CIMA E2 Exam
Managing Performance (Page 13 )

Updated On: 26-Jan-2026

LT Company intends to achieve its competitive advantage through strategic stretch.
Which of the following indicates what LT Company would need to do?

  1. Change the company's strategy to fit with its environment.
  2. Differentiate the company's products to achieve supernormal profits.
  3. Create new opportunities by exploiting the company's internal capabilities.
  4. Focus on reducing all costs throughout the company's value chain.

Answer(s): C



Which of the following initiatives and schemes should be undertaken as a formal project?

Select ALL that apply.

  1. A head office relocation for an insurance company, involving the move to a new office for 250 staff.
  2. A long term health initiative which will put in place procedures to immunize every child in a country as they reach the age of three.
  3. Managing a national political campaign prior to an election.
  4. The design and launch of a new online order service for a global manufacturing company.
  5. A boat building company building motor yachts for a small market, generally building about three per month.

Answer(s): A,C,D



The role of the project sponsor involves which THREE of the following?

  1. Provides resources for the project and is responsible for the budget.
  2. Ensures project objectives are achieved.
  3. Provides support and senior management commitment to the project.
  4. Initiates the project and ensures that a business case exists to justify the project.
  5. Makes decisions relating to system resources.

Answer(s): A,C,D



FR Company is undertaking analysis of its competitors. One part of its analysis will investigate its supplier whose products satisfy the same customer needs, but are technically quite different.
Which of the following levels of competitors does this relate to?

  1. Generic competitors
  2. Industry competitors
  3. Form competitors
  4. Brand competitors

Answer(s): C



A number of managers in an organisation approach change using a variety of techniques. Manager A focuses on staff training. Manager B provides large bonuses for effective project management. Manager C

restructures his team to reduce headcount. Manager D lays out the financial problems in
the business and why change is unavoidable. Manager E calls his team together to openly discuss the issues. Manager F calls

for ideas from his team to make the change happen.

Based on Beer and Nohria's change theory, which of these managers can be described as Theory 0 managers?

Select ALL that apply.

  1. Manager A
  2. Manager E
  3. Manager F
  4. Manager B
  5. Manager C
  6. Manager D

Answer(s): A,B,C



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