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

CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. PQR is a charity which has an excellent reputation within its home country. PQR employs over 300 highly experienced staff and has 200 skilled volunteers. PQR's funding mainly comes from donations from the public but its public profile is low compared to larger, more publicized charities.
Due to a recent recession, public donations to PQR have fallen in the last five years, but demand for its services continues to grow.
The government of the country in which PQR operates is encouraging greater collaboration between charities and there have been several recent successful mergers within the charity sector. PQR has recently been approached by a high profile and well funded charity, DDD, with a merger proposal. DDD offers complementary services to those offered by PQR.
Which TWO of the following factors would most likely be considered as an "opportunity" for PQR? (Choose two.)

A) Donations from the public
B) The excellent reputation of DDD
C) Growing demand for its services
D) Highly experienced staff
E) Merging with DDD

2. You have been given responsibility, as a newly qualified management accountant, for delivering an ambitious project to centralize and computerize the accounts function within a medium-sized, geographically dispersed business. The timetable also requires the project to be delivered within a very short timescale with limited resources. You have built a team to deal with these proposed changes.
With regard to effective teams and change, which THREE of the following statements are correct? (Choose three.)

A) Teams should continue after their purpose has been served.
B) Teams that cross departmental boundaries can develop new performance criteria.
C) Teams play minor roles in institutional change.
D) Teams that cross departmental boundaries can destroy shared values.
E) Teams enhance learning and address change directly through creating recommendations and new ideas.
F) Individuals must become more than they were when working alone and must develop new commitments and behaviors.

3. QWE is a private company belonging to a famous former sports professional. It operates gyms and fitness clubs across its home country. Each gym or fitness club is treated as a profit center and the manager of each center is paid bonuses based on its financial performance.
QWE introduced multidimensional performance measures into its management control systems 3 years ago.
These measure competitiveness, financial performance, capacity utilization, innovation and the flexibility of its centers to cope with changing demands.
The managers of QWE's centers have been leaving at a very high rate over the last 2 years. They have claimed that the measures are too open to interpretation and when they think they are improving their center's performance they are told they are doing the wrong things. They also complain that the managers in the centers near big cities find it much easier to reach their targets than the managers of other centers.
According to Fitzgerald and Moon's Building Block model, where does the problem lie?

A) Dimensions and Rewards
B) Standards and Rewards
C) Dimensions and Standards
D) Standards, Dimensions and Rewards

4. HH is an outdoor theatre which is based in the capital city of country N.
Tickets for shows can be booked at the ticket office or online. HH has identified the following critical success factors (CSFs):
An excellent, online ticket booking system
Customer satisfaction
Which of the following would be suitable key performance indicators (KPIs) for HH? (Choose all that apply.)

A) Percentage of ticket bookings aborted before completion.
B) Number of customer complaints.
C) Profit from sales of snacks and drinks.
D) Employee turnover.
E) Number of returning customers each year.
F) Customer show ratings, scored out of ten.

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

Solutions: