CIMA CIMAPRA19-E03-1 Exam Questions Instant Access

Question 1

NNN is a logistics firm that contracts with online retailers (clients) to deliver parcels containingcustomers'purchases, to customers'home addresses. NNNholds inventory of the most frequently ordered products at its warehouses.

According to industry research, most clients require the contractors to deliver the customers their purchases soon after they place their order. They are not concerned with the environmental impact of the logistics process. They require very competitive delivery prices from their contractors.

Customer research reveals that households dislike being asked to stay at home for an entire day because logistics firms are unwilling to commit themselves to a precise delivery time. This problem has led to a small number of cases of customers arriving at the warehouses of logistics firms demanding to take their purchases away with them. Most households do not consider the environmental policies or performance of the firms they buy from.

The logistics industry is very competitive and NNN wants to protect its existing contracts and to win more. It needs to focus its resources on the 'things that must go right' in order for it to succeed.

Which THREE of the following are Critical Success Factors (CSFs) for NNN?

ABusiness processes that deliver to households at the promised time + or - 15 minutes.

BA shorter average time between receipt of an instruction from its client and delivery to the customer.

CWarehouses in areas of lowest feasible operating cost.

DA car park and waiting room for customers at each warehouse.

EA comprehensive policy on emissions and Corporate Social Responsibility (CSR).

Answer : B, C, D

Question 2

MMM is a multi-national company that manufactures and sells consumer durables. MMM has recently experienced severe trading losses and its Marketing Director has decided to revise the Marketing Strategy paying due regard to MMM's key external drivers. WhichTHREEof the following are key external drivers for MMM?

AA change in consumer age profiles in a country where MMM sells 5% of its output.

BA modification to MMM's production processes designed to save fuel.

CA change in MMM's domestic advertising agency.

DA growth in Protectionist trade policies in Africa and Asia.

EAn upward trend in commodity prices.

FA decline in the value of the Euro and the U.S. dollar.

Answer : D, E, F

Question 3

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?

AAs part of DF's strategic review, identify forces facilitating the need for proposed change.

BIdentify forces facing DF's activities that may create barriers and resistance to change.

CProvide a framework for identifying forces for and against the proposed changes within DF.

DIdentify influential senior managers who will drive through changes in DF's strategic direction.

Answer : C

Question 4

McKinsey's '7-S' model distinguishes between 'hard' and 'soft' factors.

Which TWO of the following statements arecorrect?

AHard factors tend to be intangible and hard to identify.

BSoft factors tend to be intangible and hard to identify.

CHard factors tend to be formal and measurable.

DSoft factors tend to be formal and measurable.

ESoft factors focus on the future and hard factors focus on the present.

Answer : B, C

Question 5

EFmanufactures and sells cars in Country X. Which of the following would improve itsprofitability?

AWithdrawal of one of EF's major competitors from selling cars to motorists in Country X.

BIntroduction of legislation in Country X requiring improvements to the pay and conditions of the workers in car factories.

CAdoption of free trade principles by the government of Country X, resulting in the removal of tariffs on imported cars.

DAn increase in the sales tax levied by the government of Country X on the sale of new cars.

Answer : A

Question 6

Aresource audit identifies the resources that are available to an Organization and seeks to start the process of identifying competencies. By assessing the results from a resource audit, acompanycan evaluate how well its resources have been utilised and the efficiency and effectiveness of the Organization's systems.

The Ms model is used to helpmanagers undertake a resource audit.

WhichTHREE categories will beincluded inaresourceaudit?

AManagement

BMotor vehicles

CMake-up

DMoney

EMarket research

Answer : A, C, D

Question 7

Kotter and Schlesinger identifiedsixchange styles. Which of the following situations would be better managed by a Negotiation and Agreement style?

AWhere the proposed change will disadvantage a powerful group of employees.

BWhere management prefers to force through the change quickly and against the interests of the staff.

CWhere management requires the detailed technical knowledge of the staff affected to design the change.

DWhere staff are positive about the benefits from the change but do not understand what management requires them to do.

Answer : A

CIMA E3 Strategic Management CIMAPRA19-E03-1 Exam Questions