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

CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. Plush is a medium-sized hotel which recently opened on the outskirts of a city which is popular with tourists. It has a sophisticated website which allows customers to pre-book rooms and additional items, such as meals in its restaurant and tickets for popular tourist attractions in the city.
Plush has listed its website on a popular hotel price comparison website, which allows customers to compare prices and facilities of hotels in the same area and this has resulted in over 60% of Plush's customer bookings so far.
Since listing on the price comparison website, the Sales Manager of Plush has noticed that the prices offered by its nearest competitors have reduced dramatically and their range of special offers have also increased.
Which TWO of Porter's Five Forces have been most affected by the use of the price comparison website by the hotels in the same area as Plush? (Choose two.)

A) Bargaining power of suppliers.
B) Bargaining power of customers.
C) Threat of new entrants.
D) Competitive rivalry.
E) Threat of substitutes.

2. As a CIMA qualified management accountant working within a manufacturing company, you are subject to both CIMA's Code of Ethics and your company's Code of Business Conduct.
Which TWO of the following statements are TRUE? (Choose two.)

A) Both CIMA's Code of Ethics and the company's Code of Business Conduct must be based on a set of basic principles.
B) Both CIMA's Code of Ethics and the company's Code of Business Conduct include references to Confidentiality. Disclosure on public interest grounds is therefore prohibited.
C) As a CIMA qualified Management Accountant you must follow CIMA's Code of Ethics.
D) A company's Code of Business Conduct can be rules based.
E) Where there is a difference between CIMA's Code of Ethics and the company's Code of Business Conduct, the company's Code of Business Conduct takes priority.

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

4. Information Systems (IS) strategy is correctly defined as:

A) Identifying the information needs of the organization and aligning development to them.
B) Decisions on the hardware, software and communications solutions used in the organization.
C) The roles and structure of information specialists in the organization and their relationship with users.
D) The planning, organizing, investment and control of information applications in the organization.

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

Solutions: