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CIMA E3 Exam With Confidence Using Practice Dumps

Exam Code:
E3
Exam Name:
E3 Strategic Management
Certification:
Vendor:
Questions:
280
Last Updated:
Jan 7, 2026
Exam Status:
Stable
CIMA E3

E3: CIMA Strategic Exam 2025 Study Guide Pdf and Test Engine

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E3 Strategic Management Questions and Answers

Question 1

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

Options:

A.

The organization often experiences 'group-think', leading to a narrow view of the future.

B.

Competitor's are increasingly using Scenario Planning as part of their strategy formulation process.

C.

The organization has achieved all of its objectives and operates within a stable external environment.

D.

The organization has not previously experienced any major surprises or expensive strategic mistakes.

E.

Uncertainty in the industry is high, relative to management's ability to predict or adjust to change.

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Question 2

HHH is a teaching Organization. HHH has begun to employ virtual reality to train the customers on its courses in how to perform complex manual tasks such as repairing machinery.

 

Which activity in Porter's Value Chain has been impacted by HHH's use of virtual reality?

Options:

A.

Operations

B.

Service

C.

Procurement

D.

Human resources management

Question 3

DEF is a medium sized business which manufactures children's clothing. In the last 5 years demand has steadily increased and DEF is struggling to meet this demand within its current manufacturing capacity. DEF's current manufacturing machinery was installed over 10 years ago and now requires updating, if DEF is to survive in the marketplace. 

 

DEF has established that the latest manufacturing technology would cost $2 million. This would be funded by the shareholders. It would payback within 2 years and would allow DEF to double output from its current level within this 2 year period. It will also improve product consistency and quality. However, it will result in the loss of 20% of DEF's manufacturing staff, most of whom are low paid and low skilled.

 

DEF is currently reviewing this proposed investment strategy, in terms of whether it meets the criteria of Suitability, Acceptability and Feasibility.

 

Which of the following correctly identifies the criteria which are met, in regard to DEF's proposed investment strategy?

Options:

A.

Suitable and Acceptable

B.

Suitable and Feasible

C.

Acceptable and Feasible

D.

Suitable, Acceptable and Feasible