Exam Details

  • Exam Code
    :CIMAPRO15-E03-X1-ENG
  • Exam Name
    :E3 - Strategic Management Question Tutorial
  • Certification
    :CIMA Certifications
  • Vendor
    :CIMA
  • Total Questions
    :70 Q&As
  • Last Updated
    :Jul 19, 2025

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

  • Question 51:

    YZ operates a national mobile phone (cell phone) network in one country. It is considering upgrading its network to 4th Generation (4G) by providing an improved bandwidth that will enable its customers faster access to the Internet.

    This investment will cost S29 million which YZ's institutional investors have agreed to provide by subscribing to a rights issue. This is due to management having informed institutional investors that a rival is already offering 4G and that this is

    taking customers away from YZ because its network is now regarded as too slow. YZ's remaining customers have shown a willingness to pay extra for 4G and overall the investment will have a positive net present value.

    Which of the following statements are correct? (Choose all that apply.)

    A. It provides a market development opportunity for YZ.

    B. YZ will gain a first mover advantage.

    C. There is stakeholder approval for the investment.

    D. It is essential given the strategic threats to YZ.

    E. There are sufficient investment funds available

  • Question 52:

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

    A. Porter's Value Chain

    B. Kaplan and Norton's Balanced Scorecard

    C. PEST Analysis

    D. Porter's Diamond

    E. SWOT analysis

    F. Porter's Five Forces Model

  • Question 53:

    As a CIMA qualified management accountant working within a manufacturing company, you are subject to both CIMA's Code of Ethics and your company's Code of Business Conduct. Which TWO of the following statements are TRUE? (Choose two.)

    A. As a CIMA qualified Management Accountant you must follow CIMA's Code of Ethics.

    B. Where there is a difference between CIMA's Code of Ethics and the company's Code of Business Conduct, the company's Code of Business Conduct takes priority.

    C. Both CIMA's Code of Ethics and the company's Code of Business Conduct must be based on a set of basic principles.

    D. Both CIMA's Code of Ethics and the company's Code of Business Conduct include references to Confidentiality. Disclosure on public interest grounds is therefore prohibited.

    E. A company's Code of Business Conduct can be rules based.

  • Question 54:

    Which of the following categorizations would be correct, according to McFarlan's Strategic Grid, for a system which is critical to sustaining existing business but its future strategic importance is considered to be low?

    A. Turnaround

    B. Support

    C. Strategic

    D. Factory

  • Question 55:

    DRAG DROP

    QR is a conglomerate with two divisions, A and B. Given the information below, select the most appropriate strategy for each division to implement.

    Select and Place:

  • Question 56:

    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:

  • Question 57:

    DRAG DROP

    PQ is an international airline.

    In accordance with Porter's Value Chain, select “Primary” or “Support” for each of the activities listed below:

    Select and Place:

  • Question 58:

    DRAG DROP

    AB uses Johnson, Scholes and Whittington's criteria of 'Feasibility and Acceptability' to evaluate potential strategies. AB has begun a project to re-engineer its best selling product.

    Apply the appropriate criterion to each of the questions below:

    Select and Place:

  • Question 59:

    DRAG DROP

    In order to organize the value-adding activities to support a chosen strategy, Porter's Generic Strategies are often applied within an organization's value chain.

    Against each of the activities listed below, select the Generic Strategy which best defines the strategic approach being taken.

    Select and Place:

  • Question 60:

    DRAG DROP

    YZ is a family-run business which manufactures and sells confectionery, employing almost 100 staff. It operates 10 shops in small towns in the north of country P. Sales of YZ's products have decreased over the last 4 years due to competition from large supermarkets, internet shopping and a general economic downturn, which has hit the north of country P especially hard. YZ's managing director has recently retired and the board decided to fill the vacancy with an external appointment. The new managing director plans to invest in new manufacturing technology, which would cut staffing levels by 15% and

    reduce wastage, allowing YZ to lower its prices. YZ's staff are very unhappy about these proposals, feeling that they will destroy YZ's family tradition and reputation that has developed over many years. Select the correct descriptor for each of the forces for change below:

    Select and Place:

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