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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. According to Porter's Five Forces model, which of the following would be evidence of high buyer power?

A) There is a low probability of backward integration.
B) Products are not standardized and buyers cannot easily switch to another product.
C) Buyers are fragmented and act independently of each other.
D) There is a concentration of buyers.

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) Five Forces
B) SWOT
C) PEST
D) Gap Analysis

3. A Service Level Agreement (SLA) defines exactly what services a service provider will provide and the required level or standard for those services.
Which of the following statements regarding Service Level Agreements is NOT correct?

A) Service Level Agreements should include the targets and benchmarks to be used and the consequences for failing to meet them.
B) Service Level Agreements should include a guarantee to provide 100% availability for complaint resolution.
C) Service Level Agreements should include the procedures for cancelling the contract.
D) Service Level Agreements should include the expected response time to technical queries.

4. HHH is an international distribution company which operates a number of large distribution warehouses. HHH employs over 10,000 staff who operate the warehouses 24 hours per day and process over 500,000 packages and parcels each day. HHH operates in a highly competitive market and the senior management team recognize the importance of focusing upon its Critical Success Factors (CSF's). However, some senior managers are confused as to the difference between CSF's and Key Performance Indicators (KPI's).
Which of the following are Critical Success Factors for HHH? (Choose all that apply.)

A) Percentage of stock damaged.
B) Time taken to load and unload deliveries.
C) Market share percentage.
D) Continual maintenance of warehouse facilities.
E) Customer satisfaction.
F) Efficient staff planning systems.

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

Solutions: