CIMA E3 - Strategic Management Question Tutorial : CIMAPRO15-E03-X1-ENG

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Exam Code: CIMAPRO15-E03-X1-ENG

Exam Name: E3 - Strategic Management Question Tutorial

Updated: Sep 08, 2026

Q & A: 60 Questions and Answers

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CIMA CIMAPRO15-E03-X1-ENG Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: The Strategy Process20%- Strategy definitions and levels
- Strategic planning and decision-making models
- Governance and ethical considerations
Topic 2: Digital Strategy20%- Digital transformation and business models
- Data analytics and strategic use of information
- Technology risks and opportunities
Topic 3: Strategic Control and Implementation10%- Strategic performance measurement
- Implementation planning and change management
- Review and adaptation of strategy
Topic 4: Making Strategic Choices10%- Strategic fit and feasibility
- Strategic alliances and partnerships
- Evaluation criteria and risk assessment
Topic 5: Analysing the Organisational Ecosystem25%- External environment analysis (PESTEL, Five Forces, etc.)
- Internal capability and resource analysis
- SWOT and stakeholder analysis
Topic 6: Generating Strategic Options15%- Innovation and entrepreneurship
- Strategic directions and growth frameworks
- Portfolio analysis and diversification

CIMA E3 - Strategic Management Question Tutorial Sample Questions:

Question #1

YZ operates a national mobile phone (cell phone) network in one country. It is considering upgrading its network to 4th Generation (4G) by providing an improved bandwidth that will enable its customers faster access to the Internet.
This investment will cost S29 million which YZ's institutional investors have agreed to provide by subscribing to a rights issue. This is due to management having informed institutional investors that a rival is already offering
4G and that this is taking customers away from YZ because its network is now regarded as too slow. YZ's remaining customers have shown a willingness to pay extra for 4G and overall the investment will have a positive net present value.
Which of the following statements are correct? (Choose all that apply.)

  • A. There is stakeholder approval for the investment.
  • B. There are sufficient investment funds available
  • C. YZ will gain a first mover advantage.
  • D. It provides a market development opportunity for YZ.
  • E. It is essential given the strategic threats to YZ.
Answer: A,B,E
Question #2

A direct external change trigger is:

  • A. A powerful competitor forcing an organization to cut its prices.
  • B. A general increase in the use of the Internet by society.
  • C. The introduction of new environmental protection policies by the government.
  • D. An economic recession in an organization's home country.
Answer: C

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Question #3

ABC is an independent training provider in Country F.
It provides training in business related subjects to a wide range of corporate customers. All of its tutors must possess a nationally accredited training qualification before being allowed to teach and all of its courses follow nationally accredited programmes which are externally monitored. This is considered to be a critical aspect of its business reputation.
ABC has one major competitor, XYZ, within Country F.
XYZ offers similar courses to ABC but its tutors do not have to have an accredited training qualification and its courses do not follow the national accredited programmes. The style and content of courses varies significantly between XYZ's centers.
There are a number of universities which offer nationally accredited courses within Country F.
ABC does not consider these as competitors because typically they attract students wishing to undertake degree courses.
The average university pass rate for nationally accredited programmes is currently higher than ABC's.
Which of the following types of benchmarking would be most useful for ABC?

  • A. Process
  • B. Competitor
  • C. Strategic
  • D. Internal
Answer: C
Question #4

You have been given responsibility, as a newly qualified management accountant, for delivering an ambitious project to centralize and computerize the accounts function within a medium-sized, geographically dispersed business. The timetable also requires the project to be delivered within a very short timescale with limited resources. You have built a team to deal with these proposed changes.
With regard to effective teams and change, which THREE of the following statements are correct? (Choose three.)

  • A. Teams play minor roles in institutional change.
  • B. Teams that cross departmental boundaries can destroy shared values.
  • C. Individuals must become more than they were when working alone and must develop new commitments and behaviors.
  • D. Teams enhance learning and address change directly through creating recommendations and new ideas.
  • E. Teams should continue after their purpose has been served.
  • F. Teams that cross departmental boundaries can develop new performance criteria.
Answer: C,D,F
Question #5

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

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

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