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CIMA E3 - Strategic Management Question Tutorial Sample Questions:
1. TUV had an employee turnover rate of 25% among new recruits and was becoming short of skilled workers.
The Board of TUV realized there was something dramatically wrong and called in consultants to assess the problem. The consultants recommended transformational change in that TUV should redesign the entire production system, change the placement of all equipment and the flow of work, redefine every job and give all workers new assignments.
Which type of change did the consultants recommend for TUV?
A) Reconstruction
B) Adaptation
C) Revolution
D) Evolution
2. HH is an outdoor theatre which is based in the capital city of country N.
Tickets for shows can be booked at the ticket office or online. HH has identified the following critical success factors (CSFs):
An excellent, online ticket booking system
Customer satisfaction
Which of the following would be suitable key performance indicators (KPIs) for HH? (Choose all that apply.)
A) Employee turnover.
B) Number of customer complaints.
C) Percentage of ticket bookings aborted before completion.
D) Profit from sales of snacks and drinks.
E) Number of returning customers each year.
F) Customer show ratings, scored out of ten.
3. 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 a guarantee to provide 100% availability for complaint resolution.
B) Service Level Agreements should include the targets and benchmarks to be used and the consequences for failing to meet them.
C) Service Level Agreements should include the expected response time to technical queries.
D) Service Level Agreements should include the procedures for cancelling the contract.
4. 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
5. Company TTT produces a range of products, including products T1 and T5.
Product T1: Profitability has declined in recent years, although small profits continue to be made as the market contracts due to changing customer preferences. Overall market share is low and continues to reduce.
However, in addition to external sales T1 is also used as a component of product T5.
Product T5: A market leader within a low growth market, sources components both externally and from TTT's other subsidiaries. T5 benefits from significant economies of scale and TTT has recently considered modernizing its T5 production line but following a cost benefit analysis, decided not to proceed.
Which of the following is an appropriate strategy for TTT to adopt?
A) Harvest both product T1 and product T5.
B) Harvest product T1 and Divest product T5.
C) Divest product T1 and Harvest product T5.
D) Divest both product T1 and product T5.
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: B,C | Question # 3 Answer: C | Question # 4 Answer: Only visible for members | Question # 5 Answer: B |





