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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

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

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

2. Ansoff has provided a product/market growth matrix which denotes possible strategic directions that an organization can follow.
Which of the following statements correctly describe the strategic options generated by the matrix? (Choose all that apply.)

A) Market development using existing products in new markets.
B) Market penetration using existing products within existing markets.
C) Product development using new products in new markets.
D) Market penetration using existing products in new markets.
E) Market penetration using new products within existing markets.
F) Diversification using new products in new markets.

3. TTT recently appointed a new Chief Executive, R, to lead it through a period of major change. R immediately set up a change management team which consisted of several senior managers and directors from across the organization. Together, they formulated an overall goal for change and then spent several weeks presenting the need for change to all of the staff through a series of staff meetings. At these meetings R involved staff and built their ideas into the final change strategy.
R also set a series of interim goals to encourage ongoing performance throughout the change process. When the organization reached these goals, R widely publicized these achievements to help motivate staff.
However, after six months, TTT had failed to reach most of the interim goals that had been set. Most of the members of the change management team had not maintained a significant interest in the change process and many of the staff felt that there had been a lack of communication and reward following the initial few weeks of the change process.
Kotter suggested that there were eight steps required to successfully lead change.
Which TWO of the following did R fail to achieve? (Choose two.)

A) Never letting up
B) Empower broad based action
C) Develop a change vision
D) Generate short term wins
E) Incorporate change into the culture

4. SDC is a medium sized IT systems development company. SDC employs highly qualified and experienced systems development experts. It invests heavily in staff training and development and as a result, staff are highly motivated and staff turnover is low. SDC has a strong culture of team work and innovation, which the senior managers believe is the basis of SDC's success. The senior managers, who are also the founders of SDC, are highly experienced and have a strong vision for the business.
Which THREE of the following factors would be the main focus of a resource audit for SDC? (Choose three.)

A) Management
B) Markets
C) Manpower
D) Money
E) Machinery
F) Make-up

5. RST is a company specializing in the production of wood-based products. RST has decided to introduce a fully integrated Information System across all divisions in order to improve knowledge sharing throughout the business and enhance customer relationship management.
RST is expecting resistance to the integrated Information System from it's staff who are key to the business and would be difficult to replace. Staff have a good understanding of why the new system and knowledge sharing is needed and how the system will work but many staff are not happy about the potential changes to their working conditions.
Which of the following change leadership styles, as outlined by Kotter and Schlesinger, would be most appropriate for RST to adopt?

A) Manipulation
B) Negotiation
C) Education
D) Coercion

Solutions: