CIMA CIMAPRO15-E03-X1-ENG : E3 - Strategic Management Question Tutorial

  • Exam Code: CIMAPRO15-E03-X1-ENG
  • Exam Name: E3 - Strategic Management Question Tutorial
  • Updated: Aug 05, 2026     Q & A: 60 Questions and Answers

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CIMA CIMAPRO15-E03-X1-ENG Exam Syllabus Topics:

SectionObjectives
Strategy Implementation- Project and performance management
  • 1. Strategic project management
    • 2. Performance measurement systems
      - Change management
      • 1. Kotter's 8-step model
        • 2. Lewin's change model
          - Organisational structure and design
          • 1. Organisational configurations
            • 2. Centralisation vs decentralisation
              Strategy Formulation- Internal strategic analysis
              • 1. Value chain analysis
                • 2. Resource and capability analysis
                  • 3. Core competencies
                    - Strategic analysis of external environment
                    • 1. Market segmentation and positioning
                      • 2. PESTEL analysis
                        • 3. Industry and competitive forces (Porter's Five Forces)
                          Strategic Choices- Corporate strategy
                          • 1. Diversification strategies
                            • 2. Strategic alliances
                              • 3. Mergers and acquisitions
                                - Business unit strategy
                                • 1. Differentiation strategy
                                  • 2. Focus strategy
                                    • 3. Cost leadership

                                      CIMA E3 - Strategic Management Question Tutorial Sample Questions:

                                      1. RRR is an insurance company which maintains an extensive database of its customer transactions over the last 10 years. RRR is developing a new product and has carried out a SWOT analysis.
                                      Within which of the following aspects of the SWOT analysis would RRR include its customer database?

                                      A) Strength
                                      B) Opportunity
                                      C) Weakness
                                      D) Threat


                                      2. DDD is a business which sells entertainment products and now wants to move to a position where it uses ebusiness as a fundamental part of its business strategy.
                                      Which of the following benefits would result from DDD's use of e-business? (Choose all that apply.)

                                      A) Cost reductions because of lower overheads and cheaper procurement.
                                      B) Increased online revenues.
                                      C) Easier access to loan finance.
                                      D) A reduction in labour turnover and higher morale.
                                      E) Better control of information through monitoring website activity.
                                      F) An increased use of tacit knowledge.


                                      3. LLL is an international oil and gas exploration company. It is considering investing S300 million in developing new oil fields in Country D.
                                      For this it will need to obtain a license from the government of Country D.
                                      These new oil fields will bring much wealth to Country D because a large proportion of the revenue from the production of oil will be paid to the government as part of the licensing agreement.
                                      However, oil production in Country D will have some undesirable social effects, such as the threat of pollution, congestion to the roads and pressure on local amenities such as housing, electricity and clean water.
                                      Which of the following approaches to stakeholder management should LLL NOT undertake in order to enter Country D?

                                      A) Undertake stakeholder mapping to identify the interests of the most powerful players in the decision to grant a license to LLL.
                                      B) Develop and circulate a promotional video showing the benefits enjoyed by other countries in which LLL operates.
                                      C) Commit to improving the local amenities and roads as a part of the application for a license in Country D.
                                      D) Issue free shares in a Joint Venture to develop oil fields to government ministers from Country D.


                                      4. Plush is a medium-sized hotel which recently opened on the outskirts of a city which is popular with tourists. It has a sophisticated website which allows customers to pre-book rooms and additional items, such as meals in its restaurant and tickets for popular tourist attractions in the city.
                                      Plush has listed its website on a popular hotel price comparison website, which allows customers to compare prices and facilities of hotels in the same area and this has resulted in over 60% of Plush's customer bookings so far.
                                      Since listing on the price comparison website, the Sales Manager of Plush has noticed that the prices offered by its nearest competitors have reduced dramatically and their range of special offers have also increased.
                                      Which TWO of Porter's Five Forces have been most affected by the use of the price comparison website by the hotels in the same area as Plush? (Choose two.)

                                      A) Threat of new entrants.
                                      B) Threat of substitutes.
                                      C) Competitive rivalry.
                                      D) Bargaining power of suppliers.
                                      E) Bargaining power of customers.


                                      5. HH is an outdoor theatre which is based in the capital city of country N.
                                      Tickets for shows can be booked at the ticket office or online. HH has identified the following critical success factors (CSFs):
                                      An excellent, online ticket booking system
                                      Customer satisfaction
                                      Which of the following would be suitable key performance indicators (KPIs) for HH? (Choose all that apply.)

                                      A) Customer show ratings, scored out of ten.
                                      B) Number of returning customers each year.
                                      C) Profit from sales of snacks and drinks.
                                      D) Percentage of ticket bookings aborted before completion.
                                      E) Employee turnover.
                                      F) Number of customer complaints.


                                      Solutions:

                                      Question # 1
                                      Answer: A
                                      Question # 2
                                      Answer: A,B
                                      Question # 3
                                      Answer: A
                                      Question # 4
                                      Answer: B,E
                                      Question # 5
                                      Answer: D,F

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