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

The Management Accountant in company PP has been asked by the Finance Director to produce a paper on "Game Theory" for the next Board meeting.

Which of the following is a valid statement?

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?

Which of the following uses apply to Porter's Value Chain?

Select ALL that apply.

RRR is a state-funded hospital serving a major city. It is under political pressure to reduce the waiting times of patients requiring surgical operations who need to stay at the hospital for several nights. The doctors blame a lack of bed spaces and are calling for more investment in extra beds.

You have been conducting some research into the problem and have discovered the following problems affecting the utilisation of the existing beds at RRR:

   • many patients stay extra nights due to lack of communication with the health professionals needed to monitor the patients at home

   • beds are left empty each day when patients miss their admission date but there are no processes to inform other patients to offer them the space

   • patients are admitted on days when there are no spaces available on the special equipment needed to treat their particular condition

Which THREE  linkages between Primary Activities in the Value Chain of RRR need to be improved to provide extra bed spaces at RRR?

BB Laundry Company is a community-led franchise initiative, enabling its customers to make use of state-of-the-art washing machines for its customers' domestic laundry needs. Services include self-serve or fully serviced washing and ironing services, provided by on-site volunteer staff.

Its laundry sites are powered with solar or wind power and its washing machines use water-conserving technology Non-toxic soaps and detergents are available, as well as bio-degradable clothes hangers, mend and repair services, combined with community cafes.

Which of the following would be beneficial to BB Laundry Company for external reporting of its key performance outcomes?

GGG is a successful airline and has a proven record in successfully exploiting the resources it obtains Which of the following might create an additional Core Competence for GGG?

Johnson, Scholes and Whittington developed the SAF framework to explain the factors that should be considered before pursuing a strategic option.

JJJ is a listed company that is considering launching a new product into its market.

Which of the following considerations affects the Acceptability of this new product launch?

PQR is evaluating the use of scenario planning to improve its organisational foresight.

Which THREE of the following are advantages of scenario planning?

A Porter states that competitive advantage can be gained by following one of three generic strategies.

Place the appropriate generic strategy against each of the statements below.

Kanter identified seven 'power skills' that change agents need to overcome apathy or resistance to change. Which of the following are power skills?

Select ALL that apply.

DEF is a medium sized business which manufactures children's clothing. In the last 5 years demand has steadily increased and DEF is struggling to meet this demand within its current manufacturing capacity. DEF's current manufacturing machinery was installed over 10 years ago and now requires updating, if DEF is to survive in the marketplace. 

DEF has established that the latest manufacturing technology would cost $2 million. This would be funded by the shareholders. It would payback within 2 years and would allow DEF to double output from its current level within this 2 year period. It will also improve product consistency and quality. However, it will result in the loss of 20% of DEF's manufacturing staff, most of whom are low paid and low skilled.

DEF is currently reviewing this proposed investment strategy, in terms of whether it meets the criteria of Suitability, Acceptability and Feasibility.

Which of the following correctly identifies the criteria which are met, in regard to DEF's proposed investment strategy?

Johnson. Scholes and Whittington described three criteria. 'Suitability, Feasibility and Acceptability' to evaluate potential strategies. Which of the following statements relate to the three criteria? Select ALL that apply.

QQQ is Country M's largest supermarket with 40% of the market share. In addition it has opened several stores around the world in the last 10 years. One of the reasons for QQQ's success is its loyalty card. The loyalty card is used to gather information about the spending patterns of its customers. Around two billion pieces of information each week are captured and stored in an enormous data warehouse that can be accessed by QQQ and other selected large retail partners.

The information can be used to assess the success of new product launches as well as which demographics of customer are making the purchases. The system also allows QQQ to tailor its special offers to particular segments of the market and to predict the buying behaviour of its customers, which assists QQQ in procurement planning.

Which of the following best describes the activities outlined above for QQQ?

You are a Management Accountant working for an Organization that includes commitments to 'sustainability' in its mission statement.

Which THREE of the following are contributions that a Management Accountant can make to the achievement of this part of the Organization's mission statement?

CCC has been given permission by the local government authority to build 500 houses and this will be a very profitable project for CCC. An animal charity is opposed to the building of the houses as fields where animals live will be built on.  Some people living nearest to the area of the proposed building are in favour because it will stimulate the local economy. Other people living near the area of the proposed development are opposed to it because their view will be spoiled. Which of the following activities should CCC undertake to resolve the stakeholders' competing objectives?

Which of the following is NOT included in the Information Systems Strategy (ISS) of Earl's three levels of information strategy?

Which of the following is NOT an external driver that leads management to adopt greater sustainability in the activities of its business?

Mendelow developed a matrix in which he characterised stakeholders by reference to their degree of power and level of interest.

Place the correct category against each of the classes of stakeholders.

The sales manager of an organisation has requested that you accept sales figures for the month, which contain misleading statements of sales, for the purpose of calculating sales team bonuses.

Which of the following fundamental ethical principles would this request breach?