using Scenario Planning as part of their strategy formulation process.
B) The organization often experiences 'group-think', leading to a narrow view of the future.
C) Uncertainty in the industry is high, relative to management's ability to predict or adjust to change.
D) The organization has not previously experienced any major surprises or expensive strategic mistakes.
E) The organization has achieved all of its objectives and operates within a stable external environment.

2. ABC is an independent training provider in Country F.
It provides training in business related subjects to a wide range of corporate customers. All of its tutors must possess a nationally accredited training qualification before being allowed to teach and all of its courses follow nationally accredited programmes which are externally monitored. This is considered to be a critical aspect of its business reputation.
ABC has one major competitor, XYZ, within Country F.
XYZ offers similar courses to ABC but its tutors do not have to have an accredited training qualification and its courses do not follow the national accredited programmes. The style and content of courses varies significantly between XYZ's centers.
There are a number of universities which offer nationally accredited courses within Country F.
ABC does not consider these as competitors because typically they attract students wishing to undertake degree courses.
The average university pass rate for nationally accredited programmes is currently higher than ABC's.
Which of the following types of benchmarking would be most useful for ABC?

A) Internal
B) Competitor
C) Process
D) Strategic

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) As part of DF's strategic review, identify forces facilitating the need for proposed change.
D) Identify influential senior managers who will drive through changes in DF's strategic direction.

4. DDD is a business which sells entertainment products and now wants to move to a position where it uses ebusiness as a fundamental part of its business strategy.
Which of the following benefits would result from DDD's use of e-business? (Choose all that apply.)

A) Better control of information through monitoring website activity.
B) An increased use of tacit knowledge.
C) A reduction in labour turnover and higher morale.
D) Easier access to loan finance.
E) Cost reductions because of lower overheads and cheaper procurement.
F) Increased online revenues.

5. GV is a manufacturer and retailer of high quality suede gloves. GV makes all of its sales in country F, and is extremely profitable. After many successful years trading, GV has accumulated significant cash reserves and would like to grow the business organically.
After some investigation work, GV has discovered an opportunity to sell leather shoes in country P.
Which of the following strategic directions is GV taking if it pursues this opportunity, according to Ansoff's product / market matrix?

A) Market penetration
B) Related diversification
C) Product development
D) Market development

Solutions: