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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. Which THREE of the following issues relate to the Corporate Strategy of an organization? (Choose three.)

A) Meeting the needs of key customers.
B) Leaving existing industries.
C) Entering new industries.
D) Achieving advantage over competitors.
E) Avoiding competitive disadvantages.
F) Acquisitions, disposals and diversification.

2. 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) 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.
B) As a CIMA qualified Management Accountant you must follow CIMA's Code of Ethics.
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) A company's Code of Business Conduct can be rules based.
E) 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.

3. 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 in new markets.
E) Market penetration using new products within existing markets.
F) Market penetration using existing products within existing markets.

4. ABC is an independent training provider in Country F.
It provides training in business related subjects to a wide range of corporate customers. All of its tutors must possess a nationally accredited training qualification before being allowed to teach and all of its courses follow nationally accredited programmes which are externally monitored. This is considered to be a critical aspect of its business reputation.
ABC has one major competitor, XYZ, within Country F.
XYZ offers similar courses to ABC but its tutors do not have to have an accredited training qualification and its courses do not follow the national accredited programmes. The style and content of courses varies significantly between XYZ's centers.
There are a number of universities which offer nationally accredited courses within Country F.
ABC does not consider these as competitors because typically they attract students wishing to undertake degree courses.
The average university pass rate for nationally accredited programmes is currently higher than ABC's.
Which of the following types of benchmarking would be most useful for ABC?

A) Internal
B) Process
C) Strategic
D) Competitor

5. 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) Incremental
B) Rational
C) Emergent
D) Freewheeling opportunism

Solutions: