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

CIMA E3 - Strategic Management Question Tutorial Sample Questions:

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

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

2. 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) Influence market
B) Supplier market
C) Referral market
D) Customer market

3. Which TWO of the following are advantages to an organization of using non-financial performance measures, rather than financial performance measures? (Choose two.)

A) They present a wider view of organizational performance than financial performance measures.
B) They are not distorted by inflation.
C) They are less subjective than financial performance measures.
D) They are easier to measure than financial performance measures.
E) They are less expensive to measure than financial performance measures.

4. Which THREE of the following frameworks are used solely to evaluate the external environment of an organization? (Choose three.)

A) Kaplan and Norton's Balanced Scorecard
B) SWOT analysis
C) PEST Analysis
D) Porter's Diamond
E) Porter's Five Forces Model
F) Porter's Value Chain

5. QWE is a private company belonging to a famous former sports professional. It operates gyms and fitness clubs across its home country. Each gym or fitness club is treated as a profit center and the manager of each center is paid bonuses based on its financial performance.
QWE introduced multidimensional performance measures into its management control systems 3 years ago.
These measure competitiveness, financial performance, capacity utilization, innovation and the flexibility of its centers to cope with changing demands.
The managers of QWE's centers have been leaving at a very high rate over the last 2 years. They have claimed that the measures are too open to interpretation and when they think they are improving their center's performance they are told they are doing the wrong things. They also complain that the managers in the centers near big cities find it much easier to reach their targets than the managers of other centers.
According to Fitzgerald and Moon's Building Block model, where does the problem lie?

A) Standards and Rewards
B) Dimensions and Rewards
C) Dimensions and Standards
D) Standards, Dimensions and Rewards

Solutions: