Pass the CIMA Strategic E3 Questions and answers with ExamsMirror

CCC is a charity which has an excellent reputation within its home country. CCC employs over 300 highly experienced staff and also has 200 skilled volunteers. Its funding mainly comes from donations from the public but its public profile is low compared to larger, more publicised charities.

Due to the recent recession, public donations to CCC have fallen in the last five years, but demand for its services continues to grow.

The government of the country in which CCC operates is encouraging greater collaboration between charities and there have been several recent successful mergers within the charity sector. CCC has recently been approached by a high profile and well funded charity, PPP, with a proposal to merge. PPP offers complementary services to those offered by CCC.

Which TWO of the following factors would most likely be considered as an 'opportunity' for CCC?

A leading supermarket chain is undertaking environmental scanning as it is concerned that it is becoming uncompetitive and profits have started to fall. The Board is concerned that when the next Annual General Meeting is held, it will need to have a viable strategy to present to its shareholders, in order to prevent shareholders' protests.

In the past the company has been reluctant  to offer an Internet shopping service. However, it now believes that by offering this service and also introducing customer relationship marketing (CRM) this will produce a strategy that will help it to improve its competitiveness.

Which of the following statements apply to CRM?

Select ALL that apply.

BCA is a long established international airline. Which of the following represent Threats to BCA's business? (Choose all that apply.)

Company LL is a well established, reputable company which specialises in providing insurance call centre services to the insurance industry. It has recently won a large contract to provide its services to a multi-national insurer. LL's staff are highly trained in insurance matters and many have worked for LL for many years. 

LL undertakes long-term resource planning activities and has identified that during the winter months, when there will be more customers ringing up to make insurance claims, it will potentially need to employ more staff.  The Board has decided that rather than recruit its own staff, it will use an employment agency to supply manpower resources as required. The people supplied will be employed on a temporary basis by LL and they will work alongside the other call centre staff. However, they will work at a lower pay rate and will only be paid for the actual hours they work.

This change will lead to a shift in the working environment, the routine and the composition of the group.

Which THREE statements apply in respect of this proposed change?

Information regarding two potential investments, that do not provide initial, valuable positive NPV opportunities, is outlined below:

• Y is a telecoms company, considering paying a premium for a Chinese telecoms company which has exclusive rights to service a large segment of the Chinese market, currently worth $123 billion in total The exclusive rights cover 25% of the market

• Z is a developed market retailer, considering paying a premium for an Indian retail company in the belief that the market is going to continue to be

lucrative and grow by 8% per annum for the foreseeable future The current market is worth $600 billion and the company currently has 12% of the total market.

Which of the following statements regarding sustainable excess returns for the above real options is true1?

HHH intends to introduce a Balanced Scorecard to assist with its strategic policy formation and achievement of strategic plans. Which TWO of the following stakeholders are addressed by a Balanced Scorecard perspective?

XYZ is a local tourist attraction. XYZ has a website on which it advertises all of its forthcoming events. XYZ's customers can also use the website to book tickets for these events and can also contact XYZ by email. XYZ's website also uses a range of interactive technologies including geographical location and map facilities and links to external information sites such as the local tourism board and local hotel listings.

Which of the following best describes the range of interactive technologies used by XYZ within its website? 

Your management team is considering using Porter's Value Chain to assist it in developing a new competitive strategy for the business.

Which THREE of the following statements would inform your management team about Porter's Value Chain?

Company XX and Company YY are the only two providers of electricity to Country M. The demand for electricity is price inelastic which means that buyers regard it as essential and therefore demand for electricity does not change significantly if the average price of electricty changes. However customers will switch between suppliers within a year to get cheaper electricity. Using Game Theory place the long-run revenue impact on each firm of each of the following pricing decisions.

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