CIMA E3 Dumps - E3 Strategic Management PDF Sample Questions

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E3 Strategic Management
280 Questions
Last Update Date : 24 February, 2024
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Realexamdumps Providing most updated CIMA Strategic Level Case Study Exam Question Answers. Here are a few exams:

Sample Questions

Realexamdumps Providing most updated CIMA Strategic Level Case Study Exam Question Answers. Here are a few sample questions:

CIMA E3 Sample Question 1

Which of the following distinguishes a learning curve effect from a learning Organization?


A. Learning curve effects depend on repetition of the same behaviour. Learning Organizations seek to modify behaviour.
B. Learning curve effects apply to the factory. Learning Organizations are always service industries.
C. Learning curve effects increase with time. Learning Organizations cease to learn after a time.
D. Learning curve effects always reduce costs. Learning Organizations always increase costs.

Answer: B

CIMA E3 Sample Question 2

Johnson, Scholes and Whittington developed the SAF framework to explain the factors that should be considered before pursuing a strategic option.


JJJ is a listed company that is considering launching a new product into its market.


Which of the following considerations affects the Acceptability of this new product launch?


A. The potential impact of the launch of the new product on the profitability of JJJ.
B. The availability of funds within JJJ for launching the new product.
C. The amount of production capacity JJJ will require to make the new product.
D. Whether the product is consistent with the strengths of JJJ.

Answer: B

CIMA E3 Sample Question 3

An organisation which exists in a fast-changing industry with managers who dislike formal planning would be best suited to using which of the following strategy models?


A. Rational model
B. Logical incrementalism
C. Freewheeling opportunism
D. Emergent approach

Answer: D

CIMA E3 Sample Question 4

LLL is a global passenger airline that needs to invest in a new fleet of aircraft to operate on its routes. There are several types of aircraft to choose between. The new aircraft will have an operating life of 25 years with LLL and therefore management is keen to make the correct decision.


There are several uncertainties that make it difficult for LLL to make this investment decision. Aircraft engine technologies are changing and some manufacturers are developing engines that propel aircraft at much higher speeds, whilst others are developing slower engines that minimise emissions. Concern over global warming is leading governments in some countries to impose heavy taxation on airlines that operate aircraft that have high emissions. The demand for air travel is also changing due to changing income levels between emerging and mature economies as well as the increased use of telecommunications to replace face to face meetings.


Which THREE of the following techniques would you recommend to help LLL make this investment decision?


A. Scenario planning
B. Morphological analysis
C. Cross impact analysis
D. Porters 5 Forces
E. Brainstorming

Answer: A, B, D

CIMA E3 Sample Question 5

Which of the following is NOT a use of the Value Chain?


A. Give managers a deeper understanding of precisely what their Organization does.
B. Implement changes to protect key processes.
C. Identify the key processes within the business that add value to the end customer.
D. Identify the non-value added processes.

Answer: C

CIMA E3 Sample Question 6

As a recently qualified accountant, you have been given responsibility for delivering an ambitious project to centralise and computerise the accounts function within a geographically dispersed, medium-sized business. In addition, the reporting timetable requires the project to be delivered within a very short timescale with limited resources. You have decided to put together a team to deal with these proposed changes.


Which THREE of the following statements regarding effective Teams and Change are correct?


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

Answer: A, B, G

CIMA E3 Sample Question 7

A grocery store has analysed its recent sales and identified that customers who purchased fresh strawberries also purchased ice cream at the same time in 65% of transactions.


Which of the following best describes the results identified in the analysis carried out by the grocery store?


A. Sequencing
B. Association
C. Clustering
D. Classification

Answer: C

CIMA E3 Sample Question 8

M has been appointed as an external change agent to lead and implement a large scale re-structuring strategy which is being undertaken by a large bank. M has been appointed due to his extensive experience in a wide range of organizational re-structuring programmes. This re-structuring strategy will involve a large number of redundancies and the implementation of a new organization-wide management reporting system. M will need to work with staff from all departments and levels of the organization. The Board of Directors of the bank believes that an external change agent will bring more benefits to the change process than using an internal change agent.

Which of the following are the most likely benefits that could be achieved by the bank by appointing an external change agent to lead and implement the re-structuring strategy? (Choose all that apply.)


A. The change process should be less costly if an external change agent is appointed.
B. The bank can exploit the specialist expertise of the external change agent.
C. As a dedicated resource, the external change agent can give more time to the change process.
D. The external change agent will be more objective in decision-making than an internal change agent.
E. The external change agent will have better relationships with the bank employees than an internal change agent.
F. The speed of delivery of the change process will be quicker when using an external change agent.

Answer: D, G

CIMA E3 Sample Question 9

MMM is a large national bank. MMM has developed a vision statement which states that it aims to:  

   • Provide superior returns to our shareholders

   • Offer customers the best financial products on the market

   • Continuously train and develop our staff

   • Continually improve our business processes by utilising the latest information technology


Which of the following would be an appropriate performance measure within a Balanced Scorecard for MMM?


A. Reduction in staff numbers to increase profit levels.
B. Undertake customer satisfaction surveys.
C. Number of training days per member of staff.
D. Ensure that all IT equipment used is not more than two years old.

Answer: D

CIMA E3 Sample Question 10

Which of the following did Johnson, Scholes and Whittington identify as success criteria for the evaluation of strategic options?


Select ALL that apply.


A. Suitability
B. Affordability
C. Feasibility
D. Acceptability
E. Durability

Answer: A, C, E

CIMA E3 Sample Question 11

JKL is a bank with a large number of personal customers. 


A member of staff has reported their loss of a portable electronic storage device to his line manager.


The portable electronic storage device contains customer account details, including secure information such as personal login details to access personal accounts. JKL has a clear policy that forbids staff from downloading customer data on to portable electronic storage devices. 


It would be difficult for a member of the public to access the information on the device.


Which of the following would you advise JKL to do?


A. Notify all customers of the loss and advise them to monitor their accounts for unusual transactions.
B. Wait for customers to query unusual transactions and refund any money they have lost.
C. Let the staff member explain why they downloaded data before deciding on their dismissal.
D. Retain the staff member and monitor them secretly to establish whether they are engaged in a fraud.

Answer: B

CIMA E3 Sample Question 12

S is a hybrid car manufacturer. S relies on strong social media presence and online marketing campaigns to drive customers to its website. S prioritises measuring and improving active usage metrics.

Which of the following metrics does S prioritise?

Select ALL that apply.


A. Abandon rates
B. The customer feedback score
C. The number of customer photographs uploaded
D. Number of repeat webpage users
E. Number of registered users

Answer: A, E

CIMA E3 Sample Question 13

MMM operates leisure parks in Country S. a mature economy in Europe. These are parks that are popular with people between the ages of 8 and 25 years who visit them to ride on the high speed roller-coasters and to visit other attractions at the parks. Nearly 60% of visitor expenditure is to buy meals and drinks at the park MMM estimates that 20% of its visitors travel to its parks from outside Country S.

Which THREE of the following environmental changes will have the greatest impact on MMM in the next five years?


A. The growing strength of the emerging economies in Africa, Asia and South America.
B. The average age of the population in Country S is increasing because of a fall in the birth rate.
C. An increase in the statutory minimum wage in Country S.
D. Introduction of government restrictions on the number of students and tounsts permitted to enter Country S.
E. The opening of a rival leisure park in Country S with more modern rides and attractions.

Answer: A, B, E

CIMA E3 Sample Question 14

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

Answer: B, D, G

CIMA E3 Sample Question 15

BBB is a global online recruitment agency It has over 20 million clients registered worldwide and estimates that it holds up to 80 terabytes of data about its clients. BBB gathers data about its clients from a wide variety of sources, such as client registration data input directly to the website, client browser and search histories and social media activity, all of which are used to build up a view of its clients.

Client data changes on a frequent basis and must be updated continually. New clients join the site regularly and the employment needs of clients often change. BBB utilises Big Data Analytics to evaluate its client data.

Which of the following features of Big Data are evident in BBB?

Select ALL that apply


A. Variety
B. Volume
C. Velocity
D. Veracity
E. Visibility

Answer: D

CIMA E3 Sample Question 16

Strategy is usually described as having three different levels: namely corporate strategy, business strategy and functional strategy. Which of the following are corporate strategies? Select ALL that apply.


A. A company has decided to invest to increase its levels of service to its key customers.
B. A company has decided to liquidate its assets and go out of business.
C. A company has decided to diversify into a new industry
D. A company has decided to implement pay equality for all its employees
E. A company has decided to implement a price cut to increase its market share.
F. A company has decided to implement a cloud based disaster-recovery strategy.

Answer: B, D

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