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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. HHH is an international distribution company which operates a number of large distribution warehouses. HHH employs over 10,000 staff who operate the warehouses 24 hours per day and process over 500,000 packages and parcels each day. HHH operates in a highly competitive market and the senior management team recognize the importance of focusing upon its Critical Success Factors (CSF's). However, some senior managers are confused as to the difference between CSF's and Key Performance Indicators (KPI's).
Which of the following are Critical Success Factors for HHH? (Choose all that apply.)

A) Percentage of stock damaged.
B) Market share percentage.
C) Customer satisfaction.
D) Efficient staff planning systems.
E) Time taken to load and unload deliveries.
F) Continual maintenance of warehouse facilities.

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

3. CCC is a software design company. The Board of CCC has always openly encouraged partnerships with a wide range of designers and other organizations in its industry in order to continually develop and enhance the services it offers and to utilize the expertise and knowledge of a range of individuals and organizations. CCC's staff have also been highly creative and innovative in the design services they provide. CCC regularly analyses and keeps up to date with changes in the environment in which it operates. CCC operates a sophisticated website to promote its services and keep in touch with its service users.
Which TWO of the following attributes of a change adept organization, as defined by Kanter, has CCC demonstrated? (Choose two.)

A) Continual service development
B) Openness to collaborate
C) Imagination to innovate
D) Sophisticated systems
E) Environmental awareness

4. Which THREE of the following issues relate to the Corporate Strategy of an organization? (Choose three.)

A) Leaving existing industries.
B) Meeting the needs of key customers.
C) Acquisitions, disposals and diversification.
D) Avoiding competitive disadvantages.
E) Achieving advantage over competitors.
F) Entering new industries.

5. STU is a hospital that is wholly funded by its national government. In the last five years it has seen its funding cut by over 30% due to budgetary pressure on the government, caused by a global recession. As a result, the senior management team of STU has had to make some very difficult decisions about prioritizing how it spends the funds it receives from the government. Its main strategies have been to reduce the number of administration staff and nursing staff by 20%, in order to reduce its costs. It has also stopped providing a number of services to patients, including its counselling services and its physiotherapy unit.
Which of the following strategies has STU adopted to manage its reduced funding? (Choose all that apply.)

A) Facilitation
B) Liquidation
C) Turnaround
D) Divestment
E) Retrenchment

Solutions: