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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) Easy access to car parking spaces.
C) Reduction in complaints from customers.
D) Number of days of training for car park attendants.

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

3. Which of the following categorizations would be correct, according to McFarlan's Strategic Grid, for a system which is critical to sustaining existing business but its future strategic importance is considered to be low?

A) Turnaround
B) Strategic
C) Factory
D) Support

4. When FarmCot Foods was founded five years ago, it was a small shop set up by a family of dairy farmers in a disused farm shed, selling their own produce to the local community. The family had decided, at that point in time, to diversify their dairy farming activities into also selling their own milk, cheese and ice cream products.
The aim was to increase their revenues, as dairy farming in their home country had been in decline for a number of years.
Since then, the shop has been very successful and has expanded rapidly over the last three years, due largely to a strong growth in tourism in its home country and a shift in consumer demand for locally sourced fresh farm products. FarmCot Foods is now located in a large purpose-built building on the site of the original farm shed and also operates a very popular cafa, a children's play area and sells a much wider range of products and gifts, which are all sourced from local suppliers.
Which of the following best describes FarmCot Foods approach to strategy development in the last five years?

A) Rational
B) Freewheeling opportunism
C) Incremental
D) Emergent

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

Solutions: