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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. 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?

A) Weakness
B) Strength
C) Threat
D) Opportunity

2. According to Porter's Five Forces model, which of the following would be evidence of high buyer power?

A) Buyers are fragmented and act independently of each other.
B) There is a concentration of buyers.
C) Products are not standardized and buyers cannot easily switch to another product.
D) There is a low probability of backward integration.

3. ABC is an independent training provider in Country F.
It provides training in business related subjects to a wide range of corporate customers. All of its tutors must possess a nationally accredited training qualification before being allowed to teach and all of its courses follow nationally accredited programmes which are externally monitored. This is considered to be a critical aspect of its business reputation.
ABC has one major competitor, XYZ, within Country F.
XYZ offers similar courses to ABC but its tutors do not have to have an accredited training qualification and its courses do not follow the national accredited programmes. The style and content of courses varies significantly between XYZ's centers.
There are a number of universities which offer nationally accredited courses within Country F.
ABC does not consider these as competitors because typically they attract students wishing to undertake degree courses.
The average university pass rate for nationally accredited programmes is currently higher than ABC's.
Which of the following types of benchmarking would be most useful for ABC?

A) Internal
B) Competitor
C) Process
D) Strategic

4. DDD is a business which sells entertainment products and now wants to move to a position where it uses ebusiness as a fundamental part of its business strategy.
Which of the following benefits would result from DDD's use of e-business? (Choose all that apply.)

A) Easier access to loan finance.
B) Better control of information through monitoring website activity.
C) An increased use of tacit knowledge.
D) A reduction in labour turnover and higher morale.
E) Increased online revenues.
F) Cost reductions because of lower overheads and cheaper procurement.

5. A direct external change trigger is:

A) A powerful competitor forcing an organization to cut its prices.
B) A general increase in the use of the Internet by society.
C) An economic recession in an organization's home country.
D) The introduction of new environmental protection policies by the government.

Solutions: