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CIMA E3 Exam
E3 Strategic Management (Page 2 )

Updated On: 1-Feb-2026
Page 2 of 37
PDF with 278 Questions

A grocery store has analysed its recent sales and identified that customers who purchased fresh strawberries also purchased ice cream at the same time in 65% of transactions.

Which of the following best describes the results identified in the analysis carried out by the grocery store?

  1. Sequencing
  2. Association
  3. Clustering
  4. Classification

Answer(s): B



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



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 structures would you recommend for the Board of Directors of a UK public company in order to fulfill its legal responsibilities?

  1. The Board of Directors should have a minimum of six directors with the Board's tasks divided amongst them. The Board should also have a Chairman or Chairwoman who may serve as the Chief Executive if time permits.
  2. The Board should have no more than six members with clearly defined executive and non-executive responsibilities. To make the role more efficient Chairman or Chairwoman of the Board should also be the Chief Executive.
  3. There should be no restriction placed on the minimum or maximum number of Directors. The Directors' roles should be shared but the Chairman or Chairwoman should not act also as the Chief Executive.
  4. The Chairman or Chairwoman should not have an executive role within the company. There should be at least two directors to carry out the Board's roles.

Answer(s): D



TTT is a software design company which has grown successfully over the last 8 years. It has been highly innovative and often collaborates with a number of external partners to produce high quality, innovative software for a wide range of customers.

TTT's owner, K, has been a driving force behind its success. He spends a great deal of time analysing what is happening in the marketplace and trying to predict what customers need from TTT, through a network of industry contacts. He has a strong vision for TTT and communicates this, with conviction, to his staff in regular face to face meetings. He recognises and rewards his staff when new developments are undertaken and completed successfully and believes that if staff feel appreciated, then they will be more motivated to succeed.

Which THREE of the following skills for a leader in a change adeptOrganizationdoes K demonstrate?

  1. Tuning into the environment
  2. Building coalitions
  3. Communicating a compelling aspiration
  4. Learning to persevere
  5. Making everyone a hero

Answer(s): A,C,E



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