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Question No 1: XYZ operates a national chain of restaurants. Which THREE of the following are external environmental drivers for XYZ? A. B. C. D. E.
Appointment of a new Marketing Director Recession in XYZ's country Reduced personal income of its customers due to increased personal taxation A direct competitor to XYZ closes down Launch of a new improved menu by XYZ
Answer: B, C, D
Question No 2: PPP is a company that designs and markets attractive handsets, tablets, and laptop PCs globally. Its brand is one of the top ten global brands. PPP uses external companies to manufacture its products. The recently appointed CEO of PPP presented the company's strategy to a meeting of investors and journalists. The CEO referred to public concerns about its past ways of doing business. He stated that PPP was actively seeking to address concerns about exploitation of workers in the factories of its suppliers. He said that PPP is also establishing a system to recycle or refurbish its products to avoid hazardous materials leaking into the environment and to give recycled products free of charge to people in poorer countries who cannot afford to buy them. One investor asked the CEO to confirm whether this strategy would improve the profits of PPP in the present financial year. The CEO replied that it would not but that the strategy was essential to protect the future of the PPP brand. The investor was unhappy with this response from the CEO of PPP. Which of the following statements reflects BOTH the CEO's and investor's stances on Corporate Social Responsibility (CSR) expressed at the meeting?
A. The CEO is taking a long-term shareholder interest stance. The investor is taking a shortterm shareholder interest stance. B. The CEO is taking a multiple stakeholder stance. The investor is taking a longer-term shareholder Interest stance.
C. The CEO is taking multiple stakeholder obligation stance. The investor is taking a multiple stakeholder obligation stance. D. D. The CEO is taking a shaper of society stance. The investor is taking a longer-term shareholder interest stance.
Answer: A
Question No 3: AB is a global car manufacturer. Management has agreed to spend $20 million on researching a new type of engine that uses liquid hydrogen to power the car. It believes it is important for AB to take a first step in developing this radical and uncertain new technology. The $20 million will finance the research only and the program will last two years. Providing the research is successful, after two years it would cost a further $40 million to develop a car to sell. This development would take a further three years. Management is concerned that the international car market may not be willing to buy hydrogen powered cars for at least six years from now. Which of the following options would NOT be available to AB after two years? A. To invest a further $40 million in developing a car for sale. B. To ignore the research findings and not commercialize any innovations. C. To delay investment in building a hydrogen car until the market demand becomes clearer. D. To seek to recover the $20 million it has spent because the research has yielded no commercial benefit.
Answer: D
Question No 4: DDD has just issued a profit forecast in connection with a proposed take-over of a business. The take-over is strongly opposed by the target company. DDD's Management Accountant played a large part in helping DDD's Finance Director prepare the profit forecast. However, the Management Accountant believes that the profit forecast is overly optimistic and is based on some false assumptions. As a result, the Management Accountant thinks the profit forecast is misleading. Select THREE of the actions below which are consistent with CIMA's Code of Ethics.
A. B. C. D.
The Management Accountant should follow established internal procedures. The Management Accountant should obtain advice from his professional body/bodies. The Management Accountant should resign from his job. The Management Accountant should maintain a discreet silence.
E. The Management Accountant should anonymously inform the media of his concerns. F. The Management Accountant should publicly accuse the Finance Director of issuing a misleading profit forecast.
Answer: A, B, C
Question No 5: SSS is a large department store. It operates a chain of stores throughout Country Z. It offers a wide range of products, from cosmetics through to home furnishings. SSS's Value Chain is presented below.
Which of the following generic strategies is being undertaken by SSS? A. B. C. D.
Cost Leadership Differentiation Differentiation Focus Stuck in the middle
Answer: B
Question No 6: The Boston Consulting Group developed a matrix to assist managers in identifying the cash flow requirements of different businesses. The matrix suggests a number of appropriate strategies. Select ALL the strategies that apply to the Boston Consulting Group's matrix. A. B. C. D. E. F.
Hold Build Divest Defer Re-appraise Diversify
Answer: A, B, C
Question No 7: (Drag & Drop) TTT is a conglomerate with two divisions, AAA and BBB. Advise TTT on the most appropriate strategy to adopt for each division.
Answer:
Question No :8 (Drag & Drop) QQQ is a family run business which manufactures and sells chocolate. QQQ employs 80 staff in its factory and shops. It operates 10 shops within a number of small towns in the northern region of Country P. In the last four years, demand for QQQ's products has decreased, as customers in its local region are increasingly shopping in large supermarkets and out of town facilities, which are more convenient and tend to offer cheaper priced goods. The recent economic recession has hit the region hard and many local people have moved away to find work in other regions of the country. The internet has also impacted upon its business, as many customers are now making purchases of chocolate via the internet. The Managing Director (MD) of QQQ has recently retired and the Board took the decision to make an external appointment to replace him. The new MD believes that QQQ needs to invest in new technology within its factory. This would reduce staffing levels by 15% and would reduce wastage and costs, allowing QQQ to offer more competitively priced products. He also believes that QQQ must invest in its own website. However QQQ's staff are very unhappy with these proposals. Some of the family members of the Board are concerned that this change will destroy the family tradition and reputation of QQQ that has been built up over many years. Select the correct descriptor for each of the forces for change below.
Answer:
Question No :9 You are the youngest member of the senior management team and have recently been invited to become a member of the company's Board. You have been sent an outline agenda ahead of your Board induction meeting with the Company Secretary. The first item on the agenda is the role of the Board. Which of the following statements is NOT the role of the Board? A. Establish the company's vision, mission and values. B. Relinquish responsibility for implementation of strategy to management. C. Confirm the adequacy and alignment to strategy of internal control and risk management systems. D. Establish strategy with regard to the risk appetite of the Organization.
Answer: B
Question No :10 Company MM is wanting to build an out of town shopping complex. This will be located near a busy road which is surrounded by housing estates. MM has yet to obtain planning permission. It recognizes that unless it takes action, the local residents will object to MM's plans. As the Publicity Manager you have been asked to take over responsibility for
Stakeholder Management. Which of the following Stakeholder Management statements is NOT correct? A. Organizations will have a variety of stakeholders each with differing attitudes to risk which can cause conflict. B. Pressure groups have an interest in matters of public policy, but do not want to control the workings of government. C. Stakeholder management is made more complicated for an Organization when individuals belong to more than one stakeholder group. D. In measuring the satisfaction of stakeholder interests, Organizations should only focus on quantitative matters.
Answer: D Buy Complete Questions Answers File from
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