
CIMA E3 Strategic Management - E3 Exam Questions
QUESTION NO: 1
Collaborative leadership is particularly useful in situations where "no one is in charge", where the issues or problems are so complex that no one person or entity has either the information or the power to change.
Which of the following would facilitate the role of a collaborative leader effectively?
Place 'Yes' or 'No' next to each Role.

Collaborative leadership is particularly useful in situations where "no one is in charge", where the issues or problems are so complex that no one person or entity has either the information or the power to change.
Which of the following would facilitate the role of a collaborative leader effectively?
Place 'Yes' or 'No' next to each Role.

Correct Answer:


QUESTION NO: 2
RST is a company specializing in the production of wood-based products. RST has decided to introduce a fully integrated Information System across all divisions in order to improve knowledge sharing throughout the business and enhance customer relationship management.
RST is expecting resistance to the integrated Information System from it's staff who are key to the business and would be difficult to replace. Staff have a good understanding of why the new system and knowledge sharing is needed and how the system will work but many staff are not happy about the potential changes to their working conditions.
Which of the following change leadership styles, as outlined by Kotter and Schlesinger, would be most appropriate for RST to adopt?
RST is a company specializing in the production of wood-based products. RST has decided to introduce a fully integrated Information System across all divisions in order to improve knowledge sharing throughout the business and enhance customer relationship management.
RST is expecting resistance to the integrated Information System from it's staff who are key to the business and would be difficult to replace. Staff have a good understanding of why the new system and knowledge sharing is needed and how the system will work but many staff are not happy about the potential changes to their working conditions.
Which of the following change leadership styles, as outlined by Kotter and Schlesinger, would be most appropriate for RST to adopt?
Correct Answer: D
QUESTION NO: 3
AB uses Johnson, Scholes and Whittington's criteria of 'Feasibility and Acceptability' to evaluate potential strategies. AB has begun a project to re-engineer its best selling product.
Apply the appropriate criterion to each of the questions below:

AB uses Johnson, Scholes and Whittington's criteria of 'Feasibility and Acceptability' to evaluate potential strategies. AB has begun a project to re-engineer its best selling product.
Apply the appropriate criterion to each of the questions below:

Correct Answer:


QUESTION NO: 4
BCD is a manufacturer of electronic components. Based on research of its external environment BCD has chosen 'Customer Satisfaction' as one of its Critical Success Factors. In order to operationalise this Critical Success Factor, BCD's management must associate and select a number of relevant Key Performance Indicators.
Which THREE of the following Key Performance Indicators would be suitable to use in respect of Customer Satisfaction?
BCD is a manufacturer of electronic components. Based on research of its external environment BCD has chosen 'Customer Satisfaction' as one of its Critical Success Factors. In order to operationalise this Critical Success Factor, BCD's management must associate and select a number of relevant Key Performance Indicators.
Which THREE of the following Key Performance Indicators would be suitable to use in respect of Customer Satisfaction?
Correct Answer: A,C,D
QUESTION NO: 5
Which of the following techniques is concerned with evaluating the interrelationships between the competitive moves of a set of competing organisations?
Which of the following techniques is concerned with evaluating the interrelationships between the competitive moves of a set of competing organisations?
Correct Answer: C
QUESTION NO: 6
McKinsey's '7-S' model distinguishes between 'hard' and 'soft' factors.
Which TWO of the following statements are correct?
McKinsey's '7-S' model distinguishes between 'hard' and 'soft' factors.
Which TWO of the following statements are correct?
Correct Answer: C,E
QUESTION NO: 7
PQ is an international airline.
In accordance with Porter's Value Chain, select "Primary" or "Support" for each of the activities listed below:

PQ is an international airline.
In accordance with Porter's Value Chain, select "Primary" or "Support" for each of the activities listed below:

Correct Answer:


QUESTION NO: 8
Which of the following structures would you recommend for the Board of Directors of a UK public company in order to fulfill its legal responsibilities?
Which of the following structures would you recommend for the Board of Directors of a UK public company in order to fulfill its legal responsibilities?
Correct Answer: A
QUESTION NO: 9
E is a company run by a well balanced Board of Directors. E is performing well, but is looking to reduce costs in the current year Which of the following activities would lack integrity'' Select ALL that apply.
E is a company run by a well balanced Board of Directors. E is performing well, but is looking to reduce costs in the current year Which of the following activities would lack integrity'' Select ALL that apply.
Correct Answer: C,D
QUESTION NO: 10
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?
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?
Correct Answer: B
QUESTION NO: 11
BCD is an independent training provider in Country P. It provides training to a wide range of corporate customers in business related subjects. All of its tutors must possess a nationally accredited training qualification before they are allowed to teach. Also, all of its courses follow nationally accredited programs and are externally monitored. This is considered to be a critical aspect of its business reputation.
BCD has one major competitor, JKL, within Country P. JKL offers similar courses to BCD but its tutors do not have to have an accredited training qualification. In addition its courses do not follow the national accredited programs and the content and style of courses varies significantly between JKL centres.
There are a number of universities which offer nationally accredited courses within Country P. BCD does not consider these as competitors, as they typically attract students wishing to undertake degree courses. The average university pass rate for nationally accredited programs is currently higher than BCD's Which of the following types of benchmarking would be most useful for BCD?
BCD is an independent training provider in Country P. It provides training to a wide range of corporate customers in business related subjects. All of its tutors must possess a nationally accredited training qualification before they are allowed to teach. Also, all of its courses follow nationally accredited programs and are externally monitored. This is considered to be a critical aspect of its business reputation.
BCD has one major competitor, JKL, within Country P. JKL offers similar courses to BCD but its tutors do not have to have an accredited training qualification. In addition its courses do not follow the national accredited programs and the content and style of courses varies significantly between JKL centres.
There are a number of universities which offer nationally accredited courses within Country P. BCD does not consider these as competitors, as they typically attract students wishing to undertake degree courses. The average university pass rate for nationally accredited programs is currently higher than BCD's Which of the following types of benchmarking would be most useful for BCD?
Correct Answer: B
QUESTION NO: 12
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?
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?
Correct Answer: A,C,E
QUESTION NO: 13
HHH is about to undergo a period of significant change. HHH intends to draw upon the model suggested by Beer and Nohria, concerning 'Theory E' and 'Theory O'. In which circumstances should HHH use 'Theory O' strategies?
Select ALL that apply.
HHH is about to undergo a period of significant change. HHH intends to draw upon the model suggested by Beer and Nohria, concerning 'Theory E' and 'Theory O'. In which circumstances should HHH use 'Theory O' strategies?
Select ALL that apply.
Correct Answer: A,B,F
QUESTION NO: 14
WXY has been criticised by an activist shareholder for a lack of clarity in its formulation and implementation of strategy.
The activist shareholder states that WXY is confused as to the different levels of strategy and it has pointed to examples of inappropriate levels of management being held responsible for strategies that they do not control WXY has decided to use the categories, Corporate, Business and Functional to clarify its strategic processes.
Which of the following are Corporate strategies?
Select ALL that apply.
WXY has been criticised by an activist shareholder for a lack of clarity in its formulation and implementation of strategy.
The activist shareholder states that WXY is confused as to the different levels of strategy and it has pointed to examples of inappropriate levels of management being held responsible for strategies that they do not control WXY has decided to use the categories, Corporate, Business and Functional to clarify its strategic processes.
Which of the following are Corporate strategies?
Select ALL that apply.
Correct Answer: A,C,D




