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

CIMA E3 - Strategic Management Question Tutorial Sample Questions:

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

2. You have been given responsibility, as a newly qualified management accountant, for delivering an ambitious project to centralize and computerize the accounts function within a medium-sized, geographically dispersed business. The timetable also requires the project to be delivered within a very short timescale with limited resources. You have built a team to deal with these proposed changes.
With regard to effective teams and change, which THREE of the following statements are correct? (Choose three.)

A) Teams that cross departmental boundaries can develop new performance criteria.
B) Teams should continue after their purpose has been served.
C) Teams that cross departmental boundaries can destroy shared values.
D) Teams play minor roles in institutional change.
E) Teams enhance learning and address change directly through creating recommendations and new ideas.
F) Individuals must become more than they were when working alone and must develop new commitments and behaviors.

3. Z is a medium-sized UK based accounting practice. Z operates a graduate training scheme. The trainees are given an induction and then placed on a three-year training programme designed to help develop professional skills and experience.
The training programme has been in existence for many years. However, there is no clear consensus amongst the partners of Z about what the trainees should be able to do on completion of the programme and therefore what the training programme should emphasize. This lack of clarity is affecting the morale and commitment of the trainees and significant numbers are failing the programme or leaving to join a rival firm.
Z's HR Department recognizes the need for committed and well motivated accountants to meet the increased expectations of clients and the competition from rival firms. The HR Department has identified changes to the training programme that can be implemented gradually through a series of initiatives.
Which TWO of the following statements regarding the change required in Z are correct? (Choose two.)

A) The change would be classified as a 'revolutionary change' according to Balogum and Hope Hailey.
B) Understanding which day-to-day behaviors to reinforce within the training programme, is about 'routines and rituals' according to the Cultural Web.
C) The skills, abilities and competences of the organization's employee's are a 'hard' factor according to the McKinsey 7 S model.
D) The need to manage the competitive position is an example of an 'external direct trigger' for change.
E) The plans to combat competition would be considered as a 'structure' factor according to the McKinsey 7 S model.

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

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

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

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

Solutions: