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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. 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

2. ABC is an independent training provider in Country F.
It provides training in business related subjects to a wide range of corporate customers. All of its tutors must possess a nationally accredited training qualification before being allowed to teach and all of its courses follow nationally accredited programmes which are externally monitored. This is considered to be a critical aspect of its business reputation.
ABC has one major competitor, XYZ, within Country F.
XYZ offers similar courses to ABC but its tutors do not have to have an accredited training qualification and its courses do not follow the national accredited programmes. The style and content of courses varies significantly between XYZ's centers.
There are a number of universities which offer nationally accredited courses within Country F.
ABC does not consider these as competitors because typically they attract students wishing to undertake degree courses.
The average university pass rate for nationally accredited programmes is currently higher than ABC's.
Which of the following types of benchmarking would be most useful for ABC?

A) Strategic
B) Process
C) Internal
D) Competitor

3. Which of the following statements is NOT a role for Management Accountants involved in the strategy development process?

A) Integration of financial and non-financial information.
B) Writing the Annual Report.
C) Assist the Board in determining risk appetite.
D) Consider and raise awareness of the ethical impact of proposed strategic decisions.

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

5. HHH is a manufacturer which has a bonus scheme for its production workers related to the speed of output.
HHH's products are very specialized and are made in a dangerous production environment. HHH's production workers usually work alone but sometimes, if there are problems in the production environment (for example, machinery breakdowns), they have to work in teams. When the production workers are working in teams they do not receive any bonus.
HHH's senior management is proposing to amend the current bonus scheme to encourage increased productivity. Under the current bonus scheme, production workers receive extra pay when they achieve 45% of their individual target: The target level is low because of the dangerous production environment and the need to occasionally work in teams.
Under the proposed bonus scheme, production workers will not receive any extra pay until they have achieved
90% of their individual target. Workers who achieve 90% or above of their individual target will be paid a 30% higher bonus.
Which THREE of the following problems is HHH most likely to encounter with the introduction of the proposed bonus scheme? (Choose three.)

A) Production workers will not be motivated by the proposed level of bonus.
B) Production workers could consider the new target as unachievable.
C) The extra production output will lead to an increase in inventory.
D) There could be a rise in the level of workplace accidents.
E) The proposed bonus scheme conflicts with health and safety legislation.

Solutions: