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

CIMA E3 - Strategic Management Question Tutorial Sample Questions:

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

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

3. DRAG DROP
QR is a conglomerate with two divisions, A and B.
Given the information below, select the most appropriate strategy for each division to implement.
Select and Place:

Correct

4. 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.)

A) BBB should spend at least 0.1% of its Net Profit on sustainability projects.
B) BBB should investigate the costs and benefits of establishing a sustainability department.
C) BBB should give all its staff training in sustainability.
D) BBB should employ a new public relations consultancy.
E) BBB's Board should make a commitment to sustainability.
F) BBB should include sustainability targets in performance appraisal.

5. 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) A company's Code of Business Conduct can be rules based.
B) 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.
C) Both CIMA's Code of Ethics and the company's Code of Business Conduct must be based on a set of basic principles.
D) As a CIMA qualified Management Accountant you must follow CIMA's Code of Ethics.
E) 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.

Solutions: