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  • Exam Name: E3 Strategic Management
  • Last Update: 24-May-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

Question # 4

GGG is a manufacturer of four different components produced in four separate facilities. The Production Director has sufficient funds to modernise one of the facilities.  GGG's decision rule in these circumstances is that investment is permissible in either a 'Cash Cow' or a 'Star' but not a 'Dog' or a 'Problem Child?'. Which facility should be modernised?

A.

Facility A produces a component with a relative market share of 1:5. Its current market growth rate is 4.5%.

B.

Facility B produces a component with a relative market share of 1:4. Its current market growth rate is 9%.

C.

Facility C produces a component with a relative market share of 3:1. Its current market growth rate is 11%.

D.

Facility D produces a component with a relative market share of 1:6. Its current market growth rate is 10%.

Question # 5

RRR is a state-funded hospital serving a major city. It is under political pressure to reduce the waiting times of patients requiring surgical operations who need to stay at the hospital for several nights. The doctors blame a lack of bed spaces and are calling for more investment in extra beds.

 

You have been conducting some research into the problem and have discovered the following problems affecting the utilisation of the existing beds at RRR:

 

   • many patients stay extra nights due to lack of communication with the health professionals needed to monitor the patients at home

   • beds are left empty each day when patients miss their admission date but there are no processes to inform other patients to offer them the space

   • patients are admitted on days when there are no spaces available on the special equipment needed to treat their particular condition

 

Which THREE  linkages between Primary Activities in the Value Chain of RRR need to be improved to provide extra bed spaces at RRR?

A.

Between outbound logistics and service.

B.

Between inbound logistics and marketing and sales.

C.

Between inbound logistics and operations.

D.

Between inbound logistics and outbound logistics.

E.

Between inbound logistics and technology development.

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