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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. 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:

Correct

2. 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 cafa, 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) Emergent
C) Incremental
D) Freewheeling opportunism

3. According to Porter's Five Forces model, which of the following would be evidence of high buyer power?

A) There is a concentration of buyers.
B) There is a low probability of backward integration.
C) Buyers are fragmented and act independently of each other.
D) Products are not standardized and buyers cannot easily switch to another product.

4. DF Company is undertaking a strategic review of its activities and has asked you to explain how a Force Field analysis would assist in the review process.
Which of the following statements would be most appropriate?

A) Identify forces facing DF's activities that may create barriers and resistance to change.
B) As part of DF's strategic review, identify forces facilitating the need for proposed change.
C) Provide a framework for identifying forces for and against the proposed changes within DF.
D) Identify influential senior managers who will drive through changes in DF's strategic direction.

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

Solutions: