Pass the CIMA CIMA Strategic E3 Questions and answers with CertsForce

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Questions # 1:

Company Y is a global business selling a selection of technological items including phones, laptops and other computer related items. In addition Y sells accessory items, music downloads, apps: digital books and video downloads including films and television series through a cooperative partnership with other companies, designed to create value for the customer.

Which of the following terms best describes what Y has created?

Options:

A.

Artificial intelligence


B.

A blockchain arrangement


C.

An entirely cloud based offering


D.

A digital ecosystem


Questions # 2:

Plush is a medium-sized hotel which recently opened on the outskirts of a city which is popular with tourists. It has a sophisticated website which allows customers to pre-book rooms and additional items, such as meals in its restaurant and tickets for popular tourist attractions in the city.

Plush has listed its website on a popular hotel price comparison website, which allows customers to compare prices and facilities of hotels in the same area and this has resulted in over 60% of Plush's customer bookings so far.

Since listing on the price comparison website, the Sales Manager of Plush has noticed that the prices offered by its nearest competitors have reduced dramatically and their range of special offers have also increased.

Which TWO of Porter's Five Forces have been most affected by the use of the price comparison website by the hotels in the same area as Plush? (Choose two.)

Options:

A.

Competitive rivalry.


B.

Threat of substitutes.


C.

Bargaining power of suppliers.


D.

Threat of new entrants.


E.

Bargaining power of customers.


Questions # 3:

Which of the following is NOT a fundamental principle specified in CIMA's Code of Ethics?

Options:

A.

Integrity


B.

Objectivity


C.

Confidentiality


D.

Sustainability


Questions # 4:

You are a Management Accountant working for an Organization that 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?

Options:

A.

Integrated reporting of the triple bottom line of Profits, People and Planet.


B.

Measures of Organization's use of non-renewable resources and environmental emissions.


C.

Project evaluations that include the externalities as well as the cash costs.


D.

Ensuring the Organization adopts the lowest cost technologies and suppliers.


E.

Providing financial information with all non-recurring expenditures and incomes removed. 


Questions # 5:

RRR is a large insurance company specialising in home and property insurance. It uses a highly sophisticated information system which it uses to process its insurance claims efficiently and effectively. It also holds a vast database of customer information and records. RRR's staff are very highly trained and considered to be the leading specialists in the industry. 

 

Which category of intellectual capital is NOT present in the description of RRR above?

Options:

A.

Human capiltal


B.

Innovation capital


C.

Customer capital


D.

Organizational capital


Questions # 6:

Johnson. Scholes and Whittington described three criteria. 'Suitability, Feasibility and Acceptability' to evaluate potential strategies. Which of the following statements relate to the three criteria? Select ALL that apply.

Options:

A.

Concerned with the expected performance outcome.


B.

Concerned with whether the strategy addresses the circumstances in which an organisation is operating.


C.

Concerned with the ability of the business to renew itself.


D.

Concerned with the latest reported results


E.

Concerned with whether the strategy could be made to work in practice.


Questions # 7:

Organizations have a variety of stakeholders, each with differing interests and requirements. This can lead to stakeholder conflict. This can be further complicated when individuals are members of more than one stakeholder group and when members of one group do not share the same principal interest.

Company FF has decided that it needs to undertake a stakeholder analysis in order to manage its stakeholders more effectively.

Which of the following statements are valid when undertaking stakeholder analysis?

Select ALL that apply.

Options:

A.

Establishes stakeholder interests and claims on the Organization.


B.

The analysis enables priorities to be set to minimize power clashes.


C.

Considers how to prevent stakeholder trouble before it starts.


D.

Determines the degree of power that each group holds.


E.

The analysis only focuses on quantitative matters.


Questions # 8:

CCC has been given permission by the local government authority to build 500 houses and this will be a very profitable project for CCC. An animal charity is opposed to the building of the houses as fields where animals live will be built on.  Some people living nearest to the area of the proposed building are in favour because it will stimulate the local economy. Other people living near the area of the proposed development are opposed to it because their view will be spoiled. Which of the following activities should CCC undertake to resolve the stakeholders' competing objectives?

Options:

A.

CCC should focus on its stakeholders' needs in turn.


B.

CCC should give the animal charity the money to establish a wildlife sanctuary.


C.

CCC should conduct discussions with its stakeholders and reach an acceptable compromise.


D.

CCC should conduct a PESTLE analysis.


Questions # 9:

Mayo defined knowledge management as the management of the information, knowledge and experience available to an Organization. Which THREE of the following are steps in the development and implementation of a knowledge management strategy?

Options:

A.

Gaining top management support.


B.

Creating the technological infrastructure.


C.

Populating the databases.


D.

Appointing a change agent.


E.

Establishing a knowledge management budget.


Questions # 10:

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.)

Options:

A.

To be responsible for keeping all external stakeholders satisfied.


B.

To have regard for the interests of the company's employees.


C.

To focus only on maximizing company profits.


D.

To consider the likely consequences of any decision in the long term.


E.

To avoid conflicts of interest and of duties.


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