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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. TTT recently appointed a new Chief Executive, R, to lead it through a period of major change. R immediately set up a change management team which consisted of several senior managers and directors from across the organization. Together, they formulated an overall goal for change and then spent several weeks presenting the need for change to all of the staff through a series of staff meetings. At these meetings R involved staff and built their ideas into the final change strategy.
R also set a series of interim goals to encourage ongoing performance throughout the change process. When the organization reached these goals, R widely publicized these achievements to help motivate staff.
However, after six months, TTT had failed to reach most of the interim goals that had been set. Most of the members of the change management team had not maintained a significant interest in the change process and many of the staff felt that there had been a lack of communication and reward following the initial few weeks of the change process.
Kotter suggested that there were eight steps required to successfully lead change.
Which TWO of the following did R fail to achieve? (Choose two.)

A) Never letting up
B) Generate short term wins
C) Develop a change vision
D) Empower broad based action
E) Incorporate change into the culture

2. Which of the following statements is NOT a role for Management Accountants involved in the strategy development process?

A) Consider and raise awareness of the ethical impact of proposed strategic decisions.
B) Assist the Board in determining risk appetite.
C) Integration of financial and non-financial information.
D) Writing the Annual Report.

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

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

4. RRR is an insurance company which maintains an extensive database of its customer transactions over the last 10 years. RRR is developing a new product and has carried out a SWOT analysis.
Within which of the following aspects of the SWOT analysis would RRR include its customer database?

A) Weakness
B) Opportunity
C) Strength
D) Threat

5. Which TWO of the following are advantages to an organization of using non-financial performance measures, rather than financial performance measures? (Choose two.)

A) They are less subjective than financial performance measures.
B) They present a wider view of organizational performance than financial performance measures.
C) They are not distorted by inflation.
D) They are easier to measure than financial performance measures.
E) They are less expensive to measure than financial performance measures.

Solutions: