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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

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

2. Information Systems (IS) strategy is correctly defined as:

A) The roles and structure of information specialists in the organization and their relationship with users.
B) Identifying the information needs of the organization and aligning development to them.
C) The planning, organizing, investment and control of information applications in the organization.
D) Decisions on the hardware, software and communications solutions used in the organization.

3. DRAG DROP
LMN is a fast food manufacturer that makes 'Ready-meals'.
Place the appropriate stage of the Value Chain against each of the activities below:
Select and Place:

Correct

4. RRR is an insurance company which maintains an extensive database of its customer transactions over the last 10 years. RRR is developing a new product and has carried out a SWOT analysis.
Within which of the following aspects of the SWOT analysis would RRR include its customer database?

A) Strength
B) Weakness
C) Threat
D) Opportunity

5. JJJ is a publically quoted advertising agency. JJJ's competitive advantage is based on the expertise of its staff and its reputation in digital media advertising. JJJ has robust systems to protect its intellectual property. These include patents and copyrights. JJJ has also restricted access for most of its staff to its most sensitive data, such as studies of its customers' profitability.
JJJ's new Managing Director, Z, is concerned that when staff leave JJJ, the company loses whatever tacit knowledge they possess. These losses also impact on JJJ's reported profits. In order to remedy the losses of knowledge and the reduced profits Z wants to introduce a knowledge management strategy.
Which of the following steps support the introduction of a knowledge management strategy? (Choose all that apply.)

A) Z should set a target for reported profit.
B) Z should gain the support of the Board of Directors.
C) JJJ needs to acquire and install appropriate hardware and software.
D) JJJ should unfreeze current habits and standard operating procedures.
E) JJJ should integrate knowledge management and management accounting.
F) JJJ should convince staff of the benefits of sharing their tacit knowledge.

Solutions: