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

CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. A Service Level Agreement (SLA) defines exactly what services a service provider will provide and the required level or standard for those services.
Which of the following statements regarding Service Level Agreements is NOT correct?

A) Service Level Agreements should include the procedures for cancelling the contract.
B) Service Level Agreements should include the expected response time to technical queries.
C) Service Level Agreements should include the targets and benchmarks to be used and the consequences for failing to meet them.
D) Service Level Agreements should include a guarantee to provide 100% availability for complaint resolution.

2. Which of the following statements is NOT a role for Management Accountants involved in the strategy development process?

A) Integration of financial and non-financial information.
B) Assist the Board in determining risk appetite.
C) Writing the Annual Report.
D) Consider and raise awareness of the ethical impact of proposed strategic decisions.

3. TTT recently appointed a new Chief Executive, R, to lead it through a period of major change. R immediately set up a change management team which consisted of several senior managers and directors from across the organization. Together, they formulated an overall goal for change and then spent several weeks presenting the need for change to all of the staff through a series of staff meetings. At these meetings R involved staff and built their ideas into the final change strategy.
R also set a series of interim goals to encourage ongoing performance throughout the change process. When the organization reached these goals, R widely publicized these achievements to help motivate staff.
However, after six months, TTT had failed to reach most of the interim goals that had been set. Most of the members of the change management team had not maintained a significant interest in the change process and many of the staff felt that there had been a lack of communication and reward following the initial few weeks of the change process.
Kotter suggested that there were eight steps required to successfully lead change.
Which TWO of the following did R fail to achieve? (Choose two.)

A) Incorporate change into the culture
B) Develop a change vision
C) Generate short term wins
D) Never letting up
E) Empower broad based action

4. BBB is a manufacturer that has been criticized in the financial press because it does not have a policy for sustainability.
Which THREE of the following elements would be crucial to BBB successfully embedding sustainability into its activities? (Choose three.)

A) BBB should include sustainability targets in performance appraisal.
B) BBB should employ a new public relations consultancy.
C) BBB should spend at least 0.1% of its Net Profit on sustainability projects.
D) BBB should give all its staff training in sustainability.
E) BBB's Board should make a commitment to sustainability.
F) BBB should investigate the costs and benefits of establishing a sustainability department.

5. 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

Solutions: