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CIMA E2 Sample Question Answers

Question # 1

Setting a mission is the first stage of the rational approach to strategy setting. According to David, which THREE of the following are useful areas to include in an organization’s mission statement?

A: Customers
B: Shareholders
C: Markets
D: Philosophy
E: Suppliers
F: Government

Question # 2

Max is a quiet member of staff who likes to receive all the details before making decisions in the workplace.He is very satisfied with the way he works currently and is reluctant to change the way he works when you suggest implementing a new system to deal with enquiries. These changes form a major part of his work allocation.Which would be the most appropriate methods to deal with any resistance to change you may experience from Max?Select ALL that apply.

A: Coercion
B: Manipulation / Co-optation
C: Participation / involvement
D: Education
E: Facilitation / support
F: Negotiation / agreement

Question # 3

U is a retail chain of fashion outlets. It has invested in a new logistics system to control the movement of stock between its warehouses and high street retail outlets.The project to develop and install the new system was significantly over budget and very late. Now, only three months after the new system has been installed, it is apparent that the project has not delivered its objectives. Many retail managers are complaining that they are not receiving the correct stock to sell. A meeting between the project team and project sponsor ended with everyone blaming each other.Which of the following statements show how the use of PRINCE2 might have reduced the problems encountered?Select ALL that apply.

A: A focus on the business case of the project.
B: An organization structure setting out clear roles.
C: An emphasis on quality assurance and testing.
D: Little need for PRINCE2 training by participants.
E: An emphasis on finishing as soon as possible.

Question # 4

Verbal and non-verbal communications often take place at the same time. Which of the following best describes the complementary nature of non-verbal communication?

A: It replaces the verbal message
B: It reinforces the verbal message
C: It substitutes for verbal communication
D: It confuses the verbal message being transmitted

Question # 5

F Company is an international fast food company and is committed to the rational model for strategy.A senior team has carried out a comprehensive study of the environment in which it currently operates, its resources, distinctive competences and a corporate appraisal. The mission and objectives have been set in accord with stakeholder directives, which are based on twin objectives to grow profits by 5% year on year and become one of the top 100 global brands.The team has generated a short-list of different strategic initiatives which it believes may deliver the primary objectives required by the stakeholders. Each initiative has been examined separately on its merits in terms of feasibility, suitability and acceptability. As many factors as possible have been taken into account such as market analysis, economic growth and competitors.In terms of the rational model, select the actions that the company has now carried out:

A: Strategic analysis / options generation / options evaluation
B: Strategy selection / options evaluation / implementation of strategy
C: Strategy selection / options generation / strategic choice
D: Strategic analysis / options evaluation / implementation of strategy