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CIMA CIMAPRO15-E03-X1-ENG Exam Syllabus Topics:

CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. As a CIMA qualified management accountant working within a manufacturing company, you are subject to both CIMA's Code of Ethics and your company's Code of Business Conduct.
Which TWO of the following statements are TRUE? (Choose two.)

A) Where there is a difference between CIMA's Code of Ethics and the company's Code of Business Conduct, the company's Code of Business Conduct takes priority.
B) As a CIMA qualified Management Accountant you must follow CIMA's Code of Ethics.
C) Both CIMA's Code of Ethics and the company's Code of Business Conduct include references to Confidentiality. Disclosure on public interest grounds is therefore prohibited.
D) A company's Code of Business Conduct can be rules based.
E) Both CIMA's Code of Ethics and the company's Code of Business Conduct must be based on a set of basic principles.

2. M is a car manufacturer in Country C.
Every day, at 09.00, members of M's staff practice meditation and Tai Chi for 30 minutes, before their normal workday commences.
M's staff are paid during this time and M considers the practice to be a benefit both to staff and the company.
Staff operate with high levels of efficiency and absenteeism levels are low.
The auditors of M have recommended that M stop these sessions, stating that they consider them to be a waste of time and a drain on resources.
Which of the following aspects of M's culture would the auditors recommendation impact on?

A) Routines and rituals
B) Symbols
C) The organizational paradigm and values
D) Stories and myths

3. You work as a Management Accountant for GHJ, a company that includes commitments to 'sustainability' in its mission statement.
Which THREE of the following are contributions that you, as Management Accountant, could make towards the achievement of this part of the company's mission statement? (Choose three.)

A) Providing financial information with all non-recurring expenditures and incomes removed.
B) Integrated reporting of the triple bottom line of Profits, People and Planet.
C) Ensuring the organization adopts the lowest cost technologies and suppliers.
D) Project evaluations that include the externalities as well as the cash costs.
E) Measures of organization's use of non-renewable resources and environmental emissions.

4. Which THREE of the following statements apply to Lynch's performance pyramid? (Choose three.)

A) The business operating systems level includes the market-related Critical Success Factors.
B) The left-hand side of the pyramid contains measures which have an external focus.
C) The right-hand side of the pyramid contains measures which are predominantly non-financial.
D) The lowest level of the pyramid contains the day-to-day operational measures.
E) The performance pyramid is designed to ensure that all activities support the organization's vision.
F) The business unit level includes measures which relate to internal systems needed to meet customers' needs.

5. 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 development
B) Market penetration
C) Product development
D) Related diversification

Solutions: