CIMA E3 - Strategic Management Question Tutorial Sample Questions:

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

2. Which THREE of the following statements apply to Lynch's performance pyramid? (Choose three.)

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

3. 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) As part of DF's strategic review, identify forces facilitating the need for proposed change.
B) Provide a framework for identifying forces for and against the proposed changes within DF.
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.

4. HH is an outdoor theatre which is based in the capital city of country N.
Tickets for shows can be booked at the ticket office or online. HH has identified the following critical success factors (CSFs):
An excellent, online ticket booking system
Customer satisfaction
Which of the following would be suitable key performance indicators (KPIs) for HH? (Choose all that apply.)

A) Percentage of ticket bookings aborted before completion.
B) Number of returning customers each year.
C) Number of customer complaints.
D) Profit from sales of snacks and drinks.
E) Customer show ratings, scored out of ten.
F) Employee turnover.

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

Solutions: