E3 Practice Exam Questions and Answers

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?

HH is an outdoor theatre which is based in the capital city of country N. Tickets for shows can be booked at the ticket office or online. HH has identified the following critical success factors (CSFs):

An excellent, online ticket booking system

Customer satisfaction

Which of the following would be suitable key performance indicators (KPIs) for HH? (Choose all that apply.)

M is a car manufacturer in Country

C.  

M's staff are paid during this time and M considers the practice to be a benefit both to staff and the company. Staff operate with high levels of efficiency and absenteeism levels are low.

The auditors of M have recommended that M stop these sessions, stating that they consider them to be a waste of time and a drain on resources.

Which of the following aspects of M's culture would the auditors recommendation impact on?

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?

Mayo defined knowledge management as the management of the information, knowledge and experience available to an Organization. Which THREE of the following are steps in the development and implementation of a knowledge management strategy?

MMM operates leisure parks in Country S. a mature economy in Europe. These are parks that are popular with people between the ages of 8 and 25 years who visit them to ride on the high speed roller-coasters and to visit other attractions at the parks. Nearly 60% of visitor expenditure is to buy meals and drinks at the park MMM estimates that 20% of its visitors travel to its parks from outside Country S.

Which THREE of the following environmental changes will have the greatest impact on MMM in the next five years?

DDD is a business which sells entertainment products and now wants to move to a position where it uses e-business 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.)

QQQ is a family run business which manufactures and sells chocolate. QQQ employs 80 staff in its factory and shops. It operates 10 shops within a number of small towns in the northern region of Country P. In the last four years, demand for QQQ's products has decreased, as customers in its local region are increasingly shopping in large supermarkets and out of town facilities, which are more convenient and tend to offer cheaper priced goods. The recent economic recession has hit the region hard and many local people have moved away to find work in other regions of the country. The internet has also impacted upon its business, as many customers are now making purchases of chocolate via the internet.

The Managing Director (MD) of QQQ has recently retired and the Board took the decision to make an external appointment to replace him. The new MD believes that QQQ needs to invest in new technology within its factory. This would reduce staffing levels by 15% and would reduce wastage and costs, allowing QQQ to offer more competitively priced products. He also believes that QQQ must invest in its own website. However QQQ's staff are very unhappy with these proposals. Some of the family members of the Board are concerned that this change will destroy the family tradition and reputation of QQQ that has been built up over many years.

Select the correct descriptor for each of the forces for change below.