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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. You have been given responsibility, as a newly qualified management accountant, for delivering an ambitious project to centralize and computerize the accounts function within a medium-sized, geographically dispersed business. The timetable also requires the project to be delivered within a very short timescale with limited resources. You have built a team to deal with these proposed changes.
With regard to effective teams and change, which THREE of the following statements are correct? (Choose three.)

A) Teams enhance learning and address change directly through creating recommendations and new ideas.
B) Teams play minor roles in institutional change.
C) Teams should continue after their purpose has been served.
D) Individuals must become more than they were when working alone and must develop new commitments and behaviors.
E) Teams that cross departmental boundaries can destroy shared values.
F) Teams that cross departmental boundaries can develop new performance criteria.

2. M is a car manufacturer in Country C.
Every day, at 09.00, members of M's staff practice meditation and Tai Chi for 30 minutes, before their normal workday commences.
M's staff are paid during this time and M considers the practice to be a benefit both to staff and the company.
Staff operate with high levels of efficiency and absenteeism levels are low.
The auditors of M have recommended that M stop these sessions, stating that they consider them to be a waste of time and a drain on resources.
Which of the following aspects of M's culture would the auditors recommendation impact on?

A) Stories and myths
B) Routines and rituals
C) The organizational paradigm and values
D) Symbols

3. LLL is an international oil and gas exploration company. It is considering investing S300 million in developing new oil fields in Country D.
For this it will need to obtain a license from the government of Country D.
These new oil fields will bring much wealth to Country D because a large proportion of the revenue from the production of oil will be paid to the government as part of the licensing agreement.
However, oil production in Country D will have some undesirable social effects, such as the threat of pollution, congestion to the roads and pressure on local amenities such as housing, electricity and clean water.
Which of the following approaches to stakeholder management should LLL NOT undertake in order to enter Country D?

A) Undertake stakeholder mapping to identify the interests of the most powerful players in the decision to grant a license to LLL.
B) Commit to improving the local amenities and roads as a part of the application for a license in Country D.
C) Issue free shares in a Joint Venture to develop oil fields to government ministers from Country D.
D) Develop and circulate a promotional video showing the benefits enjoyed by other countries in which LLL operates.

4. DRAG DROP
YZ is a family-run business which manufactures and sells confectionery, employing almost 100 staff. It operates 10 shops in small towns in the north of country P.
Sales of YZ's products have decreased over the last 4 years due to competition from large supermarkets, internet shopping and a general economic downturn, which has hit the north of country P especially hard.
YZ's managing director has recently retired and the board decided to fill the vacancy with an external appointment. The new managing director plans to invest in new manufacturing technology, which would cut staffing levels by 15% and reduce wastage, allowing YZ to lower its prices. YZ's staff are very unhappy about these proposals, feeling that they will destroy YZ's family tradition and reputation that has developed over many years.
Select the correct descriptor for each of the forces for change below:
Select and Place:

Correct

5. As a CIMA qualified management accountant working within a manufacturing company, you are subject to both CIMA's Code of Ethics and your company's Code of Business Conduct.
Which TWO of the following statements are TRUE? (Choose two.)

A) A company's Code of Business Conduct can be rules based.
B) Both CIMA's Code of Ethics and the company's Code of Business Conduct include references to Confidentiality. Disclosure on public interest grounds is therefore prohibited.
C) Both CIMA's Code of Ethics and the company's Code of Business Conduct must be based on a set of basic principles.
D) As a CIMA qualified Management Accountant you must follow CIMA's Code of Ethics.
E) Where there is a difference between CIMA's Code of Ethics and the company's Code of Business Conduct, the company's Code of Business Conduct takes priority.

Solutions: