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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. 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) Threat
C) Opportunity
D) Weakness

2. Which of the following would be correct considerations when evaluating the Feasibility of a strategy? (Choose all that apply.)

A) Will the strategy maintain competitive advantage?
B) Will the business be able to deal with the responses of its competitors to the strategy?
C) Will customers object to the strategy?
D) Will there be sufficient time to implement the strategy?
E) Will the strategy exploit the core competencies of the business?

3. Country W hosts a large music competition every 5 years, which is attended by many international musicians.
The success of the competition is dependent upon effective Customer Relationship Marketing being established with many different market groups around the world. These include music colleges who send their students, broadcasting companies who broadcast the event on radio and television, audience members, online ticket sellers and music journalists who write about the competition in specialist journals.
Using Payne's 'Six Markets Model', which of the following is the correct classification for the music journalists writing about the competition?

A) Customer market
B) Supplier market
C) Referral market
D) Influence market

4. A leading retail chain is undertaking environmental scanning as it is concerned that it is becoming uncompetitive and profits have started to fall. The Board of Directors is concerned that it will need to have a viable strategy to present to its shareholders at the next annual general meeting, in order to prevent shareholders' protests.
The company has been reluctant in the past to offer an Internet shopping service. It now believes, however, that by offering this service and introducing customer relationship marketing (CRM), this will produce a strategy that will help it to improve its competitiveness.
Which of the following statements apply to CRM? (Choose all that apply.)

A) CRM is about marketing to customers to obtain their loyalty, so customer research is not needed.
B) In mature markets, existing customers provide the most likely source of future earnings.
C) The CRM process needs to include increasing the range of products that will be offered to customers.
D) CRM utilizes marketing resources to retain, rather than simply attract new customers.
E) The company must be prepared to take customers' needs into account and be able to meet these needs.

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

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

Solutions: