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

CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. Which of the following categorizations would be correct, according to McFarlan's Strategic Grid, for a system which is critical to sustaining existing business but its future strategic importance is considered to be low?

A) Turnaround
B) Support
C) Strategic
D) Factory

2. DRAG DROP
LMN is a fast food manufacturer that makes 'Ready-meals'.
Place the appropriate stage of the Value Chain against each of the activities below:
Select and Place:

Correct

3. 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) The change process should be less costly if an external change agent is appointed.
B) The external change agent will have better relationships with the bank employees than an internal change agent.
C) As a dedicated resource, the external change agent can give more time to the change process.
D) The speed of delivery of the change process will be quicker when using an external change agent.
E) The bank can exploit the specialist expertise of the external change agent.
F) The external change agent will be more objective in decision-making than an internal change agent.

4. A direct external change trigger is:

A) An economic recession in an organization's home country.
B) The introduction of new environmental protection policies by the government.
C) A general increase in the use of the Internet by society.
D) A powerful competitor forcing an organization to cut its prices.

5. 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.)

A) Bargaining power of suppliers.
B) Bargaining power of customers.
C) Threat of substitutes.
D) Competitive rivalry.
E) Threat of new entrants.

Solutions: