CIMA CIMAPRO15-E03-X1-ENG - E3 - Strategic Management Question Tutorial

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CIMA CIMAPRO15-E03-X1-ENG Exam Syllabus Topics:

CIMA E3 - Strategic Management Question Tutorial Sample Questions:

Question 1

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

Question 2

Company CCC is an automotive component manufacturer. It manufactures three main products within its portfolio:
Product 1: Relative market share of 0.1; Market growth rate of -2%
Product 2: Relative market share of 4.0; Market growth rate of +3%
Product 3: Relative market share of 0.3; Market growth rate of +15%
Which TWO of the following statements are CORRECT? (Choose two.)

A. Product 2 is likely to be at the growth stage of its life cycle, have weak profitability, poor cash generation and high capital requirements.
B. Product 1 is likely to be at the mature stage of its life cycle, have strong profitability and further investment should be considered.
C. Product 3 is likely to be at the growth stage of its life cycle, at high risk of failure and further investment should be considered.
D. Product 1 is likely to be at the mature stage of its life cycle, operating in a contracting market and is fairly cash neutral.
E. Product 2 is likely to be at the mature stage of its life cycle, is likely to benefit from significant economies of scale.

Question 3

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

Question 4

Plush is a medium-sized hotel which recently opened on the outskirts of a city which is popular with tourists. It has a sophisticated website which allows customers to pre-book rooms and additional items, such as meals in its restaurant and tickets for popular tourist attractions in the city.
Plush has listed its website on a popular hotel price comparison website, which allows customers to compare prices and facilities of hotels in the same area and this has resulted in over 60% of Plush's customer bookings so far.
Since listing on the price comparison website, the Sales Manager of Plush has noticed that the prices offered by its nearest competitors have reduced dramatically and their range of special offers have also increased.
Which TWO of Porter's Five Forces have been most affected by the use of the price comparison website by the hotels in the same area as Plush? (Choose two.)

A. Bargaining power of customers.
B. Threat of new entrants.
C. Threat of substitutes.
D. Competitive rivalry.
E. Bargaining power of suppliers.

Question 5

M is a car manufacturer in Country C.
Every day, at 09.00, members of M's staff practice meditation and Tai Chi for 30 minutes, before their normal workday commences.
M's staff are paid during this time and M considers the practice to be a benefit both to staff and the company.
Staff operate with high levels of efficiency and absenteeism levels are low.
The auditors of M have recommended that M stop these sessions, stating that they consider them to be a waste of time and a drain on resources.
Which of the following aspects of M's culture would the auditors recommendation impact on?

A. The organizational paradigm and values
B. Stories and myths
C. Symbols
D. Routines and rituals

Solutions: