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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. DDD is a business which sells entertainment products and now wants to move to a position where it uses ebusiness 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.)

A) Better control of information through monitoring website activity.
B) A reduction in labour turnover and higher morale.
C) Cost reductions because of lower overheads and cheaper procurement.
D) Easier access to loan finance.
E) An increased use of tacit knowledge.
F) Increased online revenues.

2. PQR is a charity which has an excellent reputation within its home country. PQR employs over 300 highly experienced staff and has 200 skilled volunteers. PQR's funding mainly comes from donations from the public but its public profile is low compared to larger, more publicized charities.
Due to a recent recession, public donations to PQR have fallen in the last five years, but demand for its services continues to grow.
The government of the country in which PQR operates is encouraging greater collaboration between charities and there have been several recent successful mergers within the charity sector. PQR has recently been approached by a high profile and well funded charity, DDD, with a merger proposal. DDD offers complementary services to those offered by PQR.
Which TWO of the following factors would most likely be considered as an "opportunity" for PQR? (Choose two.)

A) Merging with DDD
B) Highly experienced staff
C) Growing demand for its services
D) Donations from the public
E) The excellent reputation of DDD

3. Z is a medium-sized UK based accounting practice. Z operates a graduate training scheme. The trainees are given an induction and then placed on a three-year training programme designed to help develop professional skills and experience.
The training programme has been in existence for many years. However, there is no clear consensus amongst the partners of Z about what the trainees should be able to do on completion of the programme and therefore what the training programme should emphasize. This lack of clarity is affecting the morale and commitment of the trainees and significant numbers are failing the programme or leaving to join a rival firm.
Z's HR Department recognizes the need for committed and well motivated accountants to meet the increased expectations of clients and the competition from rival firms. The HR Department has identified changes to the training programme that can be implemented gradually through a series of initiatives.
Which TWO of the following statements regarding the change required in Z are correct? (Choose two.)

A) The need to manage the competitive position is an example of an 'external direct trigger' for change.
B) Understanding which day-to-day behaviors to reinforce within the training programme, is about 'routines and rituals' according to the Cultural Web.
C) The change would be classified as a 'revolutionary change' according to Balogum and Hope Hailey.
D) The plans to combat competition would be considered as a 'structure' factor according to the McKinsey 7 S model.
E) The skills, abilities and competences of the organization's employee's are a 'hard' factor according to the McKinsey 7 S model.

4. M has been appointed as an external change agent to lead and implement a large scale re-structuring strategy which is being undertaken by a large bank. M has been appointed due to his extensive experience in a wide range of organizational re-structuring programmes. This re-structuring strategy will involve a large number of redundancies and the implementation of a new organization-wide management reporting system. M will need to work with staff from all departments and levels of the organization. The Board of Directors of the bank believes that an external change agent will bring more benefits to the change process than using an internal change agent.
Which of the following are the most likely benefits that could be achieved by the bank by appointing an external change agent to lead and implement the re-structuring strategy? (Choose all that apply.)

A) As a dedicated resource, the external change agent can give more time to the change process.
B) The bank can exploit the specialist expertise of the external change agent.
C) The external change agent will be more objective in decision-making than an internal change agent.
D) The change process should be less costly if an external change agent is appointed.
E) The external change agent will have better relationships with the bank employees than an internal change agent.
F) The speed of delivery of the change process will be quicker when using an external change agent.

5. BBB is a manufacturer that has been criticized in the financial press because it does not have a policy for sustainability.
Which THREE of the following elements would be crucial to BBB successfully embedding sustainability into its activities? (Choose three.)

A) BBB should include sustainability targets in performance appraisal.
B) BBB should give all its staff training in sustainability.
C) BBB should employ a new public relations consultancy.
D) BBB should investigate the costs and benefits of establishing a sustainability department.
E) BBB should spend at least 0.1% of its Net Profit on sustainability projects.
F) BBB's Board should make a commitment to sustainability.

Solutions: