[Oct-2021] E3 Pre-Exam Practice Tests | Exam Questions and Answers for CIMA Strategic Level Case Study Exam Study Guide
E3 Strategic Management Certification Sample Questions
NEW QUESTION 136
T is a management consultant. He was recently contracted by company XYZ to act as an external Change Agent in a program of change being undertaken. T's first task was to assist XYZ in clearly defining the outcomes of the change program and ensure that these were achievable. T also set up a number of change teams and led several workshops and team building exercises. Many of XYZ's staff were resistant to the change program. Therefore, T had to ensure that he created an appropriate vision for the change and was able to resolve any conflict which occurred during the change program.
Which THREE of the following are the key skills of a Change Agent demonstrated by T?
- A. Role Setting
- B. Goal Setting
- C. Negotiation skills
- D. Independence
- E. Managing up
Answer: A,B,C
NEW QUESTION 137
YZ is a family-run business which manufactures and sells confectionery, employing almost 100 staff. It operates 10 shops in small towns in the north of country P. Sales of YZ's products have decreased over the last
4 years due to competition from large supermarkets, internet shopping and a general economic downturn, which has hit the north of country P especially hard.
YZ's managing director has recently retired and the board decided to fill the vacancy with an external appointment. The new managing director plans to invest in new manufacturing technology, which would cut staffing levels by 15% and reduce wastage, allowing YZ to lower its prices. YZ's staff are very unhappy about these proposals, feeling that they will destroy YZ's family tradition and reputation that has developed over many years.
Select the correct descriptor for each of the forces for change below:
Answer:
Explanation:
NEW QUESTION 138
DEF is a medium sized business which manufactures children's clothing. In the last 5 years demand has steadily increased and DEF is struggling to meet this demand within its current manufacturing capacity. DEF's current manufacturing machinery was installed over 10 years ago and now requires updating, if DEF is to survive in the marketplace.
DEF has established that the latest manufacturing technology would cost $2 million. This would be funded by the shareholders. It would payback within 2 years and would allow DEF to double output from its current level within this 2 year period. It will also improve product consistency and quality. However, it will result in the loss of 20% of DEF's manufacturing staff, most of whom are low paid and low skilled.
DEF is currently reviewing this proposed investment strategy, in terms of whether it meets the criteria of Suitability, Acceptability and Feasibility.
Which of the following correctly identifies the criteria which are met, in regard to DEF's proposed investment strategy?
- A. Suitable, Acceptable and Feasible
- B. Suitable and Feasible
- C. Suitable and Acceptable
- D. Acceptable and Feasible
Answer: A
NEW QUESTION 139
RRR is a large insurance company specialising in home and property insurance. It uses a highly sophisticated information system which it uses to process its insurance claims efficiently and effectively. It also holds a vast database of customer information and records. RRR's staff are very highly trained and considered to be the leading specialists in the industry.
Which category of intellectual capital is NOT present in the description of RRR above?
- A. Innovation capital
- B. Human capiltal
- C. Customer capital
- D. Organizational capital
Answer: A
NEW QUESTION 140
RRR is an incurance 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?
- A. Weakness
- B. Threat
- C. Strength
- D. Opportunity
Answer: D
NEW QUESTION 141
LMN is a fast food manufacturer that makes 'Ready-meals'.
Place the appropriate stage of the Value Chain against each of the activities below:
Answer:
Explanation:
NEW QUESTION 142
According to Porter's Five Forces model which of the following would be evidence of high buyer power?
- A. Products are not standardised and buyers cannot easily switch to another product.
- B. There is a concentration of buyers.
- C. Buyers are fragmented and act independently of each other.
- D. There is a low probability of backward integration.
Answer: D
NEW QUESTION 143
Company PP is a large UK retail company.
In the past it has focused primarily on using financial performance measures. However, PP then realised that this was leading to short-term decision-making on investment in easily valued assets and under investment in assets such as employee skills and customer satisfaction, where short-term returns are more difficult to measure.
It has therefore adopted the Balanced Scorecard approach. PP is now considering enhancing it's approach by using Kaplan and Norton's Strategic Mapping model, as this will enable it to establish its priorities and manage stakeholder expectations.
Which of the following statements would be regarded as improvements by using Strategic Mapping.
Select ALL that apply.
- A. It will help inform which strategies, in each of the Balanced Scorecard perspectives, support improved performance.
- B. It will help PP to evaluate the operational and financial performance of the business.
- C. It will help PP to identify and clarify customer-orientated strategies that support the overall business strategy.
- D. It will help to identify and prioritise how external processes would support PP's strategies.
- E. It will help PP establish the overriding objective of the Organization.
Answer: A,C,E
NEW QUESTION 144
HHH is a teaching Organization. HHH has begun to employ virtual reality to train the customers on its courses in how to perform complex manual tasks such as repairing machinery.
Which activity in Porter's Value Chain has been impacted by HHH's use of virtual reality?
- A. Human resources management
- B. Procurement
- C. Operations
- D. Service
Answer: C
NEW QUESTION 145
RST is a national airline that differentiates itself by the quality of service it provides to its passengers. Place the appropriate Value Chain activity next to each aspect of RST's service.
Answer:
Explanation:
NEW QUESTION 146
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. As a dedicated resource, the external change agent can give more time to the change process.
- B. The external change agent will have better relationships with the bank employees than an internal change agent.
- C. The change process should be less costly if an external change agent is appointed.
- D. The speed of delivery of the change process will be quicker when using an external change agent.
- E. The external change agent will be more objective in decision-making than an internal change agent.
- F. The bank can exploit the specialist expertise of the external change agent.
Answer: D,E
NEW QUESTION 147
'Big data' refers to datasets whose size is outside the ability of typical database software tools to capture, store, manage and analyze.
Which of the following statements is NOT a valid statement with regard to 'big data'?
- A. The definition of 'big data' can vary by sector, depending on the software tools and dataset sizes common to a particular industry.
- B. As technology advances overtime, the size of datasets that qualify as 'big data' will also increase.
- C. Sufficient analytical and managerial talent is available to exploit the opportunities associated with 'big data'.
- D. 'Big data' will require the right infrastructure, incentives and safeguards to address public concerns.
Answer: D
NEW QUESTION 148
CCC is a charity which has an excellent reputation within its home country. CCC employs over 300 highly experienced staff and also has 200 skilled volunteers. Its funding mainly comes from donations from the public but its public profile is low compared to larger, more publicised charities.
Due to the recent recession, public donations to CCC have fallen in the last five years, but demand for its services continues to grow.
The government of the country in which CCC operates is encouraging greater collaboration between charities and there have been several recent successful mergers within the charity sector. CCC has recently been approached by a high profile and well funded charity, PPP, with a proposal to merge. PPP offers complementary services to those offered by CCC.
Which TWO of the following factors would most likely be considered as an 'opportunity' for CCC?
- A. Growing demand for its services
- B. Merging with PPP.
- C. Donations from the public
- D. Highly experienced staff
- E. The excellent reputation of CCC
Answer: A,B
NEW QUESTION 149
Which of the following is NOT a use of the Value Chain?
- A. Give managers a deeper understanding of precisely what their Organization does.
- B. Implement changes to protect key processes.
- C. Identify the key processes within the business that add value to the end customer.
- D. Identify the non-value added processes.
Answer: B
NEW QUESTION 150
H is a small 18-hole golf club owned by sisters F and R It offers a bar. a small shop that sells basic equipment and a professional golfer providing golf lessons to members for an additional fee.
Membership numbers have fallen, putting significant pressure on cash flow Last year the sisters had to each invest $20,000 to prevent the golf club from going out of business. The key priority for them in the short term is to increase H's membership numbers.
Which TWO of the following strategies would be feasible for H?
- A. A 'refer a friend' scheme, offering a free golf lesson to every new member and the friend who referred them.
- B. Investment in a refurbished bar area and the development of a new outdoor driving range facility.
- C. An offer to new customers of a one month free trial period.
- D. Acquisition of a small profitable golf club overseas.
- E. A national radio campaign to raise awareness of the club and the facilities on offer
Answer: A,C
NEW QUESTION 151
JKL is a bank with a large number of personal customers.
A member of staff has reported their loss of a portable electronic storage device to his line manager.
The portable electronic storage device contains customer account details, including secure information such as personal login details to access personal accounts. JKL has a clear policy that forbids staff from downloading customer data on to portable electronic storage devices.
It would be difficult for a member of the public to access the information on the device.
Which of the following would you advise JKL to do?
- A. Retain the staff member and monitor them secretly to establish whether they are engaged in a fraud.
- B. Wait for customers to query unusual transactions and refund any money they have lost.
- C. Notify all customers of the loss and advise them to monitor their accounts for unusual transactions.
- D. Let the staff member explain why they downloaded data before deciding on their dismissal.
Answer: C
NEW QUESTION 152
......
CIMA Exam Practice Test To Gain Brilliante Result: https://www.torrentexam.com/E3-exam-latest-torrent.html
