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CIMA E3 - E3 Strategic Management

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Page: 8 / 9
Total 280 questions

A grocery store has analysed its recent sales and identified that customers who purchased fresh strawberries also purchased ice cream at the same time in 65% of transactions.

 

Which of the following best describes the results identified in the analysis carried out by the grocery store?

A.

Sequencing

B.

Association

C.

Clustering

D.

Classification

The Financial Director (FD) of your company has heard it said that 80% of profits come from 20% of customers. The FD has accused the sales team of wasting time on serving customers who are not valuable to the business.

 The FD has instructed you to take a random sample of 100 customers and to calculate the total contribution the company earned from each customer in the past year. The FD intends to instruct the sales team to stop selling to the bottom 25% of these customers in order to improve profitability.

Which THREE of the following factors should the FD consider when he interprets your results?

A.

It will ignore many customer attributable costs that differ widely from customer to customer.

B.

This would not consider the future potential of the customer.

C.

This doesn't take into account the value of the customer in referring new customers to us.

D.

This would not consider the total contribution from the combination of products which the customer buys.

E.

It is ethically wrong to stop supplying unprofitable customers.

VW is a Non-Governmental Organisation (NGO) based in Country A, a mature economy. VWs mission is to provide food, agricultural tools and seeds, and low cost housing to the villagers in Country G: a deprived country that is suffenng from the effects of civil war.

VW cannot change its mission nor adopt any strategies that would be incompatible with that mission.

WV depends on funding from the Government of Country A, donations from private organisations, and donations from the general public However, these donations have fallen considerably in recent years due to the environmental factors listed below.

Which THREE of the environmental factors should VW develop strategies to address?

A.

The appointment of a leader in Country G who is known to be hostile to Country A.

B.

A global banking crisis that has caused a recession and unemployment in WVs home country

C.

Resentment in Country A of the tactics used by the professional fund raisers employed by NGOs.

D.

Media reports that donations to NGOs are being spent on the wrong things.

E.

A new government in WVs home country that has limited knowledge of its work

In respect of mission statements, place the word "characteristic" or "purpose" against the relevant activity.

CIMA has conducted research into the implications of sustainability for business.  CIMA's report contained a number of key conclusions. Which of the following statements was NOT a conclusion in CIMA's report? 

A.

Strong ethical principles can add great value to a brand.

B.

Reporting on sustainability needs to provide hard evidence of the positive impact on society.

C.

Management Accountants have a responsibility to promote an ethics-based culture.

D.

The ethical tone within a business must come from the bottom.

Which of the following is NOT a fundamental principle specified in CIMA's Code of Ethics?

A.

Integrity

B.

Objectivity

C.

Confidentiality

D.

Sustainability

Which THREE of the following are classified as business operating systems measures within the Performance Pyramid?

A.

Flexibility

B.

Customer satisfaction

C.

Quality

D.

Productivity

E.

Cycle time

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.

As a CIMA qualified Management Accountant you must follow CIMA's Code of Ethics.

B.

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.

C.

Both CIMA's Code of Ethics and the company's Code of Business Conduct must be based on a set of basic principles.

D.

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.

E.

A company's Code of Business Conduct can be rules based.

OP and QR are the only two providers of electricity in country S. The demand for electricity is price-inelastic; customers regard electricity as essential and therefore demand does not change significantly if its price changes. However, customers will readily switch suppliers to obtain lower prices.

Applying game theory, select the correct long-term revenue impact for each company for each of the following pricing decisions:

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

A.

The performance pyramid is designed to ensure that all activities support the organization's vision.

B.

The right-hand side of the pyramid contains measures which are predominantly non-financial.

C.

The left-hand side of the pyramid contains measures which have an external focus.

D.

The business operating systems level includes the market-related Critical Success Factors.

E.

The lowest level of the pyramid contains the day-to-day operational measures.

F.

The business unit level includes measures which relate to internal systems needed to meet customers' needs.