Free E3 Strategic Management Exam CIMAPRA19-E03-1 Exam Practice Test

Data mining is an important part of an Organization's knowledge discovery process. Effective data mining provides insight and can help unlock previously hidden opportunities. Which of the following are disadvantages of Data Mining?Select ALL that apply.

• Privacy issues
• Security issues
• Ethical issues
• Financial crime issues
• Manufacturing issues

You have applied for a job with a large accountancy practice and have been requested to attend for an interview. You have also been informed that you will be required to give a ten minute presentation on Corporate Political Activity (CPA).Which are valid statements with respect to Corporate Political Activity? Select ALL that apply.

• The CIMA Code of Ethics does not consider it appropriate for a company to offer bribes to politicians to secure publicly-funded business.
• CPA can be considered to be part of a company's strategy to generate and sustain profits.
• When established laws and regulations affect a firm's competitive environment, the company will not be able to use CPA to try to influence political decision-making.
• It is acceptable for a company to make an election contribution for a particular candidate and then to try to influence subsequent parliamentary voting.
• Companies can establish Coalitions to respond to specific political issues, but these are always formed on a temporary basis.

Using Earl's 'Three levels of IT strategy' framework, which one of the following activities would occuras part of an Information Systems (IS) strategy?

• Design of key performance measures for an information system.
• Employing an IT Director to control the Organization's information system.
• Selection of the hardware for a new Information system.
• Evaluation of an SBU's information system to ensure that it continues to meet customer needs.

Which of the following structures would you recommend for the Board of Directors of a UK public company in order to fulfill its legal responsibilities?

• The Board of Directors should have a minimum of six directors with the Board's tasks divided amongst them. The Board should also have a Chairman or Chairwoman who may serve as the Chief Executive if time permits.
• The Board should have no more than six members with clearly defined executive and non- executive responsibilities. To make the role more efficient Chairman or Chairwoman of the Board should also be the Chief Executive.
• There should be no restriction placed on the minimum or maximum number of Directors. The Directors' roles should be shared but the Chairman or Chairwoman should not act also as the Chief Executive.
• The Chairman or Chairwoman should not have an executive role within the company. There should be at least two directors to carry out the Board's roles.

As a recently qualified accountant, you have been given responsibility for delivering an ambitious project to centralise and computerise the accounts function within a geographically dispersed, medium-sized business. In addition, the reporting timetable requires the project to be delivered within a very short timescale with limited resources. You have decided to put together a team to deal with these proposed changes.Which THREE of the following statements regarding effective Teams and Change are correct?

• Individuals must become more than they were when working alone and must develop new commitments and behaviours.
• Teams that cross departmental boundaries can develop new performance criteria.
• Teams that cross departmental boundaries can destroy shared values.
• Teams should continue after their purpose has been served.
• Teams play minor roles in institutional change.
• Teams enhance learning and address change directly through creating recommendations and new ideas.

JKL is a bank with a large number of personal customers.A member of staff has reported their loss of a portable electronic storage device to his line manager. The portable electronic storage device contains customer account details, including secure information such as personal login details to access personal accounts. JKL has a clear policy that forbids staff from downloading customer data on to portable electronic storage devices.It would be difficult for a member of the public to access the information on the device. Which of the following would you advise JKL to do?

• Notify all customers of the loss and advise them to monitor their accounts for unusual transactions.
• Wait for customers to query unusual transactions and refund any money they have lost.
• Let the staff member explain why they downloaded data before deciding on their dismissal.
• Retain the staff member and monitor them secretly to establish whether they are engaged in a fraud.

An organization must acquire suitable hardware and software in order to implement a knowledge management strategy so that knowledge can be stored and communicated.Which of the following would be appropriate systems to use in a knowledge management strategy? (Choose all that apply.)

• Intranet
• Local area network
• Social media
• Ledgers and journals
• Internet
• Groupware

YZ operates a national mobile phone (cell phone) network in one country. It is considering upgrading its network to 4th Generation (4G) by providing an improved bandwidth that will enable its customers faster access to the Internet.This investment will cost S29 million which YZ's institutional investors have agreed to provide by subscribing to a rights issue. This is due to management having informed institutional investors that a rival is already offering 4G and that this is taking customers away from YZ because its network is now regarded as too slow. YZ's remaining customers have shown a willingness to pay extra for 4G and overall the investment will have a positive net present value.Which of the following statements are correct? (Choose all that apply.)

• It provides a market development opportunity for YZ.
• YZ will gain a first mover advantage.
• There is stakeholder approval for the investment.
• It is essential given the strategic threats to YZ.
• There are sufficient investment funds available

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.

• It will help to identify and prioritise how external processes would support PP's strategies.
• It will help PP establish the overriding objective of the Organization.
• It will help PP to identify and clarify customer-orientated strategies that support the overall business strategy.
• It will help inform which strategies, in each of the Balanced Scorecard perspectives, support improved performance.
• It will help PP to evaluate the operational and financial performance of the business.

QQQ is Country M's largest supermarket with 40% of the market share. In addition it has opened several stores around the world in the last 10 years. One of the reasons for QQQ's success is its loyalty card. The loyalty card is used to gather information about the spending patterns of its customers. Around two billion pieces of information each week are captured and stored in an enormous data warehouse that can be accessed by QQQ and other selected large retail partners.The information can be used to assess the success of new product launches as well as which demographics of customer are making the purchases. The system also allows QQQ to tailor its special offers to particular segments of the market and to predict the buying behaviour of its customers, which assists QQQ in procurement planning.Which of the following best describes the activities outlined above for QQQ?

• Customer relationship management
• E-business
• Market segmentation
• Data mining