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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. Which THREE of the following frameworks are used solely to evaluate the external environment of an organization? (Choose three.)

A) Porter's Diamond
B) Kaplan and Norton's Balanced Scorecard
C) Porter's Value Chain
D) Porter's Five Forces Model
E) PEST Analysis
F) SWOT analysis

2. QWE is a private company belonging to a famous former sports professional. It operates gyms and fitness clubs across its home country. Each gym or fitness club is treated as a profit center and the manager of each center is paid bonuses based on its financial performance.
QWE introduced multidimensional performance measures into its management control systems 3 years ago.
These measure competitiveness, financial performance, capacity utilization, innovation and the flexibility of its centers to cope with changing demands.
The managers of QWE's centers have been leaving at a very high rate over the last 2 years. They have claimed that the measures are too open to interpretation and when they think they are improving their center's performance they are told they are doing the wrong things. They also complain that the managers in the centers near big cities find it much easier to reach their targets than the managers of other centers.
According to Fitzgerald and Moon's Building Block model, where does the problem lie?

A) Dimensions and Standards
B) Standards and Rewards
C) Dimensions and Rewards
D) Standards, Dimensions and Rewards

3. Which of the following would be correct considerations when evaluating the Feasibility of a strategy? (Choose all that apply.)

A) Will customers object to the strategy?
B) Will the business be able to deal with the responses of its competitors to the strategy?
C) Will the strategy maintain competitive advantage?
D) Will the strategy exploit the core competencies of the business?
E) Will there be sufficient time to implement the strategy?

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

5. Country W hosts a large music competition every 5 years, which is attended by many international musicians.
The success of the competition is dependent upon effective Customer Relationship Marketing being established with many different market groups around the world. These include music colleges who send their students, broadcasting companies who broadcast the event on radio and television, audience members, online ticket sellers and music journalists who write about the competition in specialist journals.
Using Payne's 'Six Markets Model', which of the following is the correct classification for the music journalists writing about the competition?

A) Supplier market
B) Influence market
C) Customer market
D) Referral market

Solutions: