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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. M has been appointed as an external change agent to lead and implement a large scale re-structuring strategy which is being undertaken by a large bank. M has been appointed due to his extensive experience in a wide range of organizational re-structuring programmes. This re-structuring strategy will involve a large number of redundancies and the implementation of a new organization-wide management reporting system. M will need to work with staff from all departments and levels of the organization. The Board of Directors of the bank believes that an external change agent will bring more benefits to the change process than using an internal change agent.
Which of the following are the most likely benefits that could be achieved by the bank by appointing an external change agent to lead and implement the re-structuring strategy? (Choose all that apply.)

A) The external change agent will be more objective in decision-making than an internal change agent.
B) The bank can exploit the specialist expertise of the external change agent.
C) As a dedicated resource, the external change agent can give more time to the change process.
D) The speed of delivery of the change process will be quicker when using an external change agent.
E) The change process should be less costly if an external change agent is appointed.
F) The external change agent will have better relationships with the bank employees than an internal change agent.

2. Directors have a duty to shareholders and other stakeholders and are required to promote the success of the company.
Which THREE of the following are valid roles and responsibilities of directors? (Choose three.)

A) To avoid conflicts of interest and of duties.
B) To focus only on maximizing company profits.
C) To have regard for the interests of the company's employees.
D) To consider the likely consequences of any decision in the long term.
E) To be responsible for keeping all external stakeholders satisfied.

3. BCA is a long established international airline. Which of the following represent Threats to BCA's business?
(Choose all that apply.)

A) A shortage of trained pilots in BCA.
B) A higher level of private car ownership.
C) Greater popularity of long-haul holidays.
D) A sudden increase in international terrorism.
E) A substantial rise in the price of oil.

4. DDD is a business which sells entertainment products and now wants to move to a position where it uses ebusiness as a fundamental part of its business strategy.
Which of the following benefits would result from DDD's use of e-business? (Choose all that apply.)

A) Better control of information through monitoring website activity.
B) Easier access to loan finance.
C) Cost reductions because of lower overheads and cheaper procurement.
D) An increased use of tacit knowledge.
E) A reduction in labour turnover and higher morale.
F) Increased online revenues.

5. DRAG DROP
In order to organize the value-adding activities to support a chosen strategy, Porter's Generic Strategies are often applied within an organization's value chain.
Against each of the activities listed below, select the Generic Strategy which best defines the strategic approach being taken.
Select and Place:

Correct

Solutions: