CIMA E3 Exam Actual Questions
E3 Strategic Management (Page 4 )

Updated On: 14-Aug-2026

GGG is currently undertaking a process of intuitive forecasting. A team of ten people has been selected from all levels of management and from a range of functional departments, to take part in the process. An initial single question of 'How do we improve future customer satisfaction levels for GGG?' has been posed and all members of the team have been asked to present a suggestion. No one is allowed to criticise another person's ideas. This process should give GGG a forum for the expression and discussion of a wide range of ideas.
Which of the following intuitive forecasting techniques is GGG undertaking?

  1. The Delphi technique
  2. A think tank 
  3. Brainstorming
  4. Visioning

Answer(s): C



CCC has been given permission by the local government authority to build 500 houses and this will be a very profitable project for CCC. An animal charity is opposed to the building of the houses as fields where animals live will be built on.  Some people living nearest to the area of the proposed building are in favour because it will stimulate the local economy. Other people living near the area of the proposed development are opposed to it because their view will be spoiled.

Which of the following activities should CCC undertake to resolve the stakeholders' competing objectives?

  1. CCC should focus on its stakeholders' needs in turn.
  2. CCC should give the animal charity the money to establish a wildlife sanctuary.
  3. CCC should conduct discussions with its stakeholders and reach an acceptable compromise.
  4. CCC should conduct a PESTLE analysis.

Answer(s): C



FFF manufactures and sells three consumer products. The Marketing Manager has enough funds to commission an advertising campaign for only ONE of the three products. 
The Marketing Manager's criterion for allocating funds for an advertising campaign is that the product should be a "Star" according to the BCG matrix.

Which product should receive the investment? 

  1. Product A
  2. Product B
  3. Product C
  4. None of the three products meet the criterion.

Answer(s): B



GGG is a manufacturer of four different components produced in four separate facilities. The Production Director has sufficient funds to modernise one of the facilities.  GGG's decision rule in these circumstances is that investment is permissible in either a 'Cash Cow' or a 'Star' but not a 'Dog' or a 'Problem Child?'.
Which facility should be modernised?

  1. Facility A produces a component with a relative market share of 1:5. Its current market growth rate is 4.5%.
  2. Facility B produces a component with a relative market share of 1:4. Its current market growth rate is 9%.
  3. Facility C produces a component with a relative market share of 3:1. Its current market growth rate is 11%.
  4. Facility D produces a component with a relative market share of 1:6. Its current market growth rate is 10%.

Answer(s): C



HHH intends to introduce a Balanced Scorecard to assist with its strategic policy formation and achievement of strategic plans.
Which TWO of the following stakeholders are addressed by a Balanced Scorecard perspective?

  1. Shareholders
  2. National government
  3. Local government
  4. Managers
  5. Local residents
  6. Customers

Answer(s): A,F



Which of the following is NOT included in the Information Systems Strategy (ISS) of Earl's three levels of information strategy?

  1. Division / SBU / Function based
  2. Business-focused
  3. Management-focused
  4. Demand-orientation

Answer(s): C



Company GGG wants to gain competitive advantage and has decided to use data mining.
Which of the following would NOT result from data mining?

  1. Classification
  2. Description
  3. Forecasting
  4. Sequences

Answer(s): B



VWX is a successful airline with a proven record in successfully exploiting the resources it obtains.
Which of the following might create an additional Core Competence for VWX?

  1. Unique rights to operate from the most popular airport serving a capital city.
  2. Sufficient aircraft to operate a good timetable.
  3. A market with more passengers than the existing airlines can satisfy.
  4. The airline operations that operate below the level of middle management.

Answer(s): A



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