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CIMA CIMAPRO15-E03-X1-ENG Exam Syllabus Topics:

CIMA E3 - Strategic Management Question Tutorial Sample Questions:

Question 1

HHH is a manufacturer which has a bonus scheme for its production workers related to the speed of output.
HHH's products are very specialized and are made in a dangerous production environment. HHH's production workers usually work alone but sometimes, if there are problems in the production environment (for example, machinery breakdowns), they have to work in teams. When the production workers are working in teams they do not receive any bonus.
HHH's senior management is proposing to amend the current bonus scheme to encourage increased productivity. Under the current bonus scheme, production workers receive extra pay when they achieve 45% of their individual target: The target level is low because of the dangerous production environment and the need to occasionally work in teams.
Under the proposed bonus scheme, production workers will not receive any extra pay until they have achieved
90% of their individual target. Workers who achieve 90% or above of their individual target will be paid a 30% higher bonus.
Which THREE of the following problems is HHH most likely to encounter with the introduction of the proposed bonus scheme? (Choose three.)

A. The proposed bonus scheme conflicts with health and safety legislation.
B. Production workers will not be motivated by the proposed level of bonus.
C. Production workers could consider the new target as unachievable.
D. The extra production output will lead to an increase in inventory.
E. There could be a rise in the level of workplace accidents.

Question 2

Plush is a medium-sized hotel which recently opened on the outskirts of a city which is popular with tourists. It has a sophisticated website which allows customers to pre-book rooms and additional items, such as meals in its restaurant and tickets for popular tourist attractions in the city.
Plush has listed its website on a popular hotel price comparison website, which allows customers to compare prices and facilities of hotels in the same area and this has resulted in over 60% of Plush's customer bookings so far.
Since listing on the price comparison website, the Sales Manager of Plush has noticed that the prices offered by its nearest competitors have reduced dramatically and their range of special offers have also increased.
Which TWO of Porter's Five Forces have been most affected by the use of the price comparison website by the hotels in the same area as Plush? (Choose two.)

A. Threat of new entrants.
B. Bargaining power of customers.
C. Competitive rivalry.
D. Bargaining power of suppliers.
E. Threat of substitutes.

Question 3

RRR is an insurance company which maintains an extensive database of its customer transactions over the last 10 years. RRR is developing a new product and has carried out a SWOT analysis.
Within which of the following aspects of the SWOT analysis would RRR include its customer database?

A. Strength
B. Threat
C. Weakness
D. Opportunity

Question 4

Information Systems (IS) strategy is correctly defined as:

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

Question 5

DDD is a business which sells entertainment products and now wants to move to a position where it uses ebusiness as a fundamental part of its business strategy.
Which of the following benefits would result from DDD's use of e-business? (Choose all that apply.)

A. Better control of information through monitoring website activity.
B. Easier access to loan finance.
C. A reduction in labour turnover and higher morale.
D. An increased use of tacit knowledge.
E. Increased online revenues.
F. Cost reductions because of lower overheads and cheaper procurement.

Solutions: