CIMA CIMAPRO15-E03-X1-ENG

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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. M is a car manufacturer in Country C.
Every day, at 09.00, members of M's staff practice meditation and Tai Chi for 30 minutes, before their normal workday commences.
M's staff are paid during this time and M considers the practice to be a benefit both to staff and the company.
Staff operate with high levels of efficiency and absenteeism levels are low.
The auditors of M have recommended that M stop these sessions, stating that they consider them to be a waste of time and a drain on resources.
Which of the following aspects of M's culture would the auditors recommendation impact on?

A) The organizational paradigm and values
B) Stories and myths
C) Routines and rituals
D) Symbols

2. RRR is a medium sized company, which has built family homes in Country D' for twenty years. The Board of RRR wishes to expand company operations and start building homes in the neighboring country. The Board of RRR wishes to undertake a position audit to help in this decision.
Which of the following strategic analysis tools would be used in a position audit for RRR?

A) PEST
B) SWOT
C) Gap Analysis
D) Five Forces

3. Company TTT produces a range of products, including products T1 and T5.
Product T1: Profitability has declined in recent years, although small profits continue to be made as the market contracts due to changing customer preferences. Overall market share is low and continues to reduce.
However, in addition to external sales T1 is also used as a component of product T5.
Product T5: A market leader within a low growth market, sources components both externally and from TTT's other subsidiaries. T5 benefits from significant economies of scale and TTT has recently considered modernizing its T5 production line but following a cost benefit analysis, decided not to proceed.
Which of the following is an appropriate strategy for TTT to adopt?

A) Harvest product T1 and Divest product T5.
B) Divest both product T1 and product T5.
C) Harvest both product T1 and product T5.
D) Divest product T1 and Harvest product T5.

4. DRAG DROP
LMN is a fast food manufacturer that makes 'Ready-meals'.
Place the appropriate stage of the Value Chain against each of the activities below:
Select and Place:

Correct

5. Which of the following statements is NOT a role for Management Accountants involved in the strategy development process?

A) Writing the Annual Report.
B) Consider and raise awareness of the ethical impact of proposed strategic decisions.
C) Integration of financial and non-financial information.
D) Assist the Board in determining risk appetite.

Solutions: