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

CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. QWE is a private company belonging to a famous former sports professional. It operates gyms and fitness clubs across its home country. Each gym or fitness club is treated as a profit center and the manager of each center is paid bonuses based on its financial performance.
QWE introduced multidimensional performance measures into its management control systems 3 years ago.
These measure competitiveness, financial performance, capacity utilization, innovation and the flexibility of its centers to cope with changing demands.
The managers of QWE's centers have been leaving at a very high rate over the last 2 years. They have claimed that the measures are too open to interpretation and when they think they are improving their center's performance they are told they are doing the wrong things. They also complain that the managers in the centers near big cities find it much easier to reach their targets than the managers of other centers.
According to Fitzgerald and Moon's Building Block model, where does the problem lie?

A) Dimensions and Standards
B) Dimensions and Rewards
C) Standards, Dimensions and Rewards
D) Standards and Rewards

2. DRAG DROP
AB uses Johnson, Scholes and Whittington's criteria of 'Feasibility and Acceptability' to evaluate potential strategies. AB has begun a project to re-engineer its best selling product.
Apply the appropriate criterion to each of the questions below:
Select and Place:

Correct

3. Which THREE of the following statements apply to Lynch's performance pyramid? (Choose three.)

A) The left-hand side of the pyramid contains measures which have an external focus.
B) The business operating systems level includes the market-related Critical Success Factors.
C) The right-hand side of the pyramid contains measures which are predominantly non-financial.
D) The performance pyramid is designed to ensure that all activities support the organization's vision.
E) The business unit level includes measures which relate to internal systems needed to meet customers' needs.
F) The lowest level of the pyramid contains the day-to-day operational measures.

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

5. Which of the following would be likely to encourage an organization to use Scenario Planning? (Choose all that apply.)

A) The organization has not previously experienced any major surprises or expensive strategic mistakes.
B) Competitor's are increasingly using Scenario Planning as part of their strategy formulation process.
C) The organization often experiences 'group-think', leading to a narrow view of the future.
D) The organization has achieved all of its objectives and operates within a stable external environment.
E) Uncertainty in the industry is high, relative to management's ability to predict or adjust to change.

Solutions: