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Free CIMA E3 Practice Exam with Questions & Answers | Set: 8

Questions 71

Select the MOST appropriate leadership style to manage each change situation outlined below.

E3 Question 71

Options:
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Questions 72

In order to organize the value-adding activities to support a chosen strategy, Porter's Generic Strategies are often applied within an organization's value chain.

Against each of the activities listed below, select the Generic Strategy which best defines the strategic approach being taken.

E3 Question 72

Options:
Questions 73

ZYX is a global hotel chain, employing over 10,000 staff worldwide. ZYX operates a Code of Conduct for all of its staff, which states “Our staff are the most important assets of our business operations. We expect the highest standards of ethical and professional conduct from all staff, who must display the principles of trust, respect, equality, integrity and fairness at all times.”

Which THREE of the following actions could ZYX take to positively influence its staff to work to the ethical and professional principles in its Code of Conduct? (Choose three.)

Options:
A.

Disciplinary actions, such as fines, for staff who do not display high ethical and professional standards.

B.

Publication on its website of ZYX's Code of Conduct and regular examples of staff displaying the highest standards of professional conduct.

C.

Induction and on-going staff training on ZYX's Code of Conduct and ethical and professional principles.

D.

Interview process for staff prior to employment, to assess their understanding of ethical and professional behavior.

E.

Set performance targets in diversity and equality for its hotel senior managers.

F.

Operate a system of reward incentives for staff who display high ethical and professional standards.

Questions 74

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

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

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

Which TWO of the following factors would most likely be considered as an ’opportunity’ for PQR? (Choose two.)

Options:
A.

Highly experienced staff

B.

Donations from the public

C.

Growing demand for its services

D.

The excellent reputation of DDD

E.

Merging with DDD

Questions 75

BCD is a manufacturer of electronic components. Based on research of its external environment BCD has chosen 'Customer Satisfaction' as one of its Critical Success Factors. In order to operationalise this Critical Success Factor, BCD's management must associate and select a number of relevant Key Performance Indicators.

Which THREE of the following Key Performance Indicators would be suitable to use in respect of Customer Satisfaction? 

Options:
A.

Number of products returned by customers.

B.

The % of customers who recommend BCD's products.

C.

Improvement in product quality.

D.

Amount of money spent on advertising.

E.

Number of new customer accounts opened in the period.

F.

Number of employees leaving in the period.

Questions 76

Which of the following would be correct considerations when evaluating the Feasibility of a strategy? (Choose all that apply.)

Options:
A.

Will there be sufficient time to implement the strategy?

B.

Will the strategy exploit the core competencies of the business?

C.

Will the strategy maintain competitive advantage?

D.

Will customers object to the strategy?

E.

Will the business be able to deal with the responses of its competitors to the strategy?

Questions 77

XYZ is a manufacturer of garden tools.  It has defined 'Excellence of Manufacture' as a Critical Success Factor. Which THREE of the following would be appropriate to use as Key Performance Indicators in respect of this Critical Success Factor?.

Options:
A.

% of raw materials input which is scrapped.

B.

Tonnage of raw materials usage.

C.

Raw materials identified as essential.

D.

Number of finished products rejected at final inspection.

E.

Average age of products.

F.

Amount of money budgeted for production process improvements.

Questions 78

DDD is a business which sells entertainment products and now wants to move to a position where it uses e-business as a fundamental part of its business strategy.

Which of the following benefits would result from DDD's use of e-business? (Choose all that apply.)

Options:
A.

Cost reductions because of lower overheads and cheaper procurement.

B.

Better control of information through monitoring website activity.

C.

Easier access to loan finance.

D.

An increased use of tacit knowledge.

E.

A reduction in labour turnover and higher morale.

F.

Increased online revenues.

Questions 79

A large sporting event is due to take place in Country P next year and a project team has been set up to market the event.  The project team recognises that a focus upon effective relationships with a range of key customer markets is critical to the success of the event. These key relationships need to be developed with the spectators, the broadcasting companies televising the event,  the agents who are selling the tickets for the event and the key human resource providers such as the security companies involved in ensuring the overall security of the event.

Which of the following would be the correct classification of the broadcasting companies televising the sporting event, using Payne's 'six markets model' classifications?

Options:
A.

Influence market

B.

Recruitment market

C.

Referral market

D.

Customer market

Questions 80

Company V has obtained planning permission to build 20 wind turbines in town W. This will be a highly profitable project and help the Government in Country H meet targets for renewable energy. However, local residents and wildlife groups are extremely unhappy and have objected to the plans and threatened to cause disruption at the site of the proposed wind turbines once building work commences

Which THREE of the following activities should Company V use, according to Cyert and March, to resolve these conflicting stakeholder objectives?

Options:
A.

Continue to build the wind turbines despite attempts to overcome the objections of the locals and the wildlife groups

B.

Negotiate with the wildlife groups to ensure their key concerns are understood, and implement an action plan to address concerns where appropriate

C.

Make a donation of $10,000 to town W as a contribution towards the construction of a new town hall.

D.

Offer staff a bonus when the project is successfully completed

E.

Negotiate a 5% reduction in the price of the blade manufacture.