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CIMA
CIMA Management
E2
Project and Relationship Management Questions and Answers

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Viewing questions 31-40 out of questions

Questions # 31:

P is a chartered management accountant working for a large project engineering company. P's functional superior is the Chief Management Accountant.

However for about two thirds of the time available, P is seconded to work with various project teams on a concurrent basis under a matrix organisation structure. This has turned out to be a demanding job role for P, with a number of disadvantages.

Select ALL the disadvantages that apply.

Options:

Tensions arise between the priorities of the projects and the functional department.

Building close relationships with functional colleagues may be inhibited.

Flexible project commitments might lead to an unstable work pattern.

Training and development opportunities might be missed due to project commitments.

Exposure to project management skills beyond management accountancy.

Developing close relationships with other discipline specialists.

Answer

A, B, C, D

Questions # 32:

LT Company intends to achieve its competitive advantage through strategic stretch. Which of the following indicates what LT Company would need to do?

Options:

Change the company's strategy to fit with its environment.

Differentiate the company's products to achieve supernormal profits.

Create new opportunities by exploiting the company's internal capabilities.

Focus on reducing all costs throughout the company's value chain.

Answer

Questions # 33:

Which of the following are examples of problems associated with group working?

(i) The Abilene paradox

(ii) Synergy

(iii) Risky Shift

(iv) Groupthink

(v) Conformity

Options:

All of the above

(i), (iii), (iv) and (v)

(i), (ii), (iii) and (iv)

(ii), (iii), (iv) and (v)

Answer

Questions # 34:

A major innovation has occurred in the automotive industry. Wheels are now available which are guaranteed to not wear for at least five years.

Ben runs a chain of garages that sell new and second hand parts for cars, buses, trains and planes. His competitors are slow to react to the new innovation so Ben decides to follow an emergent approach to strategy.

Which of the following actions is Ben likely to take?

Select ALL that apply.

Options:

Ben changes his original business plan and responds to the innovation by stocking the new wheels in his garages.

Ben undertakes an analysis of the automotive industry before making a decision on whether to invest in the new wheels.

Ben immediately purchases all the wheels available and then generates a plan to market them.

Ben decides to purchase 100 units of the new wheels and will closely monitor how many of these sell.

Answer

Questions # 35:

A manager is introducing a new bonus scheme into the business that will affect ail employees.

Using Likert's model he follows a benevolent authoritative style of management.

Which of the following best describes the way he introduced the new bonus scheme?

Options:

He made the decision to introduce the new scheme and enforced it ctcross the business with no discussion or debate.

He makes the decision to introduce the new scheme and sells the idea to employees in order to get buy-in.

He asks for suggestions on whether to introduce the scheme but makes the final decision

He allows staff to make the decision but offers support and advice.

Answer

Questions # 36:

In terms of Porter's Diamond model, a DEMAND condition as applied to the brewing industry in Germany would be which of the following?

Options:

German consumers are loyal and enthusiastic about German beer, and are keen to purchase new products.

Germany has a network of firms and suppliers that support each other in becoming stronger in the brewing industry.

Germany has a number of strong foreign competitors in the brewing industry.

Germany possesses a number of secret recipes in brewing that are not available to foreign competitors.

Answer

Questions # 37:

Third party consultants, Member rotation, Confrontation, and Super-ordinate goals are examples of which of the following?

Options:

Causes of horizontal conflict

Methods of managing intergroup conflict

Methods of managing conflict according to the Thomas-Kilmann Conflict Mode Instrument (TKI)

Causes of vertical conflict

Answer

Questions # 38:

W is the supervisor of the house-keeping team in a large hotel. X, a member of the team, is consistently late to work which means that other team members have to perform extra work. A number of team members have also complained to W about X's aggressive behaviour. Two months ago W spoke to X informally about these issues and for a short period things improved.

But it is now clear that X is again displaying unacceptable behaviour and upsetting colleagues. W knows further action must now be taken to deal with the situation.

With reference to the disciplinary process, which is the best course of action for W to take?

Options:

Write a formal letter to X stating that if the unacceptable behaviour does not stop immediately X will be dismissed without further notice.

Issue a formal verbal warning via a formal interview, with a record of the interview kept on file.

Reduce the paid hours allocated to X as a temporary punishment until the behaviour improves.

Speak to X informally in a private office and ask that X improves their behaviour and apologises to colleagues.

Answer

Questions # 39:

The purpose of PEST analysis is described by which of the following?

Options:

To examine the competitive forces at work in the industry.

To determine the strengths and weaknesses of the organisation.

To assess the power of the internal stakeholders.

To assess the threats and opportunities posed by the wider environmental forces.

Answer

Questions # 40:

Company A sells golf clubs, clothing and accessories. The manager of Company A has been undertaking some competitor analysis and has been advised to consider the local gyms, cycle stores and swimming pools when identifying competition.

Which of Kotler's four levels of competition would these be classed as?