CIMA E3 Strategic Management CIMAPRA19-E03-1 Exam Questions

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Total 278 questions
Question 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.)



Answer : B, D, F


Question 2

An insurer,JJJ, uses itsInternet capabilities to promote and sell car and home insurance products. AlthoughJJJ is supported by an 'in-house' call centre located in its home country, it has decided to outsource this activity to an overseas call centre.

There are a number of benefits to the company by undertaking this strategy, including that it can charge more competitive premiums to its customers and also increase itsprofits. However this change willmean that 75call centre staffin the home countrywill be made redundant.

You have been appointed as the Change Leader and have been asked to prepare a report that includes detailsonhow this change can be communicated.

WhichTHREE of the following statements are valid regarding JJJ's proposed changes and the related staff communications?



Answer : A, C, D


Question 3

Which of the following is an example of a value adding activity within theoutbound logisticsaspect of an Organization's value chain?



Answer : C


Question 4

FFF isconsidering developing a new website that will allow it toadvertise andsellitshigh quality jewellery productsonline. The Boardof FFF hasidentified that thecost of developing and managing a website would be relatively low. It is predictedthat FFF will sell only a small percentage of its products through the website, as most customers like the personal experience of shopping in store.

However, research undertaken by the Marketing Director indicates that the website could be usedverysuccessfullyby FFFfor online marketing and customer communication. Therefore, the Marketing Director has suggested that FFF should develop an IT/ IS strategy to ensure a strategic focus for its website development. However,most of FFF's Board members, who are the main shareholders of the business, believe thatdeveloping an IT/IS strategy is unnecessary in order to develop and manage its website.

Which ofthe followingarguments could be made by the Marketing Director to the Board of FFF to persuade it that an IT/ IS strategy would be appropriate in relation to the current website development?



Answer : C


Question 5

Company W manufactures marshmallows for sale to supermarkets across Europe. W follows a logical and formal approach to strategic planning. Which of the following are valid stages of such a rational strategic planning model? Select ALL that apply.



Answer : B, E


Question 6

TTT recently appointed a new Chief Executive, R, to lead it through a period of major change. R immediately set up a change management team which consisted of several senior managers and directors from across the organization. Together, they formulated an overall goal for change and then spent several weeks presenting the need for change to all of the staff through a series of staff meetings. At these meetings R involved staff and built their ideas into the final change strategy.

R also set a series of interim goals to encourage ongoing performance throughout the change process. When the organization reached these goals, R widely publicized these achievements to help motivate staff.

However, after six months, TTT had failed to reach most of the interim goals that had been set. Most of the members of the change management team had not maintained a significant interest in the change process and many of the staff felt that there had been a lack of communication and reward following the initial few weeks of the change process.

Kotter suggested that there were eight steps required to successfully lead change.

Which TWO of the following did R fail to achieve? (Choose two.)



Answer : C, D


Question 7

BBB is a manufacturer of convenience meals. Which of the following could be Weaknesses for BBB?

SelectALLthat apply.



Answer : B, C, D


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Total 278 questions