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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. DRAG DROP
PQ is an international airline.
In accordance with Porter's Value Chain, select "Primary" or "Support" for each of the activities listed below:
Select and Place:

Correct

2. 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) SWOT
D) Gap Analysis

3. 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 include sustainability targets in performance appraisal.
B) BBB should investigate the costs and benefits of establishing a sustainability department.
C) BBB's Board should make a commitment to sustainability.
D) BBB should employ a new public relations consultancy.
E) BBB should give all its staff training in sustainability.
F) BBB should spend at least 0.1% of its Net Profit on sustainability projects.

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

5. STU is a hospital that is wholly funded by its national government. In the last five years it has seen its funding cut by over 30% due to budgetary pressure on the government, caused by a global recession. As a result, the senior management team of STU has had to make some very difficult decisions about prioritizing how it spends the funds it receives from the government. Its main strategies have been to reduce the number of administration staff and nursing staff by 20%, in order to reduce its costs. It has also stopped providing a number of services to patients, including its counselling services and its physiotherapy unit.
Which of the following strategies has STU adopted to manage its reduced funding? (Choose all that apply.)

A) Turnaround
B) Retrenchment
C) Facilitation
D) Liquidation
E) Divestment

Solutions: