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E3 Strategic Management Questions 105–112 (page: 15)

Updated On: 4-Aug-2026

TTT is a partnership that designs a specialist type of construction project for clients. It does not build the construction projects itself. TTT has eight partners who are skilled architects. Each partner works independently on their own projects. The partners rarely meet except to agree how to share out TTT's very significant profits.  The partners are disappointed that TTT is not growing as fast as it has in the past. Each partner is fully employed on their own projects and none has the time to recruit new architects to TTT. They are frustrated at the lack of leadership in TTT, although none of the partners are willing to take on a more senior role.
Which THREE of the following does TTT need to address?

  1. Manpower
  2. Management
  3. Make-up
  4. Money
  5. Materials

Answer(s): A,B,C



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? 

  1. Number of products returned by customers.
  2. The % of customers who recommend BCD's products.
  3. Improvement in product quality.
  4. Amount of money spent on advertising.
  5. Number of new customer accounts opened in the period.
  6. Number of employees leaving in the period.

Answer(s): A,B,E



RRR is a state-funded hospital serving a major city. It is under political pressure to reduce the waiting times of patients requiring surgical operations who need to stay at the hospital for several nights.
The doctors blame a lack of bed spaces and are calling for more investment in extra beds.
You have been conducting some research into the problem and have discovered the following problems affecting the utilisation of the existing beds at RRR:
-Many patients stay extra nights due to a lack of communication with the health professionals needed to monitor the patients at home.
-Beds are left empty each day when patients miss their admission date, but there are no processes to inform other patients and offer them the available space.
-Patients are admitted on days when there are no spaces available on the special equipment needed to treat their particular condition.

Which THREE linkages between Primary Activities in the Value Chain of RRR need to be improved to provide extra bed spaces at RRR?

  1. Between outbound logistics and service.
  2. Between inbound logistics and marketing and sales.
  3. Between inbound logistics and operations.
  4. Between inbound logistics and outbound logistics.
  5. Between inbound logistics and technology development.

Answer(s): A,B,C



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?.

  1. % of raw materials input which is scrapped.
  2. Tonnage of raw materials usage.
  3. Raw materials identified as essential.
  4. Number of finished products rejected at final inspection.
  5. Average age of products.
  6. Amount of money budgeted for production process improvements.

Answer(s): A,D,F



Which of the following correctly defines Information Systems (IS) strategy?

  1. Identifying the information needs of the Organization and aligning development to them.
  2. The roles and structure of information specialists in the Organization and their relationship with users.
  3. Decisions on the hardware, software and communications solutions used in the Organization.
  4. The planning, organising, investment and control of information applications in the Organization.

Answer(s): A



JJJ is a private company belonging to a famous former athlete. It operates gyms and fitness clubs across its home country. Each gym or fitness club is treated as a profit centre and the manager of each centre is paid bonuses based on its financial performance.
Three years ago it introduced multidimensional performance measures into its management control systems. These measure capacity utilisation, financial performance, competitiveness, innovation, and the flexibility of its centres to cope with changing demands.
The managers of its centres have been leaving at a very high rate over the last two years. They have claimed that the measures are too open to interpretation and when they think they are improving the centre's performance they are told they are doing the wrong thing. They also complain that the managers in the centres near big cities find it much easier to reach their targets than the managers of other centres.
Using Fitzgerald and Moon's Building Block model,  where does the problem lie?

  1. Standards and Rewards
  2. Dimensions and Rewards
  3. Dimensions and Standards
  4. Standards, Dimensions and Rewards

Answer(s): A



ZZZ is a retailing Organization that is suffering falling market share and falling profits.
ZZZ has a new Chief Executive Officer (CEO) who is urgently setting up a strategic performance evaluation system. This will involve identifying Critical Success Factors (CSFs) and then monitoring Key Performance Indicators (KPIs).
Advise the CEO which of the following statements is suitable for the role that a Chartered Global Management Accountant should undertake.

  1. Identify CSFs, develop KPIs, and report on ZZZ's performance against them.
  2. Help strategic management to clarify CSFs then develop KPIs, and report on ZZZ's performance against them.
  3. Develop KPIs from a range of external data and report on ZZZ's performance against them.
  4. Act as a change leader in developing the strategic performance evaluation system.

Answer(s): B



Mayo defined knowledge management as the management of the information, knowledge and experience available to an Organization.
Which THREE of the following are steps in the development and implementation of a knowledge management strategy?

  1. Gaining top management support.
  2. Creating the technological infrastructure.
  3. Populating the databases.
  4. Appointing a change agent.
  5. Establishing a knowledge management budget.

Answer(s): A,B,C



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