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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. A is a private healthcare organization aiming to provide affordable and accessible high quality patient services.
A is introducing Big Data, which has not yet been adopted by the competition. A's database will store a huge amount of information about its patients. Clear access to wide sources of accurate information will enable patients to make more informed choices. Patients will be able to compare not only the prices of drugs, treatments and physicians but also their relative effectiveness.
Which of the following concerns should A have about its use of Big Data?

A) Veracity of information
B) Variety of information
C) Privacy issues
D) Lack of competitive advantage

2. 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) Facilitation
B) Liquidation
C) Divestment
D) Turnaround
E) Retrenchment

3. Company CCC is an automotive component manufacturer. It manufactures three main products within its portfolio:
Product 1: Relative market share of 0.1; Market growth rate of -2%
Product 2: Relative market share of 4.0; Market growth rate of +3%
Product 3: Relative market share of 0.3; Market growth rate of +15%
Which TWO of the following statements are CORRECT? (Choose two.)

A) Product 1 is likely to be at the mature stage of its life cycle, have strong profitability and further investment should be considered.
B) Product 1 is likely to be at the mature stage of its life cycle, operating in a contracting market and is fairly cash neutral.
C) Product 3 is likely to be at the growth stage of its life cycle, at high risk of failure and further investment should be considered.
D) Product 2 is likely to be at the mature stage of its life cycle, is likely to benefit from significant economies of scale.
E) Product 2 is likely to be at the growth stage of its life cycle, have weak profitability, poor cash generation and high capital requirements.

4. A Service Level Agreement (SLA) defines exactly what services a service provider will provide and the required level or standard for those services.
Which of the following statements regarding Service Level Agreements is NOT correct?

A) Service Level Agreements should include the expected response time to technical queries.
B) Service Level Agreements should include a guarantee to provide 100% availability for complaint resolution.
C) Service Level Agreements should include the procedures for cancelling the contract.
D) Service Level Agreements should include the targets and benchmarks to be used and the consequences for failing to meet them.

5. 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) Porter's Five Forces Model
C) Kaplan and Norton's Balanced Scorecard
D) PEST Analysis
E) Porter's Diamond
F) SWOT analysis

Solutions: