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

CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. A is a private healthcare organization aiming to provide affordable and accessible high quality patient services.
A is introducing Big Data, which has not yet been adopted by the competition. A's database will store a huge amount of information about its patients. Clear access to wide sources of accurate information will enable patients to make more informed choices. Patients will be able to compare not only the prices of drugs, treatments and physicians but also their relative effectiveness.
Which of the following concerns should A have about its use of Big Data?

A) Veracity of information
B) Lack of competitive advantage
C) Privacy issues
D) Variety of information

2. Which of the following would be likely to encourage an organization to use Scenario Planning? (Choose all that apply.)

A) Competitor's are increasingly using Scenario Planning as part of their strategy formulation process.
B) The organization has not previously experienced any major surprises or expensive strategic mistakes.
C) The organization often experiences 'group-think', leading to a narrow view of the future.
D) Uncertainty in the industry is high, relative to management's ability to predict or adjust to change.
E) The organization has achieved all of its objectives and operates within a stable external environment.

3. BBB is a manufacturer that has been criticized in the financial press because it does not have a policy for sustainability.
Which THREE of the following elements would be crucial to BBB successfully embedding sustainability into its activities? (Choose three.)

A) BBB should investigate the costs and benefits of establishing a sustainability department.
B) BBB should give all its staff training in sustainability.
C) BBB should include sustainability targets in performance appraisal.
D) BBB should spend at least 0.1% of its Net Profit on sustainability projects.
E) BBB's Board should make a commitment to sustainability.
F) BBB should employ a new public relations consultancy.

4. You work as a Management Accountant for GHJ, a company that includes commitments to 'sustainability' in its mission statement.
Which THREE of the following are contributions that you, as Management Accountant, could make towards the achievement of this part of the company's mission statement? (Choose three.)

A) Ensuring the organization adopts the lowest cost technologies and suppliers.
B) Providing financial information with all non-recurring expenditures and incomes removed.
C) Measures of organization's use of non-renewable resources and environmental emissions.
D) Integrated reporting of the triple bottom line of Profits, People and Planet.
E) Project evaluations that include the externalities as well as the cash costs.

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) As a CIMA qualified Management Accountant you must follow CIMA's Code of Ethics.
C) 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.
D) 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.
E) Both CIMA's Code of Ethics and the company's Code of Business Conduct must be based on a set of basic principles.

Solutions: