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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. SDC is a medium sized IT systems development company. SDC employs highly qualified and experienced systems development experts. It invests heavily in staff training and development and as a result, staff are highly motivated and staff turnover is low. SDC has a strong culture of team work and innovation, which the senior managers believe is the basis of SDC's success. The senior managers, who are also the founders of SDC, are highly experienced and have a strong vision for the business.
Which THREE of the following factors would be the main focus of a resource audit for SDC? (Choose three.)

A) Manpower
B) Management
C) Markets
D) Make-up
E) Machinery
F) Money

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

3. 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.

4. JJJ is a publically quoted advertising agency. JJJ's competitive advantage is based on the expertise of its staff and its reputation in digital media advertising. JJJ has robust systems to protect its intellectual property. These include patents and copyrights. JJJ has also restricted access for most of its staff to its most sensitive data, such as studies of its customers' profitability.
JJJ's new Managing Director, Z, is concerned that when staff leave JJJ, the company loses whatever tacit knowledge they possess. These losses also impact on JJJ's reported profits. In order to remedy the losses of knowledge and the reduced profits Z wants to introduce a knowledge management strategy.
Which of the following steps support the introduction of a knowledge management strategy? (Choose all that apply.)

A) JJJ should convince staff of the benefits of sharing their tacit knowledge.
B) JJJ should integrate knowledge management and management accounting.
C) JJJ should unfreeze current habits and standard operating procedures.
D) JJJ needs to acquire and install appropriate hardware and software.
E) Z should gain the support of the Board of Directors.
F) Z should set a target for reported profit.

5. Which TWO of the following are advantages to an organization of using non-financial performance measures, rather than financial performance measures? (Choose two.)

A) They are not distorted by inflation.
B) They are easier to measure than financial performance measures.
C) They present a wider view of organizational performance than financial performance measures.
D) They are less subjective than financial performance measures.
E) They are less expensive to measure than financial performance measures.

Solutions: