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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. Which of the following would be a suitable performance measure of Internal Business Processes within Kaplan and Norton's 'Balanced Scorecard' model?

A) Higher P/E ratio.
B) Reduction in manufacturing cycle times.
C) Increase in market share.
D) New products developed.

2. Which of the following categorizations would be correct, according to McFarlan's Strategic Grid, for a system which is critical to sustaining existing business but its future strategic importance is considered to be low?

A) Turnaround
B) Strategic
C) Support
D) Factory

3. Which THREE of the following frameworks are used solely to evaluate the external environment of an organization? (Choose three.)

A) Kaplan and Norton's Balanced Scorecard
B) Porter's Diamond
C) SWOT analysis
D) PEST Analysis
E) Porter's Value Chain
F) Porter's Five Forces Model

4. DDD is a business which sells entertainment products and now wants to move to a position where it uses ebusiness as a fundamental part of its business strategy.
Which of the following benefits would result from DDD's use of e-business? (Choose all that apply.)

A) A reduction in labour turnover and higher morale.
B) Increased online revenues.
C) Cost reductions because of lower overheads and cheaper procurement.
D) Easier access to loan finance.
E) Better control of information through monitoring website activity.
F) An increased use of tacit knowledge.

5. 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 the expected response time to technical queries.
B) Service Level Agreements should include the procedures for cancelling the contract.
C) Service Level Agreements should include a guarantee to provide 100% availability for complaint resolution.
D) Service Level Agreements should include the targets and benchmarks to be used and the consequences for failing to meet them.

Solutions: