CIMA E3 - E3 Strategic Management

Your management team is considering using Porter's Value Chain to assist it in developing a new competitive strategy for the business.

 

Which THREE of the following statements would inform your management team about Porter's Value Chain?

Company RR operates in the finance sector. It is experiencing increasing delays in approving loan applications, due to customers not promptly returning their signed copy of the application forms back to RR.

 

RR is now wanting to introduce e-signatures which allow customers to sign the document on their computer and return it back to RR through the Internet. This change will help to simplify the process and ensure that customers obtain their loans quicker.

 

To achieve this change, RR has established a project and has appointed you as the Project Leader to lead the change.

 

Select the THREE valid statements in respect of leading change.

Company XX and Company YY are the only two providers of electricity to Country M. The demand for electricity is price inelastic which means that buyers regard it as essential and therefore demand for electricity does not change significantly if the average price of electricty changes. However customers will switch between suppliers within a year to get cheaper electricity. Using Game Theory place the long-run revenue impact on each firm of each of the following pricing decisions.

Company V has obtained planning permission to build 20 wind turbines in town W. This will be a highly profitable project and help the Government in Country H meet targets for renewable energy. However, local residents and wildlife groups are extremely unhappy and have objected to the plans and threatened to cause disruption at the site of the proposed wind turbines once building work commences

Which THREE of the following activities should Company V use, according to Cyert and March, to resolve these conflicting stakeholder objectives?

BB Laundry Company is a community-led franchise initiative, enabling its customers to make use of state-of-the-art washing machines for its customers' domestic laundry needs. Services include self-serve or fully serviced washing and ironing services, provided by on-site volunteer staff.

Its laundry sites are powered with solar or wind power and its washing machines use water-conserving technology Non-toxic soaps and detergents are available, as well as bio-degradable clothes hangers, mend and repair services, combined with community cafes.

Which of the following would be beneficial to BB Laundry Company for external reporting of its key performance outcomes?

QQQ has identified a new strategy which is both Suitable and Feasible However, it will not be Acceptable to some groups of QQQ's stakeholders who have publicly objected to it.

Which THREE of the following statements are correct ways of resolving competing stakeholder objectives, as suggested by Cyert and March?

JJJ is a frozen food delivery business in Country Q. Competition is high and JJJ prices its delivery services very competitively. JJJ has doubled its market share to 35% in the last five years.

 

In order to continue to improve its competitive position in Country Q, JJJ has invested in 100 new delivery vans. These vans have been designed to increase the speed and efficiency in loading and unloading the frozen food products. JJJ has to meet tight delivery deadlines to its customers or penalties for late delivery are charged to JJJ by its customers. Drivers of the vans undertake regular training. 

 

Which of the following would be the most appropriate critical success factor within the 'Customer' perspective of a Balanced Scorecard for JJJ?

DDD is a business which sells entertainment products and now wants to move to a position where it uses e-business as a fundamental part of its business strategy.

Which of the following benefits would result from DDD's use of e-business? (Choose all that apply.)

CCC is a charity which has an excellent reputation within its home country. CCC employs over 300 highly experienced staff and also has 200 skilled volunteers. Its funding mainly comes from donations from the public but its public profile is low compared to larger, more publicised charities.

 

Due to the recent recession, public donations to CCC have fallen in the last five years, but demand for its services continues to grow.

 

The government of the country in which CCC operates is encouraging greater collaboration between charities and there have been several recent successful mergers within the charity sector. CCC has recently been approached by a high profile and well funded charity, PPP, with a proposal to merge. PPP offers complementary services to those offered by CCC.

 

Which TWO of the following factors would most likely be considered as an 'opportunity' for CCC?