CIMA E3 Strategic Management CIMAPRA19-E03-1 Exam Practice Test

Company LL is a well established, reputable company whichspecialises in providing insurance call centre services to the insurance industry. It has recently won a large contract to provide its services to a multi-national insurer. LL's staff are highly trained in insurance matters and manyhave worked for LL for many years.

LL undertakes long-term resource planning activities and has identified that during the winter months, when there will be more customers ringing up to makeinsurance claims,it will potentially need to employ more staff. The Board has decided that rather than recruititsown staff, itwillusean employment agency to supply manpower resourcesas required. Thepeoplesuppliedwill be employed on a temporary basis by LL and they will work alongside the other call centre staff. However, they will workat alowerpay rate and will onlybe paid forthe actual hours they work.

This change will lead to a shift in the working environment, the routine and the composition of the group.

Which THREE statements apply in respect of this proposed change?

A leading supermarket chain is undertaking environmental scanning as itis concerned that it is becoming uncompetitive and profits have started to fall. The Boardisconcerned that when the nextAnnualGeneralMeeting is held,itwill need to have a viable strategy to present toitsshareholders, in order to prevent shareholders' protests.

In the past the company has been reluctant to offer anInternet shopping service.However, it now believes that by offering this service and also introducing customer relationship marketing (CRM)thiswill produce a strategy that will help it to improve its competitiveness.

Whichof the following statementsapply to CRM?

Select ALL that apply.

PPP is a company that designs and markets attractive handsets, tablets, and laptop PCs globally. Its brand is one of the toptenglobal brands. PPP uses external companies to manufacture its products.

The recently appointed CEO of PPP presented the company's strategy to a meeting of investors andjournalists.

The CEO referred to public concerns about its past ways of doing business. He stated that PPP was actively seeking to address concerns about exploitation of workers in the factories of its suppliers. He said that PPP is also establishing a system to recycle or refurbish its products to avoid hazardous materials leaking into the environment and to give recycled products free of charge to people in poorer countries who cannot afford to buy them.

One investor asked the CEO to confirm whetherthis strategy would improve the profits of PPP in the present financial year. The CEO replied that it would notbut that the strategy was essential to protect the future of the PPP brand. The investor was unhappy with this response from the CEO of PPP.

Which of the following statementsreflectsBOTH theCEO's and investor'sstances on Corporate Social Responsibility (CSR) expressed at the meeting?

Communication is a critical element of the Organizational change process. Communicating the change vision is a component of Kotter's eight steps to transforming Organizations.

Which of the following statements support Kotter's component 'Communicate the change vision'?

Select ALL that apply.

Which of the following is NOTa use of the ValueChain?

Company PPis a large UK retail company.

In the past it has focused primarilyon using financial performance measures. However, PPthen realised that this was leading to short-term decision-making on investment in easily valued assets and under investmentinassets such as employee skills and customer satisfaction, where short-term returns are more difficult to measure.

It has therefore adopted theBalancedScorecard approach. PP is nowconsidering enhancing it's approach by using Kaplan and Norton's Strategic Mapping model, as this will enable it to establish its priorities and manage stakeholder expectations.

Which of the followingstatementswould be regarded as improvementsby usingStrategic Mapping.

Select ALL that apply.

Which of the following is NOT a key attribute of a successful stretch target?