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Free Access CIMA E3 New Release

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Total 280 questions

Strategic Management Questions and Answers

Question 17

SDC is a medium sized IT systems development company. SDC employs highly qualified and experienced systems development experts. It invests heavily in staff training and development and as a result, staff are highly motivated and staff turnover is low. SDC has a strong culture of team work and innovation, which the senior managers believe is the basis of SDC's success. The senior managers, who are also the founders of SDC, are highly experienced and have a strong vision for the business.

Which THREE of the following factors would be the main focus of a resource audit for SDC? (Choose three.)

Options:

A.

Make-up

B.

Markets

C.

Manpower

D.

Machinery

E.

Management

F.

Money

Question 18

A leading supermarket chain is undertaking environmental scanning as it is concerned that it is becoming uncompetitive and profits have started to fall. The Board is concerned that when the next Annual General Meeting is held, it will need to have a viable strategy to present to its shareholders, in order to prevent shareholders' protests.

  

In the past the company has been reluctant  to offer an Internet shopping service. However, it now believes that by offering this service and also introducing customer relationship marketing (CRM) this will produce a strategy that will help it to improve its competitiveness.

 

Which of the following statements apply to CRM?

 

Select ALL that apply.

Options:

A.

CRM utilises marketing resources to retain, rather than simply attract new customers.

B.

The company must be prepared to take customers' needs into account and be able to meet these needs.

C.

In mature markets, existing customers provide the most likely source of future earnings. 

D.

CRM is about marketing to customers to obtain their loyalty, so customer research is not needed. 

E.

The CRM process needs to include increasing the range of products that will be offered to customers. 

Question 19

DDD has just issued a profit forecast in connection with a proposed take-over of a business.  The take-over is strongly opposed by the target company. DDD's Management Accountant played a large part in helping DDD's Finance Director prepare the profit forecast.  However, the Management Accountant believes that the profit forecast is overly optimistic and is based on some false assumptions.  As a result the Management Accountant thinks the profit forecast is misleading. Select THREE of the actions below which are consistent with CIMA's Code of Ethics.

Options:

A.

The Management Accountant should follow established internal procedures.

B.

The Management Accountant should obtain advice from his professional body/bodies.

C.

The Management Accountant should resign from his job.

D.

The Management Accountant should maintain a discreet silence.

E.

The Management Accountant should anonymously inform the media of his concerns.

F.

The Management Accountant should publicly accuse the Finance Director of issuing a misleading profit forecast.

Question 20

In 1989 Earl developed a framework to analyse the linkages between information systems, information technology and information management. Which of the following is NOT a characteristic of Information Systems strategy?

Options:

A.

Aligning strategy development with business needs and seeking strategic advantage.

B.

Business-led and demand-orientated; developing new strategic choices.

C.

Formed with key objectives of using the information resource and generating new businesses.

D.

Organization-based, relationships-orientated and management focused.

Page: 5 / 11
Total 280 questions