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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. 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 the targets and benchmarks to be used and the consequences for failing to meet them.
C) Service Level Agreements should include a guarantee to provide 100% availability for complaint resolution.
D) Service Level Agreements should include the procedures for cancelling the contract.

2. Company TTT produces a range of products, including products T1 and T5.
Product T1: Profitability has declined in recent years, although small profits continue to be made as the market contracts due to changing customer preferences. Overall market share is low and continues to reduce.
However, in addition to external sales T1 is also used as a component of product T5.
Product T5: A market leader within a low growth market, sources components both externally and from TTT's other subsidiaries. T5 benefits from significant economies of scale and TTT has recently considered modernizing its T5 production line but following a cost benefit analysis, decided not to proceed.
Which of the following is an appropriate strategy for TTT to adopt?

A) Harvest both product T1 and product T5.
B) Harvest product T1 and Divest product T5.
C) Divest product T1 and Harvest product T5.
D) Divest both product T1 and product T5.

3. An organization must acquire suitable hardware and software in order to implement a knowledge management strategy so that knowledge can be stored and communicated.
Which of the following would be appropriate systems to use in a knowledge management strategy? (Choose all that apply.)

A) Social media
B) Intranet
C) Local area network
D) Groupware
E) Ledgers and journals
F) Internet

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

5. BCA is a long established international airline. Which of the following represent Threats to BCA's business?
(Choose all that apply.)

A) Greater popularity of long-haul holidays.
B) A higher level of private car ownership.
C) A sudden increase in international terrorism.
D) A shortage of trained pilots in BCA.
E) A substantial rise in the price of oil.

Solutions: