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CIMA Strategic Level Case Study Exam E3 We must realize our own values and make progress.
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E3 PDF DEMO:
QUESTION NO: 1
Which THREE of the following issues relate to the Corporate Strategy of an organization?
(Choose three.)
A. Meeting the needs of key customers.
B. Leaving existing industries.
C. Entering new industries.
D. Avoiding competitive disadvantages.
E. Achieving advantage over competitors.
F. Acquisitions, disposals and diversification.
Answer: A,D,F
QUESTION NO: 2
JJJ is a private company belonging to a famous former athlete. It operates gyms and fitness clubs across its home country. Each gym or fitness club is treated as a profit centre and the manager of each centre is paid bonuses based on its financial performance.
Three years ago it introduced multidimensional performance measures into its management control systems.
These measure capacity utilisation, financial performance, competitiveness, innovation, and the flexibility of its centres to cope with changing demands.
The managers of its centres have been leaving at a very high rate over the last two years. They have claimed that the measures are too open to interpretation and when they think they are improving the centre's performance they are told they are doing the wrong thing. They also complain that the managers in the centres near big cities find it much easier to reach their targets than the managers of other centres.
Using Fitzgerald and Moon's Building Block model, where does the problem lie?
A. Standards and Rewards
B. Standards, Dimensions and Rewards
C. Dimensions and Rewards
D. Dimensions and Standards
Answer: A
QUESTION NO: 3
Company LL is a well established, reputable company which specialises in providing insurance call centre services to the insurance industry. It has recently won a large contract to provide its services to a multi-national insurer. LL's staff are highly trained in insurance matters and many have worked for LL for many years.
LL undertakes long-term resource planning activities and has identified that during the winter months, when there will be more customers ringing up to make insurance claims, it will potentially need to employ more staff. The Board has decided that rather than recruit its own staff, it will use an employment agency to supply manpower resources as required. The people supplied will be employed on a temporary basis by LL and they will work alongside the other call centre staff.
However, they will work at a lower pay rate and will only be paid for the actual hours they work.
This change will lead to a shift in the working environment, the routine and the composition of the group.
Which THREE statements apply in respect of this proposed change?
A. In times of change, LL can give sensitivity training to this group of workers who can then be used as a source of support during the change process.
B. A Facilitator, as the leader of change, will allow the group to talk about their issues and concerns with this change in a formal and structured manner.
C. As the change process LL is proposing is an internal matter involving a group of its staff, there is no need to undertake a stakeholder analysis.
D. The proposed change will affect the group dynamics, which can be seen as being similar to a 'force field' situation.
E. LL will need to identify the Adversaries in the group, because if they are influential they may persuade other group members to resist the change.
Answer: A,D,E
QUESTION NO: 4
Which of the following would be a suitable performance measure of Internal Business
Processes within Kaplan and Norton's 'Balanced Scorecard' model?
A. Increase in market share.
B. New products developed.
C. Reduction in manufacturing cycle times.
D. Higher P/E ratio.
Answer: C
QUESTION NO: 5
Company PP is a large UK retail company.
In the past it has focused primarily on using financial performance measures. However, PP then realised that this was leading to short-term decision-making on investment in easily valued assets and under investment in assets such as employee skills and customer satisfaction, where short-term returns are more difficult to measure.
It has therefore adopted the Balanced Scorecard approach. PP is now considering enhancing it's approach by using Kaplan and Norton's Strategic Mapping model, as this will enable it to establish its priorities and manage stakeholder expectations.
Which of the following statements would be regarded as improvements by using Strategic Mapping.
Select ALL that apply.
A. It will help PP to evaluate the operational and financial performance of the business.
B. It will help PP to identify and clarify customer-orientated strategies that support the overall business strategy.
C. It will help PP establish the overriding objective of the Organization.
D. It will help to identify and prioritise how external processes would support PP's strategies.
E. It will help inform which strategies, in each of the Balanced Scorecard perspectives, support improved performance.
Answer: B,C,E
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Updated: May 28, 2022