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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

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

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

3. Plush is a medium-sized hotel which recently opened on the outskirts of a city which is popular with tourists. It has a sophisticated website which allows customers to pre-book rooms and additional items, such as meals in its restaurant and tickets for popular tourist attractions in the city.
Plush has listed its website on a popular hotel price comparison website, which allows customers to compare prices and facilities of hotels in the same area and this has resulted in over 60% of Plush's customer bookings so far.
Since listing on the price comparison website, the Sales Manager of Plush has noticed that the prices offered by its nearest competitors have reduced dramatically and their range of special offers have also increased.
Which TWO of Porter's Five Forces have been most affected by the use of the price comparison website by the hotels in the same area as Plush? (Choose two.)

A) Competitive rivalry.
B) Threat of substitutes.
C) Bargaining power of suppliers.
D) Bargaining power of customers.
E) Threat of new entrants.

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

5. A direct external change trigger is:

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

Solutions: