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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

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

2. Which TWO of the following are advantages to an organization of using non-financial performance measures, rather than financial performance measures? (Choose two.)

A) They are less expensive to measure than financial performance measures.
B) They present a wider view of organizational performance than financial performance measures.
C) They are not distorted by inflation.
D) They are easier to measure than financial performance measures.
E) They are less subjective than financial performance measures.

3. HHH is a manufacturer which has a bonus scheme for its production workers related to the speed of output.
HHH's products are very specialized and are made in a dangerous production environment. HHH's production workers usually work alone but sometimes, if there are problems in the production environment (for example, machinery breakdowns), they have to work in teams. When the production workers are working in teams they do not receive any bonus.
HHH's senior management is proposing to amend the current bonus scheme to encourage increased productivity. Under the current bonus scheme, production workers receive extra pay when they achieve 45% of their individual target: The target level is low because of the dangerous production environment and the need to occasionally work in teams.
Under the proposed bonus scheme, production workers will not receive any extra pay until they have achieved
90% of their individual target. Workers who achieve 90% or above of their individual target will be paid a 30% higher bonus.
Which THREE of the following problems is HHH most likely to encounter with the introduction of the proposed bonus scheme? (Choose three.)

A) Production workers could consider the new target as unachievable.
B) The extra production output will lead to an increase in inventory.
C) Production workers will not be motivated by the proposed level of bonus.
D) There could be a rise in the level of workplace accidents.
E) The proposed bonus scheme conflicts with health and safety legislation.

4. 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.

5. 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) Threat
D) Weakness

Solutions: