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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

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

2. 'Big data' refers to datasets whose size is outside the ability of typical database software tools to capture, store, manage and analyze.
Which of the following statements is NOT a valid statement with regard to 'big data'?

A) Sufficient analytical and managerial talent is available to exploit the opportunities associated with 'big data'.
B) 'Big data' will require the right infrastructure, incentives and safeguards to address public concerns.
C) The definition of 'big data' can vary by sector, depending on the software tools and dataset sizes common to a particular industry.
D) As technology advances overtime, the size of datasets that qualify as 'big data' will also increase.

3. 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) 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.
C) As a CIMA qualified Management Accountant you must follow CIMA's Code of Ethics.
D) Both CIMA's Code of Ethics and the company's Code of Business Conduct must be based on a set of basic principles.
E) A company's Code of Business Conduct can be rules based.

4. 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) Freewheeling opportunism
C) Rational
D) Emergent

5. PQR is a charity which has an excellent reputation within its home country. PQR employs over 300 highly experienced staff and has 200 skilled volunteers. PQR's funding mainly comes from donations from the public but its public profile is low compared to larger, more publicized charities.
Due to a recent recession, public donations to PQR have fallen in the last five years, but demand for its services continues to grow.
The government of the country in which PQR operates is encouraging greater collaboration between charities and there have been several recent successful mergers within the charity sector. PQR has recently been approached by a high profile and well funded charity, DDD, with a merger proposal. DDD offers complementary services to those offered by PQR.
Which TWO of the following factors would most likely be considered as an "opportunity" for PQR? (Choose two.)

A) Merging with DDD
B) The excellent reputation of DDD
C) Donations from the public
D) Highly experienced staff
E) Growing demand for its services

Solutions: