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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. Information Systems (IS) strategy is correctly defined as:

A) The roles and structure of information specialists in the organization and their relationship with users.
B) The planning, organizing, investment and control of information applications in the organization.
C) Identifying the information needs of the organization and aligning development to them.
D) Decisions on the hardware, software and communications solutions used in the organization.

2. DDD is a business which sells entertainment products and now wants to move to a position where it uses ebusiness as a fundamental part of its business strategy.
Which of the following benefits would result from DDD's use of e-business? (Choose all that apply.)

A) Cost reductions because of lower overheads and cheaper procurement.
B) Better control of information through monitoring website activity.
C) Easier access to loan finance.
D) Increased online revenues.
E) A reduction in labour turnover and higher morale.
F) An increased use of tacit knowledge.

3. Which TWO of the following are advantages to an organization of using non-financial performance measures, rather than financial performance measures? (Choose two.)

A) They are less expensive to measure than financial performance measures.
B) They present a wider view of organizational performance than financial performance measures.
C) They are not distorted by inflation.
D) They are easier to measure than financial performance measures.
E) They are less subjective than financial performance measures.

4. Which of the following would be likely to encourage an organization to use Scenario Planning? (Choose all that apply.)

A) The organization has not previously experienced any major surprises or expensive strategic mistakes.
B) Competitor's are increasingly using Scenario Planning as part of their strategy formulation process.
C) Uncertainty in the industry is high, relative to management's ability to predict or adjust to change.
D) The organization has achieved all of its objectives and operates within a stable external environment.
E) The organization often experiences 'group-think', leading to a narrow view of the future.

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

Solutions: