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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. JJJ is a publically quoted advertising agency. JJJ's competitive advantage is based on the expertise of its staff and its reputation in digital media advertising. JJJ has robust systems to protect its intellectual property. These include patents and copyrights. JJJ has also restricted access for most of its staff to its most sensitive data, such as studies of its customers' profitability.
JJJ's new Managing Director, Z, is concerned that when staff leave JJJ, the company loses whatever tacit knowledge they possess. These losses also impact on JJJ's reported profits. In order to remedy the losses of knowledge and the reduced profits Z wants to introduce a knowledge management strategy.
Which of the following steps support the introduction of a knowledge management strategy? (Choose all that apply.)

A) Z should gain the support of the Board of Directors.
B) JJJ should convince staff of the benefits of sharing their tacit knowledge.
C) JJJ should unfreeze current habits and standard operating procedures.
D) Z should set a target for reported profit.
E) JJJ should integrate knowledge management and management accounting.
F) JJJ needs to acquire and install appropriate hardware and software.

2. Which of the following categorizations would be correct, according to McFarlan's Strategic Grid, for a system which is critical to sustaining existing business but its future strategic importance is considered to be low?

A) Strategic
B) Factory
C) Turnaround
D) Support

3. An organization must acquire suitable hardware and software in order to implement a knowledge management strategy so that knowledge can be stored and communicated.
Which of the following would be appropriate systems to use in a knowledge management strategy? (Choose all that apply.)

A) Internet
B) Social media
C) Ledgers and journals
D) Groupware
E) Local area network
F) Intranet

4. A Service Level Agreement (SLA) defines exactly what services a service provider will provide and the required level or standard for those services.
Which of the following statements regarding Service Level Agreements is NOT correct?

A) Service Level Agreements should include a guarantee to provide 100% availability for complaint resolution.
B) Service Level Agreements should include the targets and benchmarks to be used and the consequences for failing to meet them.
C) Service Level Agreements should include the procedures for cancelling the contract.
D) Service Level Agreements should include the expected response time to technical queries.

5. M has been appointed as an external change agent to lead and implement a large scale re-structuring strategy which is being undertaken by a large bank. M has been appointed due to his extensive experience in a wide range of organizational re-structuring programmes. This re-structuring strategy will involve a large number of redundancies and the implementation of a new organization-wide management reporting system. M will need to work with staff from all departments and levels of the organization. The Board of Directors of the bank believes that an external change agent will bring more benefits to the change process than using an internal change agent.
Which of the following are the most likely benefits that could be achieved by the bank by appointing an external change agent to lead and implement the re-structuring strategy? (Choose all that apply.)

A) The change process should be less costly if an external change agent is appointed.
B) As a dedicated resource, the external change agent can give more time to the change process.
C) The external change agent will have better relationships with the bank employees than an internal change agent.
D) The speed of delivery of the change process will be quicker when using an external change agent.
E) The external change agent will be more objective in decision-making than an internal change agent.
F) The bank can exploit the specialist expertise of the external change agent.

Solutions: