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CIMA E3 - E3 Strategic Management

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Total 280 questions

BCA is a long established international airline. Which of the following represent Threats to BCA's business? (Choose all that apply.)

A.

A sudden increase in international terrorism.

B.

A substantial rise in the price of oil.

C.

A higher level of private car ownership.

D.

Greater popularity of long-haul holidays.

E.

A shortage of trained pilots in BCA.

According to Johnson, Scholes and Whittington, Suitability is an important consideration when evaluating potential alternative investment strategies.

 

Which of the following is a Suitability consideration?

A.

There are limited raw materials available.

B.

Finances are available.

C.

Current markets are not saturated.

D.

Staff will be resistant to change.

GGG is a manufacturer of four different components produced in four separate facilities. The Production Director has sufficient funds to modernise one of the facilities.  GGG's decision rule in these circumstances is that investment is permissible in either a 'Cash Cow' or a 'Star' but not a 'Dog' or a 'Problem Child?'. Which facility should be modernised?

A.

Facility A produces a component with a relative market share of 1:5. Its current market growth rate is 4.5%.

B.

Facility B produces a component with a relative market share of 1:4. Its current market growth rate is 9%.

C.

Facility C produces a component with a relative market share of 3:1. Its current market growth rate is 11%.

D.

Facility D produces a component with a relative market share of 1:6. Its current market growth rate is 10%.

CCC has been given permission by the local government authority to build 500 houses and this will be a very profitable project for CCC. An animal charity is opposed to the building of the houses as fields where animals live will be built on.  Some people living nearest to the area of the proposed building are in favour because it will stimulate the local economy. Other people living near the area of the proposed development are opposed to it because their view will be spoiled. Which of the following activities should CCC undertake to resolve the stakeholders' competing objectives?

A.

CCC should focus on its stakeholders' needs in turn.

B.

CCC should give the animal charity the money to establish a wildlife sanctuary.

C.

CCC should conduct discussions with its stakeholders and reach an acceptable compromise.

D.

CCC should conduct a PESTLE analysis.

McKinsey's '7-S' model distinguishes between 'hard' and 'soft' factors.

 

Which TWO of the following statements are correct?

A.

Hard factors tend to be intangible and hard to identify.

B.

Soft factors tend to be intangible and hard to identify.

C.

Hard factors tend to be formal and measurable.

D.

Soft factors tend to be formal and measurable.

E.

Soft factors focus on the future and hard factors focus on the present.

YZ is a family-run business which manufactures and sells confectionery, employing almost 100 staff. It operates 10 shops in small towns in the north of country P. Sales of YZ's products have decreased over the last 4 years due to competition from large supermarkets, internet shopping and a general economic downturn, which has hit the north of country P especially hard.

YZ's managing director has recently retired and the board decided to fill the vacancy with an external appointment. The new managing director plans to invest in new manufacturing technology, which would cut staffing levels by 15% and reduce wastage, allowing YZ to lower its prices. YZ's staff are very unhappy about these proposals, feeling that they will destroy YZ's family tradition and reputation that has developed over many years.

Select the correct descriptor for each of the forces for change below:

An IT project is currently being undertaken by VVV, a large university. The project is to design and install a secure information system network for all academic staff and administrative staff in the university. The Executive Board of VVV has insisted that the key objective of the project team is to track and monitor how the information system is being used by the academic staff and the administrative staff once it is implemented.

 

Which of the following would be an appropriate performance measure for the key objective set by VVV's Executive Board?

A.

Overall usage time of the system compared to plan.

B.

Number of staff trained in the use of the new system.

C.

Percentage of staff usage of the system split between academic staff usage and administrative staff usage.

D.

User satisfaction levels.

Which of the following is NOT a use of the Value Chain?

A.

Give managers a deeper understanding of precisely what their Organization does.

B.

Implement changes to protect key processes.

C.

Identify the key processes within the business that add value to the end customer.

D.

Identify the non-value added processes.

ZZZ is a retailing Organization that is suffering falling market share and falling profits.

 

ZZZ has a new Chief Executive Officer (CEO) who is urgently setting up a strategic performance evaluation system. This will involve identifying Critical Success Factors (CSFs) and then monitoring Key Performance Indicators (KPIs).

 

Advise the CEO which of the following statements is suitable for the role that a Chartered Global Management Accountant should undertake.

A.

Identify CSFs, develop KPIs, and report on ZZZ's performance against them.

B.

Help strategic management to clarify CSFs then develop KPIs, and report on ZZZ's performance against them.

C.

Develop KPIs from a range of external data and report on ZZZ's performance against them.

D.

Act as a change leader in developing the strategic performance evaluation system.

Kanter identified seven 'power skills' that change agents need to overcome apathy or resistance to change. Which of the following are power skills?

 

Select ALL that apply.

A.

Ability to work independently.

B.

Ability to collaborate effectively.

C.

Ability to develop relationships based on trust.

D.

Ability to keep within a budget.

E.

Ability to work ethically and sustainably.

F.

Ability to keep projects to a strict time-line.