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

TUV had an employee turnover rate of 25% among new recruits and was becoming short of skilled workers. The Board of TUV realized there was something dramatically wrong and called in consultants to assess the problem. The consultants recommended transformational change in that TUV should redesign the entire production system, change the placement of all equipment and the flow of work, redefine every job and give all workers new assignments.Which type of change did the consultants recommend for TUV?

• Evolution
• Reconstruction
• Revolution
• Adaptation

You have been given responsibility, as a newly qualified management accountant, for delivering an ambitious project to centralize and computerize the accounts function within a medium-sized, geographically dispersed business. The timetable also requires the project to be delivered within a very short timescale with limited resources. You have built a team to deal with these proposed changes.With regard to effective teams and change, which THREE of the following statements are correct? (Choose three.)

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

Which of the following statements would encourage an Organization to use Scenario Planning? Select ALL that apply.

• Uncertainty in the industry is high, relative to management's ability to predict or adjust to change.
• Competitor's are increasingly using Scenario Planning as part of their strategy formulation process.
• The Organization has not previously experienced any major surprises or expensive strategic mistakes.
• The Organization has achieved all of its objectives and operates within a stable external environment.
• The Organization often experiences 'group-think', leading to a narrow view of the future.

The future can be viewed as consisting of a large number of alternatives. Forecasting techniques have been designed to assist decision-making and planning.Which TWO of the following statements are correct regarding the use of trend analysis as a forecasting tool?

• Suitable for mature and stable products / services / companies.
• Suitable for young and dynamic products / services / companies.
• Useful where the external environment is always stable.
• Useful where the external environment is always changing.
• Useful where comparatives are not available.

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?

• Suitable and Acceptable
• Suitable and Feasible
• Acceptable and Feasible
• Suitable, Acceptable and Feasible

Which TWO of the following would be measures included within the 'Department and work centres' level of the Performance Pyramid?

• Market share percentage
• Percentage of on-time deliveries
• Number of product returns per period
• Customer satisfaction levels
• Production output per period

A fresh-food packaging manufacturer has recently changed the design of its packaging in order to reduce the amount of non-recyclable material. Its immediate customer, a large fresh-foodwholesaler, does not see the need for this re-design as it believes that it will adversely affect the storage of the fresh food. However, the final customer, a large supermaket chain, has expressed strong interest in the new packaging design, as the supermarket chain has strict Corporate Social Responsibility targets to achieve.Which of the following statements most appropriately describes the situation outlined above, from the perspective of the fresh-food packaging manufacturer?

• Value Chain management
• Upstream supply chain management
• Downstream supply chain management
• Pull supply chain management

Organizations have a variety of stakeholders, each with differing interests and requirements. This can lead to stakeholder conflict. This can be further complicated when individuals are members of more than one stakeholder group and when members of one group do not share the same principal interest.Company FF has decided that it needs to undertake a stakeholder analysis in order to manage its stakeholders more effectively.Which of the following statements are valid when undertaking stakeholder analysis? Select ALL that apply.

• Establishes stakeholder interests and claims on the Organization.
• The analysis enables priorities to be set to minimize power clashes.
• Considers how to prevent stakeholder trouble before it starts.
• Determines the degree of power that each group holds.
• The analysis only focuses on quantitative matters.

A direct external change trigger is:

• A general increase in the use of the Internet by society.
• An economic recession in an organization's home country.
• A powerful competitor forcing an organization to cut its prices.
• The introduction of new environmental protection policies by the government.

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.)

• Make-up
• Markets
• Manpower
• Machinery
• Management
• Money