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E3 Exam Dumps - CIMA Strategic level Questions and Answers

Question # 4

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.

Options:

A.

Change which will involve cultural adjustments.

B.

Change where there is a desire to involve employees in the process. 

C.

Change which involves feedback and reflection.

D.

Change where shareholder value is the main consideration.

E.

Change which will involve downsizing and restructuring.

F.

Change which will involve key stakeholders.

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Question # 5

An organisation which exists in a fast-changing industry with managers who dislike formal planning would be best suited to using which of the following strategy models?

Options:

A.

Rational model

B.

Logical incrementalism

C.

Freewheeling opportunism

D.

Emergent approach

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Question # 6

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?

Options:

A.

Standards and Rewards

B.

Dimensions and Rewards

C.

Dimensions and Standards

D.

Standards, Dimensions and Rewards

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Question # 7

Which of the following is NOT an external driver that leads management to adopt greater sustainability in the activities of its business?

Options:

A.

Scientific research demonstrating the adverse impacts of global warming.

B.

Increased taxation of the emissions and waste created in industry supply chains.

C.

Customers' concerns, following widespread adverse publicity, over the very low pay of factory labour in manufacturing.

D.

Investor pressure for higher dividends.

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Question # 8

A direct external change trigger is:

Options:

A.

A general increase in the use of the Internet by society.

B.

An economic recession in an organization's home country.

C.

A powerful competitor forcing an organization to cut its prices.

D.

The introduction of new environmental protection policies by the government.

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Question # 9

Select the ethical principle which is most likely to be challenged in each of the following situations.

Options:

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Question # 10

TTT is a conglomerate with two divisions, AAA and BBB. Advise TTT on the most appropriate strategy to adopt for each division.

Options:

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Question # 11

PQR is a software design company. The Board of PQR has always openly encouraged partnerships with a wide range of designers and other Organizations in its industry, to continually develop and enhance the services it offers and to utilise the expertise and knowledge of a range of individuals and Organizations. PQR's staff have also been highly creative and innovative in the design services they provide.  PQR regularly analyses and keeps up to date with changes in the environment in which it operates. PQR operates a sophisticated website to promote its services and keep in touch with its service users.

 

Which TWO of the following attributes of a change adept Organization, as defined by Kanter, has PQR demonstrated?

Options:

A.

Environmental awareness

B.

Openness to collaborate

C.

Sophisticated systems

D.

Imagination to innovate

E.

Continual service development

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Question # 12

Z is an organisation that designs and manufactures fibre optic connectors. It works closely with its suppliers and has built an online area that it uses to share documents, designs, and photographs with its suppliers. The area also facilitates real time communication with suppliers either via a computer or a mobile phone.

Which of the following best describes Z's online area?

Options:

A.

An internet

B.

A multinet

C.

An intranet

D.

An extranet

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Question # 13

Which of the following is a 'hard' factor according to McKinsey's '7-S' model?

Options:

A.

Staff

B.

Skills

C.

Strategy

D.

Success

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Exam Code: E3
Exam Name: E3 Strategic Management
Last Update: Feb 22, 2025
Questions: 280
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