Free CIMA E3 Practice Test & Real Exam Questions

  • Exam Code/Number: E3
  • Exam Name/Title: E3 Strategic Management
  • Certification Provider: CIMA
  • Corresponding Certification: CIMA Strategic Level Case Study Exam
  • Exam Questions: 282
  • Updated On: Oct 02, 2026
LLL is a travel company which has experienced rapid organic growth. It has three divisions and each division is led by a Divisional Director. Each Divisional Director is responsible for their own divisions' investment in Information Technology (IT). However, as LLL has grown, so has its information requirements.
Recently, LLL appointed an IT Manager. She discovered that within LLL's divisions, there are very different standards for IT, resulting in different hardware and software used in the three divisions. Also, the divisions do not use common software packages which causes difficulties in transferring information within LLL. LLL does not have a central IT department.
Which of the following activities would be the primary focus of an Information Systems (IS) Strategy for LLL?
Correct Answer: C Vote an answer
Porter suggests that competitive advantage can be attained by organising value-adding activities in support of the generic strategies which he identified.
Place the appropriate generic strategy against each of the value-adding activities.
Correct Answer:

Company LL is a well established, reputable company which specialises in providing insurance call centre services to the insurance industry. It has recently won a large contract to provide its services to a multi-national insurer. LL's staff are highly trained in insurance matters and many have worked for LL for many years.
LL undertakes long-term resource planning activities and has identified that during the winter months, when there will be more customers ringing up to make insurance claims, it will potentially need to employ more staff. The Board has decided that rather than recruit its own staff, it will use an employment agency to supply manpower resources as required. The people supplied will be employed on a temporary basis by LL and they will work alongside the other call centre staff. However, they will work at a lower pay rate and will only be paid for the actual hours they work.
This change will lead to a shift in the working environment, the routine and the composition of the group.
Which THREE statements apply in respect of this proposed change?
Correct Answer: A,B,C Vote an answer
PQR is a charity which has an excellent reputation within its home country. PQR employs over 300 highly experienced staff and has 200 skilled volunteers. PQR's funding mainly comes from donations from the public but its public profile is low compared to larger, more publicized charities.
Due to a recent recession, public donations to PQR have fallen in the last five years, but demand for its services continues to grow.
The government of the country in which PQR operates is encouraging greater collaboration between charities and there have been several recent successful mergers within the charity sector. PQR has recently been approached by a high profile and well funded charity, DDD, with a merger proposal. DDD offers complementary services to those offered by PQR.
Which TWO of the following factors would most likely be considered as an 'opportunity' for PQR? (Choose two.)
Correct Answer: A,E Vote an answer
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.)
Correct Answer: D,E,F Vote an answer
Which of the following distinguishes a learning curve effect from a learning Organization?
Correct Answer: C Vote an answer
According to Johnson, Scholes and Whittington, Suitability is an important consideration when evaluating potential alternative investment strategies.
Which of the following is a Suitability consideration?
Correct Answer: D Vote an answer
Y designs and manufactures smartwatches. In order to stay ahead of the market, Y sometimes releases new smartwatches when they are only 90% ready, to a limited number of customers. At this point, Y obtains useful feedback about the smartwatch which it uses to develop later versions of the model.
Which of the following behaviours is Y demonstrating?
Correct Answer: C Vote an answer
Porter's Generic Strategies are often applied within an Organization's value chain, in order to organise the value-adding activities to support the chosen strategy.
Place the Generic Strategy which best defines the strategic approach being taken against each of the activities listed below.
Correct Answer: