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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. Company TTT produces a range of products, including products T1 and T5.
Product T1: Profitability has declined in recent years, although small profits continue to be made as the market contracts due to changing customer preferences. Overall market share is low and continues to reduce.
However, in addition to external sales T1 is also used as a component of product T5.
Product T5: A market leader within a low growth market, sources components both externally and from TTT's other subsidiaries. T5 benefits from significant economies of scale and TTT has recently considered modernizing its T5 production line but following a cost benefit analysis, decided not to proceed.
Which of the following is an appropriate strategy for TTT to adopt?

A) Divest both product T1 and product T5.
B) Harvest both product T1 and product T5.
C) Harvest product T1 and Divest product T5.
D) Divest product T1 and Harvest product T5.

2. An organization must acquire suitable hardware and software in order to implement a knowledge management strategy so that knowledge can be stored and communicated.
Which of the following would be appropriate systems to use in a knowledge management strategy? (Choose all that apply.)

A) Groupware
B) Local area network
C) Social media
D) Internet
E) Ledgers and journals
F) Intranet

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

4. RRR is a medium sized company, which has built family homes in Country D' for twenty years. The Board of RRR wishes to expand company operations and start building homes in the neighboring country. The Board of RRR wishes to undertake a position audit to help in this decision.
Which of the following strategic analysis tools would be used in a position audit for RRR?

A) PEST
B) Five Forces
C) Gap Analysis
D) SWOT

5. DDD is a business which sells entertainment products and now wants to move to a position where it uses ebusiness as a fundamental part of its business strategy.
Which of the following benefits would result from DDD's use of e-business? (Choose all that apply.)

A) An increased use of tacit knowledge.
B) A reduction in labour turnover and higher morale.
C) Cost reductions because of lower overheads and cheaper procurement.
D) Better control of information through monitoring website activity.
E) Increased online revenues.
F) Easier access to loan finance.

Solutions: