Pass the CIMA CIMA Management E2 Questions and answers with CertsForce

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Viewing questions 51-60 out of questions
Questions # 51:

The initial Balanced Scorecard design, defined by Kaplan and Norton, used four perspectives (or legs) for management control and the implementation of strategy. What are the FOUR original perspectives?

Options:

A.

Learning and growth


B.

Internal business


C.

External issues


D.

Competitors


E.

Financial


F.

Customer


Expert Solution
Questions # 52:

A large multinational organisation, with financial processing centres in several countries in which it operates, has chosen to consolidate these activities on one site or, in other words, into a Shared Service Centre (SSC).

 

Which THREE of the following are drawbacks of an SSC?

Options:

A.

Business relationships are weaker. The SSC may not be able to build strong relationships with the business area, which may result in a deterioration of performance in the business area.


B.

The accountants can feel isolated within the business and may develop their own ways of working which may not constitute best practice. Without a larger team around them, they may not be able to develop the acquired skills and knowledge.


C.

It distances the accountants from everyday decision-making in that he/she will be unlikely to have day to day contact with the business area which the SSC supports. The outcome may be that the accountant is unable to provide up-to-date information for decision-making.


D.

Loss of business knowledge as the finance function within the SSC may not have a detailed knowledge of each part of the business.


E.

Lack of knowledge may occur because there is less sharing of knowledge which can be achieved within a larger more diverse team. Best practice may not be employed and practices within some business areas may become outdated.


Expert Solution
Questions # 53:

H is the owner of a motorcycle dealership in Los Angeles which provides sales, repair and servicing of very large motorcycles, typically with engines larger than 1000cc. Over the years H has built up a renowned team of highly skilled technicians that are experts in this particular size of motorcycle. H believes that their skills are rare and difficult, if not impossible, to imitate by any competitor in the region.

 

Despite this advantage the company has been suffering from declining profits in the past three years and the marketing consultant has advised H to change the focus of the company towards small 50cc mopeds and scooters - because that "is clearly what the market is now wanting".

 

The change being proposed is:

Options:

A.

from a resource-based view to a positioning approach.


B.

from a resource-based view to an incremental approach.


C.

from a positioning approach to a 'market driven' strategy.


D.

from a positioning approach to a rational model.


Expert Solution
Questions # 54:

Several researchers have identified strong connections between corporate culture and resistance to organisational change.

 

Which TWO of the following are likely to be most resistant to organisational change:

Options:

A.

 H is a partnership of professionals with similar training, background and expertise. Power lies in senior individuals who generally believe themselves to be more important than the business. Co-operative and consistent behaviour is unusual.


B.

E is a small entrepreneurial firm controlled by an owner-manager. There are few rules and little bureaucracy. The firm can react quickly and decision making by the owner will be swift.


C.

F is a large bureaucratic organisation, structured by function. Staff working in F tend to be preoccupied with fulfilling their narrow job duties, with an emphasis on consistent, day-to-day routines.


D.

G is a project-based organisation where flexible teams are formed to solve particular problems. G is characterised by teamwork, flexibility and a strong commitment to making things happen.


Expert Solution
Questions # 55:

T is a senior manager tasked with planning the move of the company headquarters from a city centre location to a rural estate location. More than 70 staff will be impacted by the move.

 

T feels confident that the practical aspects of the move have been addressed well but is unsure about the reaction from staff, some of whom may have to move house. He has decided to apply a well known model to analyse the situation.

 

Drivers in favour of change and resisting factors to change are all plotted out on a diagram and then analysed in depth. What is the name of this technique?

Options:

A.

Lewin's Force-Field analysis 


B.

Organization development theory


C.

Human resource strategy/planning


D.

Unfreeze-Change-Refreeze


Expert Solution
Questions # 56:

Company A sells golf clubs, clothing and accessories. The manager of Company A has been undertaking some competitor analysis and has been advised to consider the local gyms, cycle stores and swimming pools when identifying competition.

Which of Kotler's four levels of competition would these be classed as?

Options:

A.

Generic


B.

Industry


C.

Form


D.

Brand


Expert Solution
Questions # 57:

The role of the project sponsor involves which THREE of the following?

Options:

A.

Provides resources for the project and is responsible for the budget.


B.

Ensures project objectives are achieved.


C.

Provides support and senior management commitment to the project.


D.

Initiates the project and ensures that a business case exists to justify the project.


E.

Makes decisions relating to system resources.


Expert Solution
Questions # 58:

Which of the following statements relating to negotiation are incorrect?

Select ALL that apply.

Options:

A.

There are always at least two parties present in any negotiation process.


B.

Negotiation occurs when parties prefer to search for an agreement rather than openly fight.


C.

Negotiation takes place when there are no established set rules for resolving the conflict, or the parties prefer to work outside of an established set of rules to reach a solution.


D.

The negotiation process isn't always voluntary and a contract of agreement should be signed.


E.

The bargaining phase is the last stage of the negotiation process.


F.

The preparation phase is the first stage of the negotiation process.


Expert Solution
Questions # 59:

As part of a project to refurbish a large hotel chain, the wiring of the computer network was subcontracted to a specialist IT organisation. In relation to managing risk in the project this approach can be referred to as:

Options:

A.

Reduce


B.

Avoid


C.

Transfer


D.

Accept


Expert Solution
Questions # 60:

Projects carried out using the PRINCE2 methodology are always set out in a series of distinct and sequential stages. Which of the following is NOT a valid reason for a planned break between stages?

Options:

A.

The project team is required to break and regroup ready for the next package of work.


B.

The project board can make a decision as to whether the project business case is still viable.


C.

The progress of the project can be reviewed to ensure this justifies the continuation of the project.


D.

Risks to the project can be reassessed before further commitments of money or resources. 


Expert Solution
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