E3 CIMA E3 Strategic Management Free Practice Exam Questions (2025 Updated)
Prepare effectively for your CIMA E3 E3 Strategic Management certification with our extensive collection of free, high-quality practice questions. Each question is designed to mirror the actual exam format and objectives, complete with comprehensive answers and detailed explanations. Our materials are regularly updated for 2025, ensuring you have the most current resources to build confidence and succeed on your first attempt.
Organizations require resources to undertake a strategy and these can include physical, human, financial and intangible resources. However, alone they will not ensure Organizational success. For that, resources must be combined together to create competences.
The competences which form the basis of competitive advantage are things that an Organization is able to do and are very difficult for competitors to copy.
Which of the following describes this?
As a Group Management Accountant you have been asked to explain the different types of change currently taking place within a number of the Group's subsidiaries.
Select the appropriate type of change for each of the descriptions below:
E is a company run by a well balanced Board of Directors. E is performing well, but is looking to reduce costs in the current year Which of the following activities would lack integrity'' Select ALL that apply.
VWX is a successful airline with a proven record in successfully exploiting the resources it obtains. Which of the following might create an additional Core Competence for VWX?
'Big data' refers to datasets whose size is outside the ability of typical database software tools to capture, store, manage and analyze.
Which of the following statements is NOT a valid statement with regard to 'big data'?
Company RR operates in the finance sector. It is experiencing increasing delays in approving loan applications, due to customers not promptly returning their signed copy of the application forms back to RR.
RR is now wanting to introduce e-signatures which allow customers to sign the document on their computer and return it back to RR through the Internet. This change will help to simplify the process and ensure that customers obtain their loans quicker.
To achieve this change, RR has established a project and has appointed you as the Project Leader to lead the change.
Select the THREE valid statements in respect of leading change.
Which of the following is a 'hard' factor according to McKinsey's '7-S' model?
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.)
Johnson, Scholes and Whittington suggest that Acceptability is an important consideration when evaluating potential alternative investment strategies.
Which of the following statements relate to Acceptability?
Select ALL that apply.
JJJ is a publically quoted advertising agency. JJJ’s competitive advantage is based on the expertise of its staff and its reputation in digital media advertising. JJJ has robust systems to protect its intellectual property. These include patents and copyrights. JJJ has also restricted access for most of its staff to its most sensitive data, such as studies of its customers' profitability.
JJJ's new Managing Director, Z, is concerned that when staff leave JJJ, the company loses whatever tacit knowledge they possess. These losses also impact on JJJ's reported profits. In order to remedy the losses of knowledge and the reduced profits Z wants to introduce a knowledge management strategy.
Which of the following steps support the introduction of a knowledge management strategy? (Choose all that apply.)
S is a hybrid car manufacturer. S relies on strong social media presence and online marketing campaigns to drive customers to its website. S prioritises measuring and improving active usage metrics.
Which of the following metrics does S prioritise?
Select ALL that apply.
Directors have a duty to shareholders and other stakeholders and are required to promote the success of the company.
Which THREE of the following are valid roles and responsibilities of directors? (Choose three.)
Which of the following is a direct external change trigger?
Which TWO of the following benefits could be achieved through the use of Triple Bottom Line (TBL) Reporting?
Select the label which best defines the periods of decline outlined in the situations presented below.
Using Earl's 'Three levels of IT strategy' framework, which one of the following activities would occur as part of an Information Systems (IS) strategy?
DDD is a company which publishes paper-based books. In the last 10 years DDD has seen a steady decline in its sales. Last month, one of its major customers, a large chain of high street bookshops announced that it would be closing as a result in declining sales in the paper-based book market. The Board of DDD has therefore announced that in order to survive, it must re-focus the business upon the developement of electronic books, which will require a significant investment in new technology and staff training. However, some staff will be made redundant as part of this process. The Board of DDD has stated that it will reward staff who actively embrace the change process.
Which of the activities below would occur within the 'Unfreeze', 'Change' or 'Refreeze' stage of Lewin's three-stage model?
Company V has obtained planning permission to build 20 wind turbines in town W. This will be a highly profitable project and help the Government in Country H meet targets for renewable energy. However, local residents and wildlife groups are extremely unhappy and have objected to the plans and threatened to cause disruption at the site of the proposed wind turbines once building work commences
Which THREE of the following activities should Company V use, according to Cyert and March, to resolve these conflicting stakeholder objectives?
GV is a manufacturer and retailer of high quality suede gloves. GV makes all of its sales in country F, and is extremely profitable. After many successful years trading, GV has accumulated significant cash reserves and would like to grow the business organically.
After some investigation work, GV has discovered an opportunity to sell leather shoes in country P.
Which of the following strategic directions is GV taking if it pursues this opportunity, according to Ansoff's product / market matrix?
Which TWO of the following are economic factors?
