CIMA E3 - Strategic Management Question Tutorial : CIMAPRO15-E03-X1-ENG

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

CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. 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) As part of DF's strategic review, identify forces facilitating the need for proposed change.
C) Identify forces facing DF's activities that may create barriers and resistance to change.
D) Identify influential senior managers who will drive through changes in DF's strategic direction.

2. 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 focus only on maximizing company profits.
B) To avoid conflicts of interest and of duties.
C) To have regard for the interests of the company's employees.
D) To be responsible for keeping all external stakeholders satisfied.
E) To consider the likely consequences of any decision in the long term.

3. A Service Level Agreement (SLA) defines exactly what services a service provider will provide and the required level or standard for those services.
Which of the following statements regarding Service Level Agreements is NOT correct?

A) Service Level Agreements should include the procedures for cancelling the contract.
B) Service Level Agreements should include the expected response time to technical queries.
C) Service Level Agreements should include the targets and benchmarks to be used and the consequences for failing to meet them.
D) Service Level Agreements should include a guarantee to provide 100% availability for complaint resolution.

4. A is a private healthcare organization aiming to provide affordable and accessible high quality patient services.
A is introducing Big Data, which has not yet been adopted by the competition. A's database will store a huge amount of information about its patients. Clear access to wide sources of accurate information will enable patients to make more informed choices. Patients will be able to compare not only the prices of drugs, treatments and physicians but also their relative effectiveness.
Which of the following concerns should A have about its use of Big Data?

A) Lack of competitive advantage
B) Veracity of information
C) Variety of information
D) Privacy issues

5. YZ operates a national mobile phone (cell phone) network in one country. It is considering upgrading its network to 4th Generation (4G) by providing an improved bandwidth that will enable its customers faster access to the Internet.
This investment will cost S29 million which YZ's institutional investors have agreed to provide by subscribing to a rights issue. This is due to management having informed institutional investors that a rival is already offering
4G and that this is taking customers away from YZ because its network is now regarded as too slow. YZ's remaining customers have shown a willingness to pay extra for 4G and overall the investment will have a positive net present value.
Which of the following statements are correct? (Choose all that apply.)

A) It is essential given the strategic threats to YZ.
B) There are sufficient investment funds available
C) It provides a market development opportunity for YZ.
D) YZ will gain a first mover advantage.
E) There is stakeholder approval for the investment.

Solutions: