CIMA Strategic Level Case Study Exam E3 Practice Test Engine Try These 282 Exam Questions [Q164-Q189] | DumpsMaterials

CIMA Strategic Level Case Study Exam E3 Practice Test Engine Try These 282 Exam Questions [Q164-Q189]

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CIMA Strategic Level Case Study Exam E3 Practice Test Engine: Try These 282 Exam Questions

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NEW QUESTION 164
A company runs a distribution warehouse. Its information systems constantly monitors inventory levels, with automatic re-order processing occuring with suppliers when inventory items reach a specified level. It operates a robotics system which automatically picks inventory from its location in the warehouse and delivers it to the pick-up area. The company also has a large database of customer information which it uses to analyse buying behaviour and sales trends so that it can provide customers with relevant and targeted marketing information.
Which THREE of the following activities of the Value Chain have been affected by the use of IT/ IS?

  • A. Sales and Marketing
  • B. Outbound logistics
  • C. Operations
  • D. Inbound Logistics
  • E. Services

Answer: A,C,D

 

NEW QUESTION 165
You are a Management Accountant working for a logistics firm that wants to build collaborative relationships with each of its key clients.
Which of the following changes to the management accounting function would you recommend to help the development of collaborative partnerships with a client?
Select ALL that apply.

  • A. Management accounting staff from your Organization should be made available to the key clients to facilitate joint problem-solving.
  • B. Relocation of some management accounting staff from your Organization into the offices of the key clients.
  • C. Open book management accounting in which the client can see the profits your firm makes from the relationship.
  • D. Recruitment of management accounting staff from the key clients to improve shared understanding.
  • E. Close monitoring of service level agreements to ensure your Organization provides the minimum service specified.

Answer: A,B

 

NEW QUESTION 166
EFG is a private hospital. It specialises in state-of-the-art laser surgery, an area which has developed rapidly in the last 10 years. Most of the staff of EFG are used to change, as developments in technology, new surgical techniques and customer demands have changed rapidly during this time. However, in the last three years the economic recession has had a significant impact upon EFG, with the numbers of private customers reducing and its profits falling sharply.
The Board of Directors has recently announced that it is to restructure the Organization and rationalise some of the services it offers. A small number of staff will be made redundant and those remaining will have to take on extra responsibilities with no extra pay. Also, the current generous overtime payments are to be drastically cut.
Many staff have expressed concern at the impact that these changes will have on them.
The Board of Directors has clearly communicated the economic reasons for change to the staff through several meetings and are operating an open door policy, whereby staff can discuss the changes with their line managers at any time.
Which of the following, according to Kotter and Schlesinger, is the MOST likely reason for resistance among EFG's staff?

  • A. Low tolerance to change
  • B. Misunderstanding
  • C. Parochial self interest
  • D. Different assessments of the situation

Answer: C

 

NEW QUESTION 167
AAA manufactures and sells a range of travel suitcases. One model, the 'Executive' has seen sales growth of around 3% for the last two years, following strong growth since its introduction eight years ago. This slow down in the 'Executive' sales growth is largely due to AAA's competitors offering products in direct competition with the 'Executive'. AAA has therefore had to reduce its price to match those of its major competitors. AAA has also recently upgraded the features of the 'Executive' model to include a variety of different colours and materials. It has also launched a marketing campaign to promote the benefits of the 'Executive' model against its competitors products.
Which stage of the product life cycle has the 'Executive' model of suitcases reached?

  • A. Decline
  • B. Growth
  • C. Maturity
  • D. Introduction

Answer: C

 

NEW QUESTION 168
Which THREE statements about scenario planning are correct?

  • A. It tells management what needs to be done to make the Organization successful in the future.
  • B. It tells management what will happen so they are able to plan for it.
  • C. It alerts management to the possibility of fundamental change in the environment.
  • D. It encourages management to communicate their personal knowledge of trends.
  • E. It encourages creative thinking by the participants.

Answer: C,D,E

 

NEW QUESTION 169
PPP wishes to increase shareholder value using the Seven Value Drivers identified in Shareholder Value Analysis (SVA). Place the correct direction of change next to each driver.

Answer:

Explanation:

 

NEW QUESTION 170
An organisation which exists in a fast-changing industry with managers who dislike formal planning would be best suited to using which of the following strategy models?

  • A. Emergent approach
  • B. Rational model
  • C. Freewheeling opportunism
  • D. Logical incrementalism

Answer: C

 

NEW QUESTION 171
Which of the following categorisations would be correct, according lo McFarian's Strategic Grid, for a system which is critical to sustaining existing business but its future strategic importance is considered to be low?

  • A. Factory
  • B. Turnaround
  • C. Support
  • D. Strategic

Answer: A

 

NEW QUESTION 172
Company V has obtained planning permission to build 20 wind turbines in town W. This will be a highly profitable project and help the Government in Country H meet targets for renewable energy. However, local residents and wildlife groups are extremely unhappy and have objected to the plans and threatened to cause disruption at the site of the proposed wind turbines once building work commences Which THREE of the following activities should Company V use, according to Cyert and March, to resolve these conflicting stakeholder objectives?

  • A. Continue to build the wind turbines despite attempts to overcome the objections of the locals and the wildlife groups
  • B. Negotiate a 5% reduction in the price of the blade manufacture.
  • C. Make a donation of $10,000 to town W as a contribution towards the construction of a new town hall.
  • D. Negotiate with the wildlife groups to ensure their key concerns are understood, and implement an action plan to address concerns where appropriate
  • E. Offer staff a bonus when the project is successfully completed

Answer: A,C,D

 

NEW QUESTION 173
Company XX and Company YY are the only two providers of electricity to Country M. The demand for electricity is price inelastic which means that buyers regard it as essential and therefore demand for electricity does not change significantly if the average price of electricty changes. However customers will switch between suppliers within a year to get cheaper electricity. Using Game Theory place the long-run revenue impact on each firm of each of the following pricing decisions.

Answer:

Explanation:

 

NEW QUESTION 174
QR is a conglomerate with two divisions, A and B Given the information below, select the most appropriate strategy for each division to implement.

Answer:

Explanation:

 

NEW QUESTION 175
Which TWO of the following are advantages to an organisation of using non-financial performance measures rather than financial performance measures?

  • A. They are less expensive to measure than financial performance measures.
  • B. They are easier to measure than financial performance measures.
  • C. They present a wider view of organisational performance than financial performance measures
  • D. They are not distorted by inflation.
  • E. They are less subjective than financial performance measures.

Answer: C,E

 

NEW QUESTION 176
Johnson, Scholes and Whittington developed the SAF framework to explain the factors that should be considered before pursuing a strategic option.
JJJ is a listed company that is considering launching a new product into its market.
Which of the following considerations affects the Acceptability of this new product launch?

  • A. The amount of production capacity JJJ will require to make the new product.
  • B. Whether the product is consistent with the strengths of JJJ.
  • C. The potential impact of the launch of the new product on the profitability of JJJ.
  • D. The availability of funds within JJJ for launching the new product.

Answer: C

 

NEW QUESTION 177
Place the correct label against each of the descriptors for the main principles of the UK Corporate Governance Code.

Answer:

Explanation:

 

NEW QUESTION 178
As a CIMA qualified Management Accountant working within a manufacturing company, you are subject to both CIMA's Code of Ethics and your company's Code of Business Conduct.
Which of the following statements are TRUE?
Select ALL that apply.

  • A. A company's Code of Business Conduct can be rules based.
  • B. Both CIMA's Code of Ethics and the company's Code of Business Conduct must be based on a set of basic principles.
  • C. Both CIMA's Code of Ethics and the company's Code of Business Conduct include references to Confidentiality. Disclosure on public interest grounds is therefore prohibited.
  • D. Where there is a difference between CIMA's Code of Ethics and the company's Code of Business Conduct, the company's Code of Business Conduct takes priority.
  • E. Where there is a difference between CIMA's Code of Ethics and the company's Code of Business Conduct, CIMA's Code of Ethics takes priority.
  • F. As a CIMA qualified Management Accountant you must follow CIMA's Code of Ethics.

Answer: A,F

 

NEW QUESTION 179
TTT recently appointed a new Chief Executive, R, to lead it through a period of major change. R immediately set up a change management team which consisted of several senior managers and directors from across the organization. Together, they formulated an overall goal for change and then spent several weeks presenting the need for change to all of the staff through a series of staff meetings. At these meetings R involved staff and built their ideas into the final change strategy.
R also set a series of interim goals to encourage ongoing performance throughout the change process. When the organization reached these goals, R widely publicized these achievements to help motivate staff.
However, after six months, TTT had failed to reach most of the interim goals that had been set. Most of the members of the change management team had not maintained a significant interest in the change process and many of the staff felt that there had been a lack of communication and reward following the initial few weeks of the change process.
Kotter suggested that there were eight steps required to successfully lead change.
Which TWO of the following did R fail to achieve? (Choose two.)

  • A. Empower broad based action
  • B. Incorporate change into the culture
  • C. Never letting up
  • D. Generate short term wins
  • E. Develop a change vision

Answer: D,E

 

NEW QUESTION 180
Company CCC is an automotive component manufacturer. It manufactures three main products within its portfolio:
Product 1: Relative market share of 0.1, Market growth rate of -2%
Product 2: Relative market share of 4 0; Market growth rate of +3%
Product 3: Relative market share of 0.3; Market growth rate of +15%
Which TWO of the following statements are CORRECT?

  • A. Product 2 is likely to be at the growth stage of its life cycle, have weak profitability, poor cash generation and high capital requirements
  • B. Product 1 is likely to be at the mature stage of its life cycle, operating in a contracting market and is fairly cash neutral
  • C. Product 1 is likely to be at the mature stage of its life cycle, have strong profitability and further investment should be considered.
  • D. Product 3 is likely to be at the growth stage of its life cycle, at high risk of failure and further investment should be considered
  • E. Product 2 is likely to be at the mature stage of its life cycle, is likely to benefit from significant economies of scale.

Answer: E

 

NEW QUESTION 181
The Board of a supermarket chain has decided that to compete more effectively against its competitors, it needs to change its strategy and pursue a differentiation-focus strategy. The Board's aim is to pursue differentiation to attract customers who have a higher disposable income and want to buy luxury food and other goods.
Which statements are valid for this differentiation-focus strategy?
Select ALL that apply.

  • A. Using this strategy, the company will have the opportunity to promote goods that have previously underperformed.
  • B. If this strategy is adopted, the company should aim to offer better value than its competitors.
  • C. Brand loyalty underpinning this strategy may fail if the cost differential between the price the company charges and that charged by its other competitors is too great.
  • D. In a differentiation-focus strategy, there is no need to exploit other activities in the value chain if they are not visible to the customer.
  • E. The company will have to ensure that the food and other goods it supplies are of the best quality.

Answer: A,C,E

 

NEW QUESTION 182
LLL is an international oil and gas exploration company. It is considering investing S300 million in developing new oil fields in Country D. For this it will need to obtain a license from the government of Country D.
These new oil fields will bring much wealth to Country D because a large proportion of the revenue from the production of oil will be paid to the government as part of the licensing agreement.
However, oil production in Country D will have some undesirable social effects, such as the threat of pollution, congestion to the roads and pressure on local amenities such as housing, electricity and clean water.
Which of the following approaches to stakeholder management should LLL NOT undertake in order to enter Country D?

  • A.
  • B. Develop and circulate a promotional video showing the benefits enjoyed by other countries in which LLL operates.
  • C. Commit to improving the local amenities and roads as a part of the application for a license in Country
  • D. Issue free shares in a Joint Venture to develop oil fields to government ministers from Country D.
  • E. Undertake stakeholder mapping to identify the interests of the most powerful players in the decision to grant a license to LLL.

Answer: A,E

 

NEW QUESTION 183
You are the youngest member of the senior management team and have recently been invited to become a member of the company's Board.
You have been sent an outline agenda ahead of your Board induction meeting with the Company Secretary.
The first item on the agenda is the role of the Board.
Which of the following statements is NOT the role of the Board?

  • A. Establish the company's vision, mission and values.
  • B. Establish strategy with regard to the risk appetite of the Organization.
  • C. Confirm the adequacy and alignment to strategy of internal control and risk management systems.
  • D. Relinquish responsibility for implementation of strategy to management.

Answer: D

 

NEW QUESTION 184
BBB is a global online recruitment agency It has over 20 million clients registered worldwide and estimates that it holds up to 80 terabytes of data about its clients. BBB gathers data about its clients from a wide variety of sources, such as client registration data input directly to the website, client browser and search histories and social media activity, all of which are used to build up a view of its clients.
Client data changes on a frequent basis and must be updated continually. New clients join the site regularly and the employment needs of clients often change. BBB utilises Big Data Analytics to evaluate its client data.
Which of the following features of Big Data are evident in BBB?
Select ALL that apply

  • A. Volume
  • B. Visibility
  • C. Velocity
  • D. Veracity
  • E. Variety

Answer: C

 

NEW QUESTION 185
Lynch developed the performance pyramid to define the links between objectives and performance measures. Which THREE of the following statements apply to the performance pyramid?

  • A. The right-hand side of the pyramid contains measures which are predominantly non-financial.
  • B. The performance pyramid is designed to ensure that all activities support the Organization's vision.
  • C. The lowest level of the pyramid contains the day-to-day operational measures.
  • D. The business operating systems level includes the market-related Critical Success Factors.
  • E. The left-hand side of the pyramid contains measures which have an external focus.
  • F. The business unit level includes measures which relate to internal systems needed to meet customers' needs.

Answer: B,C,E

 

NEW QUESTION 186
Place the correct label against each of the descriptors for the main principles of the UK Corporate Governance Code.

Answer:

Explanation:

 

NEW QUESTION 187
XYZ is a manufacturer of garden tools. It has defined 'Excellence of Manufacture' as a Critical Success Factor. Which THREE of the following would be appropriate to use as Key Performance Indicators in respect of this Critical Success Factor?.

  • A. Tonnage of raw materials usage.
  • B. Amount of money budgeted for production process improvements.
  • C. Raw materials identified as essential.
  • D. Number of finished products rejected at final inspection.
  • E. Average age of products.
  • F. % of raw materials input which is scrapped.

Answer: B,D,F

 

NEW QUESTION 188
Which THREE of the following issues relate to the Corporate Strategy of an organisation?

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

Answer: B,D,F

 

NEW QUESTION 189
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