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

2. DRAG DROP
PQ is an international airline.
In accordance with Porter's Value Chain, select "Primary" or "Support" for each of the activities listed below:
Select and Place:

Correct

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

4. Information Systems (IS) strategy is correctly defined as:

A) The roles and structure of information specialists in the organization and their relationship with users.
B) Identifying the information needs of the organization and aligning development to them.
C) The planning, organizing, investment and control of information applications in the organization.
D) Decisions on the hardware, software and communications solutions used in the organization.

5. 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 Plush'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 comparison website by the hotels in the same area as Plush? (Choose two.)

A) Bargaining power of customers.
B) Threat of new entrants.
C) Threat of substitutes.
D) Bargaining power of suppliers.
E) Competitive rivalry.

Solutions: