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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. You work as a Management Accountant for GHJ, a company that includes commitments to 'sustainability' in its mission statement.
Which THREE of the following are contributions that you, as Management Accountant, could make towards the achievement of this part of the company's mission statement? (Choose three.)

A) Ensuring the organization adopts the lowest cost technologies and suppliers.
B) Project evaluations that include the externalities as well as the cash costs.
C) Providing financial information with all non-recurring expenditures and incomes removed.
D) Integrated reporting of the triple bottom line of Profits, People and Planet.
E) Measures of organization's use of non-renewable resources and environmental emissions.

2. 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) Routines and rituals
C) Stories and myths
D) Symbols

3. A direct external change trigger is:

A) A powerful competitor forcing an organization to cut its prices.
B) The introduction of new environmental protection policies by the government.
C) An economic recession in an organization's home country.
D) A general increase in the use of the Internet by society.

4. YZ operates a national mobile phone (cell phone) network in one country. It is considering upgrading its network to 4th Generation (4G) by providing an improved bandwidth that will enable its customers faster access to the Internet.
This investment will cost S29 million which YZ's institutional investors have agreed to provide by subscribing to a rights issue. This is due to management having informed institutional investors that a rival is already offering
4G and that this is taking customers away from YZ because its network is now regarded as too slow. YZ's remaining customers have shown a willingness to pay extra for 4G and overall the investment will have a positive net present value.
Which of the following statements are correct? (Choose all that apply.)

A) There are sufficient investment funds available
B) There is stakeholder approval for the investment.
C) YZ will gain a first mover advantage.
D) It provides a market development opportunity for YZ.
E) It is essential given the strategic threats to YZ.

5. SSS University wishes to introduce a new Car Park Management Strategy (CPMS). The aim of this strategy is to reduce the use of private cars and to encourage sustainable transport, such as cycling and public transport, by staff and students. SSS has decided to reduce the number of car parking spaces and introduce parking charges.
The Management Accountant has decided to use the Balanced Scorecard to help prepare a performance management system to assess the performance of the new CPMS.
Which of the following is an example of the Innovation and Learning perspective of a Balanced Scorecard for SSS?

A) Speed of processing the payment for parking charges.
B) Easy access to car parking spaces.
C) Number of days of training for car park attendants.
D) Reduction in complaints from customers.

Solutions: