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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

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

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

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

3. Which THREE of the following issues relate to the Corporate Strategy of an organization? (Choose three.)

A) Leaving existing industries.
B) Entering new industries.
C) Avoiding competitive disadvantages.
D) Acquisitions, disposals and diversification.
E) Meeting the needs of key customers.
F) Achieving advantage over competitors.

4. 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) Identify forces facing DF's activities that may create barriers and resistance to change.
C) As part of DF's strategic review, identify forces facilitating the need for proposed change.
D) Provide a framework for identifying forces for and against the proposed changes within DF.

5. Country W hosts a large music competition every 5 years, which is attended by many international musicians.
The success of the competition is dependent upon effective Customer Relationship Marketing being established with many different market groups around the world. These include music colleges who send their students, broadcasting companies who broadcast the event on radio and television, audience members, online ticket sellers and music journalists who write about the competition in specialist journals.
Using Payne's 'Six Markets Model', which of the following is the correct classification for the music journalists writing about the competition?

A) Customer market
B) Referral market
C) Supplier market
D) Influence market

Solutions: