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CIMA CIMAPRO15-E03-X1-ENG Exam Syllabus Topics:

CIMA E3 - Strategic Management Question Tutorial Sample Questions:

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

A) An increased use of tacit knowledge.
B) Cost reductions because of lower overheads and cheaper procurement.
C) A reduction in labour turnover and higher morale.
D) Easier access to loan finance.
E) Increased online revenues.
F) Better control of information through monitoring website activity.

2. A direct external change trigger is:

A) A powerful competitor forcing an organization to cut its prices.
B) A general increase in the use of the Internet by society.
C) The introduction of new environmental protection policies by the government.
D) An economic recession in an organization's home country.

3. JJJ is a publically quoted advertising agency. JJJ's competitive advantage is based on the expertise of its staff and its reputation in digital media advertising. JJJ has robust systems to protect its intellectual property. These include patents and copyrights. JJJ has also restricted access for most of its staff to its most sensitive data, such as studies of its customers' profitability.
JJJ's new Managing Director, Z, is concerned that when staff leave JJJ, the company loses whatever tacit knowledge they possess. These losses also impact on JJJ's reported profits. In order to remedy the losses of knowledge and the reduced profits Z wants to introduce a knowledge management strategy.
Which of the following steps support the introduction of a knowledge management strategy? (Choose all that apply.)

A) JJJ should integrate knowledge management and management accounting.
B) JJJ should unfreeze current habits and standard operating procedures.
C) Z should gain the support of the Board of Directors.
D) JJJ should convince staff of the benefits of sharing their tacit knowledge.
E) JJJ needs to acquire and install appropriate hardware and software.
F) Z should set a target for reported profit.

4. CCC is a software design company. The Board of CCC has always openly encouraged partnerships with a wide range of designers and other organizations in its industry in order to continually develop and enhance the services it offers and to utilize the expertise and knowledge of a range of individuals and organizations. CCC's staff have also been highly creative and innovative in the design services they provide. CCC regularly analyses and keeps up to date with changes in the environment in which it operates. CCC operates a sophisticated website to promote its services and keep in touch with its service users.
Which TWO of the following attributes of a change adept organization, as defined by Kanter, has CCC demonstrated? (Choose two.)

A) Environmental awareness
B) Imagination to innovate
C) Openness to collaborate
D) Sophisticated systems
E) Continual service development

5. 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

Solutions: