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

CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. DRAG DROP
PQ is an international airline.
In accordance with Porter's Value Chain, select "Primary" or "Support" for each of the activities listed below:
Select and Place:

Correct

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

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

3. 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

4. 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) Harvest product T1 and Divest product T5.
B) Divest both product T1 and product T5.
C) Divest product T1 and Harvest product T5.
D) Harvest both product T1 and product T5.

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

Solutions: