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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 investigate the costs and benefits of establishing a sustainability department.
E) BBB should include sustainability targets in performance appraisal.
F) BBB should give all its staff training in sustainability.

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

3. CCC is a software design company. The Board of CCC has always openly encouraged partnerships with a wide range of designers and other organizations in its industry in order to continually develop and enhance the services it offers and to utilize the expertise and knowledge of a range of individuals and organizations. CCC's staff have also been highly creative and innovative in the design services they provide. CCC regularly analyses and keeps up to date with changes in the environment in which it operates. CCC operates a sophisticated website to promote its services and keep in touch with its service users.
Which TWO of the following attributes of a change adept organization, as defined by Kanter, has CCC demonstrated? (Choose two.)

A) Environmental awareness
B) Continual service development
C) Imagination to innovate
D) Sophisticated systems
E) Openness to collaborate

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

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

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

A) The organization has achieved all of its objectives and operates within a stable external environment.
B) Uncertainty in the industry is high, relative to management's ability to predict or adjust to change.
C) The organization has not previously experienced any major surprises or expensive strategic mistakes.
D) The organization often experiences 'group-think', leading to a narrow view of the future.
E) Competitor's are increasingly using Scenario Planning as part of their strategy formulation process.

Solutions: