CIMA CIMAPRO15-E03-X1-ENG real exam prep : E3 - Strategic Management Question Tutorial

  • Exam Code: CIMAPRO15-E03-X1-ENG
  • Exam Name: E3 - Strategic Management Question Tutorial
  • Updated: Sep 30, 2026
  • Q&As: 60 Questions and Answers

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CIMA CIMAPRO15-E03-X1-ENG Exam Syllabus Topics:

SectionObjectives
Strategic Choices- Corporate strategy
  • 1. Mergers and acquisitions
    • 2. Diversification strategies
      • 3. Strategic alliances
        - Business unit strategy
        • 1. Cost leadership
          • 2. Differentiation strategy
            • 3. Focus strategy
              Strategy Implementation- Organisational structure and design
              • 1. Organisational configurations
                • 2. Centralisation vs decentralisation
                  - Change management
                  • 1. Lewin's change model
                    • 2. Kotter's 8-step model
                      - Project and performance management
                      • 1. Strategic project management
                        • 2. Performance measurement systems
                          Strategy Formulation- Strategic analysis of external environment
                          • 1. Industry and competitive forces (Porter's Five Forces)
                            • 2. PESTEL analysis
                              • 3. Market segmentation and positioning
                                - Internal strategic analysis
                                • 1. Resource and capability analysis
                                  • 2. Core competencies
                                    • 3. Value chain analysis

                                      CIMA E3 - Strategic Management Question Tutorial Sample Questions:

                                      Question #1

                                      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. Standards, Dimensions and Rewards
                                      • B. Dimensions and Standards
                                      • C. Dimensions and Rewards
                                      • D. Standards and Rewards
                                      Reveal Solution  Discussion  0

                                      Correct Answer: B  🗳️

                                      Question #2

                                      BBB is a manufacturer that has been criticized in the financial press because it does not have a policy for sustainability.
                                      Which THREE of the following elements would be crucial to BBB successfully embedding sustainability into its activities? (Choose three.)

                                      • A. BBB's Board should make a commitment to sustainability.
                                      • B. BBB should give all its staff training in sustainability.
                                      • C. BBB should investigate the costs and benefits of establishing a sustainability department.
                                      • D. BBB should employ a new public relations consultancy.
                                      • E. BBB should include sustainability targets in performance appraisal.
                                      • F. BBB should spend at least 0.1% of its Net Profit on sustainability projects.
                                      Reveal Solution  Discussion  0

                                      Correct Answer: A,B,D  🗳️

                                      Question #3

                                      Directors have a duty to shareholders and other stakeholders and are required to promote the success of the company.
                                      Which THREE of the following are valid roles and responsibilities of directors? (Choose three.)

                                      • A. To have regard for the interests of the company's employees.
                                      • B. To avoid conflicts of interest and of duties.
                                      • C. To focus only on maximizing company profits.
                                      • D. To be responsible for keeping all external stakeholders satisfied.
                                      • E. To consider the likely consequences of any decision in the long term.
                                      Reveal Solution  Discussion  0

                                      Correct Answer: A,B,E  🗳️

                                      Question #4

                                      DRAG DROP
                                      YZ is a family-run business which manufactures and sells confectionery, employing almost 100 staff. It operates 10 shops in small towns in the north of country P.
                                      Sales of YZ's products have decreased over the last 4 years due to competition from large supermarkets, internet shopping and a general economic downturn, which has hit the north of country P especially hard.
                                      YZ's managing director has recently retired and the board decided to fill the vacancy with an external appointment. The new managing director plans to invest in new manufacturing technology, which would cut staffing levels by 15% and reduce wastage, allowing YZ to lower its prices. YZ's staff are very unhappy about these proposals, feeling that they will destroy YZ's family tradition and reputation that has developed over many years.
                                      Select the correct descriptor for each of the forces for change below:
                                      Select and Place:

                                      Correct

                                      Reveal Solution  Discussion  0

                                      Correct Answer:

                                      Question #5

                                      Which of the following would be a suitable performance measure of Internal Business Processes within Kaplan and Norton's 'Balanced Scorecard' model?

                                      • A. New products developed.
                                      • B. Reduction in manufacturing cycle times.
                                      • C. Increase in market share.
                                      • D. Higher P/E ratio.
                                      Reveal Solution  Discussion  0

                                      Correct Answer: B  🗳️

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