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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. Z is a medium-sized UK based accounting practice. Z operates a graduate training scheme. The trainees are given an induction and then placed on a three-year training programme designed to help develop professional skills and experience.
The training programme has been in existence for many years. However, there is no clear consensus amongst the partners of Z about what the trainees should be able to do on completion of the programme and therefore what the training programme should emphasize. This lack of clarity is affecting the morale and commitment of the trainees and significant numbers are failing the programme or leaving to join a rival firm.
Z's HR Department recognizes the need for committed and well motivated accountants to meet the increased expectations of clients and the competition from rival firms. The HR Department has identified changes to the training programme that can be implemented gradually through a series of initiatives.
Which TWO of the following statements regarding the change required in Z are correct? (Choose two.)

A) The change would be classified as a 'revolutionary change' according to Balogum and Hope Hailey.
B) The plans to combat competition would be considered as a 'structure' factor according to the McKinsey 7 S model.
C) The skills, abilities and competences of the organization's employee's are a 'hard' factor according to the McKinsey 7 S model.
D) The need to manage the competitive position is an example of an 'external direct trigger' for change.
E) Understanding which day-to-day behaviors to reinforce within the training programme, is about 'routines and rituals' according to the Cultural Web.

2. DRAG DROP
QR is a conglomerate with two divisions, A and B.
Given the information below, select the most appropriate strategy for each division to implement.
Select and Place:

Correct

3. 'Big data' refers to datasets whose size is outside the ability of typical database software tools to capture, store, manage and analyze.
Which of the following statements is NOT a valid statement with regard to 'big data'?

A) Sufficient analytical and managerial talent is available to exploit the opportunities associated with 'big data'.
B) The definition of 'big data' can vary by sector, depending on the software tools and dataset sizes common to a particular industry.
C) As technology advances overtime, the size of datasets that qualify as 'big data' will also increase.
D) 'Big data' will require the right infrastructure, incentives and safeguards to address public concerns.

4. 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.

5. HHH is an international distribution company which operates a number of large distribution warehouses. HHH employs over 10,000 staff who operate the warehouses 24 hours per day and process over 500,000 packages and parcels each day. HHH operates in a highly competitive market and the senior management team recognize the importance of focusing upon its Critical Success Factors (CSF's). However, some senior managers are confused as to the difference between CSF's and Key Performance Indicators (KPI's).
Which of the following are Critical Success Factors for HHH? (Choose all that apply.)

A) Continual maintenance of warehouse facilities.
B) Efficient staff planning systems.
C) Market share percentage.
D) Percentage of stock damaged.
E) Time taken to load and unload deliveries.
F) Customer satisfaction.

Solutions: