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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. DRAG DROP
QR is a conglomerate with two divisions, A and B.
Given the information below, select the most appropriate strategy for each division to implement.
Select and Place:

Correct

2. DRAG DROP
PQ is an international airline.
In accordance with Porter's Value Chain, select "Primary" or "Support" for each of the activities listed below:
Select and Place:

Correct

3. Which THREE of the following statements apply to Lynch's performance pyramid? (Choose three.)

A) The business operating systems level includes the market-related Critical Success Factors.
B) The business unit level includes measures which relate to internal systems needed to meet customers' needs.
C) The left-hand side of the pyramid contains measures which have an external focus.
D) The performance pyramid is designed to ensure that all activities support the organization's vision.
E) The right-hand side of the pyramid contains measures which are predominantly non-financial.
F) The lowest level of the pyramid contains the day-to-day operational measures.

4. 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, Dimensions and Rewards
B) Dimensions and Standards
C) Dimensions and Rewards
D) Standards and Rewards

5. DRAG DROP
In order to organize the value-adding activities to support a chosen strategy, Porter's Generic Strategies are often applied within an organization's value chain.
Against each of the activities listed below, select the Generic Strategy which best defines the strategic approach being taken.
Select and Place:

Correct

Solutions: