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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. 'Big data' refers to datasets whose size is outside the ability of typical database software tools to capture, store, manage and analyze.
Which of the following statements is NOT a valid statement with regard to 'big data'?

A) Sufficient analytical and managerial talent is available to exploit the opportunities associated with 'big data'.
B) The definition of 'big data' can vary by sector, depending on the software tools and dataset sizes common to a particular industry.
C) As technology advances overtime, the size of datasets that qualify as 'big data' will also increase.
D) 'Big data' will require the right infrastructure, incentives and safeguards to address public concerns.

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

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

3. SSS University wishes to introduce a new Car Park Management Strategy (CPMS). The aim of this strategy is to reduce the use of private cars and to encourage sustainable transport, such as cycling and public transport, by staff and students. SSS has decided to reduce the number of car parking spaces and introduce parking charges.
The Management Accountant has decided to use the Balanced Scorecard to help prepare a performance management system to assess the performance of the new CPMS.
Which of the following is an example of the Innovation and Learning perspective of a Balanced Scorecard for SSS?

A) Easy access to car parking spaces.
B) Number of days of training for car park attendants.
C) Speed of processing the payment for parking charges.
D) Reduction in complaints from customers.

4. RST is a company specializing in the production of wood-based products. RST has decided to introduce a fully integrated Information System across all divisions in order to improve knowledge sharing throughout the business and enhance customer relationship management.
RST is expecting resistance to the integrated Information System from it's staff who are key to the business and would be difficult to replace. Staff have a good understanding of why the new system and knowledge sharing is needed and how the system will work but many staff are not happy about the potential changes to their working conditions.
Which of the following change leadership styles, as outlined by Kotter and Schlesinger, would be most appropriate for RST to adopt?

A) Education
B) Negotiation
C) Manipulation
D) Coercion

5. When FarmCot Foods was founded five years ago, it was a small shop set up by a family of dairy farmers in a disused farm shed, selling their own produce to the local community. The family had decided, at that point in time, to diversify their dairy farming activities into also selling their own milk, cheese and ice cream products.
The aim was to increase their revenues, as dairy farming in their home country had been in decline for a number of years.
Since then, the shop has been very successful and has expanded rapidly over the last three years, due largely to a strong growth in tourism in its home country and a shift in consumer demand for locally sourced fresh farm products. FarmCot Foods is now located in a large purpose-built building on the site of the original farm shed and also operates a very popular cafa, a children's play area and sells a much wider range of products and gifts, which are all sourced from local suppliers.
Which of the following best describes FarmCot Foods approach to strategy development in the last five years?

A) Emergent
B) Incremental
C) Freewheeling opportunism
D) Rational

Solutions: