Free CIMA E3 Strategic Management CIMAPRA19-E03-1 Exam Questions

DDD has just issued a profit forecast in connection with a proposed take-over of a business. The take-over is strongly opposed by the target company. DDD's Management Accountant played a large part in helping DDD's Finance Director prepare the profit forecast. However, the Management Accountant believes that the profit forecast is overly optimistic and is based on some false assumptions. As a result the Management Accountant thinks the profit forecast is misleading. Select THREE of the actions below which are consistent with CIMA's Code of Ethics.

Company PPis a large UK retail company.

In the past it has focused primarilyon using financial performance measures. However, PPthen realised that this was leading to short-term decision-making on investment in easily valued assets and under investmentinassets such as employee skills and customer satisfaction, where short-term returns are more difficult to measure.

It has therefore adopted theBalancedScorecard approach. PP is nowconsidering 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 followingstatementswould be regarded as improvementsby usingStrategic Mapping.

Select ALL that apply.

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.

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?

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?

Organizations require resourcesto undertake a strategy and these can include physical, human, financial and intangible resources. However, alone they will not ensure Organizational success. For that, resources must be combined together to create competences.

The competences which form the basis of competitive advantage are things that an Organization is able to do and are very difficult for competitors to copy.

Which of the following describes this?

'Big data' refers to datasets whose size is beyond the ability of typical database software tools to capture, store, manage and analyse.

Which of the following statements is NOT a valid statement regarding 'big data'?

Company AA has decided that it needs to improve its strategic decision-making process and is considering implementingScenarioPlanning.

The Management Accountant has been requested to investigate this further and also to consider how the company can use scenarios to formulate a competitive strategy.

Which of the following statements are CORRECT?

Select ALL that apply.

Company CCC is an automotive component manufacturer. It manufactures three main products within its portfolio:

Product 1: Relative market share of 0.1; Market growth rate of -2%

Product 2: Relative market share of 4.0; Market growth rate of +3%

Product 3: Relative market share of 0.3; Market growth rate of +15%

Which TWO of the following statements are CORRECT? (Choose two.)

CCC is a software design company. The Board of CCC has always openly encouraged partnerships with a wide range of designers and other organizations in its industry in order to continually develop and enhance the services it offers and to utilize the expertise and knowledge of a range of individuals and organizations. CCC's staff have also been highly creative and innovative in the design services they provide. CCC regularly analyses and keeps up to date with changes in the environment in which it operates. CCC operates a sophisticated website to promote its services and keep in touch with its service users.

Which TWO of the following attributes of a change adept organization, as defined by Kanter, has CCC demonstrated? (Choose two.)

Which of the following is adirectexternal change trigger?

Plush is a medium-sized hotel which recently opened on the outskirts of a city which is popular with tourists. It has a sophisticated website which allows customers to pre-book rooms and additional items, such as meals in its restaurant and tickets for popular tourist attractions in the city.

Plush has listed its website on a popular hotel price comparison website, which allows customers to compare prices and facilities of hotels in the same area and this has resulted in over 60% of Plush's customer bookings so far.

Since listing on the price comparison website, the Sales Manager of Plush has noticed that the prices offered by its nearest competitors have reduced dramatically and their range of special offers have also increased.

Which TWO of Porter's Five Forces have been most affected by the use of the price comparison website by the hotels in the same area as Plush? (Choose two.)

XYZ is a manufacturer of garden tools. It has defined 'Excellence of Manufacture' as a Critical Success Factor. Which THREE of the following would be appropriate to use as Key Performance Indicatorsin respect ofthis Critical Success Factor?.

CCCis a small business whichmanufactures and sellsbicycles. Its most popular product is the standard road bike, brand named the 'Easy Rider'. CCC offers customers a limited degree of choice in terms of product specification for theEasy Rider bicycle. CCC manufactures and sells 1,000Easy Rider bicycleseachyear. The average retail price of an Easy Rider bicycle is $500.

As a result of the recent rise in popularity of cycling in its home country, last year CCClaunched a newbicycle, brand named the'Pro Rider'. This bicycle is aimed at themore serious cyclists who take part in competitions and road races.CCC offers Pro Ridercustomers a wide choice of specifications and accessories and uses the highest quality of materials in its manufacturing process. APro Riderbicycle retails for an average price of $6,000. In its first year, CCC sold 150Pro Rider bicycles.

CCC's business is generated mainly from word of mouth recommendations, repeat business and from customer visits to itssmallchain of shops. It aims to increase its market share forbothbrandswithin the next 5 years. Competition is high,with a number of large national bicycle manufacturers in the market.

Which TWOof the following are critical success factors (CSF's) forCCC?

According to Johnson, Scholes and Whittington,Suitability is an important consideration when evaluating potential alternative investment strategies.

Which of the following is a Suitability consideration?