E3 Strategic Management CIMAPRA19-E03-1-ENG Dumps Questions

1. DDD has just issued a profit forecast in connection with a proposed take-over of a business. The take-over is strongly opposed by the target company. DDD’s Management Accountant played a large part in helping DDD’s Finance Director prepare the profit forecast. However, the Management Accountant believes that the profit forecast is overly optimistic and is based on some false assumptions. As a result the Management Accountant thinks the profit forecast is misleading. Select THREE of the actions below which are consistent with CIMA’s Code of Ethics.

2. BBB is a publisher. As a consequence of BBB using the Internet to outsource its typesetting and studio activities it has been able to move its few remaining staff into much smaller and less expensive office accommodation.

Which activity in Porter’s Value Chain has benefitted from BBB’s use of information systems?

3. LLL is a travel company which has experienced rapid organic growth. It has three divisions and each division is led by a Divisional Director. Each Divisional Director is responsible for their own divisions’ investment in Information Technology (IT). However, as LLL has grown, so has its information requirements.

Recently, LLL appointed an IT Manager. She discovered that within LLL’s divisions, there are very different standards for IT, resulting in different hardware and software used in the three divisions. Also, the divisions do not use common software packages which causes difficulties in transferring information within LLL. LLL does not have a central IT department.

Which of the following activities would be the primary focus of an Information Systems (IS) Strategy for LLL?

4. YYY is a profit-seeking provider of television channels. It broadcasts to some 55 countries using satellite and cable technologies. It also commissions and produces about 30% of the programs it broadcasts, to give it a unique competitive advantage against other broadcasters.

Web 2.0 provides new opportunities for YYY and it has developed a strong social media component to its programming schedules to increase audience engagement.

Keeping YYY’s divisions working together is crucial to its success as a business.

Which of the following methods of divisional Performance Measurement would you recommend to YYY?

5. You are a Management Accountant working for anOrganizationthat includes commitments to ‘sustainability’ in its mission statement.

Which THREE of the following are contributions that a Management Accountant can make to the achievement of this part of the Organization’s mission statement?

6. As a qualified Management Accountant you have been asked by a non-financial manager to explain the CEO’s recent comments, featured in the CEO’s regular update to investors and analysts.

The CEO’s update suggested the company, an established property development business, was about to pursue an exciting strategy. The strategy is to focus on conglomerate diversification, to be achieved through a number of pre-identified acquisitions, with the aim of significantly increasing shareholder value.

Which of the following statements is consistent with the concept of conglomerate diversification?

7. Which TWO of the following statements are NOT characteristics of a robust ‘coaching climate’?

8. Which of the following statements would encourage anOrganizationto use Scenario Planning?

Select ALL that apply.

9. A leading supermarket chain is undertaking environmental scanning as it is concerned that it is becoming uncompetitive and profits have started to fall. The Board is concerned that when the next Annual General Meeting is held, it will need to have a viable strategy to present to its shareholders, in order to prevent shareholders’ protests.

In the past the company has been reluctant to offer an Internet shopping

service. However, it now believes that by offering this service and also introducing customer relationship marketing (CRM) this will produce a strategy that will help it to improve its competitiveness.

Which of the following statements apply to CRM? Select ALL that apply.

10. 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.

11. AAA manufactures and sells a range of travel suitcases. One model, the ‘Executive’ has seen sales growth of around 3% for the last two years, following strong growth since its introduction eight years ago. This slow down in the ‘Executive’ sales growth is largely due to AAA’s competitors offering products in direct competition with the ‘Executive’. AAA has therefore had to reduce its price to match those of its major competitors. AAA has also recently upgraded the features of the ‘Executive’ model to include a variety of different colours and materials. It has also launched a marketing campaign to promote the benefits of the ‘Executive’ model against its competitors products.

Which stage of the product life cycle has the ‘Executive’ model of suitcases reached?

12. TTT is a partnership that designs a specialist type of construction project for clients. It does not build the construction projects itself. TTT has eight partners who are skilled architects. Each partner works independently on their own projects. The partners rarely meet except to agree how to share out TTT’s very significant profits.

The partners are disappointed that TTT is not growing as fast as it has in the past. Each partner is fully employed on their own projects and none has the time to recruit new architects to TTT. They are frustrated at the lack of leadership in TTT, although none of the partners are willing to take on a more senior role.

Which THREE of the following does TTT need to address?

13. JJJ is a private company belonging to a famous former athlete. It operates gyms and fitness clubs across its home country. Each gym or fitness club is treated as a profit centre and the manager of each centre is paid bonuses based on its financial performance.

Three years ago it introduced multidimensional performance measures into its management control systems. These measure capacity utilisation, financial performance, competitiveness, innovation, and the flexibility of its centres to cope with changing demands.

The managers of its centres have been leaving at a very high rate over the last two years. They have claimed that the measures are too open to interpretation and when they think they are improving the centre’s performance they are told they are doing the wrong thing. They also complain that the managers in the centres near big cities find it much easier to reach their targets than the managers of other centres.

Using Fitzgerald and Moon’s Building Block model, where does the problem lie?

14. Which THREE of the following statements are correct in relation to the use of the Performance Pyramid?

15. 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 accreditedprograms 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 accreditedprograms 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

accreditedprograms is currently higher than BCD’s

Which of the following types of benchmarking would be most useful for BCD?

16. MMM is a multi-national company that manufactures and sells consumer durables. MMM has recently experienced severe trading losses and its Marketing Director has decided to revise the Marketing Strategy paying due regard to MMM’s key external drivers.

Which THREE of the following are key external drivers for MMM?

17. CCC is a charity which has an excellent reputation within its home country. CCC employs over 300 highly experienced staff and also has 200 skilled volunteers. Its funding mainly comes from donations from the public but its public profile is low compared to larger, more publicised charities.

Due to the recent recession, public donations to CCC have fallen in the last five years, but demand for its services continues to grow.

The government of the country in which CCC operates is encouraging greater collaboration between charities and there have been several recent successful mergers within the charity sector. CCC has recently been approached by a high profile and well funded charity, PPP, with a proposal to merge. PPP offers complementary services to those offered by CCC.

Which TWO of the following factors would most likely be considered as an ‘opportunity’ for CCC?

18. CIMA has described the two roles of enterprise governance as ‘preventing failure’ and ‘ensuring success’. CIMA sees ‘preventing failure’ as being related to having proper risk management and corporate governance procedures in place. CIMA sees ‘ensuring success’ as being concerned with the practise of strategic management.

Which THREE of the following responsibilities of senior management are essential to ‘ensuring success’ for theOrganization?

19. Lynch developed the performance pyramid to define the links between objectives and performance measures.

Which THREE of the following statements apply to the performance pyramid?

20. Which of the following is NOT included in the Information Systems Strategy (ISS) of Earl’s three levels of information strategy?