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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. SSS University wishes to introduce a new Car Park Management Strategy (CPMS). The aim of this strategy is to reduce the use of private cars and to encourage sustainable transport, such as cycling and public transport, by staff and students. SSS has decided to reduce the number of car parking spaces and introduce parking charges.
The Management Accountant has decided to use the Balanced Scorecard to help prepare a performance management system to assess the performance of the new CPMS.
Which of the following is an example of the Innovation and Learning perspective of a Balanced Scorecard for SSS?

A) Number of days of training for car park attendants.
B) Reduction in complaints from customers.
C) Easy access to car parking spaces.
D) Speed of processing the payment for parking charges.

2. A leading retail chain is undertaking environmental scanning as it is concerned that it is becoming uncompetitive and profits have started to fall. The Board of Directors is concerned that it will need to have a viable strategy to present to its shareholders at the next annual general meeting, in order to prevent shareholders' protests.
The company has been reluctant in the past to offer an Internet shopping service. It now believes, however, that by offering this service and introducing customer relationship marketing (CRM), this will produce a strategy that will help it to improve its competitiveness.
Which of the following statements apply to CRM? (Choose all that apply.)

A) CRM is about marketing to customers to obtain their loyalty, so customer research is not needed.
B) In mature markets, existing customers provide the most likely source of future earnings.
C) CRM utilizes marketing resources to retain, rather than simply attract new customers.
D) The CRM process needs to include increasing the range of products that will be offered to customers.
E) The company must be prepared to take customers' needs into account and be able to meet these needs.

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

4. Information Systems (IS) strategy is correctly defined as:

A) Identifying the information needs of the organization and aligning development to them.
B) The roles and structure of information specialists in the organization and their relationship with users.
C) Decisions on the hardware, software and communications solutions used in the organization.
D) The planning, organizing, investment and control of information applications in the organization.

5. 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) As part of DF's strategic review, identify forces facilitating the need for proposed change.
B) Identify forces facing DF's activities that may create barriers and resistance to change.
C) Provide a framework for identifying forces for and against the proposed changes within DF.
D) Identify influential senior managers who will drive through changes in DF's strategic direction.

Solutions: