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E3 Strategic Management

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Total Questions : 280

Dive into our fully updated and stable E3 practice test platform, featuring all the latest CIMA Strategic exam questions added this week. Our preparation tool is more than just a CIMA study aid; it's a strategic advantage.

Our free CIMA Strategic practice questions crafted to reflect the domains and difficulty of the actual exam. The detailed rationales explain the 'why' behind each answer, reinforcing key concepts about E3. Use this test to pinpoint which areas you need to focus your study on.

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Question # 31

Which of the following would be correct considerations when evaluating the Feasibility of a strategy? (Choose all that apply.)

Options:

A.  

Will there be sufficient time to implement the strategy?

B.  

Will the strategy exploit the core competencies of the business?

C.  

Will the strategy maintain competitive advantage?

D.  

Will customers object to the strategy?

E.  

Will the business be able to deal with the responses of its competitors to the strategy?

Discussion 0
Question # 32

A direct external change trigger is:

Options:

A.  

A general increase in the use of the Internet by society.

B.  

An economic recession in an organization's home country.

C.  

A powerful competitor forcing an organization to cut its prices.

D.  

The introduction of new environmental protection policies by the government.

Discussion 0
Question # 33

Mission statements set out the purpose of an Organization to a range of stakeholders who have an interest in what the Organization does. As an employee, you have been asked to assess the effectiveness of your Organization's mission statement.

 

Which of the following would NOT help the effectiveness of a mission statement?

Options:

A.  

Mission statements should be specific enough to impact Organizational behaviour.

B.  

Mission statements should communicate the Organization's distinctive advantages.

C.  

Mission statements should be flexible, realistic and attainable.

D.  

Mission statements should be aspirational and capture the imagination of stakeholders. 

Discussion 0
Question # 34

Which of the following is NOT included in the Information Systems Strategy (ISS) of Earl's three levels of information strategy?

Options:

A.  

Division / SBU / Function based

B.  

Business-focused

C.  

Management-focused

D.  

Demand-orientation

Discussion 0
Question # 35

S is a hybrid car manufacturer. S relies on strong social media presence and online marketing campaigns to drive customers to its website. S prioritises measuring and improving active usage metrics.

Which of the following metrics does S prioritise?

Select ALL that apply.

Options:

A.  

Abandon rates

B.  

The customer feedback score

C.  

The number of customer photographs uploaded

D.  

Number of repeat webpage users

E.  

Number of registered users

Discussion 0
Question # 36

P owns an internet-based business, called GWiz. based in Country

G.  

GWiz sells gifts, cards and flowers for a variety of occasions including birthdays, weddings and many other special events. P sources her products from a variety of partner suppliers located throughout country

G.  

Customers' orders are delivered by third party couriers across the whole country. The GWiz website is hosted and managed by an IT specialist

P is a member of a local small business trade federation and has been asked to make a presentation to its members on her experience of running GWiz as a 'virtual organisation'.

Which of the following statements could P correctly make on the benefits of virtual organisations?

Select ALL that apply.

Options:

A.  

The quality of the products and services offered by the partner suppliers is always guaranteed and easy to control.

B.  

Using partner suppliers who also supply products and services to competitors will help to increase the competitive advantage of the virtual organisation.

C.  

The costs of operating a virtual organisation are relatively low as there is no need to operate from large premises or employ its own staff.

D.  

A virtual organisation can look much larger than it actually is through the use of a range of partner suppliers and third party couriers.

E.  

Using the internet facilitates the assembly of the components that are needed to operate a virtual organisation.

Discussion 0
Question # 37

Company Y is a global business selling a selection of technological items including phones, laptops and other computer related items. In addition Y sells accessory items, music downloads, apps: digital books and video downloads including films and television series through a cooperative partnership with other companies, designed to create value for the customer.

Which of the following terms best describes what Y has created?

Options:

A.  

Artificial intelligence

B.  

A blockchain arrangement

C.  

An entirely cloud based offering

D.  

A digital ecosystem

Discussion 0
Question # 38

HHH is an international distribution company which operates a number of large distribution warehouses. HHH employs over 10,000 staff who operate the warehouses 24 hours per day and process over 500,000 packages and parcels each day. HHH operates in a highly competitive market and the senior management team recognize the importance of focusing upon its Critical Success Factors (CSF's). However, some senior managers are confused as to the difference between CSF's and Key Performance Indicators (KPI's).

Which of the following are Critical Success Factors for HHH? (Choose all that apply.)

Options:

A.  

Percentage of stock damaged.

B.  

Market share percentage.

C.  

Customer satisfaction.

D.  

Continual maintenance of warehouse facilities.

E.  

Time taken to load and unload deliveries.

F.  

Efficient staff planning systems.

Discussion 0
Question # 39

DEF is a medium sized business which manufactures children's clothing. In the last 5 years demand has steadily increased and DEF is struggling to meet this demand within its current manufacturing capacity. DEF's current manufacturing machinery was installed over 10 years ago and now requires updating, if DEF is to survive in the marketplace. 

 

DEF has established that the latest manufacturing technology would cost $2 million. This would be funded by the shareholders. It would payback within 2 years and would allow DEF to double output from its current level within this 2 year period. It will also improve product consistency and quality. However, it will result in the loss of 20% of DEF's manufacturing staff, most of whom are low paid and low skilled.

 

DEF is currently reviewing this proposed investment strategy, in terms of whether it meets the criteria of Suitability, Acceptability and Feasibility.

 

Which of the following correctly identifies the criteria which are met, in regard to DEF's proposed investment strategy?

Options:

A.  

Suitable and Acceptable

B.  

Suitable and Feasible

C.  

Acceptable and Feasible

D.  

Suitable, Acceptable and Feasible

Discussion 0
Question # 40

Kotter and Schlesinger identified six change styles. Which of the following situations would be better managed by a Negotiation and Agreement style?

Options:

A.  

Where the proposed change will disadvantage a powerful group of employees.

B.  

Where management prefers to force through the change quickly and against the interests of the staff.

C.  

Where management requires the detailed technical knowledge of the staff affected to design the change.

D.  

Where staff are positive about the benefits from the change but do not understand what management requires them to do.

Discussion 0
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