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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. BBB is a manufacturer that has been criticized in the financial press because it does not have a policy for sustainability.
Which THREE of the following elements would be crucial to BBB successfully embedding sustainability into its activities? (Choose three.)

A) BBB should spend at least 0.1% of its Net Profit on sustainability projects.
B) BBB's Board should make a commitment to sustainability.
C) BBB should employ a new public relations consultancy.
D) BBB should investigate the costs and benefits of establishing a sustainability department.
E) BBB should give all its staff training in sustainability.
F) BBB should include sustainability targets in performance appraisal.

2. ZYX is a global hotel chain, employing over 10,000 staff worldwide. ZYX operates a Code of Conduct for all of its staff, which states "Our staff are the most important assets of our business operations. We expect the highest standards of ethical and professional conduct from all staff, who must display the principles of trust, respect, equality, integrity and fairness at all times." Which THREE of the following actions could ZYX take to positively influence its staff to work to the ethical and professional principles in its Code of Conduct? (Choose three.)

A) Operate a system of reward incentives for staff who display high ethical and professional standards.
B) Set performance targets in diversity and equality for its hotel senior managers.
C) Publication on its website of ZYX's Code of Conduct and regular examples of staff displaying the highest standards of professional conduct.
D) Induction and on-going staff training on ZYX's Code of Conduct and ethical and professional principles.
E) Disciplinary actions, such as fines, for staff who do not display high ethical and professional standards.
F) Interview process for staff prior to employment, to assess their understanding of ethical and professional behavior.

3. You have been given responsibility, as a newly qualified management accountant, for delivering an ambitious project to centralize and computerize the accounts function within a medium-sized, geographically dispersed business. The timetable also requires the project to be delivered within a very short timescale with limited resources. You have built a team to deal with these proposed changes.
With regard to effective teams and change, which THREE of the following statements are correct? (Choose three.)

A) Teams enhance learning and address change directly through creating recommendations and new ideas.
B) Teams play minor roles in institutional change.
C) Teams should continue after their purpose has been served.
D) Individuals must become more than they were when working alone and must develop new commitments and behaviors.
E) Teams that cross departmental boundaries can develop new performance criteria.
F) Teams that cross departmental boundaries can destroy shared values.

4. M has been appointed as an external change agent to lead and implement a large scale re-structuring strategy which is being undertaken by a large bank. M has been appointed due to his extensive experience in a wide range of organizational re-structuring programmes. This re-structuring strategy will involve a large number of redundancies and the implementation of a new organization-wide management reporting system. M will need to work with staff from all departments and levels of the organization. The Board of Directors of the bank believes that an external change agent will bring more benefits to the change process than using an internal change agent.
Which of the following are the most likely benefits that could be achieved by the bank by appointing an external change agent to lead and implement the re-structuring strategy? (Choose all that apply.)

A) The external change agent will be more objective in decision-making than an internal change agent.
B) The bank can exploit the specialist expertise of the external change agent.
C) The speed of delivery of the change process will be quicker when using an external change agent.
D) As a dedicated resource, the external change agent can give more time to the change process.
E) The change process should be less costly if an external change agent is appointed.
F) The external change agent will have better relationships with the bank employees than an internal change agent.

5. 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:

Correct

Solutions: