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CIMA E3 Exam Dumps
E3 Strategic Management
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CIMA E3 Sample Questions
Question # 1XYZ operates a national chain of restaurants.Which THREE of the following are external environmental drivers for XYZ?
A. Appointment of a new Marketing Director
B. Recession in XYZ's country
C. Reduced personal income of its customers due to increased personal taxation
D. A direct competitor to XYZ closes down E. Launch of a new improved menu by XYZ
Question # 2
Which of the following of Porter's Five Forces would affect the power of suppliers?
A. Economies of scale
B. A lack of differentiation
C. Similar sized competitors
D. A lack of substitutes
Question # 3
Which TWO of the following are economic factors?
A. Change of government
B. Interest rates
C. Obsolescence
D. Exchange rates
E. Demographic change
Question # 4
LMN is a medium sized Organization which has faced a number of challenges due to the recenteconomic recession. In the last 3 years, its profits have fallen each year and it has made 10% ofits staff redundant during the same period. LMN has a hierarchical structure with formal lines ofcommunication. All of the key business decisions are made by a small senior management team,as the senior managers believe that they have the most experience to make these decisions.LMN has recently hired an external change agent to review its activities and to makerecommendations on what it must do to ensure its survival. Having spent several weeks talkingto staff and observing the activities and management processes of LMN, the external changeagent has made the following recommendations:1. Reduce the management levels within LMN, as this is limiting its ability to respondeffectively to customer demands.2. Allow some of its staff to take part in the decision making process, as much experience andexpertise is being overlooked when making key business decisions.Which TWO of the following elements of the Cultural Web will be most affected by the changeagent's recommendations?
A. Organizational structure
B. Symbols
C. Routines and rituals
D. Power structures
Question # 5
Which THREE of the following frameworks are used solely to evaluate the external environment of an Organization?
A. PEST Analysis
B. Porter's Five Forces Model
C. Porter's Diamond
D. Porter's Value Chain
E. Kaplan and Norton's Balanced Scorecard
Question # 6
UUU is a long established international airline. Which of the following represent Threatsto UUU's business?Select ALL that apply.
A. A sudden increase in international terrorism.
B. A shortage of trained pilots in UUU.
C. A substantial rise in the price of oil.
D. A higher level of private car ownership.
E. Greater popularity of long-haul holidays.
Question # 7
BBB is a manufacturer of convenience meals. Which of the following could be Weaknesses forBBB?Select ALL that apply.
A. Government health warnings about food ingredients.
B. A shortage of production capacity.
C. Outdated materials requirement planning processes.
D. A reduction in BBB's Marketing budget.
E. A rise in consumer demand for fresh food.
Question # 8
In Johnson, Scholes and Whittington's model of rational strategy which of the following stagesappear?Select ALL that apply.
A. Analysis
B. Choice
C. Feasibility
D. Implementation
E. Sustainability
Question # 9
Which of the following did Johnson, Scholes and Whittington identify as success criteria for theevaluation of strategic options?Select ALL that apply.
A. Suitability
B. Affordability
C. Feasibility
D. Acceptability
E. Durability
Question # 10
EF manufactures and sells cars in Country X. Which of the following would improve its profitability?
A. Withdrawal of one of EF's major competitors from selling cars to motorists in Country X.
B. Introduction of legislation in Country X requiring improvements to the pay and conditions ofthe workers in car factories.
C. Adoption of free trade principles by the government of Country X, resulting in the removal oftariffs on imported cars.
D. An increase in the sales tax levied by the government of Country X on the sale of new cars.
Question # 11
Organizations have a variety of stakeholders, each with differing interests and requirements. Thiscan lead to stakeholder conflict. This can be further complicated when individuals are membersof more than one stakeholder group and when members of one group do not share the sameprincipal interest.Company FF has decided that it needs to undertake a stakeholder analysis in order to manage itsstakeholders more effectively.Which of the following statements are valid when undertaking stakeholder analysis?Select ALL that apply.
A. Establishes stakeholder interests and claims on the Organization.
B. The analysis enables priorities to be set to minimize power clashes.
C. Considers how to prevent stakeholder trouble before it starts.
D. Determines the degree of power that each group holds.
E. The analysis only focuses on quantitative matters.
Question # 12
Which THREE principles are explicitly named in the CIMA Ethical Code for Management Accountants Part A?
A. Objectivity
B. Professional Competence and Due Care
C. Integrity
D. Privacy of Information
E. Correct Personal Behavior
Question # 13
D is a Project Manager. D has just left a meeting with the Executive Team of his Organization. Dis delighted that the Executive Team has given support to D's proposal to implement aknowledge management system in the Organization.What should be the next activity that D undertakes in this project?
A. Create a technological infrastructure of hardware and software.
B. Create database structures to store and reference knowledge.
C. Gain the commitment of senior management to the project.
D. Populate the knowledge management system with knowledge.
Question # 14
Company MM is wanting to build an out of town shopping complex. This will be located near abusy road which is surrounded by housing estates. MM has yet to obtain planning permission. Itrecognizes that unless it takes action, the local residents will object to MM's plans. As thePublicity Manager you have been asked to take over responsibility for Stakeholder Management.Which of the following Stakeholder Management statements is NOT correct?
A. Organizations will have a variety of stakeholders each with differing attitudes to risk whichcan cause conflict.
B. Pressure groups have an interest in matters of public policy, but do not want to control theworkings of government.
C. Stakeholder management is made more complicated for an Organization when individualsbelong to more than one stakeholder group.
D. In measuring the satisfaction of stakeholder interests, Organizations should only focus onquantitative matters.