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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. ZYX is a global hotel chain, employing over 10,000 staff worldwide. ZYX operates a Code of Conduct for all of its staff, which states "Our staff are the most important assets of our business operations. We expect the highest standards of ethical and professional conduct from all staff, who must display the principles of trust, respect, equality, integrity and fairness at all times." Which THREE of the following actions could ZYX take to positively influence its staff to work to the ethical and professional principles in its Code of Conduct? (Choose three.)

A) Publication on its website of ZYX's Code of Conduct and regular examples of staff displaying the highest standards of professional conduct.
B) Disciplinary actions, such as fines, for staff who do not display high ethical and professional standards.
C) Set performance targets in diversity and equality for its hotel senior managers.
D) Interview process for staff prior to employment, to assess their understanding of ethical and professional behavior.
E) Operate a system of reward incentives for staff who display high ethical and professional standards.
F) Induction and on-going staff training on ZYX's Code of Conduct and ethical and professional principles.

2. PQR is a charity which has an excellent reputation within its home country. PQR employs over 300 highly experienced staff and has 200 skilled volunteers. PQR's funding mainly comes from donations from the public but its public profile is low compared to larger, more publicized charities.
Due to a recent recession, public donations to PQR have fallen in the last five years, but demand for its services continues to grow.
The government of the country in which PQR operates is encouraging greater collaboration between charities and there have been several recent successful mergers within the charity sector. PQR has recently been approached by a high profile and well funded charity, DDD, with a merger proposal. DDD offers complementary services to those offered by PQR.
Which TWO of the following factors would most likely be considered as an "opportunity" for PQR? (Choose two.)

A) Growing demand for its services
B) Highly experienced staff
C) The excellent reputation of DDD
D) Donations from the public
E) Merging with DDD

3. Which THREE of the following frameworks are used solely to evaluate the external environment of an organization? (Choose three.)

A) Kaplan and Norton's Balanced Scorecard
B) SWOT analysis
C) Porter's Value Chain
D) PEST Analysis
E) Porter's Five Forces Model
F) Porter's Diamond

4. 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) Competitor
B) Internal
C) Process
D) Strategic

5. Plush is a medium-sized hotel which recently opened on the outskirts of a city which is popular with tourists. It has a sophisticated website which allows customers to pre-book rooms and additional items, such as meals in its restaurant and tickets for popular tourist attractions in the city.
Plush has listed its website on a popular hotel price comparison website, which allows customers to compare prices and facilities of hotels in the same area and this has resulted in over 60% of Plush's customer bookings so far.
Since listing on the price comparison website, the Sales Manager of Plush has noticed that the prices offered by its nearest competitors have reduced dramatically and their range of special offers have also increased.
Which TWO of Porter's Five Forces have been most affected by the use of the price comparison website by the hotels in the same area as Plush? (Choose two.)

A) Threat of new entrants.
B) Bargaining power of suppliers.
C) Competitive rivalry.
D) Threat of substitutes.
E) Bargaining power of customers.

Solutions: