CIMA Certification CIMAPRO15-E03-X1-ENG

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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. DRAG DROP
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:
Select and Place:

Correct

2. Which of the following categorizations would be correct, according to McFarlan's Strategic Grid, for a system which is critical to sustaining existing business but its future strategic importance is considered to be low?

A) Turnaround
B) Support
C) Factory
D) Strategic

3. Ansoff has provided a product/market growth matrix which denotes possible strategic directions that an organization can follow.
Which of the following statements correctly describe the strategic options generated by the matrix? (Choose all that apply.)

A) Diversification using new products in new markets.
B) Market penetration using existing products in new markets.
C) Market development using existing products in new markets.
D) Market penetration using new products within existing markets.
E) Product development using new products in new markets.
F) Market penetration using existing products within existing markets.

4. Directors have a duty to shareholders and other stakeholders and are required to promote the success of the company.
Which THREE of the following are valid roles and responsibilities of directors? (Choose three.)

A) To consider the likely consequences of any decision in the long term.
B) To be responsible for keeping all external stakeholders satisfied.
C) To focus only on maximizing company profits.
D) To have regard for the interests of the company's employees.
E) To avoid conflicts of interest and of duties.

5. Which of the following would be correct considerations when evaluating the Feasibility of a strategy? (Choose all that apply.)

A) Will the strategy exploit the core competencies of the business?
B) Will the strategy maintain competitive advantage?
C) Will customers object to the strategy?
D) Will there be sufficient time to implement the strategy?
E) Will the business be able to deal with the responses of its competitors to the strategy?

Solutions: