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

CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. HH is an outdoor theatre which is based in the capital city of country N.
Tickets for shows can be booked at the ticket office or online. HH has identified the following critical success factors (CSFs):
An excellent, online ticket booking system
Customer satisfaction
Which of the following would be suitable key performance indicators (KPIs) for HH? (Choose all that apply.)

A) Employee turnover.
B) Number of customer complaints.
C) Percentage of ticket bookings aborted before completion.
D) Profit from sales of snacks and drinks.
E) Number of returning customers each year.
F) Customer show ratings, scored out of ten.

2. YZ operates a national mobile phone (cell phone) network in one country. It is considering upgrading its network to 4th Generation (4G) by providing an improved bandwidth that will enable its customers faster access to the Internet.
This investment will cost S29 million which YZ's institutional investors have agreed to provide by subscribing to a rights issue. This is due to management having informed institutional investors that a rival is already offering
4G and that this is taking customers away from YZ because its network is now regarded as too slow. YZ's remaining customers have shown a willingness to pay extra for 4G and overall the investment will have a positive net present value.
Which of the following statements are correct? (Choose all that apply.)

A) There is stakeholder approval for the investment.
B) It provides a market development opportunity for YZ.
C) There are sufficient investment funds available
D) YZ will gain a first mover advantage.
E) It is essential given the strategic threats to YZ.

3. Ansoff has provided a product/market growth matrix which denotes possible strategic directions that an organization can follow.
Which of the following statements correctly describe the strategic options generated by the matrix? (Choose all that apply.)

A) Market penetration using existing products in new markets.
B) Market development using existing products in new markets.
C) Diversification using new products in new markets.
D) Market penetration using existing products within existing markets.
E) Market penetration using new products within existing markets.
F) Product development using new products in new markets.

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

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

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

Solutions: