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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. HH is an outdoor theatre which is based in the capital city of country N.
Tickets for shows can be booked at the ticket office or online. HH has identified the following critical success factors (CSFs):
An excellent, online ticket booking system
Customer satisfaction
Which of the following would be suitable key performance indicators (KPIs) for HH? (Choose all that apply.)

A) Customer show ratings, scored out of ten.
B) Percentage of ticket bookings aborted before completion.
C) Number of customer complaints.
D) Number of returning customers each year.
E) Profit from sales of snacks and drinks.
F) Employee turnover.

2. A Service Level Agreement (SLA) defines exactly what services a service provider will provide and the required level or standard for those services.
Which of the following statements regarding Service Level Agreements is NOT correct?

A) Service Level Agreements should include a guarantee to provide 100% availability for complaint resolution.
B) Service Level Agreements should include the procedures for cancelling the contract.
C) Service Level Agreements should include the targets and benchmarks to be used and the consequences for failing to meet them.
D) Service Level Agreements should include the expected response time to technical queries.

3. QWE is a private company belonging to a famous former sports professional. It operates gyms and fitness clubs across its home country. Each gym or fitness club is treated as a profit center and the manager of each center is paid bonuses based on its financial performance.
QWE introduced multidimensional performance measures into its management control systems 3 years ago.
These measure competitiveness, financial performance, capacity utilization, innovation and the flexibility of its centers to cope with changing demands.
The managers of QWE's centers have been leaving at a very high rate over the last 2 years. They have claimed that the measures are too open to interpretation and when they think they are improving their center's performance they are told they are doing the wrong things. They also complain that the managers in the centers near big cities find it much easier to reach their targets than the managers of other centers.
According to Fitzgerald and Moon's Building Block model, where does the problem lie?

A) Dimensions and Rewards
B) Standards, Dimensions and Rewards
C) Dimensions and Standards
D) Standards and Rewards

4. Which THREE of the following issues relate to the Corporate Strategy of an organization? (Choose three.)

A) Entering new industries.
B) Acquisitions, disposals and diversification.
C) Meeting the needs of key customers.
D) Leaving existing industries.
E) Avoiding competitive disadvantages.
F) Achieving advantage over competitors.

5. SSS University wishes to introduce a new Car Park Management Strategy (CPMS). The aim of this strategy is to reduce the use of private cars and to encourage sustainable transport, such as cycling and public transport, by staff and students. SSS has decided to reduce the number of car parking spaces and introduce parking charges.
The Management Accountant has decided to use the Balanced Scorecard to help prepare a performance management system to assess the performance of the new CPMS.
Which of the following is an example of the Innovation and Learning perspective of a Balanced Scorecard for SSS?

A) Easy access to car parking spaces.
B) Number of days of training for car park attendants.
C) Speed of processing the payment for parking charges.
D) Reduction in complaints from customers.

Solutions: