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  • Exam Name: Strategic Management
  • Last Update: 19-Apr-2024
  • Questions and Answers: 280
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E3 Questions and Answers

Question # 1

BBB is a manufacturer of convenience meals. Which of the following could be Weaknesses for BBB?

Select ALL that apply.


Government health warnings about food ingredients.


A shortage of production capacity.


Outdated materials requirement planning processes.


A reduction in BBB's Marketing budget.


A rise in consumer demand for fresh food.

Question # 2

According to Porter's Five Forces model, which of the following would be evidence of high buyer power?


There is a low probability of backward integration.


Products are not standardized and buyers cannot easily switch to another product.


Buyers are fragmented and act independently of each other.


There is a concentration of buyers.

Question # 3

JJJ presently makes motorcycles for use by the armed forces in its home country. Defence spending cuts have forced JJJ to seek a new business direction. JJJ has decided to make trucks for sale to private businesses in its home country.


Use the Ansoff product/market matrix to identify the new strategic direction of JJJ.


Related diversification


Product development


Market development


Market penetration

Question # 4

SSS University wishes to introduce a new Car Park Management Strategy (CPMS). The aim of this strategy is to reduce the use of private cars and to encourage sustainable transport, such as cycling and public transport, by staff and students. SSS has decided to reduce the number of car parking spaces and introduce parking charges.

The Management Accountant has decided to use the Balanced Scorecard to help prepare a performance management system to assess the performance of the new CPMS.

Which of the following is an example of the Innovation and Learning perspective of a Balanced Scorecard for SSS?


Easy access to car parking spaces.


Number of days of training for car park attendants.


Reduction in complaints from customers.


Speed of processing the payment for parking charges.

Question # 5

CIMA has conducted research into the implications of sustainability for business.  CIMA's report contained a number of key conclusions. Which of the following statements was NOT a conclusion in CIMA's report? 


Strong ethical principles can add great value to a brand.


Reporting on sustainability needs to provide hard evidence of the positive impact on society.


Management Accountants have a responsibility to promote an ethics-based culture.


The ethical tone within a business must come from the bottom.

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