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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. A is a private healthcare organization aiming to provide affordable and accessible high quality patient services.
A is introducing Big Data, which has not yet been adopted by the competition. A's database will store a huge amount of information about its patients. Clear access to wide sources of accurate information will enable patients to make more informed choices. Patients will be able to compare not only the prices of drugs, treatments and physicians but also their relative effectiveness.
Which of the following concerns should A have about its use of Big Data?

A) Privacy issues
B) Variety of information
C) Lack of competitive advantage
D) Veracity of information

2. When FarmCot Foods was founded five years ago, it was a small shop set up by a family of dairy farmers in a disused farm shed, selling their own produce to the local community. The family had decided, at that point in time, to diversify their dairy farming activities into also selling their own milk, cheese and ice cream products.
The aim was to increase their revenues, as dairy farming in their home country had been in decline for a number of years.
Since then, the shop has been very successful and has expanded rapidly over the last three years, due largely to a strong growth in tourism in its home country and a shift in consumer demand for locally sourced fresh farm products. FarmCot Foods is now located in a large purpose-built building on the site of the original farm shed and also operates a very popular cafa, a children's play area and sells a much wider range of products and gifts, which are all sourced from local suppliers.
Which of the following best describes FarmCot Foods approach to strategy development in the last five years?

A) Rational
B) Freewheeling opportunism
C) Incremental
D) Emergent

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

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

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

5. Z is a medium-sized UK based accounting practice. Z operates a graduate training scheme. The trainees are given an induction and then placed on a three-year training programme designed to help develop professional skills and experience.
The training programme has been in existence for many years. However, there is no clear consensus amongst the partners of Z about what the trainees should be able to do on completion of the programme and therefore what the training programme should emphasize. This lack of clarity is affecting the morale and commitment of the trainees and significant numbers are failing the programme or leaving to join a rival firm.
Z's HR Department recognizes the need for committed and well motivated accountants to meet the increased expectations of clients and the competition from rival firms. The HR Department has identified changes to the training programme that can be implemented gradually through a series of initiatives.
Which TWO of the following statements regarding the change required in Z are correct? (Choose two.)

A) Understanding which day-to-day behaviors to reinforce within the training programme, is about 'routines and rituals' according to the Cultural Web.
B) The plans to combat competition would be considered as a 'structure' factor according to the McKinsey 7 S model.
C) The skills, abilities and competences of the organization's employee's are a 'hard' factor according to the McKinsey 7 S model.
D) The change would be classified as a 'revolutionary change' according to Balogum and Hope Hailey.
E) The need to manage the competitive position is an example of an 'external direct trigger' for change.

Solutions: