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

CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. PQR is a charity which has an excellent reputation within its home country. PQR employs over 300 highly experienced staff and has 200 skilled volunteers. PQR's funding mainly comes from donations from the public but its public profile is low compared to larger, more publicized charities.
Due to a recent recession, public donations to PQR have fallen in the last five years, but demand for its services continues to grow.
The government of the country in which PQR operates is encouraging greater collaboration between charities and there have been several recent successful mergers within the charity sector. PQR has recently been approached by a high profile and well funded charity, DDD, with a merger proposal. DDD offers complementary services to those offered by PQR.
Which TWO of the following factors would most likely be considered as an "opportunity" for PQR? (Choose two.)

A) Growing demand for its services
B) Donations from the public
C) The excellent reputation of DDD
D) Merging with DDD
E) Highly experienced staff

2. A direct external change trigger is:

A) A general increase in the use of the Internet by society.
B) An economic recession in an organization's home country.
C) A powerful competitor forcing an organization to cut its prices.
D) The introduction of new environmental protection policies by the government.

3. 'Big data' refers to datasets whose size is outside the ability of typical database software tools to capture, store, manage and analyze.
Which of the following statements is NOT a valid statement with regard to 'big data'?

A) Sufficient analytical and managerial talent is available to exploit the opportunities associated with 'big data'.
B) As technology advances overtime, the size of datasets that qualify as 'big data' will also increase.
C) The definition of 'big data' can vary by sector, depending on the software tools and dataset sizes common to a particular industry.
D) 'Big data' will require the right infrastructure, incentives and safeguards to address public concerns.

4. Which of the following would be a suitable performance measure of Internal Business Processes within Kaplan and Norton's 'Balanced Scorecard' model?

A) Increase in market share.
B) Higher P/E ratio.
C) New products developed.
D) Reduction in manufacturing cycle times.

5. M has been appointed as an external change agent to lead and implement a large scale re-structuring strategy which is being undertaken by a large bank. M has been appointed due to his extensive experience in a wide range of organizational re-structuring programmes. This re-structuring strategy will involve a large number of redundancies and the implementation of a new organization-wide management reporting system. M will need to work with staff from all departments and levels of the organization. The Board of Directors of the bank believes that an external change agent will bring more benefits to the change process than using an internal change agent.
Which of the following are the most likely benefits that could be achieved by the bank by appointing an external change agent to lead and implement the re-structuring strategy? (Choose all that apply.)

A) The change process should be less costly if an external change agent is appointed.
B) As a dedicated resource, the external change agent can give more time to the change process.
C) The external change agent will have better relationships with the bank employees than an internal change agent.
D) The speed of delivery of the change process will be quicker when using an external change agent.
E) The external change agent will be more objective in decision-making than an internal change agent.
F) The bank can exploit the specialist expertise of the external change agent.

Solutions: