Free CIMA E3 Practice Exam with Questions & Answers | Set: 3

RRR is a medium sized company, which has built family homes in Country В 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?

HHH is a mobile telecommunications provider in Country D. HHH presently offers telephone and text services at a price per unit (a unit is defined as 1 minute or 160 text characters). It provides Internet connection from handsets at a fixed fee per month. Select the appropriate strategic response to each of the industry developments listed below.

Which TWO of the following are economic factors?

AB uses Johnson, Scholes and Whittington's criteria of 'Feasibility and Acceptability' to evaluate potential strategies. AB has begun a project to re-engineer its best selling product.

Apply the appropriate criterion to each of the questions below:

PPP wishes to increase shareholder value using the Seven Value Drivers identified in Shareholder Value Analysis (SVA). Place the correct direction of change next to each driver.

A resource audit identifies the resources that are available to an Organization and seeks to start the process of identifying competencies. By assessing the results from a resource audit, a company can evaluate how well its resources have been utilised and the efficiency and effectiveness of the Organization's systems.

The Ms model is used to help managers undertake a resource audit.

Which THREE categories will be included in a resource audit?

Which THREE of the following issues relate to the Corporate Strategy of an organization? (Choose three.)

Z is a medium-sized UK based accounting practice. Z operates a graduate training scheme. The trainees are given an induction and then placed on a three-year training programme designed to help develop professional skills and experience.

The training programme has been in existence for many years. However, there is no clear consensus amongst the partners of Z about what the trainees should be able to do on completion of the programme and therefore what the training programme should emphasize. This lack of clarity is affecting the morale and commitment of the trainees and significant numbers are failing the programme or leaving to join a rival firm.

Z's HR Department recognizes the need for committed and well motivated accountants to meet the increased expectations of clients and the competition from rival firms. The HR Department has identified changes to the training programme that can be implemented gradually through a series of initiatives.

Which TWO of the following statements regarding the change required in Z are correct? (Choose two.)

LLL is considering entering Country B to sell its zero emissions car.

LLL has invested heavily in fuel cell technology for its car. It does not rely on any polluting fuels for its energy. This means that LLL's car is the only true zero emissions car. 

Research conducted in Country B for LLL has revealed the following:

   • Country B's Government is concerned that all forms of pollution have risen to dangerous levels. 

   • Despite being worried about pollution the Government of Country B has not yet adopted taxation policies to encourage the use of low pollution cars.

   • Drivers choosing a car continue to rank the speed and appearance of a car very much higher  than its impact on environmental pollution. 

   • About 2% of motorists own an electric or hybrid powered car. 

   • A high rate of sales tax levied on the price of new cars in Country B encourages motorists to continue to drive older, more polluting, cars.

LLL recognises that it needs to plan its strategy for Country B over the long-term.

Which THREE of the following strategies would you advise LLL to use to build its long-term sales in Country B?

Porter suggests that competitive advantage can be attained by organising value-adding activities in support of the generic strategies which he identified.

Place the appropriate generic strategy against each of the value-adding activities.