E3 Practice Exam Questions | CIMA Strategic

EFG is a private hospital. It specialises in state-of-the-art laser surgery, an area which has developed rapidly in the last 10 years. Most of the staff of EFG are used to change, as developments in technology, new surgical techniques and customer demands have changed rapidly during this time. However, in the last three years the economic recession has had a significant impact upon EFG, with the numbers of private customers reducing and its profits falling sharply.

The Board of Directors has recently announced that it is to restructure the Organization and rationalise some of the services it offers. A small number of staff will be made redundant and those remaining will have to take on extra responsibilities with no extra pay. Also, the current generous overtime payments are to be drastically cut. Many staff have expressed concern at the impact that these changes will have on them.

The Board of Directors has clearly communicated the economic reasons for change to the staff through several meetings and are operating an open door policy, whereby staff can discuss the changes with their line managers at any time. 

Which of the following, according to Kotter and Schlesinger,  is the MOST likely reason for resistance among EFG's staff?

Which THREE of the following are classified as business operating systems measures within the Performance Pyramid?

LMN sells fashion clothing at competitive prices through its own retail stores. The clothes are manufactured for LMN by contractors in other countries.  

In the past 4 years LMN has progressively lost market share to rival shops and online stores. This has been the consequence of poor designs, poor quality, and poor customer service.

In the past 3 years LMN tried to respond to this declining market share in several ways:  

   • Used e-sourcing to increase the number of suppliers LMN uses in order to obtain a larger choice of designs.

   • Used e-procurement to buy in greater quantities to reduce cost per item.

   • Warned each supplier that LMN will use a different supplier unless prices are reduced and better designs provided.

   • Closed its own design studio to save costs, relying instead on its suppliers for designs.

   • Reallocated budgets away from funding for customer research towards increased advertising.

   • Avoided costs of product returns by making it difficult for customers to return items for a refund.

   • Cancelled investment in a Customer Relationship Management system (CRM) to use the funds to finance its rising inventories. 

You have been asked to suggest ways to improve the supply chain of LMN. This requires you to make a presentation to the Board of LMN.

Which THREE of the following techniques would improve the supply chain of LMN?