CIMA CIMAPRA19-E03-1 Exam Practice Test Instant Access

Question 1

Which THREE of the following statements are valid when considering setting and developing objectives for Not For Profit Organisations (NFPOs)?

ANFP organisations use an approach based upon the three E's of efficiency, effectiveness and environment to set objectives

Bln NFP organisations efficiency and effectiveness are very important, but there is a risk efficiency becomes more important than service effectiveness

CThe objective setting exercise must balance the interests and concerns of all stakeholders, which may result in the NFP organisations setting a range of differing objectives.

DObjectives will not be based on profit achievement but rather on achieving a particular response from various stakeholders.

EIn setting these objectives NFP organisations will never consult or seek wider participation from other interested groups

Answer : B, C, D

Question 2

Company V has obtained planning permission to build 20 wind turbines in town W. This will be a highly profitable project and help the Government in Country H meet targets for renewable energy. However, local residents and wildlife groups are extremely unhappy and have objected to the plans and threatened to cause disruption at the site of the proposed wind turbines once building work commences

Which THREE of the following activities should Company V use, according to Cyert and March, to resolve these conflicting stakeholder objectives?

AContinue to build the wind turbines despite attempts to overcome the objections of the locals and the wildlife groups

BNegotiate with the wildlife groups to ensure their key concerns are understood, and implement an action plan to address concerns where appropriate

CMake a donation of $10,000 to town W as a contribution towards the construction of a new town hall.

DOffer staff a bonus when the project is successfully completed

DNegotiate a 5% reduction in the price of the blade manufacture.

Answer : A, B, C

Question 3

Johnson. Scholes and Whittington described three criteri

a. 'Suitability, Feasibility and Acceptability' to evaluate potential strategies. Which of the following statements relate to the three criteria? Select ALL that apply.

AConcerned with the expected performance outcome.

BConcerned with whether the strategy addresses the circumstances in which an organisation is operating.

CConcerned with the ability of the business to renew itself.

DConcerned with the latest reported results

EConcerned with whether the strategy could be made to work in practice.

Answer : A, B, C, E

Question 4

BBB operates a small chain of coffee shops within Country X. a mature economy in northern Europe. BBB was established 20 years ago and currently employs over 150 staff in 25 shops located in major towns and cities throughout Country X. BBB attracts a wide range of customers, who are attracted by its extensive menu of coffee products and food Customers can either consume their purchases within the shop or can take their purchases away.

Which THREE of the following external environmental changes would have the greatest impact on BBB in the next three years?

AA worldwide shortage of coffee beans due to climate changes, affecting availability.

BThe opening of an internationally renowned chain of coffee shops in Country X.

CAn increase in the national statutory minimum wage in Country X.

DA planned refurbishment of 80% of BBB's shops to update its image and increase shop floor space

EAn increase in the average age of the population in Country X due to falling birth rates.

Answer : A, C, E

Question 5

Y designs and manufactures smartwatches. In order to stay ahead of the market, Y sometimes releases new smartwatches when they are only 90% ready, to a limited number of customers. At this point, Y obtains useful feedback about the smartwatch which it uses to develop later versions of the model.

Which of the following behaviours is Y demonstrating?

ADesign thinking

BExperiential pilots

CPrototyping

DBrand atomization

Answer : C

Question 6

The sales manager of an organisation has requested that you accept sales figures for the month, which contain misleading statements of sales, for the purpose of calculating sales team bonuses.

Which of the following fundamental ethical principles would this request breach?

AObjectivity

BConfidentiality

CIntegrity

DProfessional behaviour

Answer : C

Question 7

AAA has a new CEO who wants to introduce rational strategy into the organisation.

Which THREE of the following are aspects of the rational strategy model?

AAAA analyses its environments.

BAAA uses digital technology to solve traditional problems.

CAAA takes advantage of opportunities as they arise

DAAA selects the best strategic option.

EAAA uses feedback to influence its future strategy.

FAAA makes small scale extensions of past policy.

Answer : A, D, E

CIMAPRA19-E03-1 E3 Strategic Management Exam Practice Test