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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. Which THREE of the following frameworks are used solely to evaluate the external environment of an organization? (Choose three.)

A) Porter's Value Chain
B) PEST Analysis
C) Kaplan and Norton's Balanced Scorecard
D) SWOT analysis
E) Porter's Five Forces Model
F) Porter's Diamond

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

3. Which TWO of the following are advantages to an organization of using non-financial performance measures, rather than financial performance measures? (Choose two.)

A) They are not distorted by inflation.
B) They are easier to measure than financial performance measures.
C) They are less subjective than financial performance measures.
D) They are less expensive to measure than financial performance measures.
E) They present a wider view of organizational performance than financial performance measures.

4. 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) Referral market
B) Supplier market
C) Customer market
D) Influence market

5. YZ operates a national mobile phone (cell phone) network in one country. It is considering upgrading its network to 4th Generation (4G) by providing an improved bandwidth that will enable its customers faster access to the Internet.
This investment will cost S29 million which YZ's institutional investors have agreed to provide by subscribing to a rights issue. This is due to management having informed institutional investors that a rival is already offering
4G and that this is taking customers away from YZ because its network is now regarded as too slow. YZ's remaining customers have shown a willingness to pay extra for 4G and overall the investment will have a positive net present value.
Which of the following statements are correct? (Choose all that apply.)

A) There are sufficient investment funds available
B) It provides a market development opportunity for YZ.
C) There is stakeholder approval for the investment.
D) It is essential given the strategic threats to YZ.
E) YZ will gain a first mover advantage.

Solutions: