CIMAPRO15-E03-X1-ENG Q&A - in .pdf

  • CIMAPRO15-E03-X1-ENG pdf
  • Exam Code: CIMAPRO15-E03-X1-ENG
  • Exam Name: E3 - Strategic Management Question Tutorial
  • Updated: Sep 18, 2026
  • Q & A: 60 Questions and Answers
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  • Updated: Sep 18, 2026
  • Q & A: 60 Questions and Answers
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  • Exam Code: CIMAPRO15-E03-X1-ENG
  • Exam Name: E3 - Strategic Management Question Tutorial
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  • Q & A: 60 Questions and Answers
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CIMA CIMAPRO15-E03-X1-ENG Exam Syllabus Topics:

SectionObjectives
Strategy Formulation- Internal strategic analysis
  • 1. Value chain analysis
    • 2. Resource and capability analysis
      • 3. Core competencies
        - Strategic analysis of external environment
        • 1. Market segmentation and positioning
          • 2. PESTEL analysis
            • 3. Industry and competitive forces (Porter's Five Forces)
              Strategic Choices- Business unit strategy
              • 1. Focus strategy
                • 2. Differentiation strategy
                  • 3. Cost leadership
                    - Corporate strategy
                    • 1. Mergers and acquisitions
                      • 2. Diversification strategies
                        • 3. Strategic alliances
                          Strategy Implementation- Project and performance management
                          • 1. Performance measurement systems
                            • 2. Strategic project management
                              - Organisational structure and design
                              • 1. Organisational configurations
                                • 2. Centralisation vs decentralisation
                                  - Change management
                                  • 1. Lewin's change model
                                    • 2. Kotter's 8-step model

                                      CIMA E3 - Strategic Management Question Tutorial Sample Questions:

                                      Question #1

                                      RRR is an insurance company which maintains an extensive database of its customer transactions over the last 10 years. RRR is developing a new product and has carried out a SWOT analysis.
                                      Within which of the following aspects of the SWOT analysis would RRR include its customer database?

                                      • A. Weakness
                                      • B. Threat
                                      • C. Strength
                                      • D. Opportunity
                                      Reveal Solution  Discussion  0

                                      Correct Answer: C  🗳️

                                      Explanation: Only visible for PracticeDump members. You can sign-up / login (it's free).

                                      Question #2

                                      RRR is a medium sized company, which has built family homes in Country D' for twenty years. The Board of RRR wishes to expand company operations and start building homes in the neighboring country. The Board of RRR wishes to undertake a position audit to help in this decision.
                                      Which of the following strategic analysis tools would be used in a position audit for RRR?

                                      • A. Five Forces
                                      • B. Gap Analysis
                                      • C. SWOT
                                      • D. PEST
                                      Reveal Solution  Discussion  0

                                      Correct Answer: C  🗳️

                                      Explanation: Only visible for PracticeDump members. You can sign-up / login (it's free).

                                      Question #3

                                      QWE is a private company belonging to a famous former sports professional. It operates gyms and fitness clubs across its home country. Each gym or fitness club is treated as a profit center and the manager of each center is paid bonuses based on its financial performance.
                                      QWE introduced multidimensional performance measures into its management control systems 3 years ago.
                                      These measure competitiveness, financial performance, capacity utilization, innovation and the flexibility of its centers to cope with changing demands.
                                      The managers of QWE's centers have been leaving at a very high rate over the last 2 years. They have claimed that the measures are too open to interpretation and when they think they are improving their center's performance they are told they are doing the wrong things. They also complain that the managers in the centers near big cities find it much easier to reach their targets than the managers of other centers.
                                      According to Fitzgerald and Moon's Building Block model, where does the problem lie?

                                      • A. Dimensions and Rewards
                                      • B. Standards and Rewards
                                      • C. Dimensions and Standards
                                      • D. Standards, Dimensions and Rewards
                                      Reveal Solution  Discussion  0

                                      Correct Answer: C  🗳️

                                      Question #4

                                      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 penetration
                                      • B. Market development
                                      • C. Related diversification
                                      • D. Product development
                                      Reveal Solution  Discussion  0

                                      Correct Answer: C  🗳️

                                      Question #5

                                      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 is essential given the strategic threats to YZ.
                                      • D. There is stakeholder approval for the investment.
                                      • E. It provides a market development opportunity for YZ.
                                      Reveal Solution  Discussion  0

                                      Correct Answer: A,C,D  🗳️

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