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  • Exam Name: E3 Strategic Management
  • Last Update: 15-Oct-2025
  • Questions and Answers: 280
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E3 Questions and Answers

Question # 1

Which of the following of Porter's Five Forces would affect the power of suppliers?

A.

Economies of scale

B.

A lack of differentiation

C.

Similar sized competitors

D.

A lack of substitutes

Question # 2

Company MM is wanting to build an out of town shopping complex. This will be located near a busy road which is surrounded by housing estates. MM has yet to obtain planning permission. It recognizes that unless it takes action, the local residents will object to MM's plans. As the Publicity Manager you have been asked to take over responsibility for Stakeholder Management.

Which of the following Stakeholder Management statements is NOT correct?

A.

Organizations will have a variety of stakeholders each with differing attitudes to risk which can cause conflict.

B.

Pressure groups have an interest in matters of public policy, but do not want to control the workings of government.

C.

Stakeholder management is made more complicated for an Organization when individuals belong to more than one stakeholder group.

D.

In measuring the satisfaction of stakeholder interests, Organizations should only focus on quantitative matters.

Question # 3

JJJ is a private company belonging to a famous former athlete. It operates gyms and fitness clubs across its home country. Each gym or fitness club is treated as a profit centre and the manager of each centre is paid bonuses based on its financial performance.

 

Three years ago it introduced multidimensional performance measures into its management control systems. These measure capacity utilisation, financial performance, competitiveness, innovation, and the flexibility of its centres to cope with changing demands.

 

The managers of its centres have been leaving at a very high rate over the last two years. They have claimed that the measures are too open to interpretation and when they think they are improving the centre's performance they are told they are doing the wrong thing. They also complain that the managers in the centres near big cities find it much easier to reach their targets than the managers of other centres.

 

Using Fitzgerald and Moon's Building Block model,  where does the problem lie?

A.

Standards and Rewards

B.

Dimensions and Rewards

C.

Dimensions and Standards

D.

Standards, Dimensions and Rewards

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