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

CIMA E3 - Strategic Management Question Tutorial Sample Questions:

Question 1

A is a private healthcare organization aiming to provide affordable and accessible high quality patient services.
A is introducing Big Data, which has not yet been adopted by the competition. A's database will store a huge amount of information about its patients. Clear access to wide sources of accurate information will enable patients to make more informed choices. Patients will be able to compare not only the prices of drugs, treatments and physicians but also their relative effectiveness.
Which of the following concerns should A have about its use of Big Data?

A. Variety of information
B. Lack of competitive advantage
C. Veracity of information
D. Privacy issues

Question 2

You have been given responsibility, as a newly qualified management accountant, for delivering an ambitious project to centralize and computerize the accounts function within a medium-sized, geographically dispersed business. The timetable also requires the project to be delivered within a very short timescale with limited resources. You have built a team to deal with these proposed changes.
With regard to effective teams and change, which THREE of the following statements are correct? (Choose three.)

A. Teams play minor roles in institutional change.
B. Teams enhance learning and address change directly through creating recommendations and new ideas.
C. Teams should continue after their purpose has been served.
D. Individuals must become more than they were when working alone and must develop new commitments and behaviors.
E. Teams that cross departmental boundaries can destroy shared values.
F. Teams that cross departmental boundaries can develop new performance criteria.

Question 3

M has been appointed as an external change agent to lead and implement a large scale re-structuring strategy which is being undertaken by a large bank. M has been appointed due to his extensive experience in a wide range of organizational re-structuring programmes. This re-structuring strategy will involve a large number of redundancies and the implementation of a new organization-wide management reporting system. M will need to work with staff from all departments and levels of the organization. The Board of Directors of the bank believes that an external change agent will bring more benefits to the change process than using an internal change agent.
Which of the following are the most likely benefits that could be achieved by the bank by appointing an external change agent to lead and implement the re-structuring strategy? (Choose all that apply.)

A. The external change agent will have better relationships with the bank employees than an internal change agent.
B. The speed of delivery of the change process will be quicker when using an external change agent.
C. As a dedicated resource, the external change agent can give more time to the change process.
D. The external change agent will be more objective in decision-making than an internal change agent.
E. The change process should be less costly if an external change agent is appointed.
F. The bank can exploit the specialist expertise of the external change agent.

Question 4

Ansoff has provided a product/market growth matrix which denotes possible strategic directions that an organization can follow.
Which of the following statements correctly describe the strategic options generated by the matrix? (Choose all that apply.)

A. Market penetration using existing products within existing markets.
B. Market penetration using existing products in new markets.
C. Market development using existing products in new markets.
D. Diversification using new products in new markets.
E. Market penetration using new products within existing markets.
F. Product development using new products in new markets.

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

Solutions: