Latest [Jan 15, 2022] E3 Exam with Accurate E3 Strategic Management PDF Questions
Take a Leap Forward in Your Career by Earning CIMA 282 Questions
NEW QUESTION 28
Which of the following is an example of a value adding activity within the outbound logistics aspect of an Organization's value chain?
- A. Refunds offered to customers if they are dissatisfied with a purchase.
- B. Regular training provided to staff in customer care.
- C. Promotions and discounts offered to loyal customers.
- D. Delivery of customers' purchases directly to their homes.
Answer: D
NEW QUESTION 29
You are a Management Accountant working for a logistics firm that wants to build collaborative relationships with each of its key clients.
Which of the following changes to the management accounting function would you recommend to help the development of collaborative partnerships with a client?
Select ALL that apply.
- A. Recruitment of management accounting staff from the key clients to improve shared understanding.
- B. Relocation of some management accounting staff from your Organization into the offices of the key clients.
- C. Management accounting staff from your Organization should be made available to the key clients to facilitate joint problem-solving.
- D. Open book management accounting in which the client can see the profits your firm makes from the relationship.
- E. Close monitoring of service level agreements to ensure your Organization provides the minimum service specified.
Answer: B,C
NEW QUESTION 30
LLL is an international oil and gas exploration company. It is considering investing S300 million in developing new oil fields in Country D. For this it will need to obtain a license from the government of Country D.
These new oil fields will bring much wealth to Country D because a large proportion of the revenue from the production of oil will be paid to the government as part of the licensing agreement.
However, oil production in Country D will have some undesirable social effects, such as the threat of pollution, congestion to the roads and pressure on local amenities such as housing, electricity and clean water.
Which of the following approaches to stakeholder management should LLL NOT undertake in order to enter Country D?
- A. Develop and circulate a promotional video showing the benefits enjoyed by other countries in which LLL operates.
- B. Undertake stakeholder mapping to identify the interests of the most powerful players in the decision to grant a license to LLL.
- C. Issue free shares in a Joint Venture to develop oil fields to government ministers from Country D.
- D. Commit to improving the local amenities and roads as a part of the application for a license in Country D.
Answer: B
NEW QUESTION 31
A company runs a distribution warehouse. Its information systems constantly monitors inventory levels, with automatic re-order processing occuring with suppliers when inventory items reach a specified level. It operates a robotics system which automatically picks inventory from its location in the warehouse and delivers it to the pick-up area. The company also has a large database of customer information which it uses to analyse buying behavior and sales trends so that it can provide customers with relevant and targeted marketing information.
Which THREE of the following activities of the Value Chain have been affected by the use of IT/ IS?
- A. Operations
- B. Services
- C. Outbound logistics
- D. Inbound Logistics
- E. Sales and Marketing
Answer: A,D,E
NEW QUESTION 32
ODD is a business which sells entertainment products and now wants to move to a position where il uses e-business as a fundamental part of its business strategy Which of the following benefits would result from DDD's use of e-business?
Select ALL that apply
- A. An increased use of tacit knowledge
- B. Cost reductions because of lower overheads and cheaper procurement
- C. A reduction in labour turnover and higher morale.
- D. Better control of information through monitoring website activity
- E. Increased online revenues.
- F. Easier access to loan finance
Answer: A,B,F
NEW QUESTION 33
Company Y is a global business selling a selection of technological items including phones, laptops and other computer related items. In addition Y sells accessory items, music downloads, apps: digital books and video downloads including films and television series through a cooperative partnership with other companies, designed to create value for the customer.
Which of the following terms best describes what Y has created?
- A. An entirely cloud based offering
- B. A digital ecosystem
- C. Artificial intelligence
- D. A blockchain arrangement
Answer: B
NEW QUESTION 34
BBB operates a small chain of coffee shops within Country X. a mature economy in northern Europe. BBB was established 20 years ago and currently employs over 150 staff in 25 shops located in major towns and cities throughout Country X. BBB attracts a wide range of customers, who are attracted by its extensive menu of coffee products and food Customers can either consume their purchases within the shop or can take their purchases away.
Which THREE of the following external environmental changes would have the greatest impact on BBB in the next three years?
- A. A worldwide shortage of coffee beans due to climate changes, affecting availability.
- B. An increase in the average age of the population in Country X due to falling birth rates.
- C. The opening of an internationally renowned chain of coffee shops in Country X.
- D. A planned refurbishment of 80% of BBB's shops to update its image and increase shop floor space
- E. An increase in the national statutory minimum wage in Country X.
Answer: A,B,E
NEW QUESTION 35
BBB is a manufacturer that has been criticised in the financial press because it does not have a policy for sustainability. Which THREE of the following elements would be crucial to BBB successfully embedding sustainability into its activities?
- A. BBB should employ a new public relations consultancy
- B. BBB's Board should make a commitment to sustainability.
- C. BBB should spend at least 0.1% of its Net Profit on sustainability projects
- D. BBB should include sustainability targets in performance appraisal
- E. BBB should investigate the costs and benefits of establishing a sustainability department
- F. BBB should give all its staff training in sustainability.
Answer: C,D,E
NEW QUESTION 36
FFF is considering developing a new website that will allow it to advertise and sell its high quality jewellery products online. The Board of FFF has identified that the cost of developing and managing a website would be relatively low. It is predicted that FFF will sell only a small percentage of its products through the website, as most customers like the personal experience of shopping in store.
However, research undertaken by the Marketing Director indicates that the website could be used very successfully by FFF for online marketing and customer communication. Therefore, the Marketing Director has suggested that FFF should develop an IT/ IS strategy to ensure a strategic focus for its website development. However, most of FFF's Board members, who are the main shareholders of the business, believe that developing an IT/IS strategy is unnecessary in order to develop and manage its website.
Which of the following arguments could be made by the Marketing Director to the Board of FFF to persuade it that an IT/ IS strategy would be appropriate in relation to the current website development?
- A. IT/ IS forms the basis of FFF's competitive advantage and therefore requires a strategic focus.
- B. IT/ IS is fast moving and FFF can take advantage of new technologies as they become available, if managed strategically.
- C. IT/ IS is very expensive and without a strategic focus there is a risk of costly mistakes.
- D. IT/ IS is expected by FFF's key stakeholders and should therefore have a strategic focus.
Answer: B
NEW QUESTION 37
Which TWO of the following statements are NOT characteristics of a robust 'coaching climate'?
- A. Personal growth, team development and Organizational learning are integrated.
- B. Time for reflection takes place only out of office hours.
- C. People are able to engage in destructive confrontation.
- D. Coaching is seen primarily as an opportunity to be proactive rather than reactive.
- E. People are recognised and rewarded for sharing knowledge.
Answer: B,C
NEW QUESTION 38
SSS is a large department store. It operates a chain of stores throughout Country Z. It offers a wide range of products, from cosmetics through to home furnishings.
SSS's Value Chain is presented below.
Which of the following generic strategies is being undertaken by SSS?
- A. Differentiation Focus
- B. Cost Leadership
- C. Stuck in the middle
- D. Differentiation
Answer: D
NEW QUESTION 39
PPP uses the Boston Consulting Group Matrix (BCG Matrix) to prioritise products for investment and divestment. PPP invests or divests according to the quadrant of the BCG Matrix that the product occupies.
Which TWO of the following quadrants might receive only as much investment as required to maintain PPP's relative market share?
- A. Cash cows
- B. Question marks
- C. Stars
- D. Dogs
Answer: A,C
NEW QUESTION 40
STU is a hospital that is wholly funded by its national government In the last five years it has seen its funding cut by over 30% due to budgetary pressure on the government, caused by a global recession As a result, the senior management team of STU has had to make some very difficult decisions about prioritising how it spends the funds it receives from the government Its main strategies have been to reduce the number of administration staff and nursing staff by 20%, in order to reduce its costs It has also stopped providing a number of services to patients, including its counselling services and its physiotherapy unit.
Which of the following strategies has STU adopted to manage its reduced funding?
Select ALL that apply
- A. Turnaround
- B. Facilitation
- C. Liquidation
- D. Retrenchment
- E. Divestment
Answer: C,D
NEW QUESTION 41
YZ is a family-run business which manufactures and sells confectionery, employing almost 100 staff It operates 10 shops in small towns in the north of country P.
Sales of YZ's products have decreased over the last
4 years due to competition from large supermarkets, internet shopping and a general economic downturn, which has hit the north of country P especially hard.
YZ's managing director has recently retired and the board decided to fill the vacancy with an external appointment. The new managing director plans to invest in new manufacturing technology, which would cut staffing levels by 15% and reduce wastage, allowing YZ to lower its prices YZ's staff are very unhappy about these proposals, feeling that they will destroy YZ's family tradition and reputation that has developed over many years Select the correct descriptor for each of the forces for change below.
Answer:
Explanation:
NEW QUESTION 42
Which THREE of the following frameworks are used solely to evaluate the external environment of an organization? (Choose three.)
- A. Porter's Value Chain
- B. Porter's Five Forces Model
- C. PEST Analysis
- D. Porter's Diamond
- E. Kaplan and Norton's Balanced Scorecard
- F. SWOT analysis
Answer: A,B,C
NEW QUESTION 43
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?
- A. An upward trend in commodity prices.
- B. A change in MMM's domestic advertising agency.
- C. A change in consumer age profiles in a country where MMM sells 5% of its output.
- D. A decline in the value of the Euro and the U.S. dollar.
- E. A modification to MMM's production processes designed to save fuel.
- F. A growth in Protectionist trade policies in Africa and Asia.
Answer: A,D,F
NEW QUESTION 44
BBB is a global manufacturer of organic fertilizers, used by farmers all over the world to improve resistance to disease and to increase crop yield. BBB uses data from past crop yield results, international weather prediction data and predictive models relating to population growth and movement statistics to identify and predict the fertilizers it will need to produce for its customers many years in advance.
Which of the following best describes the activities outlined above?
- A. Knowledge Management
- B. Data Mining
- C. Data Warehousing
- D. Big Data analysis
Answer: D
NEW QUESTION 45
LMN sells fashion clothing at competitive prices through its own retail stores. The clothes are manufactured for LMN by contractors in other countries.
In the past 4 years LMN has progressively lost market share to rival shops and online stores. This has been the consequence of poor designs, poor quality, and poor customer service.
In the past 3 years LMN tried to respond to this declining market share in several ways:
* Used e-sourcing to increase the number of suppliers LMN uses in order to obtain a larger choice of designs.
* Used e-procurement to buy in greater quantities to reduce cost per item.
* Warned each supplier that LMN will use a different supplier unless prices are reduced and better designs provided.
* Closed its own design studio to save costs, relying instead on its suppliers for designs.
* Reallocated budgets away from funding for customer research towards increased advertising.
* Avoided costs of product returns by making it difficult for customers to return items for a refund.
* Cancelled investment in a Customer Relationship Management system (CRM) to use the funds to finance its rising inventories.
You have been asked to suggest ways to improve the supply chain of LMN. This requires you to make a presentation to the Board of LMN.
Which THREE of the following techniques would improve the supply chain of LMN?
- A. Customer relationships not transactions
- B. Pull not push
- C. Partnership not antagonism
- D. Websites not shops
- E. Make not outsource
Answer: A,B,C
NEW QUESTION 46
In respect of mission statements, place the word "characteristic" or "purpose" against the relevant activity.
Answer:
Explanation:
NEW QUESTION 47
YZ is a family-run business which manufactures and sells confectionery, employing almost 100 staff. It operates 10 shops in small towns in the north of country P. Sales of YZ's products have decreased over the last
4 years due to competition from large supermarkets, internet shopping and a general economic downturn, which has hit the north of country P especially hard.
YZ's managing director has recently retired and the board decided to fill the vacancy with an external appointment. The new managing director plans to invest in new manufacturing technology, which would cut staffing levels by 15% and reduce wastage, allowing YZ to lower its prices. YZ's staff are very unhappy about these proposals, feeling that they will destroy YZ's family tradition and reputation that has developed over many years.
Select the correct descriptor for each of the forces for change below:
Answer:
Explanation:
NEW QUESTION 48
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