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E3 Strategic Management

Last Update 4 hours ago Total Questions : 280

The E3 Strategic Management content is now fully updated, with all current exam questions added 4 hours ago. Deciding to include E3 practice exam questions in your study plan goes far beyond basic test preparation.

You'll find that our E3 exam questions frequently feature detailed scenarios and practical problem-solving exercises that directly mirror industry challenges. Engaging with these E3 sample sets allows you to effectively manage your time and pace yourself, giving you the ability to finish any E3 Strategic Management practice test comfortably within the allotted time.

Question # 41

Which THREE statements about scenario planning are correct?

A.

It tells management what will happen so they are able to plan for it.

B.

It tells management what needs to be done to make the Organization successful in the future.

C.

It encourages creative thinking by the participants.

D.

It alerts management to the possibility of fundamental change in the environment.

E.

It encourages management to communicate their personal knowledge of trends.

Question # 42

Your management team is considering using Porter ' s Value Chain to assist it in developing a new competitive strategy for the business.

 

Which THREE of the following statements would inform your management team about Porter ' s Value Chain?

A.

It can help understanding of the linkages between business activities.

B.

It can help identify the processes that add customer value.

C.

It can help identify the processes that add costs.

D.

It can help assess competitive pressures in the market.

E.

It can easily import data from existing management accounts.

Question # 43

GV is a manufacturer and retailer of high quality suede gloves. GV makes all of its sales in country F, and is extremely profitable. After many successful years trading, GV has accumulated significant cash reserves and would like to grow the business organically.

After some investigation work, GV has discovered an opportunity to sell leather shoes in country P.

Which of the following strategic directions is GV taking if it pursues this opportunity, according to Ansoff ' s product / market matrix?

A.

Product development

B.

Market development

C.

Related diversification

D.

Market penetration

Question # 44

Which of the following is an example of a value adding activity within the outbound logistics aspect of an Organization ' s value chain?

A.

Refunds offered to customers if they are dissatisfied with a purchase.

B.

Promotions and discounts offered to loyal customers.

C.

Delivery of customers ' purchases directly to their homes.

D.

Regular training provided to staff in customer care.

Question # 45

MMM operates leisure parks in Country S. a mature economy in Europe. These are parks that are popular with people between the ages of 8 and 25 years who visit them to ride on the high speed roller-coasters and to visit other attractions at the parks. Nearly 60% of visitor expenditure is to buy meals and drinks at the park MMM estimates that 20% of its visitors travel to its parks from outside Country S.

Which THREE of the following environmental changes will have the greatest impact on MMM in the next five years?

A.

The growing strength of the emerging economies in Africa, Asia and South America.

B.

The average age of the population in Country S is increasing because of a fall in the birth rate.

C.

An increase in the statutory minimum wage in Country S.

D.

Introduction of government restrictions on the number of students and tounsts permitted to enter Country S.

E.

The opening of a rival leisure park in Country S with more modern rides and attractions.

Question # 46

Which of the following statements is NOT a role for Management Accountants involved in the strategy development process?

A.

Consider and raise awareness of the ethical impact of proposed strategic decisions.

B.

Integration of financial and non-financial information.

C.

Writing the Annual Report.

D.

Assist the Board in determining risk appetite.

Question # 47

Which of the following would be a suitable performance measure of Internal Business Processes within Kaplan and Norton ' s ' Balanced Scorecard ' model?

A.

Reduction in manufacturing cycle times.

B.

New products developed.

C.

Increase in market share.

D.

Higher P/E ratio.

Question # 48

DDD is a business which sells entertainment products and now wants to move to a position where it uses e-business 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.

Better control of information through monitoring website activity.

C.

Easier access to loan finance.

D.

An increased use of tacit knowledge.

E.

A reduction in labour turnover and higher morale.

F.

Increased online revenues.

Question # 49

Company V has obtained planning permission to build 20 wind turbines in town W. This will be a highly profitable project and help the Government in Country H meet targets for renewable energy. However, local residents and wildlife groups are extremely unhappy and have objected to the plans and threatened to cause disruption at the site of the proposed wind turbines once building work commences

Which THREE of the following activities should Company V use, according to Cyert and March, to resolve these conflicting stakeholder objectives?

A.

Continue to build the wind turbines despite attempts to overcome the objections of the locals and the wildlife groups

B.

Negotiate with the wildlife groups to ensure their key concerns are understood, and implement an action plan to address concerns where appropriate

C.

Make a donation of $10,000 to town W as a contribution towards the construction of a new town hall.

D.

Offer staff a bonus when the project is successfully completed

E.

Negotiate a 5% reduction in the price of the blade manufacture.

Question # 50

An insurer, JJJ, uses its Internet capabilities to promote and sell car and home insurance products. Although JJJ is supported by an ' in-house ' call centre located in its home country, it has decided to outsource this activity to an overseas call centre.

 

There are a number of benefits to the company by undertaking this strategy, including that it can charge more competitive premiums to its customers and also increase its profits. However this change will mean that 75 call centre staff in the home country will be made redundant.

 

You have been appointed as the Change Leader and have been asked to prepare a report that includes details on how this change can be communicated.

 

Which THREE of the following statements are valid regarding JJJ ' s proposed changes and the related staff communications?

A.

When undertaking change,  communication is of great importance.

B.

The Change Leader should keep staff informed but should only communicate information when all the detail has been finalised.

C.

It is important that the Change Leader selects a communication channel which is appropriate to the message being delivered and its target audience.

D.

Momentum for change can be created by putting simple but highly visible improvements in place.

E.

A disadvantage of adaptive change is that it increases the level of resistance that a company can encounter when trying to implement change.

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