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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. 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.

2. 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) Porter's Value Chain
D) Porter's Diamond
E) PEST Analysis
F) SWOT analysis

3. According to Porter's Five Forces model, which of the following would be evidence of high buyer power?

A) There is a low probability of backward integration.
B) There is a concentration of buyers.
C) Products are not standardized and buyers cannot easily switch to another product.
D) Buyers are fragmented and act independently of each other.

4. GV is a manufacturer and retailer of high quality suede gloves. GV makes all of its sales in country F, and is extremely profitable. After many successful years trading, GV has accumulated significant cash reserves and would like to grow the business organically.
After some investigation work, GV has discovered an opportunity to sell leather shoes in country P.
Which of the following strategic directions is GV taking if it pursues this opportunity, according to Ansoff's product / market matrix?

A) Product development
B) Market development
C) Market penetration
D) Related diversification

5. Ansoff has provided a product/market growth matrix which denotes possible strategic directions that an organization can follow.
Which of the following statements correctly describe the strategic options generated by the matrix? (Choose all that apply.)

A) Market penetration using existing products within existing markets.
B) Market penetration using new products within existing markets.
C) Diversification using new products in new markets.
D) Market development using existing products in new markets.
E) Market penetration using existing products in new markets.
F) Product development using new products in new markets.

Solutions: