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CIMA E3 Exam Actual Questions
E3 Strategic Management (Page 15 )

Updated On: 5-Jul-2026
Page 7 of 37
PDF with 278 Questions

As a recently qualified accountant, you have been given responsibility for delivering an ambitious project to centralise and computerise the accounts function within a geographically dispersed, medium-sized business. In addition, the reporting timetable requires the project to be delivered within a very short timescale with limited resources.
You have decided to put together a team to deal with these proposed changes.

Which THREE of the following statements regarding effective Teams and Change are correct?

  1. Individuals must become more than they were when working alone and must develop new commitments and behaviours.
  2. Teams that cross departmental boundaries can develop new performance criteria.
  3. Teams that cross departmental boundaries can destroy shared values.
  4. Teams should continue after their purpose has been served.
  5. Teams play minor roles in institutional change.
  6. Teams enhance learning and address change directly through creating recommendations and new ideas.

Answer(s): A,B,F



BBB operates a national mobile phone (cell phone) network in one country. It is considering investing in upgrading its network to 4th Generation (4G) by providing an improved bandwidth that will enable its customers faster access to the Internet.

The investment will cost $29 million which BBB's institutional investors have agreed to provide by subscribing to a rights issue. This is because management has informed institutional investors that a rival is already offering 4G and that this is taking customers away from BBB because BBB's network is now regarded as too slow. BBB's remaining customers have shown a willingness to pay extra for 4G and overall the investment will have a positive net present value.

Which of the following statements are correct?

Select ALL that apply.

  1. BBB will gain a first mover advantage.
  2. It provides a market development opportunity for BB
  3. There is stakeholder approval for the investment.
  4. It is essential given the strategic threats to BBB.
  5. There are sufficient investment funds available.

Answer(s): C,D,E



Your management team is considering using Porter's Value Chain to assist it in developing a new competitive strategy for the business.

Which THREE of the following statements would inform your management team about Porter's Value Chain?

  1. It can help understanding of the linkages between business activities.
  2. It can help identify the processes that add customer value.
  3. It can help identify the processes that add costs.
  4. It can help assess competitive pressures in the market.
  5. It can easily import data from existing management accounts.

Answer(s): A,B,C



HHH is a teachingOrganization. HHH has begun to employ virtual reality to train the customers on its courses in how to perform complex manual tasks such as repairing machinery.

Which activity in Porter's Value Chain has been impacted by HHH's use of virtual reality?

  1. Operations
  2. Service
  3. Procurement
  4. Human resources management

Answer(s): A



UUU is a long established international airline. Which of the following represent Threats to UUU's business?

Select ALL that apply.

  1. A sudden increase in international terrorism.
  2. A shortage of trained pilots in UUU.
  3. A substantial rise in the price of oil.
  4. A higher level of private car ownership.
  5. Greater popularity of long-haul holidays.

Answer(s): A,C



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