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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. 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) Related diversification
B) Market development
C) Product development
D) Market penetration

2. BCA is a long established international airline. Which of the following represent Threats to BCA's business?
(Choose all that apply.)

A) A higher level of private car ownership.
B) A sudden increase in international terrorism.
C) A substantial rise in the price of oil.
D) A shortage of trained pilots in BCA.
E) Greater popularity of long-haul holidays.

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

4. 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

5. STU is a hospital that is wholly funded by its national government. In the last five years it has seen its funding cut by over 30% due to budgetary pressure on the government, caused by a global recession. As a result, the senior management team of STU has had to make some very difficult decisions about prioritizing how it spends the funds it receives from the government. Its main strategies have been to reduce the number of administration staff and nursing staff by 20%, in order to reduce its costs. It has also stopped providing a number of services to patients, including its counselling services and its physiotherapy unit.
Which of the following strategies has STU adopted to manage its reduced funding? (Choose all that apply.)

A) Turnaround
B) Divestment
C) Liquidation
D) Retrenchment
E) Facilitation

Solutions: