CIMA CIMAPRA19-E03-1 Exam Practice Test Instant Access

Question 1

LLL is an international oil and gas exploration company. It is considering investing S300 million in developing new oil fields in Country D. For this it will need to obtain a license from the government of Country D.

These new oil fields will bring much wealth to Country D because a large proportion of the revenue from the production of oil will be paid to the government as part of the licensing agreement.

However, oil production in Country D will have some undesirable social effects, such as the threat of pollution, congestion to the roads and pressure on local amenities such as housing, electricity and clean water.

Which of the following approaches to stakeholder management should LLL NOT undertake in order to enter Country D?

AIssue free shares in a Joint Venture to develop oil fields to government ministers from Country D.

BCommit to improving the local amenities and roads as a part of the application for a license in Country D.

CDevelop and circulate a promotional video showing the benefits enjoyed by other countries in which LLL operates.

DUndertake stakeholder mapping to identify the interests of the most powerful players in the decision to grant a license to LLL.

Answer : D

Question 2

PPP uses the Boston Consulting Group Matrix (BCG Matrix) to prioritise products for investment and divestment. PPP invests or divests according to the quadrant of the BCG Matrix that the product occupies.

Which TWO of the following quadrants might receive only as much investment as required to maintain PPP's relative market share?

AStars

BQuestion marks

CDogs

DCash cows

Answer : A, D

Question 3

Which of the following statements are consistent with an effective strategic approach to supply chain management within a manufacturing Organization?

Select ALL that apply.

AIdentifying new opportunities for close liaison with an Organization's key suppliers and key customers, supported through the effective use of IT.

BAnticipating and responding to the increasing legal, consumer and ethical demands being made on an Organization's supply chain.

CEffective supply chain management plays an important role in contributing to the Organization's overall success.

DA senior member of the management team has oversight and responsibility for supply chain activities within the business.

ERecognising product liability is easily transferred from the manufacturer to the retailer.

FIndustry consolidation has no impact on an Organization's position within its supply chain.

Answer : A, B, C, D

Question 4

RRR is an insurance company which maintains an extensive database of its customer transactions over the last 10 years. RRR is developing a new product and has carried out a SWOT analysis.

Within which of the following aspects of the SWOT analysis would RRR include its customer database?

AOpportunity

BThreat

CWeakness

DStrength

Answer : D

Question 5

Kanter identified seven 'power skills' that change agents need to overcome apathy or resistance to change. Whichof thefollowing are power skills?

Select ALL that apply.

AAbility to work independently.

BAbility to collaborate effectively.

CAbility to develop relationships based on trust.

DAbility to keep within a budget.

EAbility to work ethically and sustainably.

FAbility to keep projects to a strict time-line.

Answer : A, B, C

Question 6

Your management team is considering using Porter's Value Chain to assistitin developing a new competitive strategy for the business.

Which THREE of the followingstatementswouldinformyour management teamaboutPorter's Value Chain?

AIt can help understanding of the linkages between business activities.

BIt can help identify the processes that add customer value.

CIt can help identify the processes that add costs.

DIt can help assess competitive pressures in the market.

EIt can easily import data from existing management accounts.

Answer : A, B, C

Question 7

Which THREE of the following are classified as business operating systems measures within the Performance Pyramid?

AFlexibility

BCustomer satisfaction

CQuality

DProductivity

ECycle time

Answer : A, B, D

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