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

CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. GV is a manufacturer and retailer of high quality suede gloves. GV makes all of its sales in country F, and is extremely profitable. After many successful years trading, GV has accumulated significant cash reserves and would like to grow the business organically.
After some investigation work, GV has discovered an opportunity to sell leather shoes in country P.
Which of the following strategic directions is GV taking if it pursues this opportunity, according to Ansoff's product / market matrix?

A) Related diversification
B) Market penetration
C) Product development
D) Market development

2. M is a car manufacturer in Country C.
Every day, at 09.00, members of M's staff practice meditation and Tai Chi for 30 minutes, before their normal workday commences.
M's staff are paid during this time and M considers the practice to be a benefit both to staff and the company.
Staff operate with high levels of efficiency and absenteeism levels are low.
The auditors of M have recommended that M stop these sessions, stating that they consider them to be a waste of time and a drain on resources.
Which of the following aspects of M's culture would the auditors recommendation impact on?

A) The organizational paradigm and values
B) Symbols
C) Routines and rituals
D) Stories and myths

3. BCA is a long established international airline. Which of the following represent Threats to BCA's business?
(Choose all that apply.)

A) A substantial rise in the price of oil.
B) Greater popularity of long-haul holidays.
C) A higher level of private car ownership.
D) A shortage of trained pilots in BCA.
E) A sudden increase in international terrorism.

4. BBB is a manufacturer that has been criticized in the financial press because it does not have a policy for sustainability.
Which THREE of the following elements would be crucial to BBB successfully embedding sustainability into its activities? (Choose three.)

A) BBB should spend at least 0.1% of its Net Profit on sustainability projects.
B) BBB should investigate the costs and benefits of establishing a sustainability department.
C) BBB should give all its staff training in sustainability.
D) BBB should employ a new public relations consultancy.
E) BBB's Board should make a commitment to sustainability.
F) BBB should include sustainability targets in performance appraisal.

5. Company CCC is an automotive component manufacturer. It manufactures three main products within its portfolio:
Product 1: Relative market share of 0.1; Market growth rate of -2%
Product 2: Relative market share of 4.0; Market growth rate of +3%
Product 3: Relative market share of 0.3; Market growth rate of +15%
Which TWO of the following statements are CORRECT? (Choose two.)

A) Product 1 is likely to be at the mature stage of its life cycle, operating in a contracting market and is fairly cash neutral.
B) Product 2 is likely to be at the mature stage of its life cycle, is likely to benefit from significant economies of scale.
C) Product 2 is likely to be at the growth stage of its life cycle, have weak profitability, poor cash generation and high capital requirements.
D) Product 1 is likely to be at the mature stage of its life cycle, have strong profitability and further investment should be considered.
E) Product 3 is likely to be at the growth stage of its life cycle, at high risk of failure and further investment should be considered.

Solutions: