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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. DRAG DROP
LMN is a fast food manufacturer that makes 'Ready-meals'.
Place the appropriate stage of the Value Chain against each of the activities below:
Select and Place:

Correct

2. BBB is a manufacturer that has been criticized in the financial press because it does not have a policy for sustainability.
Which THREE of the following elements would be crucial to BBB successfully embedding sustainability into its activities? (Choose three.)

A) BBB should give all its staff training in sustainability.
B) BBB should employ a new public relations consultancy.
C) BBB's Board should make a commitment to sustainability.
D) BBB should spend at least 0.1% of its Net Profit on sustainability projects.
E) BBB should include sustainability targets in performance appraisal.
F) BBB should investigate the costs and benefits of establishing a sustainability department.

3. Which THREE of the following issues relate to the Corporate Strategy of an organization? (Choose three.)

A) Achieving advantage over competitors.
B) Leaving existing industries.
C) Avoiding competitive disadvantages.
D) Acquisitions, disposals and diversification.
E) Meeting the needs of key customers.
F) Entering new industries.

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

5. TUV had an employee turnover rate of 25% among new recruits and was becoming short of skilled workers.
The Board of TUV realized there was something dramatically wrong and called in consultants to assess the problem. The consultants recommended transformational change in that TUV should redesign the entire production system, change the placement of all equipment and the flow of work, redefine every job and give all workers new assignments.
Which type of change did the consultants recommend for TUV?

A) Reconstruction
B) Evolution
C) Adaptation
D) Revolution

Solutions: