CIMA CIMAPRA19-E03-1 Exam Practice Test Instant Access

Question 1

Which TWO of the following benefits could be achieved through the use of Triple Bottom Line (TBL) Reporting?

AIt may attract ethically aware customers.

BIt is a straightforward and easy method for measuring targets.

CIt is easy to quantify the environmental measures included

DIt can ensure consistency in maximising stakeholder goals

Elt can result in cost savings.

Answer : A, E

Question 2

The sales manager of an organisation has requested that you accept sales figures for the month, which contain misleading statements of sales, for the purpose of calculating sales team bonuses.

Which of the following fundamental ethical principles would this request breach?

AObjectivity

BConfidentiality

CIntegrity

DProfessional behaviour

Answer : C

Question 3

AAA has a new CEO who wants to introduce rational strategy into the organisation.

Which THREE of the following are aspects of the rational strategy model?

AAAA analyses its environments.

BAAA uses digital technology to solve traditional problems.

CAAA takes advantage of opportunities as they arise

DAAA selects the best strategic option.

EAAA uses feedback to influence its future strategy.

FAAA makes small scale extensions of past policy.

Answer : A, D, E

Question 4

Johnson. Scholes and Whittington define strategy as the direction and scope of an organisation over the long term'. Which THREE of the following are advantages of deliberate long-term planning1? 0

AThe organisation has a competitive advantage over others in its industry that do not use long-term planning.

BThe organisation will comply with external reporting standards

CLong-term planning will enable equal importance to be given to the different perspectives of the organisation's Balanced Scorecard.

DThe organisation's mission, objectives and targets are made explicit which will improve goal congruence.

EManagement will have to generate ideas using their experience and ability to innovate.

FBy undertaking detailed analysis management can identify key risks.

Answer : A, D, E

Question 5

P owns an internet-based business, called GWiz. based in Country G. GWiz sells gifts, cards and flowers for a variety of occasions including birthdays, weddings and many other special events. P sources her products from a variety of partner suppliers located throughout country G. Customers' orders are delivered by third party couriers across the whole country. The GWiz website is hosted and managed by an IT specialist

P is a member of a local small business trade federation and has been asked to make a presentation to its members on her experience of running GWiz as a 'virtual organisation'.

Which of the following statements could P correctly make on the benefits of virtual organisations?

Select ALL that apply.

AThe quality of the products and services offered by the partner suppliers is always guaranteed and easy to control.

BUsing partner suppliers who also supply products and services to competitors will help to increase the competitive advantage of the virtual organisation.

CThe costs of operating a virtual organisation are relatively low as there is no need to operate from large premises or employ its own staff.

DA virtual organisation can look much larger than it actually is through the use of a range of partner suppliers and third party couriers.

EUsing the internet facilitates the assembly of the components that are needed to operate a virtual organisation.

Answer : C, D, E

Question 6

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?

ADivest both product T1 and product T5.

BHarvest product T1 and Divest product T5.

CHarvest both product T1 and product T5.

DDivest product T1 and Harvest product T5.

Answer : B

Question 7

A leading retail chain is undertaking environmental scanning as it is concerned that it is becoming uncompetitive and profits have started to fall. The Board of Directors is concerned that it will need to have a viable strategy to present to its shareholders at the next annual general meeting, in order to prevent shareholders' protests.

The company has been reluctant in the past to offer an Internet shopping service. It now believes, however, that by offering this service and introducing customer relationship marketing (CRM), this will produce a strategy that will help it to improve its competitiveness.

Which of the following statements apply to CRM? (Choose all that apply.)

AThe company must be prepared to take customers' needs into account and be able to meet these needs.

BIn mature markets, existing customers provide the most likely source of future earnings.

CCRM is about marketing to customers to obtain their loyalty, so customer research is not needed.

DCRM utilizes marketing resources to retain, rather than simply attract new customers.

EThe CRM process needs to include increasing the range of products that will be offered to customers.

Answer : A, D

CIMAPRA19-E03-1 E3 Strategic Management Exam Practice Test