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CIMA CIMAPRO15-E03-X1-ENG Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Strategic Choices | - Business unit strategy
|
| Strategy Implementation | - Project and performance management
|
| Strategy Formulation | - Internal strategic analysis
|
CIMA E3 - Strategic Management Question Tutorial Sample Questions:
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. Retrenchment
- B. Turnaround
- C. Divestment
- D. Liquidation
- E. Facilitation
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Company TTT produces a range of products, including products T1 and T5.
Product T1: Profitability has declined in recent years, although small profits continue to be made as the market contracts due to changing customer preferences. Overall market share is low and continues to reduce.
However, in addition to external sales T1 is also used as a component of product T5.
Product T5: A market leader within a low growth market, sources components both externally and from TTT's other subsidiaries. T5 benefits from significant economies of scale and TTT has recently considered modernizing its T5 production line but following a cost benefit analysis, decided not to proceed.
Which of the following is an appropriate strategy for TTT to adopt?
- A. Divest both product T1 and product T5.
- B. Divest product T1 and Harvest product T5.
- C. Harvest both product T1 and product T5.
- D. Harvest product T1 and Divest product T5.
Which of the following would be likely to encourage an organization to use Scenario Planning? (Choose all that apply.)
- A. The organization often experiences 'group-think', leading to a narrow view of the future.
- B. Competitor's are increasingly using Scenario Planning as part of their strategy formulation process.
- C. The organization has not previously experienced any major surprises or expensive strategic mistakes.
- D. Uncertainty in the industry is high, relative to management's ability to predict or adjust to change.
- E. The organization has achieved all of its objectives and operates within a stable external environment.
Information Systems (IS) strategy is correctly defined as:
- A. Decisions on the hardware, software and communications solutions used in the organization.
- B. The roles and structure of information specialists in the organization and their relationship with users.
- C. The planning, organizing, investment and control of information applications in the organization.
- D. Identifying the information needs of the organization and aligning development to them.
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DF Company is undertaking a strategic review of its activities and has asked you to explain how a Force Field analysis would assist in the review process.
Which of the following statements would be most appropriate?
- A. Provide a framework for identifying forces for and against the proposed changes within DF.
- B. Identify forces facing DF's activities that may create barriers and resistance to change.
- C. As part of DF's strategic review, identify forces facilitating the need for proposed change.
- D. Identify influential senior managers who will drive through changes in DF's strategic direction.
Bertram 
Chapman 
Dawn 
Anna 
Nelson 
Maxwell 
Cynthia 
Betty 
Hannah 
Eve 
Hiram 
Jeremy 
Abigail 
Hogan 
Luther 
Lennon 
