Free CIMA E3 Practice Exam with Questions & Answers

Plush is a medium-sized hotel which recently opened on the outskirts of a city which is popular with tourists. It has a sophisticated website which allows customers to pre-book rooms and additional items, such as meals in its restaurant and tickets for popular tourist attractions in the city.

Plush has listed its website on a popular hotel price comparison website, which allows customers to compare prices and facilities of hotels in the same area and this has resulted in over 60% of Plush's customer bookings so far.

Since listing on the price comparison website, the Sales Manager of Plush has noticed that the prices offered by its nearest competitors have reduced dramatically and their range of special offers have also increased.

Which TWO of Porter's Five Forces have been most affected by the use of the price comparison website by the hotels in the same area as Plush? (Choose two.)

Using Earl's 'Three levels of IT strategy' framework, which one of the following activities would occur as part of an Information Systems (IS) strategy?

TTT is a conglomerate with two divisions, AAA and BBB. Advise TTT on the most appropriate strategy to adopt for each division.

YZ is a family-run business which manufactures and sells confectionery, employing almost 100 staff. It operates 10 shops in small towns in the north of country P. Sales of YZ's products have decreased over the last 4 years due to competition from large supermarkets, internet shopping and a general economic downturn, which has hit the north of country P especially hard.

YZ's managing director has recently retired and the board decided to fill the vacancy with an external appointment. The new managing director plans to invest in new manufacturing technology, which would cut staffing levels by 15% and reduce wastage, allowing YZ to lower its prices. YZ's staff are very unhappy about these proposals, feeling that they will destroy YZ's family tradition and reputation that has developed over many years.

Select the correct descriptor for each of the forces for change below:

Which of the following is NOT a use of the Value Chain?

Which THREE of the following statements are correct in relation to the use of the Performance Pyramid?

Which of the following is an example of a value adding activity within the outbound logistics aspect of an Organization's value chain?

An insurer, JJJ, uses its Internet capabilities to promote and sell car and home insurance products. Although JJJ is supported by an 'in-house' call centre located in its home country, it has decided to outsource this activity to an overseas call centre.

There are a number of benefits to the company by undertaking this strategy, including that it can charge more competitive premiums to its customers and also increase its profits. However this change will mean that 75 call centre staff in the home country will be made redundant.

You have been appointed as the Change Leader and have been asked to prepare a report that includes details on how this change can be communicated.

Which THREE of the following statements are valid regarding JJJ's proposed changes and the related staff communications?

Data mining is an important part of an Organization's knowledge discovery process.

Effective data mining provides insight and can help unlock previously hidden opportunities.

Which of the following are disadvantages of Data Mining?

Select ALL that apply.

PPP is a company that designs and markets attractive handsets, tablets, and laptop PCs globally. Its brand is one of the top ten global brands. PPP uses external companies to manufacture its products.

The recently appointed CEO of PPP presented the company's strategy to a meeting of investors and journalists.

The CEO referred to public concerns about its past ways of doing business. He stated that PPP was actively seeking to address concerns about exploitation of workers in the factories of its suppliers. He said that PPP is also establishing a system to recycle or refurbish its products to avoid hazardous materials leaking into the environment and to give recycled products free of charge to people in poorer countries who cannot afford to buy them.

One investor asked the CEO to confirm whether this strategy would improve the profits of PPP in the present financial year. The CEO replied that it would not but that the strategy was essential to protect the future of the PPP brand. The investor was unhappy with this response from the CEO of PPP.

Which of the following statements reflects BOTH the CEO's and investor's stances on Corporate Social Responsibility (CSR) expressed at the meeting?