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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

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

2. 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

3. LLL is an international oil and gas exploration company. It is considering investing S300 million in developing new oil fields in Country D.
For this it will need to obtain a license from the government of Country D.
These new oil fields will bring much wealth to Country D because a large proportion of the revenue from the production of oil will be paid to the government as part of the licensing agreement.
However, oil production in Country D will have some undesirable social effects, such as the threat of pollution, congestion to the roads and pressure on local amenities such as housing, electricity and clean water.
Which of the following approaches to stakeholder management should LLL NOT undertake in order to enter Country D?

A) Develop and circulate a promotional video showing the benefits enjoyed by other countries in which LLL operates.
B) Commit to improving the local amenities and roads as a part of the application for a license in Country D.
C) Issue free shares in a Joint Venture to develop oil fields to government ministers from Country D.
D) Undertake stakeholder mapping to identify the interests of the most powerful players in the decision to grant a license to LLL.

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

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

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

Solutions: