CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. SSS University wishes to introduce a new Car Park Management Strategy (CPMS). The aim of this strategy is to reduce the use of private cars and to encourage sustainable transport, such as cycling and public transport, by staff and students. SSS has decided to reduce the number of car parking spaces and introduce parking charges.
The Management Accountant has decided to use the Balanced Scorecard to help prepare a performance management system to assess the performance of the new CPMS.
Which of the following is an example of the Innovation and Learning perspective of a Balanced Scorecard for SSS?

A) Speed of processing the payment for parking charges.
B) Number of days of training for car park attendants.
C) Easy access to car parking spaces.
D) Reduction in complaints from customers.

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

3. A is a private healthcare organization aiming to provide affordable and accessible high quality patient services.
A is introducing Big Data, which has not yet been adopted by the competition. A's database will store a huge amount of information about its patients. Clear access to wide sources of accurate information will enable patients to make more informed choices. Patients will be able to compare not only the prices of drugs, treatments and physicians but also their relative effectiveness.
Which of the following concerns should A have about its use of Big Data?

A) Lack of competitive advantage
B) Variety of information
C) Veracity of information
D) Privacy issues

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

5. HH is an outdoor theatre which is based in the capital city of country N.
Tickets for shows can be booked at the ticket office or online. HH has identified the following critical success factors (CSFs):
An excellent, online ticket booking system
Customer satisfaction
Which of the following would be suitable key performance indicators (KPIs) for HH? (Choose all that apply.)

A) Percentage of ticket bookings aborted before completion.
B) Employee turnover.
C) Profit from sales of snacks and drinks.
D) Customer show ratings, scored out of ten.
E) Number of customer complaints.
F) Number of returning customers each year.

Solutions: