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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. RRR is an insurance company which maintains an extensive database of its customer transactions over the last 10 years. RRR is developing a new product and has carried out a SWOT analysis.
Within which of the following aspects of the SWOT analysis would RRR include its customer database?

A) Threat
B) Weakness
C) Opportunity
D) Strength

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

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

3. BCA is a long established international airline. Which of the following represent Threats to BCA's business?
(Choose all that apply.)

A) Greater popularity of long-haul holidays.
B) A higher level of private car ownership.
C) A shortage of trained pilots in BCA.
D) A sudden increase in international terrorism.
E) A substantial rise in the price of oil.

4. A direct external change trigger is:

A) The introduction of new environmental protection policies by the government.
B) A general increase in the use of the Internet by society.
C) An economic recession in an organization's home country.
D) A powerful competitor forcing an organization to cut its prices.

5. LLL is an international oil and gas exploration company. It is considering investing S300 million in developing new oil fields in Country D.
For this it will need to obtain a license from the government of Country D.
These new oil fields will bring much wealth to Country D because a large proportion of the revenue from the production of oil will be paid to the government as part of the licensing agreement.
However, oil production in Country D will have some undesirable social effects, such as the threat of pollution, congestion to the roads and pressure on local amenities such as housing, electricity and clean water.
Which of the following approaches to stakeholder management should LLL NOT undertake in order to enter Country D?

A) Commit to improving the local amenities and roads as a part of the application for a license in Country D.
B) Issue free shares in a Joint Venture to develop oil fields to government ministers from Country D.
C) Undertake stakeholder mapping to identify the interests of the most powerful players in the decision to grant a license to LLL.
D) Develop and circulate a promotional video showing the benefits enjoyed by other countries in which LLL operates.

Solutions: