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CIMA CIMAPRO15-E03-X1-ENG Exam Syllabus Topics:

CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. JJJ is a publically quoted advertising agency. JJJ's competitive advantage is based on the expertise of its staff and its reputation in digital media advertising. JJJ has robust systems to protect its intellectual property. These include patents and copyrights. JJJ has also restricted access for most of its staff to its most sensitive data, such as studies of its customers' profitability.
JJJ's new Managing Director, Z, is concerned that when staff leave JJJ, the company loses whatever tacit knowledge they possess. These losses also impact on JJJ's reported profits. In order to remedy the losses of knowledge and the reduced profits Z wants to introduce a knowledge management strategy.
Which of the following steps support the introduction of a knowledge management strategy? (Choose all that apply.)

A) JJJ should unfreeze current habits and standard operating procedures.
B) JJJ needs to acquire and install appropriate hardware and software.
C) Z should gain the support of the Board of Directors.
D) Z should set a target for reported profit.
E) JJJ should convince staff of the benefits of sharing their tacit knowledge.
F) JJJ should integrate knowledge management and management accounting.

2. DF Company is undertaking a strategic review of its activities and has asked you to explain how a Force Field analysis would assist in the review process.
Which of the following statements would be most appropriate?

A) Provide a framework for identifying forces for and against the proposed changes within DF.
B) Identify forces facing DF's activities that may create barriers and resistance to change.
C) As part of DF's strategic review, identify forces facilitating the need for proposed change.
D) Identify influential senior managers who will drive through changes in DF's strategic direction.

3. HHH is an international distribution company which operates a number of large distribution warehouses. HHH employs over 10,000 staff who operate the warehouses 24 hours per day and process over 500,000 packages and parcels each day. HHH operates in a highly competitive market and the senior management team recognize the importance of focusing upon its Critical Success Factors (CSF's). However, some senior managers are confused as to the difference between CSF's and Key Performance Indicators (KPI's).
Which of the following are Critical Success Factors for HHH? (Choose all that apply.)

A) Customer satisfaction.
B) Percentage of stock damaged.
C) Efficient staff planning systems.
D) Time taken to load and unload deliveries.
E) Market share percentage.
F) Continual maintenance of warehouse facilities.

4. A leading retail chain is undertaking environmental scanning as it is concerned that it is becoming uncompetitive and profits have started to fall. The Board of Directors is concerned that it will need to have a viable strategy to present to its shareholders at the next annual general meeting, in order to prevent shareholders' protests.
The company has been reluctant in the past to offer an Internet shopping service. It now believes, however, that by offering this service and introducing customer relationship marketing (CRM), this will produce a strategy that will help it to improve its competitiveness.
Which of the following statements apply to CRM? (Choose all that apply.)

A) The company must be prepared to take customers' needs into account and be able to meet these needs.
B) CRM is about marketing to customers to obtain their loyalty, so customer research is not needed.
C) In mature markets, existing customers provide the most likely source of future earnings.
D) The CRM process needs to include increasing the range of products that will be offered to customers.
E) CRM utilizes marketing resources to retain, rather than simply attract new customers.

5. '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) Sufficient analytical and managerial talent is available to exploit the opportunities associated with 'big data'.
B) The definition of 'big data' can vary by sector, depending on the software tools and dataset sizes common to a particular industry.
C) 'Big data' will require the right infrastructure, incentives and safeguards to address public concerns.
D) As technology advances overtime, the size of datasets that qualify as 'big data' will also increase.

Solutions: