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

CIMAPRO15-E03-X1-ENG
  • Exam Code: CIMAPRO15-E03-X1-ENG
  • Exam Name: E3 - Strategic Management Question Tutorial
  • Updated: Aug 14, 2026
  • Q & A: 60 Questions and Answers
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CIMA CIMAPRO15-E03-X1-ENG Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Strategic Control20%
Topic 2: Digital Strategy15%
Topic 3: Analysing the Organisational Ecosystem20%
Topic 4: The Strategy Process15%
Topic 5: Making Strategic Choices15%
Topic 6: Generating Strategic Options15%

CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. ZYX is a global hotel chain, employing over 10,000 staff worldwide. ZYX operates a Code of Conduct for all of its staff, which states "Our staff are the most important assets of our business operations. We expect the highest standards of ethical and professional conduct from all staff, who must display the principles of trust, respect, equality, integrity and fairness at all times." Which THREE of the following actions could ZYX take to positively influence its staff to work to the ethical and professional principles in its Code of Conduct? (Choose three.)

A) Disciplinary actions, such as fines, for staff who do not display high ethical and professional standards.
B) Set performance targets in diversity and equality for its hotel senior managers.
C) Induction and on-going staff training on ZYX's Code of Conduct and ethical and professional principles.
D) Interview process for staff prior to employment, to assess their understanding of ethical and professional behavior.
E) Operate a system of reward incentives for staff who display high ethical and professional standards.
F) Publication on its website of ZYX's Code of Conduct and regular examples of staff displaying the highest standards of professional conduct.


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


3. SDC is a medium sized IT systems development company. SDC employs highly qualified and experienced systems development experts. It invests heavily in staff training and development and as a result, staff are highly motivated and staff turnover is low. SDC has a strong culture of team work and innovation, which the senior managers believe is the basis of SDC's success. The senior managers, who are also the founders of SDC, are highly experienced and have a strong vision for the business.
Which THREE of the following factors would be the main focus of a resource audit for SDC? (Choose three.)

A) Machinery
B) Management
C) Make-up
D) Money
E) Manpower
F) Markets


4. PQR is a charity which has an excellent reputation within its home country. PQR employs over 300 highly experienced staff and has 200 skilled volunteers. PQR's funding mainly comes from donations from the public but its public profile is low compared to larger, more publicized charities.
Due to a recent recession, public donations to PQR have fallen in the last five years, but demand for its services continues to grow.
The government of the country in which PQR operates is encouraging greater collaboration between charities and there have been several recent successful mergers within the charity sector. PQR has recently been approached by a high profile and well funded charity, DDD, with a merger proposal. DDD offers complementary services to those offered by PQR.
Which TWO of the following factors would most likely be considered as an "opportunity" for PQR? (Choose two.)

A) Donations from the public
B) Merging with DDD
C) The excellent reputation of DDD
D) Growing demand for its services
E) Highly experienced staff


5. When FarmCot Foods was founded five years ago, it was a small shop set up by a family of dairy farmers in a disused farm shed, selling their own produce to the local community. The family had decided, at that point in time, to diversify their dairy farming activities into also selling their own milk, cheese and ice cream products.
The aim was to increase their revenues, as dairy farming in their home country had been in decline for a number of years.
Since then, the shop has been very successful and has expanded rapidly over the last three years, due largely to a strong growth in tourism in its home country and a shift in consumer demand for locally sourced fresh farm products. FarmCot Foods is now located in a large purpose-built building on the site of the original farm shed and also operates a very popular cafa, a children's play area and sells a much wider range of products and gifts, which are all sourced from local suppliers.
Which of the following best describes FarmCot Foods approach to strategy development in the last five years?

A) Incremental
B) Emergent
C) Freewheeling opportunism
D) Rational


Solutions:

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

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