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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. SSS University wishes to introduce a new Car Park Management Strategy (CPMS). The aim of this strategy is to reduce the use of private cars and to encourage sustainable transport, such as cycling and public transport, by staff and students. SSS has decided to reduce the number of car parking spaces and introduce parking charges.
The Management Accountant has decided to use the Balanced Scorecard to help prepare a performance management system to assess the performance of the new CPMS.
Which of the following is an example of the Innovation and Learning perspective of a Balanced Scorecard for SSS?

A) Reduction in complaints from customers.
B) Number of days of training for car park attendants.
C) Speed of processing the payment for parking charges.
D) Easy access to car parking spaces.

2. Ansoff has provided a product/market growth matrix which denotes possible strategic directions that an organization can follow.
Which of the following statements correctly describe the strategic options generated by the matrix? (Choose all that apply.)

A) Market penetration using new products within existing markets.
B) Diversification using new products in new markets.
C) Market development using existing products in new markets.
D) Product development using new products in new markets.
E) Market penetration using existing products in new markets.
F) Market penetration using existing products within existing markets.

3. BBB is a manufacturer that has been criticized in the financial press because it does not have a policy for sustainability.
Which THREE of the following elements would be crucial to BBB successfully embedding sustainability into its activities? (Choose three.)

A) BBB should employ a new public relations consultancy.
B) BBB should give all its staff training in sustainability.
C) BBB should spend at least 0.1% of its Net Profit on sustainability projects.
D) BBB should include sustainability targets in performance appraisal.
E) BBB should investigate the costs and benefits of establishing a sustainability department.
F) BBB's Board should make a commitment to sustainability.

4. Which THREE of the following statements apply to Lynch's performance pyramid? (Choose three.)

A) The right-hand side of the pyramid contains measures which are predominantly non-financial.
B) The performance pyramid is designed to ensure that all activities support the organization's vision.
C) The left-hand side of the pyramid contains measures which have an external focus.
D) The lowest level of the pyramid contains the day-to-day operational measures.
E) The business operating systems level includes the market-related Critical Success Factors.
F) The business unit level includes measures which relate to internal systems needed to meet customers' needs.

5. DF Company is undertaking a strategic review of its activities and has asked you to explain how a Force Field analysis would assist in the review process.
Which of the following statements would be most appropriate?

A) As part of DF's strategic review, identify forces facilitating the need for proposed change.
B) Identify forces facing DF's activities that may create barriers and resistance to change.
C) Provide a framework for identifying forces for and against the proposed changes within DF.
D) Identify influential senior managers who will drive through changes in DF's strategic direction.

Solutions: