CIMA E3 - Strategic Management Question Tutorial : CIMAPRO15-E03-X1-ENG Exam

  • Exam Code: CIMAPRO15-E03-X1-ENG
  • Exam Name: E3 - Strategic Management Question Tutorial
  • Updated: Aug 13, 2026
  • Q & A: 60 Questions and Answers

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CIMA CIMAPRO15-E03-X1-ENG Exam Syllabus Topics:

SectionObjectives
Strategy Implementation- Project and performance management
  • 1. Strategic project management
    • 2. Performance measurement systems
      - Change management
      • 1. Kotter's 8-step model
        • 2. Lewin's change model
          - Organisational structure and design
          • 1. Organisational configurations
            • 2. Centralisation vs decentralisation
              Strategic Choices- Corporate strategy
              • 1. Diversification strategies
                • 2. Mergers and acquisitions
                  • 3. Strategic alliances
                    - Business unit strategy
                    • 1. Differentiation strategy
                      • 2. Focus strategy
                        • 3. Cost leadership
                          Strategy Formulation- Internal strategic analysis
                          • 1. Core competencies
                            • 2. Resource and capability analysis
                              • 3. Value chain analysis
                                - Strategic analysis of external environment
                                • 1. Market segmentation and positioning
                                  • 2. PESTEL analysis
                                    • 3. Industry and competitive forces (Porter's Five Forces)

                                      CIMA E3 - Strategic Management Question Tutorial Sample Questions:

                                      1. HHH is an international distribution company which operates a number of large distribution warehouses. HHH employs over 10,000 staff who operate the warehouses 24 hours per day and process over 500,000 packages and parcels each day. HHH operates in a highly competitive market and the senior management team recognize the importance of focusing upon its Critical Success Factors (CSF's). However, some senior managers are confused as to the difference between CSF's and Key Performance Indicators (KPI's).
                                      Which of the following are Critical Success Factors for HHH? (Choose all that apply.)

                                      A) Market share percentage.
                                      B) Efficient staff planning systems.
                                      C) Customer satisfaction.
                                      D) Continual maintenance of warehouse facilities.
                                      E) Percentage of stock damaged.
                                      F) Time taken to load and unload deliveries.


                                      2. DF Company is undertaking a strategic review of its 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?

                                      A) As part of DF's strategic review, identify forces facilitating the need for proposed change.
                                      B) Identify forces facing DF's activities that may create barriers and resistance to change.
                                      C) Provide a framework for identifying forces for and against the proposed changes within DF.
                                      D) Identify influential senior managers who will drive through changes in DF's strategic direction.


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


                                      4. YZ operates a national mobile phone (cell phone) network in one country. It is considering upgrading its network to 4th Generation (4G) by providing an improved bandwidth that will enable its customers faster access to the Internet.
                                      This investment will cost S29 million which YZ's institutional investors have agreed to provide by subscribing to a rights issue. This is due to management having informed institutional investors that a rival is already offering
                                      4G and that this is taking customers away from YZ because its network is now regarded as too slow. YZ's remaining customers have shown a willingness to pay extra for 4G and overall the investment will have a positive net present value.
                                      Which of the following statements are correct? (Choose all that apply.)

                                      A) There are sufficient investment funds available
                                      B) It provides a market development opportunity for YZ.
                                      C) YZ will gain a first mover advantage.
                                      D) It is essential given the strategic threats to YZ.
                                      E) There is stakeholder approval for the investment.


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


                                      Solutions:

                                      Question # 1
                                      Answer: A,C
                                      Question # 2
                                      Answer: C
                                      Question # 3
                                      Answer: B,E
                                      Question # 4
                                      Answer: A,D,E
                                      Question # 5
                                      Answer: A,B

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