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

CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. Ansoff has provided a product/market growth matrix which denotes possible strategic directions that an organization can follow.
Which of the following statements correctly describe the strategic options generated by the matrix? (Choose all that apply.)

A) Market penetration using existing products in new markets.
B) Diversification using new products in new markets.
C) Product development using new products in new markets.
D) Market development using existing products in new markets.
E) Market penetration using new products within existing markets.
F) Market penetration using existing products within existing markets.

2. 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.)

A) Percentage of stock damaged.
B) Continual maintenance of warehouse facilities.
C) Customer satisfaction.
D) Time taken to load and unload deliveries.
E) Market share percentage.
F) Efficient staff planning systems.

3. Information Systems (IS) strategy is correctly defined as:

A) Identifying the information needs of the organization and aligning development to them.
B) The planning, organizing, investment and control of information applications in the organization.
C) Decisions on the hardware, software and communications solutions used in the organization.
D) The roles and structure of information specialists in the organization and their relationship with users.

4. YZ operates a national mobile phone (cell phone) network in one country. It is considering upgrading its network to 4th Generation (4G) by providing an improved bandwidth that will enable its customers faster access to the Internet.
This investment will cost S29 million which YZ's institutional investors have agreed to provide by subscribing to a rights issue. This is due to management having informed institutional investors that a rival is already offering
4G and that this is taking customers away from YZ because its network is now regarded as too slow. YZ's remaining customers have shown a willingness to pay extra for 4G and overall the investment will have a positive net present value.
Which of the following statements are correct? (Choose all that apply.)

A) There is stakeholder approval for the investment.
B) It is essential given the strategic threats to YZ.
C) YZ will gain a first mover advantage.
D) There are sufficient investment funds available
E) It provides a market development opportunity for YZ.

5. Company TTT produces a range of products, including products T1 and T5.
Product T1: Profitability has declined in recent years, although small profits continue to be made as the market contracts due to changing customer preferences. Overall market share is low and continues to reduce.
However, in addition to external sales T1 is also used as a component of product T5.
Product T5: A market leader within a low growth market, sources components both externally and from TTT's other subsidiaries. T5 benefits from significant economies of scale and TTT has recently considered modernizing its T5 production line but following a cost benefit analysis, decided not to proceed.
Which of the following is an appropriate strategy for TTT to adopt?

A) Divest product T1 and Harvest product T5.
B) Divest both product T1 and product T5.
C) Harvest product T1 and Divest product T5.
D) Harvest both product T1 and product T5.

Solutions: