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CIMA E2 Actual Questions

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Total 185 questions

Managing Performance Questions and Answers

Question 5

Porter's Diamond model suggests that there are four factors which determine national competitive advantage.  The four are listed below. Which has the incorrect definition?

Options:

A.

Factor conditions: includes the availability of raw materials and suitable infrastructure.

B.

Firm strategy, structure and rivalry: if the home market is very competitive, a company is more likely to be world class.

C.

Demand conditions: the goods and services have to be demanded internationally.

D.

Related and supporting industries: these allow easy access to components and knowledge sharing.

Question 6

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, suitablity and acceptablity. 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:

Options:

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

Question 7

The purpose of PEST analysis is described by which of the following?

Options:

A.

To examine the competitive forces at work in the industry.

B.

To determine the strengths and weaknesses of the organisation.

C.

To assess the power of the internal stakeholders.

D.

To assess the threats and opportunities posed by the wider environmental forces.

Question 8

GG, the new CEO in an organisation, was surprised to find out that the company does not undertake competitor analysis. He was told that, as the organisation operates in a very dynamic market,  things change too quickly to make analysis worthwhile.

 

Choose from the following the option that presents why competitor analysis is important.

Options:

A.

It allows the organisation to use the budget that the Marketing Department has been allocated so it doesn't lose it in the future.

B.

It is an activity that satisfies the senior managers' requests.

C.

If competitor analysis is not undertaken a new competitor could have entered the market and could reduce the sales of the organisation.

D.

It can help the company to market its products.

Page: 2 / 8
Total 185 questions