Pass the CIMA CIMA Strategic E3 Questions and answers with CertsForce

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Questions # 21:

HHH is a teaching Organization. HHH has begun to employ virtual reality to train the customers on its courses in how to perform complex manual tasks such as repairing machinery.

 

Which activity in Porter's Value Chain has been impacted by HHH's use of virtual reality?

Options:

A.

Operations


B.

Service


C.

Procurement


D.

Human resources management


Expert Solution
Questions # 22:

RRR is an insurance company which maintains an extensive database of its customer transactions over the last 10 years. RRR is developing a new product and has carried out a SWOT analysis.

Within which of the following aspects of the SWOT analysis would RRR include its customer database?

Options:

A.

Opportunity


B.

Threat


C.

Weakness


D.

Strength


Expert Solution
Questions # 23:

Information Systems (IS) strategy is correctly defined as:

Options:

A.

The planning, organizing, investment and control of information applications in the organization.


B.

Identifying the information needs of the organization and aligning development to them.


C.

Decisions on the hardware, software and communications solutions used in the organization.


D.

The roles and structure of information specialists in the organization and their relationship with users.


Expert Solution
Questions # 24:

Ansoff has provided a product/market growth matrix which denotes possible strategic directions that an organization can follow.

Which of the following statements correctly describe the strategic options generated by the matrix? (Choose all that apply.)

Options:

A.

Diversification using new products in new markets.


B.

Product development using new products in new markets.


C.

Market development using existing products in new markets.


D.

Market penetration using existing products within existing markets.


E.

Market penetration using existing products in new markets.


F.

Market penetration using new products within existing markets.


Expert Solution
Questions # 25:

MMM is a multi-national company that manufactures and sells consumer durables.  MMM has recently experienced severe trading losses and its Marketing Director has decided to revise the Marketing Strategy paying due regard to MMM's key external drivers. Which THREE of the following are key external drivers for MMM?

Options:

A.

A change in consumer age profiles in a country where MMM sells 5% of its output.


B.

A modification to MMM's production processes designed to save fuel.


C.

A change in MMM's domestic advertising agency.


D.

A growth in Protectionist trade policies in Africa and Asia.


E.

An upward trend in commodity prices.


F.

A decline in the value of the Euro and the U.S. dollar.


Expert Solution
Questions # 26:

RRR is a medium sized company, which has built family homes in Country В for twenty years. The Board of RRR wishes to expand company operations and start building homes in the neighboring country. The Board of RRR wishes to undertake a position audit to help in this decision.

Which of the following strategic analysis tools would be used in a position audit for RRR?

Options:

A.

Gap Analysis


B.

PEST


C.

SWOT


D.

Five Forces


Expert Solution
Questions # 27:

VWX is a successful airline with a proven record in successfully exploiting the resources it obtains. Which of the following might create an additional Core Competence for VWX?

Options:

A.

Unique rights to operate from the most popular airport serving a capital city.


B.

Sufficient aircraft to operate a good timetable.


C.

A market with more passengers than the existing airlines can satisfy.


D.

The airline operations that operate below the level of middle management.


Expert Solution
Questions # 28:

Your manager is undertaking a strategic review of XYZ's activities and has asked you to explain how a Force Field analysis would assist in the review process.

 

Which of the following statements would be most appropriate?

Options:

A.

As part of XYZ's strategic review, identify forces facilitating the need for proposed change.


B.

Identify influential senior managers who will drive through changes in XYZ's strategic direction.


C.

Provide a framework for identifying forces for and against the proposed changes within XYZ.


D.

Identify forces facing XYZ's activities that may create barriers and resistance to change.


Expert Solution
Questions # 29:

DEF is a medium sized business which manufactures children's clothing. In the last 5 years demand has steadily increased and DEF is struggling to meet this demand within its current manufacturing capacity. DEF's current manufacturing machinery was installed over 10 years ago and now requires updating, if DEF is to survive in the marketplace. 

 

DEF has established that the latest manufacturing technology would cost $2 million. This would be funded by the shareholders. It would payback within 2 years and would allow DEF to double output from its current level within this 2 year period. It will also improve product consistency and quality. However, it will result in the loss of 20% of DEF's manufacturing staff, most of whom are low paid and low skilled.

 

DEF is currently reviewing this proposed investment strategy, in terms of whether it meets the criteria of Suitability, Acceptability and Feasibility.

 

Which of the following correctly identifies the criteria which are met, in regard to DEF's proposed investment strategy?

Options:

A.

Suitable and Acceptable


B.

Suitable and Feasible


C.

Acceptable and Feasible


D.

Suitable, Acceptable and Feasible


Expert Solution
Questions # 30:

Which of the following is NOT included in the Information Systems Strategy (ISS) of Earl's three levels of information strategy?

Options:

A.

Division / SBU / Function based


B.

Business-focused


C.

Management-focused


D.

Demand-orientation


Expert Solution
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