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

CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. Company TTT produces a range of products, including products T1 and T5.
Product T1: Profitability has declined in recent years, although small profits continue to be made as the market contracts due to changing customer preferences. Overall market share is low and continues to reduce.
However, in addition to external sales T1 is also used as a component of product T5.
Product T5: A market leader within a low growth market, sources components both externally and from TTT's other subsidiaries. T5 benefits from significant economies of scale and TTT has recently considered modernizing its T5 production line but following a cost benefit analysis, decided not to proceed.
Which of the following is an appropriate strategy for TTT to adopt?

A) Divest both product T1 and product T5.
B) Divest product T1 and Harvest product T5.
C) Harvest both product T1 and product T5.
D) Harvest product T1 and Divest product T5.

2. SDC is a medium sized IT systems development company. SDC employs highly qualified and experienced systems development experts. It invests heavily in staff training and development and as a result, staff are highly motivated and staff turnover is low. SDC has a strong culture of team work and innovation, which the senior managers believe is the basis of SDC's success. The senior managers, who are also the founders of SDC, are highly experienced and have a strong vision for the business.
Which THREE of the following factors would be the main focus of a resource audit for SDC? (Choose three.)

A) Machinery
B) Money
C) Management
D) Manpower
E) Make-up
F) Markets

3. M is a car manufacturer in Country C.
Every day, at 09.00, members of M's staff practice meditation and Tai Chi for 30 minutes, before their normal workday commences.
M's staff are paid during this time and M considers the practice to be a benefit both to staff and the company.
Staff operate with high levels of efficiency and absenteeism levels are low.
The auditors of M have recommended that M stop these sessions, stating that they consider them to be a waste of time and a drain on resources.
Which of the following aspects of M's culture would the auditors recommendation impact on?

A) The organizational paradigm and values
B) Routines and rituals
C) Stories and myths
D) Symbols

4. BCA is a long established international airline. Which of the following represent Threats to BCA's business?
(Choose all that apply.)

A) A shortage of trained pilots in BCA.
B) A substantial rise in the price of oil.
C) Greater popularity of long-haul holidays.
D) A sudden increase in international terrorism.
E) A higher level of private car ownership.

5. Information Systems (IS) strategy is correctly defined as:

A) The roles and structure of information specialists in the organization and their relationship with users.
B) Decisions on the hardware, software and communications solutions used in the organization.
C) The planning, organizing, investment and control of information applications in the organization.
D) Identifying the information needs of the organization and aligning development to them.

Solutions: