CIMA CIMA Certifications CIMAPRO15-E03-X1-ENG Questions & Answers

• Question 41:

  DDD is a business which sells entertainment products and now wants to move to a position where it uses e-business as a fundamental part of its business strategy. Which of the following benefits would result from DDD's use of e-business? (Choose all that apply.)

  A. Cost reductions because of lower overheads and cheaper procurement.

  B. Better control of information through monitoring website activity.

  C. Easier access to loan finance.

  D. An increased use of tacit knowledge.

  E. A reduction in labour turnover and higher morale.

  F. Increased online revenues.

  Correct Answer: AF

• Question 42:

  CCC is a software design company. The Board of CCC has always openly encouraged partnerships with a wide range of designers and other organizations in its industry in order to continually develop and enhance the services it offers and to utilize the expertise and knowledge of a range of individuals and organizations. CCC's staff have also been highly creative and innovative in the design services they provide. CCC regularly analyses and keeps up to date with changes in the environment in which it operates. CCC 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 CCC demonstrated? (Choose two.)

  A. Imagination to innovate

  B. Continual service development

  C. Openness to collaborate

  D. Environmental awareness

  E. Sophisticated systems

  Correct Answer: BD

• Question 43:

  RRR is a medium sized company, which has built family homes in Country for twenty years. The Board of RRR wishes to expand company operations and start building homes in the neighboring country. The Board of RRR wishes to undertake a position audit to help in this decision.

  Which of the following strategic analysis tools would be used in a position audit for RRR?

  A. Gap Analysis

  B. PEST

  C. SWOT

  D. Five Forces

  Correct Answer: C

  Reference: https://www.cimaglobal.com/Documents/ImportedDocuments/cid_tg_strategic_analysis_tools_nov07.pdf.pdf

• Question 44:

  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. Reduction in complaints from customers.

  D. Speed of processing the payment for parking charges.

  Correct Answer: A

• Question 45:

  M is a car manufacturer in Country C. Every day, at 09.00, members of M's staff practice meditation and Tai Chi for 30 minutes, before their normal workday commences.

  M's staff are paid during this time and M considers the practice to be a benefit both to staff and the company. Staff operate with high levels of efficiency and absenteeism levels are low.

  The auditors of M have recommended that M stop these sessions, stating that they consider them to be a waste of time and a drain on resources.

  Which of the following aspects of M's culture would the auditors recommendation impact on?

  A. Stories and myths

  B. The organizational paradigm and values

  C. Routines and rituals

  D. Symbols

  Correct Answer: B

• Question 46:

  STU is a hospital that is wholly funded by its national government. In the last five years it has seen its funding cut by over 30% due to budgetary pressure on the government, caused by a global recession. As a result, the senior management team of STU has had to make some very difficult decisions about prioritizing how it spends the funds it receives from the government. Its main strategies have been to reduce the number of administration staff and nursing staff by 20%, in order to reduce its costs. It has also stopped providing a number of services to patients, including its counselling services and its physiotherapy unit.

  Which of the following strategies has STU adopted to manage its reduced funding? (Choose all that apply.)

  A. Liquidation

  B. Divestment

  C. Retrenchment

  D. Facilitation

  E. Turnaround

  Correct Answer: B

  Reference: http://www.cbsmohali.org/course_material/fourth_semester/strategic%20management.pdf (63)

• Question 47:

  HHH is an international distribution company which operates a number of large distribution warehouses. HHH employs over 10,000 staff who operate the warehouses 24 hours per day and process over 500,000 packages and parcels each day. HHH operates in a highly competitive market and the senior management team recognize the importance of focusing upon its Critical Success Factors (CSF's). However, some senior managers are confused as to the difference between CSF's and Key Performance Indicators (KPI's).

  Which of the following are Critical Success Factors for HHH? (Choose all that apply.)

  A. Percentage of stock damaged.

  B. Market share percentage.

  C. Customer satisfaction.

  D. Continual maintenance of warehouse facilities.

  E. Time taken to load and unload deliveries.

  F. Efficient staff planning systems.

  Correct Answer: BC

• Question 48:

  Z is a medium-sized UK based accounting practice. Z operates a graduate training scheme. The trainees are given an induction and then placed on a three-year training programme designed to help develop professional skills and experience.

  The training programme has been in existence for many years. However, there is no clear consensus amongst the partners of Z about what the trainees should be able to do on completion of the programme and therefore what the training

  programme should emphasize. This lack of clarity is affecting the morale and commitment of the trainees and significant numbers are failing the programme or leaving to join a rival firm.

  Z's HR Department recognizes the need for committed and well motivated accountants to meet the increased expectations of clients and the competition from rival firms. The HR Department has identified changes to the training programme that can be implemented gradually through a series of initiatives.

  Which TWO of the following statements regarding the change required in Z are correct? (Choose two.)

  A. Understanding which day-to-day behaviors to reinforce within the training programme, is about 'routines and rituals' according to the Cultural Web.

  B. The change would be classified as a 'revolutionary change' according to Balogum and Hope Hailey.

  C. The need to manage the competitive position is an example of an 'external direct trigger' for change.

  D. The plans to combat competition would be considered as a 'structure' factor according to the McKinsey 7 S model.

  E. The skills, abilities and competences of the organization's employee's are a 'hard' factor according to the McKinsey 7 S model.

  Correct Answer: CE

• Question 49:

  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. Opportunity

  B. Threat

  C. Weakness

  D. Strength

  Correct Answer: D

  Reference: https://www.cimaglobal.com/Documents/ImportedDocuments/cid_tg_strategic_analysis_tools_nov07.pdf.pdf (5)

• Question 50:

  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 café, 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. Rational

  B. Freewheeling opportunism

  C. Incremental

  D. Emergent

  Correct Answer: D

  Reference: https://kfknowledgebank.kaplan.co.uk/business-strategy#Emergent_x0020_strategies_0_1_4_1_0_0_0_0_0_0_0_0_0_0_0_0