CIMA CIMAPRA19-E02-1 Exam Practice Test Instant Access

Question 1

An auto company A, has formed a joint venture with another auto company B to incorporate engines produced bycompany B into its own automobiles.

Which of Ansoff's strategic directions would best describe this strategic move?

AMarket penetration

BMarket development

CProduct development

DDiversification

Answer : C

Question 2

A large multinational organisation, with financial processing centres in several countries in which it operates, has chosen to consolidate these activitieson one site or, in other words, into a Shared Service Centre (SSC).

Which THREE of the following are drawbacks of an SSC?

ABusiness relationships are weaker. The SSC may not be able to build strong relationships with the business area, which may result in a deterioration of performance in thebusiness area.

BThe accountants can feel isolated within the businessand may develop their own ways of working which may not constitute best practice. Without a larger team around them, they may not be able to develop the acquired skills and knowledge.

CIt distances the accountants from everyday decision-making in that he/she will be unlikely to have day to day contact with the business area which the SSC supports. The outcome may be that the accountant is unable to provide up-to-date information for decision-making.

DLoss of business knowledge as the finance function within the SSC may not have a detailed knowledge of each part of the business.

ELack of knowledge may occur because there is less sharing of knowledge which can be achieved within a larger more diverse team. Best practice may not be employed and practices within some business areas may become outdated.

Answer : A, C, D

Question 3

V is the owner of a small jewellery business which deals exclusively in pearls. The business has built up an excellent network of suppliers which deliver a steady stream of high quality pearls toitsworkshops, where a team of highly skilled craftsmen turn basic pearls into items of jewellery. V feels that no other company has such a talented and valuable workforce and believes their skills are rare and difficult if not impossible to imitate. They are the key to the company's sustainable competitive advantage and success.

What is theapproach to strategy which proposes that competitive advantage is achieved from the organisation's unique assets or competences?

AResource-based view

BEmergent strategy

CRational strategy model

DFree-wheeling opportunism

Answer : A

Question 4

Which of the followingoptions contains the four criteria of a unique resourceidentified by Barney(1991) ?

AValuable, Extendable, Rare, Substitutable

BUnsubstitutable, Valuable, Imperfectly Imitable, Rare

CExtendable, Substitutable, Imperfectly Imitable, Valuable

DRare, Substitutable, Imperfectly Imitable, Valuable

Answer : B

Question 5

According to Mintzberg, a manager must exhibit which of the following skills in order to create the conditions for new ideas to flourish and strategies to emerge?

Select ALL that apply.

AManage stability

BDetect discontinuity

CKeep decisions small

DDetect conflict

EManage patterns

FReconcile change and continuity

Answer : A, B, E, F

Question 6

The role of the project sponsor involves which THREE of the following?

AProvides resources for the project and is responsible for the budget.

BEnsures project objectives are achieved.

CProvides support and senior management commitment to the project.

DInitiates the project and ensures that a business case exists to justify the project.

EMakes decisions relating to system resources.

Answer : A, C, D

Question 7

Which of the following best describes a shared service centre (SSC)?

AA shared service centre is when a contract is initiated with a third party to provide part or all of a business process or function.

BA shared service centre refers to the provision of a service by one part of an organisation where that service has previously been found in more than one part of the organisation.

CA shared service centre is when a dedicated finance function is set up within each business area.

DA shared service centre is when an organisation requires expertise and support of a team with a variety of skills.

Answer : B

CIMAPRA19-E02-1 E2 Managing Performance Exam Practice Test