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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. DRAG DROP
In order to organize the value-adding activities to support a chosen strategy, Porter's Generic Strategies are often applied within an organization's value chain.
Against each of the activities listed below, select the Generic Strategy which best defines the strategic approach being taken.
Select and Place:

Correct

2. Directors have a duty to shareholders and other stakeholders and are required to promote the success of the company.
Which THREE of the following are valid roles and responsibilities of directors? (Choose three.)

A) To consider the likely consequences of any decision in the long term.
B) To have regard for the interests of the company's employees.
C) To focus only on maximizing company profits.
D) To avoid conflicts of interest and of duties.
E) To be responsible for keeping all external stakeholders satisfied.

3. 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) Emergent
B) Incremental
C) Freewheeling opportunism
D) Rational

4. Which THREE of the following issues relate to the Corporate Strategy of an organization? (Choose three.)

A) Avoiding competitive disadvantages.
B) Entering new industries.
C) Achieving advantage over competitors.
D) Meeting the needs of key customers.
E) Leaving existing industries.
F) Acquisitions, disposals and diversification.

5. Which THREE of the following statements apply to Lynch's performance pyramid? (Choose three.)

A) The business operating systems level includes the market-related Critical Success Factors.
B) The right-hand side of the pyramid contains measures which are predominantly non-financial.
C) The lowest level of the pyramid contains the day-to-day operational measures.
D) The business unit level includes measures which relate to internal systems needed to meet customers' needs.
E) The left-hand side of the pyramid contains measures which have an external focus.
F) The performance pyramid is designed to ensure that all activities support the organization's vision.

Solutions: