[Sep-2021] Updated CIMA Strategic Level Case Study Exam E3 Exam Questions BUNDLE PACK
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NEW QUESTION 166
BBB operates a small chain of coffee shops within Country X. a mature economy in northern Europe. BBB was established 20 years ago and currently employs over 150 staff in 25 shops located in major towns and cities throughout Country X. BBB attracts a wide range of customers, who are attracted by its extensive menu of coffee products and food Customers can either consume their purchases within the shop or can take their purchases away.
Which THREE of the following external environmental changes would have the greatest impact on BBB in the next three years?
- A. A planned refurbishment of 80% of BBB's shops to update its image and increase shop floor space
- B. The opening of an internationally renowned chain of coffee shops in Country X.
- C. An increase in the average age of the population in Country X due to falling birth rates.
- D. An increase in the national statutory minimum wage in Country X.
- E. A worldwide shortage of coffee beans due to climate changes, affecting availability.
Answer: C,D,E
NEW QUESTION 167
Porter's Generic Strategies are often applied within an Organization's value chain, in order to organise the value-adding activities to support the chosen strategy.
Place the Generic Strategy which best defines the strategic approach being taken against each of the activities listed below.
Answer:
Explanation:
NEW QUESTION 168
Which of the following uses apply to Porter's Value Chain?
Select ALL that apply.
- A. Prioritises operations that transform the various outputs into the final product.
- B. Identifies key processes that add value to the end customer.
- C. Assesses improvements to management information.
- D. Helps assess the markets that the company currently operates in.
- E. Gives managers a deeper understanding of precisely what their Organization does.
Answer: B,E
NEW QUESTION 169
Which of the following is NOT one of the main principles contained within the UK Corporate Governance Code?
- A. Leadership
- B. Remuneration
- C. Accountability
- D. Disclosure
Answer: D
NEW QUESTION 170
'Big Data' is defined as 'Data sets so large and complex that it becomes difficult to process using traditional data processing applications'. Which of the following is NOT a stage in the use of Big Data?
- A. Sharing
- B. Analysis
- C. Capture
- D. Storage
Answer: A
NEW QUESTION 171
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, operating in a contracting market and is fairly cash neutral.
- B. Product 1 islikely to be at the mature stage of its life cycle, have strong profitability and further investment should be considered.
- C. Product 2 is likely to be at the mature stage of its life cycle, is likely to benefit from significant economies of scale.
- D. 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.
- 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.
Answer: D,E
NEW QUESTION 172
ABC is an online bank which has just reported substantial trading losses. It has received advice from a leading business consultancy that it should implement the following two strategies:
1. Take advantage of its reputation and brand image by entering a new industry.
2. Update all its networks to fifth generation (5G) as soon as possible. Which TWO of the following strategies has ABC been advised to implement?
- A. Sustainable strategy
- B. Consumer strategy
- C. Foundational strategy
- D. Corporate strategy
- E. Ethical strategy
- F. Functional or operational strategy
Answer: D,F
NEW QUESTION 173
Which THREE of the following issues relate to the Corporate Strategy of an organization? (Choose three.)
- A. Achieving advantage over competitors.
- B. Entering new industries.
- C. Leaving existing industries.
- D. Meeting the needs of key customers.
- E. Avoiding competitive disadvantages.
- F. Acquisitions, disposals and diversification.
Answer: D,E,F
NEW QUESTION 174
GV is a manufacturer and retailer of high quality suede gloves. GV makes all of its sales in country F, and is extremely profitable. After many successful years trading, GV has accumulated significant cash reserves and would like to grow the business organically After some investigation work. GV has discovered an opportunity to sell leather shoes in country P Which of the following strategic directions is GV taking if it pursues this opportunity, according to Ansoff's product / market matrix?
- A. Market penetration
- B. Related diversification
- C. Product development
- D. Market development
Answer: B
NEW QUESTION 175
UUU is a long established international airline. Which of the following represent Threats to UUU's business?
Select ALL that apply.
- A. A sudden increase in international terrorism.
- B. A shortage of trained pilots in UUU.
- C. Greater popularity of long-haul holidays.
- D. A higher level of private car ownership.
- E. A substantial rise in the price of oil.
Answer: A,E
NEW QUESTION 176
Mission statements set out the purpose of an Organization to a range of stakeholders who have an interest in what the Organization does. As an employee, you have been asked to assess the effectiveness of your Organization's mission statement.
Which of the following would NOT help the effectiveness of a mission statement?
- A. Mission statements should be flexible, realistic and attainable.
- B. Mission statements should be specific enough to impact Organizational behaviour.
- C. Mission statements should be aspirational and capture the imagination of stakeholders.
- D. Mission statements should communicate the Organization's distinctive advantages.
Answer: C
NEW QUESTION 177
Directors have a duty to shareholders and other stakeholders and are required to promote the success of the company.
Which THREE of the following are valid roles and responsibilities of directors? (Choose three.)
- A. To focus only on maximizing company profits.
- B. To be responsible for keeping all external stakeholders satisfied.
- C. To avoid conflicts of interest and of duties.
- D. To consider the likely consequences of any decision in the long term.
- E. To have regard for the interests of the company's employees.
Answer: C,D,E
NEW QUESTION 178
Which of the following is NOT a key attribute of a successful stretch target?
- A. Staff must understand the reason for the stretch target set.
- B. Set at a level which is easily achievable.
- C. Encourages ethically responsible behaviour to achieve the stretch target.
- D. Set at a level which motivates staff to perform at their highest level.
Answer: B
NEW QUESTION 179
BCA is a long established international airline. Which of the following represent Threats to BCA's business?
(Choose all that apply.)
- A. Greater popularity of long-haul holidays.
- B. A sudden increase in international terrorism.
- C. A higher level of private car ownership.
- D. A shortage of trained pilots in BCA.
- E. A substantial rise in the price of oil.
Answer: D,E
NEW QUESTION 180
An organization must acquire suitable hardware and software in order to implement a knowledge management strategy so that knowledge can be stored and communicated.
Which of the following would be appropriate systems to use in a knowledge management strategy? (Choose all that apply.)
- A. Local area network
- B. Ledgers and journals
- C. Internet
- D. Groupware
- E. Social media
- F. Intranet
Answer: A,F
NEW QUESTION 181
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. Divestment
- B. Liquidation
- C. Turnaround
- D. Retrenchment
- E. Facilitation
Answer: A
NEW QUESTION 182
CIMA has conducted research into the implications of sustainability for business. CIMA's report contained a number of key conclusions. Which of the following statements was NOT a conclusion in CIMA's report?
- A. Management Accountants have a responsibility to promote an ethics-based culture.
- B. Reporting on sustainability needs to provide hard evidence of the positive impact on society.
- C. Strong ethical principles can add great value to a brand.
- D. The ethical tone within a business must come from the bottom.
Answer: D
NEW QUESTION 183
Select the label which best defines the periods of decline outlined in the situations presented below.
Answer:
Explanation:
NEW QUESTION 184
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 I I Is other subsidiaries T5 benefits from significant economies of scale and TTT has recently considered modernising 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. Divest product T1 and Harvest product T5
- B. Divest both product T1 and product T5.
- C. Harvest product T1 and Divest product T5.
- D. Harvest both product T1 and product T5.
Answer: A
NEW QUESTION 185
ZZZ recently hired a new Chief Executive, Q, to lead it through a period of major change. Q immediately set up a change management team which consisted of several senior managers and directors from across the Organization. Together, they formulated an overall goal for change and then spent several weeks presenting the need for change to all of the staff through a series of staff meetings. At these meetings Q involved staff and built their ideas into the final change strategy.
Q also set a series of interim goals to encourage ongoing performance throughout the change process.
When the Organization reached these goals, she widely publicised these achievements to help motivate staff.
However, after six months, ZZZ had failed to reach most of the interim goals that had been set. Most of the members of the change management team had not maintained a significant interest in the change process and many of the staff felt that there had been a lack of communication and reward following the initial few weeks of the change process.
Kotter suggested that there were eight steps required to successfully lead change.
Which TWO of the following of these eight steps did Q fail to achieve?
- A. Incorporate change into the culture
- B. Never letting up
- C. Develop a change vision
- D. Generate short term wins
- E. Empower broad based action
Answer: A,B
NEW QUESTION 186
An insurer, JJJ, uses its Internet capabilities to promote and sell car and home insurance products.
Although JJJ is supported by an 'in-house' call centre located in its home country, it has decided to outsource this activity to an overseas call centre.
There are a number of benefits to the company by undertaking this strategy, including that it can charge more competitive premiums to its customers and also increase its profits. However this change will mean that
75 call centre staff in the home country will be made redundant.
You have been appointed as the Change Leader and have been asked to prepare a report that includes details on how this change can be communicated.
Which THREE of the following statements are valid regarding JJJ's proposed changes and the related staff communications?
- A. When undertaking change, communication is of great importance.
- B. A disadvantage of adaptive change is that it increases the level of resistance that a company can encounter when trying to implement change.
- C. It is important that the Change Leader selects a communication channel which is appropriate to the message being delivered and its target audience.
- D. The Change Leader should keep staff informed but should only communicate information when all the detail has been finalised.
- E. Momentum for change can be created by putting simple but highly visible improvements in place.
Answer: A,C,E
NEW QUESTION 187
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. Stuck in the middle
- B. Cost Leadership
- C. Differentiation Focus
- D. Differentiation
Answer: D
NEW QUESTION 188
YZ is a family-run business which manufactures and sells confectionery, employing almost 100 staff. It operates 10 shops in small towns in the north of country P. Sales of YZ's products have decreased over the last
4 years due to competition from large supermarkets, internet shopping and a general economic downturn, which has hit the north of country P especially hard.
YZ's managing director has recently retired and the board decided to fill the vacancy with an external appointment. The new managing director plans to invest in new manufacturing technology, which would cut staffing levels by 15% and reduce wastage, allowing YZ to lower its prices. YZ's staff are very unhappy about these proposals, feeling that they will destroy YZ's family tradition and reputation that has developed over many years.
Select the correct descriptor for each of the forces for change below:
Answer:
Explanation:
NEW QUESTION 189
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