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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. RRR is a medium sized company, which has built family homes in Country D' for twenty years. The Board of RRR wishes to expand company operations and start building homes in the neighboring country. The Board of RRR wishes to undertake a position audit to help in this decision.
Which of the following strategic analysis tools would be used in a position audit for RRR?

A) Gap Analysis
B) SWOT
C) PEST
D) Five Forces

2. TUV had an employee turnover rate of 25% among new recruits and was becoming short of skilled workers.
The Board of TUV realized there was something dramatically wrong and called in consultants to assess the problem. The consultants recommended transformational change in that TUV should redesign the entire production system, change the placement of all equipment and the flow of work, redefine every job and give all workers new assignments.
Which type of change did the consultants recommend for TUV?

A) Adaptation
B) Evolution
C) Reconstruction
D) Revolution

3. Which THREE of the following statements apply to Lynch's performance pyramid? (Choose three.)

A) The lowest level of the pyramid contains the day-to-day operational measures.
B) The right-hand side of the pyramid contains measures which are predominantly non-financial.
C) The left-hand side of the pyramid contains measures which have an external focus.
D) The business unit level includes measures which relate to internal systems needed to meet customers' needs.
E) The performance pyramid is designed to ensure that all activities support the organization's vision.
F) The business operating systems level includes the market-related Critical Success Factors.

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

5. HH is an outdoor theatre which is based in the capital city of country N.
Tickets for shows can be booked at the ticket office or online. HH has identified the following critical success factors (CSFs):
An excellent, online ticket booking system
Customer satisfaction
Which of the following would be suitable key performance indicators (KPIs) for HH? (Choose all that apply.)

A) Profit from sales of snacks and drinks.
B) Number of returning customers each year.
C) Customer show ratings, scored out of ten.
D) Employee turnover.
E) Number of customer complaints.
F) Percentage of ticket bookings aborted before completion.

Solutions: