CIMA CIMAPRO15-E03-X1-ENG

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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. HHH is an international distribution company which operates a number of large distribution warehouses. HHH employs over 10,000 staff who operate the warehouses 24 hours per day and process over 500,000 packages and parcels each day. HHH operates in a highly competitive market and the senior management team recognize the importance of focusing upon its Critical Success Factors (CSF's). However, some senior managers are confused as to the difference between CSF's and Key Performance Indicators (KPI's).
Which of the following are Critical Success Factors for HHH? (Choose all that apply.)

A) Percentage of stock damaged.
B) Time taken to load and unload deliveries.
C) Customer satisfaction.
D) Efficient staff planning systems.
E) Continual maintenance of warehouse facilities.
F) Market share percentage.

2. DRAG DROP
AB uses Johnson, Scholes and Whittington's criteria of 'Feasibility and Acceptability' to evaluate potential strategies. AB has begun a project to re-engineer its best selling product.
Apply the appropriate criterion to each of the questions below:
Select and Place:

Correct

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

4. RRR is a medium sized company, which has built family homes in Country D' for twenty years. The Board of RRR wishes to expand company operations and start building homes in the neighboring country. The Board of RRR wishes to undertake a position audit to help in this decision.
Which of the following strategic analysis tools would be used in a position audit for RRR?

A) PEST
B) SWOT
C) Gap Analysis
D) Five Forces

5. 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 TWO of the following statements are TRUE? (Choose two.)

A) A company's Code of Business Conduct can be rules based.
B) As a CIMA qualified Management Accountant you must follow CIMA's Code of Ethics.
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) Both CIMA's Code of Ethics and the company's Code of Business Conduct must be based on a set of basic principles.
E) 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.

Solutions: