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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

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

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

2. RRR is a medium sized company, which has built family homes in Country D' for twenty years. The Board of RRR wishes to expand company operations and start building homes in the neighboring country. The Board of RRR wishes to undertake a position audit to help in this decision.
Which of the following strategic analysis tools would be used in a position audit for RRR?

A) Gap Analysis
B) Five Forces
C) SWOT
D) PEST

3. 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) Percentage of stock damaged.
C) Efficient staff planning systems.
D) Time taken to load and unload deliveries.
E) Market share percentage.
F) Customer satisfaction.

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

5. 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) Opportunity
B) Weakness
C) Threat
D) Strength

Solutions: