E3 CIMA E3 Strategic Management Free Practice Exam Questions (2025 Updated)

University researchers want the government of Country Y to invest in the creation of a database of information about the lives of people who have lived in the country during the past 300 years. 

Population information is based on official registers of data about individual people. This data will include the person's name, the dates they were born, the names of their parents, the names of partners if they decide to marry, the names and dates of birth of their children and, finally, the person's date of death and cause of death. In the past this information was recorded on paper by hand, but today there are an increasing number of computerised databases that record this information. This will include data about the 58 million people alive in Country Y at the moment.

Additional data may come from government questionnaires that are circulated once every 10 years and completed by every household in Country Y all on the same day of that year. 

The system is intended to help the researchers analyse demographic change but it will also be useful to people who want to identify who their ancestors were and the links between families.

What THREE obstacles will the University researchers face in developing and implementing this system?

EF manufactures and sells cars in Country X. Which of the following would improve its profitability?

JJJ is a private company belonging to a famous former athlete. It operates gyms and fitness clubs across its home country. Each gym or fitness club is treated as a profit centre and the manager of each centre is paid bonuses based on its financial performance.

Three years ago it introduced multidimensional performance measures into its management control systems. These measure capacity utilisation, financial performance, competitiveness, innovation, and the flexibility of its centres to cope with changing demands.

The managers of its centres have been leaving at a very high rate over the last two years. They have claimed that the measures are too open to interpretation and when they think they are improving the centre's performance they are told they are doing the wrong thing. They also complain that the managers in the centres near big cities find it much easier to reach their targets than the managers of other centres.

Using Fitzgerald and Moon's Building Block model,  where does the problem lie?

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?

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

Which of the following statements are consistent with an effective strategic approach to supply chain management within a manufacturing Organization?

Select ALL that apply.

JKL Plc manufactures and sells a range of consumer electronic products. it is organised into four strategic business units (SBU's), each responsible for a specific business segment. 

Which business segment would benefit most from a Build strategy?

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.)

MNO has decided to widen the scope of its performance measurement by constructing and using a Balanced Scorecard. MNO has established a range of Key Performance Indicators (KPI's) for use within its Balanced Scorecard.

Place each of the Balanced Scorecard perspectives against the most relevant KPI.

You are the youngest member of the senior management team and have recently been invited to become a member of the company's Board.

You have been sent an outline agenda ahead of your Board induction meeting with the Company Secretary. The first item on the agenda is the role of the Board.

Which of the following statements is NOT the role of the Board?

DDD is a business which sells entertainment products and now wants to move to a position where it uses e-business 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.)

GQF is an exclusive fashion retailer. GQF has built its strong name and reputation upon its high price and exclusive image. It has recently attempted to increase sales by expanding into lower-pnced clothing sales in department stores. It has also allowed its name to appear on a number of licensed products such as perfume and watches. Many customers who would not normally purchase GQF products have shown a high level of interest in these lower-priced products and in the last twelve months, sales have increased dramatically GQF's shareholders have expressed their satisfaction with the results.

However, over the same period, sales of its high priced, exclusive branded goods have fallen as some of its traditional, loyal customers have become disillusioned by the lack of exclusivity of the GQF brand.

Which of the following criteria have been achieved by the strategy adopted by GQF?

PPP wishes to increase shareholder value using the Seven Value Drivers identified in Shareholder Value Analysis (SVA). Place the correct direction of change next to each driver.

Which of the following is an example of a value adding activity within the outbound logistics aspect of an Organization's value chain?

According to Johnson, Scholes and Whittington, Suitability is an important consideration when evaluating potential alternative investment strategies.

Which of the following is a Suitability consideration?

Which THREE of the following statements are correct in relation to the use of the Performance Pyramid?

A fresh-food packaging manufacturer has recently changed the design of its packaging in order to reduce the amount of non-recyclable material. Its immediate customer, a large fresh-food wholesaler, does not see the need for this re-design as it believes that it will adversely affect the storage of the fresh food. However, the final customer, a large supermaket chain, has expressed strong interest in the new packaging design, as the supermarket chain has strict Corporate Social Responsibility targets to achieve.

Which of the following statements most appropriately describes the situation outlined above, from the perspective of the fresh-food packaging manufacturer?

BBB is a manufacturer that has been criticized in the financial press because it does not have a policy for sustainability.

Which THREE of the following elements would be crucial to BBB successfully embedding sustainability into its activities? (Choose three.)

Your management team is considering using Porter's Value Chain to assist it in developing a new competitive strategy for the business.

Which THREE of the following statements would inform your management team about Porter's Value Chain?