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CIMA E3 Questions:
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DnD2_0333-R2-C.UU is a company that makes a number of different products. Each
product has its own financial, marketing and risk characteristics.The combination of these
products affects the attractiveness and profitability of UU.
For each product, UU's Board has decided to undertake a product life cycle exercise. This
will enable it to examine each of its products and recognise the distinct product life cycle
stage for each of the products sales history. Place the stage in the product life cycle next to
the relevant statement.
DnD2_0102-R2-A.LMN is a multinational firm considering undertaking Foreign Direct
Investment (that is buying premises and equipment or purchasing businesses) in Country
Y. LMN is aware that the policies of the government of Country Y can affect the return on
its investment and this can make LMN more or less likely to undertake FDI in Country Y.
Place the appropriate effect against each alternative government policy.
DnD2_0104-R1-A.DDD is an environmental consultancy with offices in 80 countries around
the world. DDD advises commercial clients on the ways in which the client can reduce emissions from their operations and their supply chain. It wishes to introduce a Knowledge
Management System (KMS) to help its offices to generate and share Organizational
learning. Match the impact to the current situation at DDD
HHH is a teachingOrganization. HHH has begun to employ virtual reality to train the
customers on its courses in how to perform complex manual tasks such as repairing
machineryWhich activity in Porter's Value Chain has been impacted by HHH's use of virtual reality?
A. Operations B. Service C. Procurement D. Human resources management
Answer: A
Question # 7
Which of the following distinguishes a learning curve effect from a learningOrganization?
A. Learning curve effects depend on repetition of the same behaviour.
LearningOrganizations seek to modify behaviour. B. Learning curve effects apply to the factory. LearningOrganizations are always service
industries. C. Learning curve effects increase with time. LearningOrganizations cease to learn after a
time. D. Learning curve effects always reduce costs. LearningOrganizations always increase
costs
Answer: A
Question # 8
DnD4_0071-R2-A.YYY wishes its managers to implement a changeprogram. YYY
proposes to draw upon two change models associated with Kurt Lewin to assist in this
process.Place against each of the statements below the appropriate Lewin change model or whether neither model applies.
MM is a business which sells entertainment products. MM now wants to move to a positionwhere it uses e-business as a fundamental part of its business strategy.Which of the following benefits would result from MM's use of e-business?Select ALL thatapply
A. Cost reductions because of lower overheads and cheaper procurement. B. Increased online revenues. C. Better control information through monitoring website activity. D. An increased use of tacit knowledge. E. A reduction in labour turnover and higher morale. F. Better control of information.
Answer: A,B,C
Question # 10
Which of the following is an example of a value adding activity within the outbound
logistics aspect of anOrganization's value chain?
A. Refunds offered to customers if they are dissatisfied with a purchase. B. Promotions and discounts offered to loyal customers. C. Delivery of customers' purchases directly to their homes. D. Regular training provided to staff in customer care.
Answer: C
Question # 11
CIMA has described the two roles of enterprise governance as 'preventing failure' and'ensuring success'. CIMA sees 'preventing failure' as being related to having proper riskmanagement and corporate governance procedures in place. CIMA sees 'ensuringsuccess' as being concerned with the practise of strategic management.Which THREE of the following responsibilities of senior management are essential to'ensuring success' for theOrganization?
A. Providing leadership and direction to theOrganization. B. Maintaining awareness and responsiveness to abrupt change in theOrganization's environment.
C. Demonstrating competence in the execution of new initiatives. D. Avoiding the dominance of the executive team by particular personalities. E. Ensuring conformance with the codes of corporate governance.
Answer: A,B,C
Question # 12
BCD is an independent training provider in Country P. It provides training to a wide range
of corporate customers in business related subjects. All of its tutors must possess a
nationally accredited training qualification before they are allowed to teach. Also, all of its
courses follow nationally accredited programs and are externally monitored. This is
considered to be a critical aspect of its business reputation.BCD has one major competitor, JKL, within Country P. JKL offers similar courses toBCD but its tutors do not have to have an accredited training qualification. In addition itscourses do not follow the national accreditedprograms and the content and style of coursesvaries significantly between JKL centres.There are a number of universities which offer nationally accredited courses within CountryP. BCD does not consider these as competitors, as they typically attract students wishingto undertake degree courses. The average university pass rate for nationallyaccredited programs is currently higher than BCD'sWhich of the following types of benchmarking would be most useful for BCD?
A. Process B. Internal C. Competitor D. Strategic
Answer: A
Question # 13
Which of the following statements would encourage an Organization to use Scenario
Planning?Select ALL that apply.
A. Uncertainty in the industry is high, relative to management's ability to predict or adjust to change. B. Competitor's are increasingly using Scenario Planning as part of their strategy formulation process. C. TheOrganizationhas not previously experienced any major surprises or expensive strategic mistakes. D. TheOrganizationhas achieved all of its objectives and operates within a stable external environment. E. TheOrganizationoften experiences 'group-think', leading to a narrow view of the future.
