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

CIMA E3 - Strategic Management Question Tutorial Sample Questions:

Question 1

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

Question 2

As a CIMA qualified management accountant working within a manufacturing company, you are subject to both CIMA's Code of Ethics and your company's Code of Business Conduct.
Which TWO of the following statements are TRUE? (Choose two.)

A. As a CIMA qualified Management Accountant you must follow CIMA's Code of Ethics.
B. A company's Code of Business Conduct can be rules based.
C. Where there is a difference between CIMA's Code of Ethics and the company's Code of Business Conduct, the company's Code of Business Conduct takes priority.
D. Both CIMA's Code of Ethics and the company's Code of Business Conduct include references to Confidentiality. Disclosure on public interest grounds is therefore prohibited.
E. Both CIMA's Code of Ethics and the company's Code of Business Conduct must be based on a set of basic principles.

Question 3

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

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

Question 4

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

Question 5

JJJ is a publically quoted advertising agency. JJJ's competitive advantage is based on the expertise of its staff and its reputation in digital media advertising. JJJ has robust systems to protect its intellectual property. These include patents and copyrights. JJJ has also restricted access for most of its staff to its most sensitive data, such as studies of its customers' profitability.
JJJ's new Managing Director, Z, is concerned that when staff leave JJJ, the company loses whatever tacit knowledge they possess. These losses also impact on JJJ's reported profits. In order to remedy the losses of knowledge and the reduced profits Z wants to introduce a knowledge management strategy.
Which of the following steps support the introduction of a knowledge management strategy? (Choose all that apply.)

A. Z should set a target for reported profit.
B. JJJ should unfreeze current habits and standard operating procedures.
C. Z should gain the support of the Board of Directors.
D. JJJ should convince staff of the benefits of sharing their tacit knowledge.
E. JJJ should integrate knowledge management and management accounting.
F. JJJ needs to acquire and install appropriate hardware and software.

Solutions: