CIMA CIMAPRA19-E03-1-ENG E3 Strategic Management Online Training
CIMA CIMAPRA19-E03-1-ENG Online Training
The questions for CIMAPRA19-E03-1-ENG were last updated at Apr 24,2024.
- Exam Code: CIMAPRA19-E03-1-ENG
- Exam Name: E3 Strategic Management
- Certification Provider: CIMA
- Latest update: Apr 24,2024
DDD has just issued a profit forecast in connection with a proposed take-over of a business. The take-over is strongly opposed by the target company. DDD’s Management Accountant played a large part in helping DDD’s Finance Director prepare the profit forecast. However, the Management Accountant believes that the profit forecast is overly optimistic and is based on some false assumptions. As a result the Management Accountant thinks the profit forecast is misleading. Select THREE of the actions below which are consistent with CIMA’s Code of Ethics.
- A . The Management Accountant should follow established internal procedures.
- B . The Management Accountant should obtain advice from his professional body/bodies.
- C . The Management Accountant should resign from his job.
- D . The Management Accountant should maintain a discreet silence.
- E . The Management Accountant should anonymously inform the media of his concerns.
- F . The Management Accountant should publicly accuse the Finance Director of issuing a misleading profit forecast.
BBB is a publisher. As a consequence of BBB using the Internet to outsource its typesetting and studio activities it has been able to move its few remaining staff into much smaller and less expensive office accommodation.
Which activity in Porter’s Value Chain has benefitted from BBB’s use of information systems?
- A . Infrastructure
- B . HR management
- C . Sales and marketing
- D . Outbound logistics
LLL is a travel company which has experienced rapid organic growth. It has three divisions and each division is led by a Divisional Director. Each Divisional Director is responsible for their own divisions’ investment in Information Technology (IT). However, as LLL has grown, so has its information requirements.
Recently, LLL appointed an IT Manager. She discovered that within LLL’s divisions, there are very different standards for IT, resulting in different hardware and software used in the three divisions. Also, the divisions do not use common software packages which causes difficulties in transferring information within LLL. LLL does not have a central IT department.
Which of the following activities would be the primary focus of an Information Systems (IS) Strategy for LLL?
- A . Identification of the information needs of LLL’s customers and key stakeholders.
- B . Identification of management responsibilities and processes within LLL.
- C . Identification of what information is needed by LLL to enable it to achieve its overall business strategy.
- D . Identification of the hardware and software required to manage all of the information within LLL.
YYY is a profit-seeking provider of television channels. It broadcasts to some 55 countries using satellite and cable technologies. It also commissions and produces about 30% of the programs it broadcasts, to give it a unique competitive advantage against other broadcasters.
Web 2.0 provides new opportunities for YYY and it has developed a strong social media component to its programming schedules to increase audience engagement.
Keeping YYY’s divisions working together is crucial to its success as a business.
Which of the following methods of divisional Performance Measurement would you recommend to YYY?
- A . Kaplan and Norton’s Balanced Scorecard
- B . Lynch and Cross’s Performance Pyramid
- C . Stern Stewart’s Economic Value Added (EVA)
- D . Rappaport’s Shareholder Value Analysis (SVA)
Company LL is a well established, reputable company which specialises in providing insurance call centre services to the insurance industry. It has recently won a large contract to provide its services to a multi-national insurer. LL’s staff are highly trained in insurance matters and many have worked for LL for many years.
LL undertakes long-term resource planning activities and has identified that during the winter months, when there will be more customers ringing up to make insurance claims, it will potentially need to employ more staff. The Board has decided that rather than recruit its own staff, it will use an employment agency to supply manpower resources as required. The people supplied will be employed on a temporary basis by LL and they will work alongside the other call centre staff. However, they will work at a lower pay rate and will only be paid for the actual hours they work.
This change will lead to a shift in the working environment, the routine and the composition of the group.
Which THREE statements apply in respect of this proposed change?
- A . The proposed change will affect the group dynamics, which can be seen as being similar to a ‘force field’ situation.
- B . In times of change, LL can give sensitivity training to this group of workers who can then be used as a source of support during the change process.
- C . A Facilitator, as the leader of change, will allow the group to talk about their issues and concerns with this change in a formal and structured manner.
- D . As the change process LL is proposing is an internal matter involving a group of its staff, there is no need to undertake a stakeholder analysis.
- E . LL will need to identify the Adversaries in the group, because if they are influential they may persuade other group members to resist the change.
DRAG DROP
DDD is a company which publishes paper-based books. In the last 10 years DDD has seen a steady decline in its sales. Last month, one of its major customers, a large chain of high street bookshops announced that it would be closing as a result in declining sales in the paper-based book market. The Board of DDD has therefore announced that in order to survive, it must re-focus the business upon the developement of electronic books, which will require a significant investment in new technology and staff training. However, some staff will be made redundant as part of this process. The Board of DDD has stated that it will reward staff who actively embrace the change process.
Which of the activities below would occur within the ‘Unfreeze’, ‘Change’ or ‘Refreeze’ stage of Lewin’s three-stage model?
Which THREE statements about scenario planning are correct?
- A . It tells management what will happen so they are able to plan for it.
- B . It tells management what needs to be done to make theOrganizationsuccessful in the future.
- C . It encourages creative thinking by the participants.
- D . It alerts management to the possibility of fundamental change in the environment.
- E . It encourages management to communicate their personal knowledge of trends.
LLL is considering entering Country B to sell its zero emissions car.
LLL has invested heavily in fuel cell technology for its car. It does not rely on any polluting fuels for its energy. This means that LLL’s car is the only true zero emissions car.
Research conducted in Country B for LLL has revealed the following:
• Country B’s Government is concerned that all forms of pollution have risen to dangerous levels.
• Despite being worried about pollution the Government of Country B has not yet adopted taxation policies to encourage the use of low pollution cars.
• Drivers choosing a car continue to rank the speed and appearance of a car very much high er than its impact on environmental pollution.
• About 2% of motorists own an electric or hybrid powered car.
• A high rate of sales tax levied on the price of new cars in Country B encourages motorists to continue to drive older, more polluting, cars.
LLL recognises that it needs to plan its strategy for Country B over the long-term.
Which THREE of the following strategies would you advise LLL to use to build its long-term sales in Country B?
- A . Meet relevant members of the government of Country B to present the value of including emissions from electricity generating stations in their calculation of vehicle pollution to help
reduce pollution. - B . Sponsor environmental groups in Country B to launch a campaign to take older cars off the road by calling on government to reduce the sales tax on new cars according to its emissions.
- C . Try to win the affection of motorists by donating funds to campaigns that resist attempts by the government to impose taxes on cars, according to the pollution they generate.
- D . Approach government lawyers in Country B and offer to engage them as paid consultants in exchange for their help in drafting taxation legislation that favours zero emission cars.
- E . Provide schools and colleges with pre-prepared lesson resources that teach the science behind fuel cell technology and why it leads to zero emissions.
You are a Management Accountant working for anOrganizationthat includes commitments to ‘sustainability’ in its mission statement.
Which THREE of the following are contributions that a Management Accountant can make to the achievement of this part of the Organization’s mission statement?
- A . Integrated reporting of the triple bottom line of Profits, People and Planet.
- B . Measures ofOrganization’s use of non-renewable resources and environmental emissions.
- C . Project evaluations that include the externalities as well as the cash costs.
- D . Ensuring theOrganizationadopts the lowest cost technologies and suppliers.
- E . Providing financial information with all non-recurring expenditures and incomes removed.
As a qualified Management Accountant you have been asked by a non-financial manager to explain the CEO’s recent comments, featured in the CEO’s regular update to investors and analysts.
The CEO’s update suggested the company, an established property development business, was about to pursue an exciting strategy. The strategy is to focus on conglomerate diversification, to be achieved through a number of pre-identified acquisitions, with the aim of significantly increasing shareholder value.
Which of the following statements is consistent with the concept of conglomerate diversification?
- A . A strategy involving business expansion within a company’s present industry. For this company, an example would be the acquisition of another property development business.
- B . A structure involving a collection of unrelated businesses. For this company, acquisitions may include a variety of companies such as financial services and food retailing, all sharing operational relationships such as finance, sales and marketing.
- C . A portfolio of unrelated businesses such as financial services, food retailing and property development, all sharing identity and risk, including group logo, corporate uniforms and risk management systems.
- D . A portfolio of businesses involved in unrelated activities such as financial services, food retailing and property development, sharing nothing but a parent company.
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