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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. TUV had an employee turnover rate of 25% among new recruits and was becoming short of skilled workers.
The Board of TUV realized there was something dramatically wrong and called in consultants to assess the problem. The consultants recommended transformational change in that TUV should redesign the entire production system, change the placement of all equipment and the flow of work, redefine every job and give all workers new assignments.
Which type of change did the consultants recommend for TUV?

A) Revolution
B) Adaptation
C) Reconstruction
D) Evolution

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

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

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

4. ABC is an independent training provider in Country F.
It provides training in business related subjects to a wide range of corporate customers. All of its tutors must possess a nationally accredited training qualification before being allowed to teach and all of its courses follow nationally accredited programmes which are externally monitored. This is considered to be a critical aspect of its business reputation.
ABC has one major competitor, XYZ, within Country F.
XYZ offers similar courses to ABC but its tutors do not have to have an accredited training qualification and its courses do not follow the national accredited programmes. The style and content of courses varies significantly between XYZ's centers.
There are a number of universities which offer nationally accredited courses within Country F.
ABC does not consider these as competitors because typically they attract students wishing to undertake degree courses.
The average university pass rate for nationally accredited programmes is currently higher than ABC's.
Which of the following types of benchmarking would be most useful for ABC?

A) Competitor
B) Internal
C) Strategic
D) Process

5. DDD is a business which sells entertainment products and now wants to move to a position where it uses ebusiness as a fundamental part of its business strategy.
Which of the following benefits would result from DDD's use of e-business? (Choose all that apply.)

A) An increased use of tacit knowledge.
B) A reduction in labour turnover and higher morale.
C) Increased online revenues.
D) Better control of information through monitoring website activity.
E) Cost reductions because of lower overheads and cheaper procurement.
F) Easier access to loan finance.

Solutions: