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E3 Strategic Management Questions 129–136 (page: 18)

Updated On: 4-Aug-2026

The concept of Triple Bottom Line (TBL) reporting expands traditional accountancy reporting systems to consider social and environmental performance, rather than simply financial performance.
Which THREE of the following does the TBL concept suggest should be measured in order to encourage greater business social responsibility?

  1. Productivity
  2. Profit
  3. People
  4. Planet
  5. Privacy

Answer(s): B,C,D



Company LL is a well established, reputable company which specialises in providing insurance call centre services to the insurance industry. It has recently won a large contract to provide its services to a multi-national insurer. LL's staff are highly trained in insurance matters and many have worked for LL for many years. 
LL undertakes long-term resource planning activities and has identified that during the winter months, when there will be more customers ringing up to make insurance claims, it will potentially need to employ more staff.  The Board has decided that rather than recruit its own staff, it will use an employment agency to supply manpower resources as required. The people supplied will be employed on a temporary basis by LL and they will work alongside the other call centre staff. However, they will work at a lower pay rate and will only be paid for the actual hours they work.
This change will lead to a shift in the working environment, the routine and the composition of the group.
Which THREE statements apply in respect of this proposed change?

  1. The proposed change will affect the group dynamics, which can be seen as being similar to a 'force field' situation.
  2. In times of change, LL can give sensitivity training to this group of workers who can then be used as a source of support during the change process.
  3. A Facilitator, as the leader of change, will allow the group to talk about their issues and concerns with this change in a formal and structured manner. 
  4. As the change process LL is proposing is an internal matter involving a group of its staff, there is no need to undertake a stakeholder analysis.
  5. LL will need to identify the Adversaries in the group, because if they are influential they may persuade other group members to resist the change.

Answer(s): A,B,E



BBB has often encountered difficulties when it has introduced strategies which involve Organizational change. BBB is about to enter a period of much change and has decided to appoint one or more change agents to help to manage this. Select ALL of the statements that apply in respect of a change agent. 

  1. Sensitive to the impact of change on all stakeholders.
  2. Tolerant of ambiguity and uncertainity.
  3. Skilled communicator with colleagues and subordinates.
  4. Skilled at successfully meeting budget targets.
  5. Worked in three similar change environments.
  6. Willingness to drive through difficult decisions.

Answer(s): A,B,C



Kaplan and Norton developed a model called the Balanced Scorecard to assist in the formation and achievement of strategic policy.  Within this model are four perspectives.
Which of the following statements is NOT applicable to a Balanced Scorecard perspective?

  1. To succeed financially, how should we appear to our shareholders?
  2. To achieve our vision, how should we appear to our customers?
  3. To achieve our vision, how will we sustain our ability to change and improve?
  4. To achieve our vision, how should we appear to our stakeholders?

Answer(s): D



McKinsey saw culture as seven interconnected elements and described these in the '7S' model.
Which of the following is NOT a 'hard' factor within the '7S' model?

  1. The way the Organization is structured and who reports to who.
  2. The way in which the Organization plans to gain a competitive advantage.
  3. The daily activities and procedures followed by staff.
  4. The core values of the Organization.

Answer(s): D



DD is a medium size company and has decided to appoint a data mining company to collate information from a wide variety of sources and analyse the data into more meaningful information.
The Board of DD believes that by using a data mining company to undertake this work, it will add value to its business and help it to remain competitive. 
Which of the following statements does NOT apply to data mining?

  1. Data mining involves looking for new patterns and relationships in the underlying data.
  2. Data mining can guide decision-making and predict future behaviour.
  3. Data mining uses statistical analysis tools and other intelligent techniques.
  4. The goal of data mining is the extraction of data.

Answer(s): D



Lynch developed the performance pyramid to define the links between objectives and performance measures.  Which THREE of the following statements apply to the performance pyramid?

  1. The performance pyramid is designed to ensure that all activities support the Organization's vision.
  2. The left-hand side of the pyramid contains measures which have an external focus.
  3. The lowest level of the pyramid contains the day-to-day operational measures.
  4. The business operating systems level includes the market-related Critical Success Factors.
  5. The business unit level includes measures which relate to internal systems needed to meet customers' needs.
  6. The right-hand side of the pyramid contains measures which are predominantly non-financial.

Answer(s): A,B,C



CIMA has conducted research into the implications of sustainability for business.  CIMA's report contained a number of key conclusions.
Which of the following statements was NOT a conclusion in CIMA's report? 

  1. Strong ethical principles can add great value to a brand.
  2. Reporting on sustainability needs to provide hard evidence of the positive impact on society.
  3. Management Accountants have a responsibility to promote an ethics-based culture.
  4. The ethical tone within a business must come from the bottom.

Answer(s): D



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