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CIMA CIMAPRO15-E03-X1-ENG Exam Syllabus Topics:

CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. You have been given responsibility, as a newly qualified management accountant, for delivering an ambitious project to centralize and computerize the accounts function within a medium-sized, geographically dispersed business. The timetable also requires the project to be delivered within a very short timescale with limited resources. You have built a team to deal with these proposed changes.
With regard to effective teams and change, which THREE of the following statements are correct? (Choose three.)

A) Teams enhance learning and address change directly through creating recommendations and new ideas.
B) Teams should continue after their purpose has been served.
C) Individuals must become more than they were when working alone and must develop new commitments and behaviors.
D) Teams play minor roles in institutional change.
E) Teams that cross departmental boundaries can develop new performance criteria.
F) Teams that cross departmental boundaries can destroy shared values.

2. QWE is a private company belonging to a famous former sports professional. It operates gyms and fitness clubs across its home country. Each gym or fitness club is treated as a profit center and the manager of each center is paid bonuses based on its financial performance.
QWE introduced multidimensional performance measures into its management control systems 3 years ago.
These measure competitiveness, financial performance, capacity utilization, innovation and the flexibility of its centers to cope with changing demands.
The managers of QWE's centers have been leaving at a very high rate over the last 2 years. They have claimed that the measures are too open to interpretation and when they think they are improving their center's performance they are told they are doing the wrong things. They also complain that the managers in the centers near big cities find it much easier to reach their targets than the managers of other centers.
According to Fitzgerald and Moon's Building Block model, where does the problem lie?

A) Standards, Dimensions and Rewards
B) Standards and Rewards
C) Dimensions and Standards
D) Dimensions and Rewards

3. Which of the following would be a suitable performance measure of Internal Business Processes within Kaplan and Norton's 'Balanced Scorecard' model?

A) New products developed.
B) Reduction in manufacturing cycle times.
C) Increase in market share.
D) Higher P/E ratio.

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

5. Information Systems (IS) strategy is correctly defined as:

A) The roles and structure of information specialists in the organization and their relationship with users.
B) Identifying the information needs of the organization and aligning development to them.
C) The planning, organizing, investment and control of information applications in the organization.
D) Decisions on the hardware, software and communications solutions used in the organization.

Solutions: