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

CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. According to Porter's Five Forces model, which of the following would be evidence of high buyer power?

A) Buyers are fragmented and act independently of each other.
B) There is a concentration of buyers.
C) There is a low probability of backward integration.
D) Products are not standardized and buyers cannot easily switch to another product.

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

3. A direct external change trigger is:

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

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

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

5. DF Company is undertaking a strategic review of its activities and has asked you to explain how a Force Field analysis would assist in the review process.
Which of the following statements would be most appropriate?

A) Identify forces facing DF's activities that may create barriers and resistance to change.
B) Provide a framework for identifying forces for and against the proposed changes within DF.
C) As part of DF's strategic review, identify forces facilitating the need for proposed change.
D) Identify influential senior managers who will drive through changes in DF's strategic direction.

Solutions: