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

CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. DRAG DROP
PQ is an international airline.
In accordance with Porter's Value Chain, select "Primary" or "Support" for each of the activities listed below:
Select and Place:

Correct

2. According to Porter's Five Forces model, which of the following would be evidence of high buyer power?

A) There is a concentration of buyers.
B) Buyers are fragmented and act independently of each other.
C) There is a low probability of backward integration.
D) Products are not standardized and buyers cannot easily switch to another product.

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

4. Z is a medium-sized UK based accounting practice. Z operates a graduate training scheme. The trainees are given an induction and then placed on a three-year training programme designed to help develop professional skills and experience.
The training programme has been in existence for many years. However, there is no clear consensus amongst the partners of Z about what the trainees should be able to do on completion of the programme and therefore what the training programme should emphasize. This lack of clarity is affecting the morale and commitment of the trainees and significant numbers are failing the programme or leaving to join a rival firm.
Z's HR Department recognizes the need for committed and well motivated accountants to meet the increased expectations of clients and the competition from rival firms. The HR Department has identified changes to the training programme that can be implemented gradually through a series of initiatives.
Which TWO of the following statements regarding the change required in Z are correct? (Choose two.)

A) The plans to combat competition would be considered as a 'structure' factor according to the McKinsey 7 S model.
B) The skills, abilities and competences of the organization's employee's are a 'hard' factor according to the McKinsey 7 S model.
C) The need to manage the competitive position is an example of an 'external direct trigger' for change.
D) Understanding which day-to-day behaviors to reinforce within the training programme, is about 'routines and rituals' according to the Cultural Web.
E) The change would be classified as a 'revolutionary change' according to Balogum and Hope Hailey.

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

Solutions: