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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. TUV had an employee turnover rate of 25% among new recruits and was becoming short of skilled workers.
The Board of TUV realized there was something dramatically wrong and called in consultants to assess the problem. The consultants recommended transformational change in that TUV should redesign the entire production system, change the placement of all equipment and the flow of work, redefine every job and give all workers new assignments.
Which type of change did the consultants recommend for TUV?

A) Reconstruction
B) Evolution
C) Revolution
D) Adaptation

2. HH is an outdoor theatre which is based in the capital city of country N.
Tickets for shows can be booked at the ticket office or online. HH has identified the following critical success factors (CSFs):
An excellent, online ticket booking system
Customer satisfaction
Which of the following would be suitable key performance indicators (KPIs) for HH? (Choose all that apply.)

A) Number of customer complaints.
B) Percentage of ticket bookings aborted before completion.
C) Profit from sales of snacks and drinks.
D) Employee turnover.
E) Number of returning customers each year.
F) Customer show ratings, scored out of ten.

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

4. Which of the following would be a suitable performance measure of Internal Business Processes within Kaplan and Norton's 'Balanced Scorecard' model?

A) Higher P/E ratio.
B) Reduction in manufacturing cycle times.
C) Increase in market share.
D) New products developed.

5. CCC is a software design company. The Board of CCC has always openly encouraged partnerships with a wide range of designers and other organizations in its industry in order to continually develop and enhance the services it offers and to utilize the expertise and knowledge of a range of individuals and organizations. CCC's staff have also been highly creative and innovative in the design services they provide. CCC regularly analyses and keeps up to date with changes in the environment in which it operates. CCC operates a sophisticated website to promote its services and keep in touch with its service users.
Which TWO of the following attributes of a change adept organization, as defined by Kanter, has CCC demonstrated? (Choose two.)

A) Sophisticated systems
B) Imagination to innovate
C) Continual service development
D) Environmental awareness
E) Openness to collaborate

Solutions: