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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. Which THREE of the following frameworks are used solely to evaluate the external environment of an organization? (Choose three.)

A) Kaplan and Norton's Balanced Scorecard
B) Porter's Five Forces Model
C) SWOT analysis
D) PEST Analysis
E) Porter's Value Chain
F) Porter's Diamond

2. Which of the following categorizations would be correct, according to McFarlan's Strategic Grid, for a system which is critical to sustaining existing business but its future strategic importance is considered to be low?

A) Support
B) Factory
C) Turnaround
D) Strategic

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

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. Directors have a duty to shareholders and other stakeholders and are required to promote the success of the company.
Which THREE of the following are valid roles and responsibilities of directors? (Choose three.)

A) To have regard for the interests of the company's employees.
B) To focus only on maximizing company profits.
C) To avoid conflicts of interest and of duties.
D) To consider the likely consequences of any decision in the long term.
E) To be responsible for keeping all external stakeholders satisfied.

Solutions: