[Q138-Q156] Top CIMA E3 Courses Online - Updated [Jan-2022]

Top CIMA E3 Courses Online - Updated [Jan-2022]

E3 Practice Dumps - Verified By TestInsides Updated 282 Questions

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NEW QUESTION 138
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. Number of returning customers each year.
• B. Employee turnover.
• C. Customer show ratings, scored out of ten.
• D. Percentage of ticket bookings aborted before completion.
• E. Number of customer complaints.
• F. Profit from sales of snacks and drinks.

Answer: D,E

 

NEW QUESTION 139
F is an entrepreneur who runs a chain of health food shops in Country M. There are no other similar health food shops operating in Country M and the chain has rapidly grown over the last three years. F wishes to continue to grow his chain of shops but is aware that he lacks the funds to enable him to grow at the pace which the market is demanding. He is also concerned that continued rapid growth will result in him losing control over the strong brand reputation and identity that he has built up for the chain of shops.
Which of the following would be the most feasible strategy for F to adopt to continue to grow his business?

• A. Licensing
• B. Acquisition
• C. Joint venture
• D. Franchising

Answer: D

 

NEW QUESTION 140
Company V has obtained planning permission to build 20 wind turbines in town W. This will be a highly profitable project and help the Government in Country H meet targets for renewable energy. However, local residents and wildlife groups are extremely unhappy and have objected to the plans and threatened to cause disruption at the site of the proposed wind turbines once building work commences Which THREE of the following activities should Company V use, according to Cyert and March, to resolve these conflicting stakeholder objectives?

• A. Continue to build the wind turbines despite attempts to overcome the objections of the locals and the wildlife groups
• B. Negotiate a 5% reduction in the price of the blade manufacture.
• C. Make a donation of $10,000 to town W as a contribution towards the construction of a new town hall.
• D. Negotiate with the wildlife groups to ensure their key concerns are understood, and implement an action plan to address concerns where appropriate
• E. Offer staff a bonus when the project is successfully completed

Answer: A,C,D

 

NEW QUESTION 141
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.

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

Answer: A,D,E

 

NEW QUESTION 142
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?

• A. Evolution
• B. Adaptation
• C. Reconstruction
• D. Revolution

Answer: D

 

NEW QUESTION 143
Mayo defined knowledge management as the management of the information, knowledge and experience available to an Organization. Which THREE of the following are steps in the development and implementation of a knowledge management strategy?

• A. Gaining top management support.
• B. Populating the databases.
• C. Creating the technological infrastructure.
• D. Establishing a knowledge management budget.
• E. Appointing a change agent.

Answer: A,B,C

 

NEW QUESTION 144
GV is a manufacturer and retailer of high quality suede gloves. GV makes all of its sales in country F, and is extremely profitable. After many successful years trading, GV has accumulated significant cash reserves and would like to grow the business organically.
After some investigation work, GV has discovered an opportunity to sell leather shoes in country P.
Which of the following strategic directions is GV taking if it pursues this opportunity, according to Ansoff's product / market matrix?

• A. Market development
• B. Related diversification
• C. Product development
• D. Market penetration

Answer: B

 

NEW QUESTION 145
TTT is a conglomerate with two divisions, AAA and BBB. Advise TTT on the most appropriate strategy to adopt for each division.

Answer:

Explanation:

 

NEW QUESTION 146
Select the label which best defines the periods of decline outlined in the situations presented below.

Answer:

Explanation:

 

NEW QUESTION 147
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?

• A. Evolution
• B. Adaptation
• C. Reconstruction
• D. Revolution

Answer: C

 

NEW QUESTION 148
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?

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

Answer: B

 

NEW QUESTION 149
Which of the following statements are consistent with an effective strategic approach to supply chain management within a manufacturing Organization?
Select ALL that apply.

• A. Industry consolidation has no impact on an Organization's position within its supply chain.
• B. Recognising product liability is easily transferred from the manufacturer to the retailer.
• C. Anticipating and responding to the increasing legal, consumer and ethical demands being made on an Organization's supply chain.
• D. Identifying new opportunities for close liaison with an Organization's key suppliers and key customers, supported through the effective use of IT.
• E. A senior member of the management team has oversight and responsibility for supply chain activities within the business.
• F. Effective supply chain management plays an important role in contributing to the Organization's overall success.

Answer: C,D,E,F

 

NEW QUESTION 150
Porter's Generic Strategies are often applied within an Organization's value chain, in order to organise the value-adding activities to support the chosen strategy.
Place the Generic Strategy which best defines the strategic approach being taken against each of the activities listed below.

Answer:

Explanation:

 

NEW QUESTION 151
Porter suggests that competitive advantage arises from the implementation of a generic strategy which best fits the organisation's environment. Which of the following are generic strategies'? Select ALL that apply.

• A. A strategy based upon persuading customers its products or services are of equivalent value to those of the market leader.
• B. A strategy which is based upon the organisation achieving cost-parity with its competitors.
• C. A strategy which is based upon the business organising itself as the lowest-cost producer in its industry.
• D. A strategy in which its products or services are directed to a segment of the market rather than the market as a whole.
• E. A strategy based upon persuading customers that its products or services are superior to its competitors products and services
• F. A strategy which makes investment decisions guided by a product's position in a product/market matrix.

Answer: B,C,D,E

 

NEW QUESTION 152
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.)

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

Answer: A,D,E

 

NEW QUESTION 153
CCC is a small business which manufactures and sells bicycles. Its most popular product is the standard road bike, brand named the 'Easy Rider'. CCC offers customers a limited degree of choice in terms of product specification for the Easy Rider bicycle. CCC manufactures and sells 1,000 Easy Rider bicycles each year. The average retail price of an Easy Rider bicycle is $500.
As a result of the recent rise in popularity of cycling in its home country, last year CCC launched a new bicycle, brand named the 'Pro Rider'. This bicycle is aimed at the more serious cyclists who take part in competitions and road races. CCC offers Pro Rider customers a wide choice of specifications and accessories and uses the highest quality of materials in its manufacturing process. A Pro Rider bicycle retails for an average price of $6,000. In its first year, CCC sold 150 Pro Rider bicycles.
CCC's business is generated mainly from word of mouth recommendations, repeat business and from customer visits to its small chain of shops. It aims to increase its market share for both brands within the next 5 years.
Competition is high, with a number of large national bicycle manufacturers in the market.
Which TWO of the following are critical success factors (CSF's) for CCC?

• A. Manufacturing excellence
• B. Market share growth
• C. Brand awareness
• D. Repeat business levels

Answer: A,C

 

NEW QUESTION 154
Your manager is undertaking a strategic review of XYZ's activities and has asked you to explain how a Force Field analysis would assist in the review process.
Which of the following statements would be most appropriate?

• A. Provide a framework for identifying forces for and against the proposed changes within XYZ.
• B. As part of XYZ's strategic review, identify forces facilitating the need for proposed change.
• C. Identify forces facing XYZ's activities that may create barriers and resistance to change.
• D. Identify influential senior managers who will drive through changes in XYZ's strategic direction.

Answer: A

 

NEW QUESTION 155
BBB operates a national mobile phone (cell phone) network in one country. It is considering investing in upgrading its network to 4th Generation (4G) by providing an improved bandwidth that will enable its customers faster access to the Internet.
The investment will cost $29 million which BBB's institutional investors have agreed to provide by subscribing to a rights issue. This is because management has informed institutional investors that a rival is already offering 4G and that this is taking customers away from BBB because BBB's network is now regarded as too slow. BBB'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?
Select ALL that apply.

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

Answer: A,C,E

 

NEW QUESTION 156
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