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CIMA CIMAPRO15-E03-X1-ENG Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Topic 1: Strategy Implementation | - Project and performance management
|
| Topic 2: Strategy Formulation | - Internal strategic analysis
|
| Topic 3: Strategic Choices | - Business unit strategy
|
CIMA E3 - Strategic Management Question Tutorial Sample Questions:
1. HHH is a manufacturer which has a bonus scheme for its production workers related to the speed of output.
HHH's products are very specialized and are made in a dangerous production environment. HHH's production workers usually work alone but sometimes, if there are problems in the production environment (for example, machinery breakdowns), they have to work in teams. When the production workers are working in teams they do not receive any bonus.
HHH's senior management is proposing to amend the current bonus scheme to encourage increased productivity. Under the current bonus scheme, production workers receive extra pay when they achieve 45% of their individual target: The target level is low because of the dangerous production environment and the need to occasionally work in teams.
Under the proposed bonus scheme, production workers will not receive any extra pay until they have achieved
90% of their individual target. Workers who achieve 90% or above of their individual target will be paid a 30% higher bonus.
Which THREE of the following problems is HHH most likely to encounter with the introduction of the proposed bonus scheme? (Choose three.)
A) Production workers will not be motivated by the proposed level of bonus.
B) The extra production output will lead to an increase in inventory.
C) There could be a rise in the level of workplace accidents.
D) Production workers could consider the new target as unachievable.
E) The proposed bonus scheme conflicts with health and safety legislation.
2. As a CIMA qualified management accountant working within a manufacturing company, you are subject to both CIMA's Code of Ethics and your company's Code of Business Conduct.
Which TWO of the following statements are TRUE? (Choose two.)
A) Where there is a difference between CIMA's Code of Ethics and the company's Code of Business Conduct, the company's Code of Business Conduct takes priority.
B) As a CIMA qualified Management Accountant you must follow CIMA's Code of Ethics.
C) A company's Code of Business Conduct can be rules based.
D) Both CIMA's Code of Ethics and the company's Code of Business Conduct include references to Confidentiality. Disclosure on public interest grounds is therefore prohibited.
E) Both CIMA's Code of Ethics and the company's Code of Business Conduct must be based on a set of basic principles.
3. Which THREE of the following issues relate to the Corporate Strategy of an organization? (Choose three.)
A) Leaving existing industries.
B) Meeting the needs of key customers.
C) Entering new industries.
D) Acquisitions, disposals and diversification.
E) Avoiding competitive disadvantages.
F) Achieving advantage over competitors.
4. 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
5. QWE is a private company belonging to a famous former sports professional. It operates gyms and fitness clubs across its home country. Each gym or fitness club is treated as a profit center and the manager of each center is paid bonuses based on its financial performance.
QWE introduced multidimensional performance measures into its management control systems 3 years ago.
These measure competitiveness, financial performance, capacity utilization, innovation and the flexibility of its centers to cope with changing demands.
The managers of QWE's centers have been leaving at a very high rate over the last 2 years. They have claimed that the measures are too open to interpretation and when they think they are improving their center's performance they are told they are doing the wrong things. They also complain that the managers in the centers near big cities find it much easier to reach their targets than the managers of other centers.
According to Fitzgerald and Moon's Building Block model, where does the problem lie?
A) Standards and Rewards
B) Dimensions and Rewards
C) Dimensions and Standards
D) Standards, Dimensions and Rewards
Solutions:
| Question # 1 Answer: A,B,C | Question # 2 Answer: C,D | Question # 3 Answer: B,D,E | Question # 4 Answer: A | Question # 5 Answer: C |






