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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. An organization must acquire suitable hardware and software in order to implement a knowledge management strategy so that knowledge can be stored and communicated.
Which of the following would be appropriate systems to use in a knowledge management strategy? (Choose all that apply.)

A) Groupware
B) Intranet
C) Social media
D) Ledgers and journals
E) Local area network
F) Internet

2. A leading retail chain is undertaking environmental scanning as it is concerned that it is becoming uncompetitive and profits have started to fall. The Board of Directors is concerned that it will need to have a viable strategy to present to its shareholders at the next annual general meeting, in order to prevent shareholders' protests.
The company has been reluctant in the past to offer an Internet shopping service. It now believes, however, that by offering this service and introducing customer relationship marketing (CRM), this will produce a strategy that will help it to improve its competitiveness.
Which of the following statements apply to CRM? (Choose all that apply.)

A) In mature markets, existing customers provide the most likely source of future earnings.
B) The company must be prepared to take customers' needs into account and be able to meet these needs.
C) CRM is about marketing to customers to obtain their loyalty, so customer research is not needed.
D) CRM utilizes marketing resources to retain, rather than simply attract new customers.
E) The CRM process needs to include increasing the range of products that will be offered to customers.

3. CCC is a software design company. The Board of CCC has always openly encouraged partnerships with a wide range of designers and other organizations in its industry in order to continually develop and enhance the services it offers and to utilize the expertise and knowledge of a range of individuals and organizations. CCC's staff have also been highly creative and innovative in the design services they provide. CCC regularly analyses and keeps up to date with changes in the environment in which it operates. CCC operates a sophisticated website to promote its services and keep in touch with its service users.
Which TWO of the following attributes of a change adept organization, as defined by Kanter, has CCC demonstrated? (Choose two.)

A) Continual service development
B) Environmental awareness
C) Openness to collaborate
D) Imagination to innovate
E) Sophisticated systems

4. LLL is an international oil and gas exploration company. It is considering investing S300 million in developing new oil fields in Country D.
For this it will need to obtain a license from the government of Country D.
These new oil fields will bring much wealth to Country D because a large proportion of the revenue from the production of oil will be paid to the government as part of the licensing agreement.
However, oil production in Country D will have some undesirable social effects, such as the threat of pollution, congestion to the roads and pressure on local amenities such as housing, electricity and clean water.
Which of the following approaches to stakeholder management should LLL NOT undertake in order to enter Country D?

A) Develop and circulate a promotional video showing the benefits enjoyed by other countries in which LLL operates.
B) Undertake stakeholder mapping to identify the interests of the most powerful players in the decision to grant a license to LLL.
C) Issue free shares in a Joint Venture to develop oil fields to government ministers from Country D.
D) Commit to improving the local amenities and roads as a part of the application for a license in Country D.

5. You have been given responsibility, as a newly qualified management accountant, for delivering an ambitious project to centralize and computerize the accounts function within a medium-sized, geographically dispersed business. The timetable also requires the project to be delivered within a very short timescale with limited resources. You have built a team to deal with these proposed changes.
With regard to effective teams and change, which THREE of the following statements are correct? (Choose three.)

A) Teams enhance learning and address change directly through creating recommendations and new ideas.
B) Teams play minor roles in institutional change.
C) Teams should continue after their purpose has been served.
D) Teams that cross departmental boundaries can develop new performance criteria.
E) Teams that cross departmental boundaries can destroy shared values.
F) Individuals must become more than they were when working alone and must develop new commitments and behaviors.

Solutions: