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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. SDC is a medium sized IT systems development company. SDC employs highly qualified and experienced systems development experts. It invests heavily in staff training and development and as a result, staff are highly motivated and staff turnover is low. SDC has a strong culture of team work and innovation, which the senior managers believe is the basis of SDC's success. The senior managers, who are also the founders of SDC, are highly experienced and have a strong vision for the business.
Which THREE of the following factors would be the main focus of a resource audit for SDC? (Choose three.)

A) Manpower
B) Money
C) Make-up
D) Machinery
E) Markets
F) Management

2. 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.

3. Which of the following would be likely to encourage an organization to use Scenario Planning? (Choose all that apply.)

A) The organization has not previously experienced any major surprises or expensive strategic mistakes.
B) The organization often experiences 'group-think', leading to a narrow view of the future.
C) Competitor's are increasingly using Scenario Planning as part of their strategy formulation process.
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.

4. A is a private healthcare organization aiming to provide affordable and accessible high quality patient services.
A is introducing Big Data, which has not yet been adopted by the competition. A's database will store a huge amount of information about its patients. Clear access to wide sources of accurate information will enable patients to make more informed choices. Patients will be able to compare not only the prices of drugs, treatments and physicians but also their relative effectiveness.
Which of the following concerns should A have about its use of Big Data?

A) Lack of competitive advantage
B) Variety of information
C) Veracity of information
D) Privacy issues

5. Country W hosts a large music competition every 5 years, which is attended by many international musicians.
The success of the competition is dependent upon effective Customer Relationship Marketing being established with many different market groups around the world. These include music colleges who send their students, broadcasting companies who broadcast the event on radio and television, audience members, online ticket sellers and music journalists who write about the competition in specialist journals.
Using Payne's 'Six Markets Model', which of the following is the correct classification for the music journalists writing about the competition?

A) Referral market
B) Supplier market
C) Customer market
D) Influence market

Solutions: