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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. 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) Consider and raise awareness of the ethical impact of proposed strategic decisions.
D) Assist the Board in determining risk appetite.

2. Which of the following would be a suitable performance measure of Internal Business Processes within Kaplan and Norton's 'Balanced Scorecard' model?

A) Reduction in manufacturing cycle times.
B) New products developed.
C) Higher P/E ratio.
D) Increase in market share.

3. DRAG DROP
In order to organize the value-adding activities to support a chosen strategy, Porter's Generic Strategies are often applied within an organization's value chain.
Against each of the activities listed below, select the Generic Strategy which best defines the strategic approach being taken.
Select and Place:

Correct

4. 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.

5. ZYX is a global hotel chain, employing over 10,000 staff worldwide. ZYX operates a Code of Conduct for all of its staff, which states "Our staff are the most important assets of our business operations. We expect the highest standards of ethical and professional conduct from all staff, who must display the principles of trust, respect, equality, integrity and fairness at all times." Which THREE of the following actions could ZYX take to positively influence its staff to work to the ethical and professional principles in its Code of Conduct? (Choose three.)

A) Set performance targets in diversity and equality for its hotel senior managers.
B) Disciplinary actions, such as fines, for staff who do not display high ethical and professional standards.
C) Induction and on-going staff training on ZYX's Code of Conduct and ethical and professional principles.
D) Operate a system of reward incentives for staff who display high ethical and professional standards.
E) Interview process for staff prior to employment, to assess their understanding of ethical and professional behavior.
F) Publication on its website of ZYX's Code of Conduct and regular examples of staff displaying the highest standards of professional conduct.

Solutions: