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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. Z is a medium-sized UK based accounting practice. Z operates a graduate training scheme. The trainees are given an induction and then placed on a three-year training programme designed to help develop professional skills and experience.
The training programme has been in existence for many years. However, there is no clear consensus amongst the partners of Z about what the trainees should be able to do on completion of the programme and therefore what the training programme should emphasize. This lack of clarity is affecting the morale and commitment of the trainees and significant numbers are failing the programme or leaving to join a rival firm.
Z's HR Department recognizes the need for committed and well motivated accountants to meet the increased expectations of clients and the competition from rival firms. The HR Department has identified changes to the training programme that can be implemented gradually through a series of initiatives.
Which TWO of the following statements regarding the change required in Z are correct? (Choose two.)

A) The need to manage the competitive position is an example of an 'external direct trigger' for change.
B) The skills, abilities and competences of the organization's employee's are a 'hard' factor according to the McKinsey 7 S model.
C) The plans to combat competition would be considered as a 'structure' factor according to the McKinsey 7 S model.
D) The change would be classified as a 'revolutionary change' according to Balogum and Hope Hailey.
E) Understanding which day-to-day behaviors to reinforce within the training programme, is about 'routines and rituals' according to the Cultural Web.

2. RRR is a medium sized company, which has built family homes in Country D' for twenty years. The Board of RRR wishes to expand company operations and start building homes in the neighboring country. The Board of RRR wishes to undertake a position audit to help in this decision.
Which of the following strategic analysis tools would be used in a position audit for RRR?

A) SWOT
B) Gap Analysis
C) Five Forces
D) PEST

3. M is a car manufacturer in Country C.
Every day, at 09.00, members of M's staff practice meditation and Tai Chi for 30 minutes, before their normal workday commences.
M's staff are paid during this time and M considers the practice to be a benefit both to staff and the company.
Staff operate with high levels of efficiency and absenteeism levels are low.
The auditors of M have recommended that M stop these sessions, stating that they consider them to be a waste of time and a drain on resources.
Which of the following aspects of M's culture would the auditors recommendation impact on?

A) Symbols
B) The organizational paradigm and values
C) Routines and rituals
D) Stories and myths

4. Which of the following would be correct considerations when evaluating the Feasibility of a strategy? (Choose all that apply.)

A) Will the strategy maintain competitive advantage?
B) Will customers object to the strategy?
C) Will the business be able to deal with the responses of its competitors to the strategy?
D) Will the strategy exploit the core competencies of the business?
E) Will there be sufficient time to implement the strategy?

5. Which of the following would be a suitable performance measure of Internal Business Processes within Kaplan and Norton's 'Balanced Scorecard' model?

A) New products developed.
B) Increase in market share.
C) Higher P/E ratio.
D) Reduction in manufacturing cycle times.

Solutions: