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Free E3 Exam Braindumps
E3 Strategic Management Questions 65–72 (page: 10)

Updated On: 4-Aug-2026
Page 10 of 36
PDF with 278 Questions

CCC is a small business which manufactures and sells bicycles. Its most popular product is the standard road bike, brand named the 'Easy Rider'. CCC offers customers a limited degree of choice in terms of product specification for the Easy Rider bicycle. CCC manufactures and sells 1,000 Easy Rider bicycles each year. The average retail price of an Easy Rider bicycle is $500.
As a result of the recent rise in popularity of cycling in its home country, last year CCC launched a new bicycle, brand named the 'Pro Rider'. This bicycle is aimed at the more serious cyclists who take part in competitions and road races. CCC offers Pro Rider customers a wide choice of specifications and accessories and uses the highest quality of materials in its manufacturing process. A Pro Rider bicycle retails for an average price of $6,000. In its first year, CCC sold 150 Pro Rider bicycles.
CCC's business is generated mainly from word of mouth recommendations, repeat business and from customer visits to its small chain of shops. It aims to increase its market share for both brands within the next 5 years. Competition is high, with a number of large national bicycle manufacturers in the market. 
Which TWO of the following are critical success factors (CSF's) for CCC?

  1. Brand awareness
  2. Market share growth
  3. Repeat business levels
  4. Manufacturing excellence

Answer(s): A,D



Which of the following is a direct external change trigger?

  1. A powerful competitor forcing an Organization to cut its prices.
  2. A general increase in the use of the Internet by society.
  3. The introduction of new environmental protection policies by the government.
  4. An economic recession in an Organization's home country.

Answer(s): A



JKL Plc manufactures and sells a range of consumer electronic products. It is organised into four strategic business units (SBU's), each responsible for a specific business segment. 

Which business segment would benefit most from a Build strategy?

  1. Personal Computer
  2. Tablet
  3. Smartphone
  4. Personal Music Player

Answer(s): C



Which THREE of the following are valid reasons to follow a Corporate Social Responsibility strategy?

  1. A good Corporate Social Responsibility policy can attract customers.
  2. A good Corporate Social Responsibility policy is likely to attract a higher calibre of staff.
  3. A good Corporate Social Responsibility policy is likely to reduce administration costs.
  4. A good Corporate Social Responsibility policy can help an Organization recruit employees to meet a diverse skills requirement.
  5. A good Corporate Social Responsibility policy will increase the company's market value.

Answer(s): A,B,D



Company GG is considering its future strategy on delivering a long-term competitive advantage. The Finance Director has recommended that the Board includes in the strategy a separate section on sustainability. 
Which of the following is NOT a correct sustainability statement? 

  1. The creation of wealth should be integrated with long-term sustainable development.
  2. An advantage of sustainable development is the reduction of costs though efficiency.
  3. When establishing sustainability only financial key performance indicators should be considered.
  4. Resources are used at a rate that allows them to be replaced.

Answer(s): C



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

  1. One of the aspects of the pyramid is Stakeholders.
  2. It derives from the idea that an Organization operates at different levels.
  3. The productivity aspect refers to the management of output at the business operating systems level of the Organization.
  4. It highlights the links running between the company's corporate vision and its functional objectives.
  5. The pyramid includes a specific cost aspect which considers the cost figures in the management accounts.

Answer(s): B,C,D



The Management Accountant in company PP has been asked by the Finance Director to produce a paper on "Game Theory" for the next Board meeting.
Which of the following is a valid statement?

  1. Game Theory treats strategy as an interaction between the Organization and its customers.
  2. Game Theory suggests that Organizations should not interact with the external environment.
  3. Game Theory studies the strategic interactions among rational players.
  4. The information culture would be a key consideration to study as part of the Game Theory.

Answer(s): C



A leading supermarket chain is undertaking environmental scanning as it is concerned that it is becoming uncompetitive and profits have started to fall. The Board is concerned that when the next Annual General Meeting is held, it will need to have a viable strategy to present to its shareholders, in order to prevent shareholders' protests.
In the past the company has been reluctant  to offer an Internet shopping service. However, it now believes that by offering this service and also introducing customer relationship marketing (CRM) this will produce a strategy that will help it to improve its competitiveness.
Which of the following statements apply to CRM?
Select ALL that apply.

  1. CRM utilises marketing resources to retain, rather than simply attract new customers.
  2. The company must be prepared to take customers' needs into account and be able to meet these needs.
  3. In mature markets, existing customers provide the most likely source of future earnings. 
  4. CRM is about marketing to customers to obtain their loyalty, so customer research is not needed. 
  5. The CRM process needs to include increasing the range of products that will be offered to customers. 

Answer(s): A,B,C



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