Practice E3 Questions With Certification guide Q&A from Training Expert TrainingDump
Free CIMA E3 Test Practice Test Questions Exam Dumps
NEW QUESTION 130
The Financial Director (FD) of your company has heard it said that 80% of profits come from 20% of customers. The FD has accused the sales team of wasting time on serving customers who are not valuable to the business.
The FD has instructed you to take a random sample of 100 customers and to calculate the total contribution the company earned from each customer in the past year. The FD intends to instruct the sales team to stop selling to the bottom 25% of these customers in order to improve profitability.
Which THREE of the following factors should the FD consider when he interprets your results?
- A. This would not consider the future potential of the customer.
- B. It will ignore many customer attributable costs that differ widely from customer to customer.
- C. It is ethically wrong to stop supplying unprofitable customers.
- D. This doesn't take into account the value of the customer in referring new customers to us.
- E. This would not consider the total contribution from the combination of products which the customer buys.
Answer: A,D,E
NEW QUESTION 131
XYZ is a manufacturer of garden tools. It has defined 'Excellence of Manufacture' as a Critical Success Factor. Which THREE of the following would be appropriate to use as Key Performance Indicators in respect of this Critical Success Factor?.
- A. Amount of money budgeted for production process improvements.
- B. Tonnage of raw materials usage.
- C. Average age of products.
- D. % of raw materials input which is scrapped.
- E. Raw materials identified as essential.
- F. Number of finished products rejected at final inspection.
Answer: A,D,F
NEW QUESTION 132
WXY has been criticised by an activist shareholder for a lack of clarity in its formulation and implementation of strategy.
The activist shareholder states that WXY is confused as to the different levels of strategy and it has pointed to examples of inappropriate levels of management being held responsible for strategies that they do not control WXY has decided to use the categories, Corporate, Business and Functional to clarify its strategic processes.
Which of the following are Corporate strategies?
Select ALL that apply.
- A. WXY intends to introduce improvements to its occupational pension scheme.
- B. WXY has improved the duration of its products' working lives to match its major competitor.
- C. WXY will invest in robotics to become the lowest cost producer in its industry.
- D. WXY is to move its Head Office and manufacturing facilities from Europe to Asia.
- E. WXY is closing its data management business.
- F. WXY intends to replace its transport fleet every five years.
Answer: C,D,E
NEW QUESTION 133
Plush is a medium-sized hotel which recently opened on the outskirts of a city which is popular with tourists.
It has a sophisticated website which allows customers to pre-book rooms and additional items, such as meals in its restaurant and tickets for popular tourist attractions in the city Plush has listed its website on a popular hotel price comparison website, which allows customers to compare prices and facilities of hotels in the same area and this has resulted in over 60% of Rush's customer bookings so far Since listing on the price comparison website, the Sales Manager of Plush has noticed that the prices offered by its nearest competitors have reduced dramatically and their range of special offers have also increased.
Which TWO of Porter's Five Forces have been most affected by the use of the price companson website by the hotels in the same area as Plush?
- A. Bargaining power of customers
- B. Threat of substitutes
- C. Competitive rivalry
- D. Bargaining power of suppliers
- E. Threat of new entrants
Answer: C,E
NEW QUESTION 134
Z is a medium-sized UK based accounting practice. Z operates a graduate training scheme. The trainees are given an induction and then placed on a three-year training programme designed to help develop professional stalls and experience The training programme has been in existence for many years However, there is no clear consensus amongst the partners of Z about what the trainees should be able to do on completion of the programme and therefore what the training programme should emphasize. This lack of clarity is affecting the morale and commitment of the trainees and significant numbers are failing the programme or leaving to join a rival firm.
Z"s HR Department recognizes the need for committed and well motivated accountants to meet the increased expectations of clients and the competition from rival firms. The HR Department has identified changes to the training programme that can be implemented gradually through a series of initiatives Which TWO of the following statements regarding the change required in Z are correct9
- A. The plans to combat competition would be considered as a 'structure' factor according to the McKinsey
7 S model - B. The skills, abilities and competences of the organisation's employee's are a 'hard' factor according to the McKinsey 7 S model
- C. The need to manage the competitive position is an example of an 'external direct trigger' for change
- D. Understanding which day-to-day behaviors to reinforce within the training programme, is about
'routines and rituals' according to the Cultural Web - E. The change would be classified as a 'revolutionary change' according to Balogum and Hope Haitey
Answer: D,E
NEW QUESTION 135
In Johnson, Scholes and Whittington's model of rational strategy which of the following stages appear?
Select ALL that apply.
- A. Analysis
- B. Implementation
- C. Feasibility
- D. Sustainability
- E. Choice
Answer: A,B,E
NEW QUESTION 136
QR is a conglomerate with two divisions, A and B. Given the information below, select the most appropriate strategy for each division to implement.
Answer:
Explanation:
NEW QUESTION 137
Collaborative leadership is particularly useful in situations where "no one is in charge", where the issues or problems are so complex that no one person or entity has either the information or the power to change.
Which of the following would facilitate the role of a collaborative leader effectively?
Place 'Yes' or 'No' next to each Role.
Answer:
Explanation:
NEW QUESTION 138
Company MM is wanting to build an out of town shopping complex. This will be located near a busy road which is surrounded by housing estates. MM has yet to obtain planning permission. It recognizes that unless it takes action, the local residents will object to MM's plans. As the Publicity Manager you have been asked to take over responsibility for Stakeholder Management.
Which of the following Stakeholder Management statements is NOT correct?
- A. Stakeholder management is made more complicated for an Organization when individuals belong to more than one stakeholder group.
- B. Pressure groups have an interest in matters of public policy, but do not want to control the workings of government.
- C. Organizations will have a variety of stakeholders each with differing attitudes to risk which can cause conflict.
- D. In measuring the satisfaction of stakeholder interests, Organizations should only focus on quantitative matters.
Answer: D
NEW QUESTION 139
PQR is a software design company. The Board of PQR has always openly encouraged partnerships with a wide range of designers and other Organizations in its industry, to continually develop and enhance the services it offers and to utilise the expertise and knowledge of a range of individuals and Organizations. PQR's staff have also been highly creative and innovative in the design services they provide. PQR regularly analyses and keeps up to date with changes in the environment in which it operates. PQR operates a sophisticated website to promote its services and keep in touch with its service users.
Which TWO of the following attributes of a change adept Organization, as defined by Kanter, has PQR demonstrated?
- A. Imagination to innovate
- B. Sophisticated systems
- C. Continual service development
- D. Openness to collaborate
- E. Environmental awareness
Answer: A,D
NEW QUESTION 140
Johnson. Scholes and Whittington define strategy as the direction and scope of an organisation over the long term'. Which THREE of the following are advantages of deliberate long-term planning1?
- A. By undertaking detailed analysis management can identify key risks.
- B. The organisation will comply with external reporting standards
- C. Management will have to generate ideas using their experience and ability to innovate.
- D. Long-term planning will enable equal importance to be given to the different perspectives of the organisation's Balanced Scorecard.
- E. The organisation has a competitive advantage over others in its industry that do not use long-term planning.
- F. The organisation's mission, objectives and targets are made explicit which will improve goal congruence.
Answer: C,E,F
NEW QUESTION 141
You have applied for a job with a large accountancy practice and have been requested to attend for an interview. You have also been informed that you will be required to give a ten minute presentation on Corporate Political Activity (CPA).
Which are valid statements with respect to Corporate Political Activity?
Select ALL that apply.
- A. The CIMA Code of Ethics does not consider it appropriate for a company to offer bribes to politicians to secure publicly-funded business.
- B. When established laws and regulations affect a firm's competitive environment, the company will not be able to use CPA to try to influence political decision-making.
- C. Companies can establish Coalitions to respond to specific political issues, but these are always formed on a temporary basis.
- D. CPA can be considered to be part of a company's strategy to generate and sustain profits.
- E. It is acceptable for a company to make an election contribution for a particular candidate and then to try to influence subsequent parliamentary voting.
Answer: A,D,E
NEW QUESTION 142
NNN is a logistics firm that contracts with online retailers (clients) to deliver parcels containing customers' purchases, to customers' home addresses. NNN holds inventory of the most frequently ordered products at its warehouses.
According to industry research, most clients require the contractors to deliver the customers their purchases soon after they place their order. They are not concerned with the environmental impact of the logistics process. They require very competitive delivery prices from their contractors.
Customer research reveals that households dislike being asked to stay at home for an entire day because logistics firms are unwilling to commit themselves to a precise delivery time. This problem has led to a small number of cases of customers arriving at the warehouses of logistics firms demanding to take their purchases away with them. Most households do not consider the environmental policies or performance of the firms they buy from.
The logistics industry is very competitive and NNN wants to protect its existing contracts and to win more. It needs to focus its resources on the 'things that must go right' in order for it to succeed.
Which THREE of the following are Critical Success Factors (CSFs) for NNN?
- A. A car park and waiting room for customers at each warehouse.
- B. A shorter average time between receipt of an instruction from its client and delivery to the customer.
- C. A comprehensive policy on emissions and Corporate Social Responsibility (CSR).
- D. Warehouses in areas of lowest feasible operating cost.
- E. Business processes that deliver to households at the promised time + or - 15 minutes.
Answer: B,D,E
NEW QUESTION 143
STU is a hospital that is wholly funded by its national government In the last five years it has seen its funding cut by over 30% due to budgetary pressure on the government, caused by a global recession As a result, the senior management team of STU has had to make some very difficult decisions about prioritising how it spends the funds it receives from the government Its main strategies have been to reduce the number of administration staff and nursing staff by 20%, in order to reduce its costs It has also stopped providing a number of services to patients, including its counselling services and its physiotherapy unit.
Which of the following strategies has STU adopted to manage its reduced funding?
Select ALL that apply
- A. Divestment
- B. Liquidation
- C. Turnaround
- D. Facilitation
- E. Retrenchment
Answer: B,E
NEW QUESTION 144
Kaplan and Norton's model of the Balanced Scorecard contains a number of perspectives. Which of the following are perspectives within Kaplan and Norton's model?
Select ALL that apply.
- A. Financial
- B. Infrastructure
- C. Learning and growth
- D. Customer
- E. Procurement
Answer: A,C,D
NEW QUESTION 145
'Change-adept' Organizations are those that manage change successfully. Moss-Kanter identified skills required by Organizational leaders which are necessary to lead 'change-adept' Organizations.
Your Organization is undergoing significant change and the appointment of a new CEO is imminent. You have been asked to recommend the key skills for assessing the shortlist of CEO candidates against.
Which of the following statements are suitable for use as the selection criteria for the new CEO, consistent with the ideas expressed by Moss-Kanter?
Select ALL that apply.
- A. Able to communicate a compelling aspiration.
- B. Able to challenge the prevailing Organizational wisdom.
- C. Able to break up coalitions.
- D. Able to tune into the environment.
- E. Able to take heroic action.
Answer: A,B,D
NEW QUESTION 146
......
Prepare Top CIMA E3 Exam Audio Study Guide Practice Questions Edition: https://www.trainingdump.com/CIMA/E3-practice-exam-dumps.html