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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 statements is NOT a role for Management Accountants involved in the strategy development process?

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

2. STU is a hospital that is wholly funded by its national government. In the last five years it has seen its funding cut by over 30% due to budgetary pressure on the government, caused by a global recession. As a result, the senior management team of STU has had to make some very difficult decisions about prioritizing how it spends the funds it receives from the government. Its main strategies have been to reduce the number of administration staff and nursing staff by 20%, in order to reduce its costs. It has also stopped providing a number of services to patients, including its counselling services and its physiotherapy unit.
Which of the following strategies has STU adopted to manage its reduced funding? (Choose all that apply.)

A) Facilitation
B) Retrenchment
C) Liquidation
D) Turnaround
E) Divestment

3. TUV had an employee turnover rate of 25% among new recruits and was becoming short of skilled workers.
The Board of TUV realized there was something dramatically wrong and called in consultants to assess the problem. The consultants recommended transformational change in that TUV should redesign the entire production system, change the placement of all equipment and the flow of work, redefine every job and give all workers new assignments.
Which type of change did the consultants recommend for TUV?

A) Evolution
B) Revolution
C) Reconstruction
D) Adaptation

4. DRAG DROP
QR is a conglomerate with two divisions, A and B.
Given the information below, select the most appropriate strategy for each division to implement.
Select and Place:

Correct

5. According to Porter's Five Forces model, which of the following would be evidence of high buyer power?

A) Products are not standardized and buyers cannot easily switch to another product.
B) There is a concentration of buyers.
C) There is a low probability of backward integration.
D) Buyers are fragmented and act independently of each other.

Solutions: