CIMA CIMA-E2 Online Practice Questions and Exam Preparation

CIMA CIMA-E2 Online Questions & Answers

• Question 11:

  A publishing business prints thousands of books every week. The Managing Director employed Taylor's Principles of Scientific Management in order to run the business efficiently. Which of the following would not have been initiatives he would have introduced into the business?

  Select ALL that apply.

  A. There was a focus on rewarding teams on each of the print presses for good performance
  B. Jobs were re-allocated on a monthly basis to maintain motivation
  C. Procedures were quickly adapted for flexibility when volumes increased
  D. All roles on the printing presses were analysed and the optimum method of working identified
  E. The employees on the production line were selected based on their physical capability to operate heavy print presses
  F. The managers spent most of their time planning the production to make it as efficient as possible
  G. Workers on the print presses followed the set procedures so need little supervisions
  A. There was a focus on rewarding teams on each of the print presses for good performance
  B. Jobs were re-allocated on a monthly basis to maintain motivation
  C. Procedures were quickly adapted for flexibility when volumes increased

• Question 12:

  X Company's Board of Directors uses its expertise to develop future strategies. The Board defines objectives that need to be achieved and then, through formal proactive planning and careful analysis, it selects the most appropriate means to achieve them.

  Which method of strategy formulation is the Board using?

  A. Emergent
  B. Rational
  C. Opportunism
  D. Resource-based
  B. Rational

• Question 13:

  Hersey and Blanchard developed a theory of situational leadership which suggested that successful leaders should change their leadership style according to the maturity of the subordinates they are leading. This includes an assessment of their professional ability and their readiness to undertake set tasks.

  Based on this theory, which leadership style would be best suited to a subordinate showing the highest levels of maturity, readiness, ability and willingness to tackle the work available?

  A. Delegating
  B. Telling
  C. Selling
  D. Participating
  A. Delegating

• Question 14:

  J has been appointed project manager for a multimillion dollar upgrade to factory computer systems for his international organisation.

  The organisation has decided to adopt the PRINCE2 project management methodology, of which J has knowledge from a previous post, but this was some time ago and his knowledge may need updating.

  In order to achieve maximum success, J realises he will need to ensure that problems encountered at each phase of the project are used to inform later stages of the project.

  Advise J at which stage of the project lessons learned should be recognised and applied to later stages, in order to prevent recurrence during the project:

  A. Starting the project
  B. Initiation of the project
  C. Managing stage boundaries
  D. Controlling a stage
  C. Managing stage boundaries

• Question 15:

  A Company achieves its competitive advantage by adopting a positioning view to strategy setting. Which TWO of the technical models below are most suited to this approach?

  A. Michael Porter's Value Chain.
  B. PESTEL analysis.
  C. Michael Porter's Five Forces model.
  D. Resource Audit.
  B. PESTEL analysis.
  C. Michael Porter's Five Forces model.

• Question 16:

  H is the owner of a motorcycle dealership in Los Angeles which provides sales, repair and servicing of very large motorcycles, typically with engines larger than 1000cc. Over the years H has built up a renowned team of highly skilled technicians that are experts in this particular size of motorcycle. H believes that their skills are rare and difficult, if not impossible, to imitate by any competitor in the region.

  Despite this advantage the company has been suffering from declining profits in the past three years and the marketing consultant has advised H to change the focus of the company towards small 50cc mopeds and scooters - because that "is clearly what the market is now wanting".

  The change being proposed is:

  A. from a resource-based view to a positioning approach.
  B. from a resource-based view to an incremental approach.
  C. from a positioning approach to a 'market driven' strategy.
  D. from a positioning approach to a rational model.
  A. from a resource-based view to a positioning approach.

• Question 17:

  China, Korea, Japan and Vietnam are high context cultures.

  In business relationships in high context cultures, which THREE of the following are typical?

  A. People prefer to establish relationships first.
  B. People value expertise and performance.
  C. People form agreements based on trust.
  D. People prefer fast and efficient negotiations.
  E. People value personal relations and goodwill.
  A. People prefer to establish relationships first.
  C. People form agreements based on trust.
  E. People value personal relations and goodwill.

• Question 18:

  Which of the following statements are not true based on Stalk, Evans and Schulman's principles of capability-based competition? Select ALL that apply.

  A. Generating new ideas are core to business success.
  B. It is the process that is important and not the product or market.
  C. The business processes create value.
  D. It is important to invest in skills and processes, not business functions.
  E. The CEO leads the development of capabilities.
  F. Capability is developed from internal and external factors.
  A. Generating new ideas are core to business success.
  F. Capability is developed from internal and external factors.

• Question 19:

  Which of the following is the concept whereby a manager has a right to exercise power on behalf the organisation?

  A. Accountability
  B. Empowerment
  C. Authority
  D. Delegation
  C. Authority

• Question 20:

  A highly complex IT project is being tackled by a self-managing team of three technical specialists who had never met each other before.

  At first they argued constantly for nearly two days over the best way to tackle the work and what technical software tools to use. Finally these issues were resolved, the team went out for dinner together and they agreed how best to share the

  workload between them.

  After this point, the productivity improved dramatically and good work progress was made. All was going well until two days later when another IT specialist turned up unexpectedly. This person was far less experienced than the other three.

  The new arrival explained that he would be taking over as project manager and immediately started to give explicit orders to the team.

  In the context of Tuckman's team development theory, which interpretation fits the facts of the scenario.

  A. The team had reached the performing stage but the arrival of the new specialist may result in the team reverting to the storming stage.
  B. The team had reached the norming stage and instructions from the new arrival will quickly help the team reach the performing stage.
  C. The team had already formed and were moving into the storming stage when the new arrival turned up and reset development at the forming stage.
  D. The new arrival will mean that the team will move forward from norming through storming into the final performing stage.
  A. The team had reached the performing stage but the arrival of the new specialist may result in the team reverting to the storming stage.