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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

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

2. Which THREE of the following issues relate to the Corporate Strategy of an organization? (Choose three.)

A) Avoiding competitive disadvantages.
B) Entering new industries.
C) Achieving advantage over competitors.
D) Meeting the needs of key customers.
E) Acquisitions, disposals and diversification.
F) Leaving existing industries.

3. 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) Customer market
C) Supplier market
D) Influence market

4. When FarmCot Foods was founded five years ago, it was a small shop set up by a family of dairy farmers in a disused farm shed, selling their own produce to the local community. The family had decided, at that point in time, to diversify their dairy farming activities into also selling their own milk, cheese and ice cream products.
The aim was to increase their revenues, as dairy farming in their home country had been in decline for a number of years.
Since then, the shop has been very successful and has expanded rapidly over the last three years, due largely to a strong growth in tourism in its home country and a shift in consumer demand for locally sourced fresh farm products. FarmCot Foods is now located in a large purpose-built building on the site of the original farm shed and also operates a very popular cafa, a children's play area and sells a much wider range of products and gifts, which are all sourced from local suppliers.
Which of the following best describes FarmCot Foods approach to strategy development in the last five years?

A) Freewheeling opportunism
B) Incremental
C) Rational
D) Emergent

5. As a CIMA qualified management accountant working within a manufacturing company, you are subject to both CIMA's Code of Ethics and your company's Code of Business Conduct.
Which TWO of the following statements are TRUE? (Choose two.)

A) As a CIMA qualified Management Accountant you must follow CIMA's Code of Ethics.
B) Both CIMA's Code of Ethics and the company's Code of Business Conduct must be based on a set of basic principles.
C) Where there is a difference between CIMA's Code of Ethics and the company's Code of Business Conduct, the company's Code of Business Conduct takes priority.
D) Both CIMA's Code of Ethics and the company's Code of Business Conduct include references to Confidentiality. Disclosure on public interest grounds is therefore prohibited.
E) A company's Code of Business Conduct can be rules based.

Solutions: