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CIMA CIMAPRO15-E03-X1-ENG Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| The Strategy Process | 15% | |
| Digital Strategy | 15% | |
| Analysing the Organisational Ecosystem | 20% | |
| Making Strategic Choices | 15% | |
| Strategic Control | 20% | |
| Generating Strategic Options | 15% |
CIMA E3 - Strategic Management Question Tutorial Sample Questions:
BCA is a long established international airline. Which of the following represent Threats to BCA's business?
(Choose all that apply.)
- A. A higher level of private car ownership.
- B. A sudden increase in international terrorism.
- C. A shortage of trained pilots in BCA.
- D. Greater popularity of long-haul holidays.
- E. A substantial rise in the price of oil.
Correct Answer: C,E 🗳️
According to Porter's Five Forces model, which of the following would be evidence of high buyer power?
- A. Buyers are fragmented and act independently of each other.
- B. There is a low probability of backward integration.
- C. There is a concentration of buyers.
- D. Products are not standardized and buyers cannot easily switch to another product.
Correct Answer: C 🗳️
Which TWO of the following are advantages to an organization of using non-financial performance measures, rather than financial performance measures? (Choose two.)
- A. They are less subjective than financial performance measures.
- B. They are not distorted by inflation.
- C. They are less expensive to measure than financial performance measures.
- D. They present a wider view of organizational performance than financial performance measures.
- E. They are easier to measure than financial performance measures.
Correct Answer: A,D 🗳️
JJJ is a publically quoted advertising agency. JJJ's competitive advantage is based on the expertise of its staff and its reputation in digital media advertising. JJJ has robust systems to protect its intellectual property. These include patents and copyrights. JJJ has also restricted access for most of its staff to its most sensitive data, such as studies of its customers' profitability.
JJJ's new Managing Director, Z, is concerned that when staff leave JJJ, the company loses whatever tacit knowledge they possess. These losses also impact on JJJ's reported profits. In order to remedy the losses of knowledge and the reduced profits Z wants to introduce a knowledge management strategy.
Which of the following steps support the introduction of a knowledge management strategy? (Choose all that apply.)
- A. JJJ should unfreeze current habits and standard operating procedures.
- B. Z should gain the support of the Board of Directors.
- C. JJJ should convince staff of the benefits of sharing their tacit knowledge.
- D. JJJ needs to acquire and install appropriate hardware and software.
- E. JJJ should integrate knowledge management and management accounting.
- F. Z should set a target for reported profit.
Correct Answer: B,C,E 🗳️
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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. Merging with DDD
- D. Growing demand for its services
- E. Highly experienced staff
Correct Answer: D,E 🗳️
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