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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. A Service Level Agreement (SLA) defines exactly what services a service provider will provide and the required level or standard for those services.
Which of the following statements regarding Service Level Agreements is NOT correct?

A) Service Level Agreements should include the expected response time to technical queries.
B) Service Level Agreements should include a guarantee to provide 100% availability for complaint resolution.
C) Service Level Agreements should include the targets and benchmarks to be used and the consequences for failing to meet them.
D) Service Level Agreements should include the procedures for cancelling the contract.

2. ABC is an independent training provider in Country F.
It provides training in business related subjects to a wide range of corporate customers. All of its tutors must possess a nationally accredited training qualification before being allowed to teach and all of its courses follow nationally accredited programmes which are externally monitored. This is considered to be a critical aspect of its business reputation.
ABC has one major competitor, XYZ, within Country F.
XYZ offers similar courses to ABC but its tutors do not have to have an accredited training qualification and its courses do not follow the national accredited programmes. The style and content of courses varies significantly between XYZ's centers.
There are a number of universities which offer nationally accredited courses within Country F.
ABC does not consider these as competitors because typically they attract students wishing to undertake degree courses.
The average university pass rate for nationally accredited programmes is currently higher than ABC's.
Which of the following types of benchmarking would be most useful for ABC?

A) Internal
B) Process
C) Strategic
D) Competitor

3. BCA is a long established international airline. Which of the following represent Threats to BCA's business?
(Choose all that apply.)

A) A higher level of private car ownership.
B) Greater popularity of long-haul holidays.
C) A substantial rise in the price of oil.
D) A shortage of trained pilots in BCA.
E) A sudden increase in international terrorism.

4. Which THREE of the following statements apply to Lynch's performance pyramid? (Choose three.)

A) The left-hand side of the pyramid contains measures which have an external focus.
B) The right-hand side of the pyramid contains measures which are predominantly non-financial.
C) The lowest level of the pyramid contains the day-to-day operational measures.
D) The performance pyramid is designed to ensure that all activities support the organization's vision.
E) The business unit level includes measures which relate to internal systems needed to meet customers' needs.
F) The business operating systems level includes the market-related Critical Success Factors.

5. Which of the following would be likely to encourage an organization to use Scenario Planning? (Choose all that apply.)

A) The organization has not previously experienced any major surprises or expensive strategic mistakes.
B) Competitor's are increasingly using Scenario Planning as part of their strategy formulation process.
C) Uncertainty in the industry is high, relative to management's ability to predict or adjust to change.
D) The organization has achieved all of its objectives and operates within a stable external environment.
E) The organization often experiences 'group-think', leading to a narrow view of the future.

Solutions: