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CIMA E3 - Strategic Management exam in just 24
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• Question No 1
• Which THREE of the following frameworks are used
  solely to evaluate the external environment of
  an Organization?
• PEST Analysis
• Porter's Five Forces Model
• Porter's Diamond
• Porter's Value Chain
• Kaplan and Norton's Balanced Scorecard
• Answer A, B, C Question No 2
• A resource audit identifies the resources that
  are available to an Organization and seeks to
  start the process of identifying competencies. By
  assessing the results from a resource audit, a
  company can evaluate how well its resources have
  been utilised and the efficiency and
  effectiveness of the Organization's systems. The
  Ms model is used to help managers undertake a
  resource audit. Which THREE categories will be
  included in a resource audit?
• Management
• Motor vehicles
• Make-up
• Money
• Market research
• Answer A, C, D Question No 3
• TTT, a manufacturer of computer monitors, is
  conducting a strategic analysis. Which THREE of
  the following should be classified as Threats?
• An increase in the rate of inflation
• A serious fire in its main factory
• Its main competitor going out of business

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• Question No 4
• Which THREE of the following are valid reasons to
  follow a Corporate Social Responsibility
  strategy?
• A good Corporate Social Responsibility policy can
  attract customers.
• A good Corporate Social Responsibility policy is
  likely to attract a higher calibre of staff.
• A good Corporate Social Responsibility policy is
  likely to reduce administration costs.
• A good Corporate Social Responsibility policy can
  help an Organization recruit employees to meet a
  diverse skills requirement.
• A good Corporate Social Responsibility policy
  will increase the company's market value.
• Answer A, B, D Question No 5
• JJJ is about to undergo a period of rapid and
  far-reaching change. JJJ's Chief Executive has
  heard about work published by Beer and Nohria,
  'Theory E' and 'Theory O', which identified
  reasons for business change initiatives failing.
  Select THREE of the following circumstances
  where it would be appropriate to use a 'Theory E'
  approach.
• Shareholder value is the main concern.
• The Chief Executive is going to use a 'Top-down'
  approach.
• The change will be large and knowledge-driven.
• The change will be small and process-driven.
• The change is emergent and participative.
• The change is a response to new legislation.
• Answer A, B, C Question No 6
• As a recently qualified accountant, you have been
  given responsibility for delivering an ambitious
  project to centralise and computerise the
  accounts function within a geographically
  dispersed, medium-sized business. In addition,
  the reporting timetable requires the project to
  be delivered within a very short timescale with
  limited resources. You have decided to put
  together a team to deal with these proposed
  changes. Which THREE of the following statements
  regarding effective Teams and Change are correct?
• Individuals must become more than they were when
  working alone and must develop new commitments
  and behaviours.
• Teams that cross departmental boundaries can
  develop new performance criteria.

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• F. Teams enhance learning and address change
  directly through creating recommendations and
  new ideas.
• Answer A, B, F Question No 7
• The concept of Triple Bottom Line (TBL) reporting
  expands traditional accountancy reporting
  systems to consider social and environmental
  performance, rather than simply financial
  performance. Which THREE of the following does
  the TBL concept suggest should be measured in
  order to encourage greater business social
  responsibility?
• Productivity
• Profit
• People
• Planet
• Privacy
• Answer B, C, D Question No 8
• PPP uses the Boston Consulting Group Matrix (BCG
  Matrix) to prioritise products for investment
  and divestment. PPP invests or divests according
  to the quadrant of the BCG Matrix that the
  product occupies. Which TWO of the following
  quadrants might receive only as much investment
  as required to maintain PPP's relative market
  share?
• Stars
• Question marks
• Dogs
• Cash cows
• Answer A, D
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