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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. DRAG DROP
In order to organize the value-adding activities to support a chosen strategy, Porter's Generic Strategies are often applied within an organization's value chain.
Against each of the activities listed below, select the Generic Strategy which best defines the strategic approach being taken.
Select and Place:

Correct

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

3. Information Systems (IS) strategy is correctly defined as:

A) Identifying the information needs of the organization and aligning development to them.
B) Decisions on the hardware, software and communications solutions used in the organization.
C) The planning, organizing, investment and control of information applications in the organization.
D) The roles and structure of information specialists in the organization and their relationship with users.

4. DRAG DROP
AB uses Johnson, Scholes and Whittington's criteria of 'Feasibility and Acceptability' to evaluate potential strategies. AB has begun a project to re-engineer its best selling product.
Apply the appropriate criterion to each of the questions below:
Select and Place:

Correct

5. YZ operates a national mobile phone (cell phone) network in one country. It is considering upgrading its network to 4th Generation (4G) by providing an improved bandwidth that will enable its customers faster access to the Internet.
This investment will cost S29 million which YZ's institutional investors have agreed to provide by subscribing to a rights issue. This is due to management having informed institutional investors that a rival is already offering
4G and that this is taking customers away from YZ because its network is now regarded as too slow. YZ's remaining customers have shown a willingness to pay extra for 4G and overall the investment will have a positive net present value.
Which of the following statements are correct? (Choose all that apply.)

A) It is essential given the strategic threats to YZ.
B) YZ will gain a first mover advantage.
C) There is stakeholder approval for the investment.
D) It provides a market development opportunity for YZ.
E) There are sufficient investment funds available

Solutions: