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

RRR is a large insurance company specialising in home and property insurance. It uses a highly sophisticated information system which it uses to process its insurance claims efficiently and effectively. It also holds a vast database of customer information and records. RRR's staff are very highly trained and considered to be the leading specialists in the industry. 

Which category of intellectual capital is NOT present in the description of RRR above?

McKinsey's '7-S' model distinguishes between 'hard' and 'soft' factors.

Which TWO of the following statements are correct?

In respect of mission statements, place the word "characteristic" or "purpose" against the relevant activity.

According to Porter's Five Forces model, which of the following would be evidence of high buyer power?

Which of the following statements is NOT a role for Management Accountants involved in the strategy development process?

VW is a Non-Governmental Organisation (NGO) based in Country A, a mature economy. VWs mission is to provide food, agricultural tools and seeds, and low cost housing to the villagers in Country G: a deprived country that is suffenng from the effects of civil war.

VW cannot change its mission nor adopt any strategies that would be incompatible with that mission.

WV depends on funding from the Government of Country A, donations from private organisations, and donations from the general public However, these donations have fallen considerably in recent years due to the environmental factors listed below.

Which THREE of the environmental factors should VW develop strategies to address?

LLL is an international oil and gas exploration company. It is considering investing S300 million in developing new oil fields in Country D. For this it will need to obtain a license from the government of Country D.

These new oil fields will bring much wealth to Country D because a large proportion of the revenue from the production of oil will be paid to the government as part of the licensing agreement.

However, oil production in Country D will have some undesirable social effects, such as the threat of pollution, congestion to the roads and pressure on local amenities such as housing, electricity and clean water.

Which of the following approaches to stakeholder management should LLL NOT undertake in order to enter Country D?

HH is an outdoor theatre which is based in the capital city of country N. Tickets for shows can be booked at the ticket office or online. HH has identified the following critical success factors (CSFs):

An excellent, online ticket booking system

Customer satisfaction

Which of the following would be suitable key performance indicators (KPIs) for HH? (Choose all that apply.)

Kaplan and Norton developed a model called the Balanced Scorecard to assist in the formation and achievement of strategic policy.  Within this model are four perspectives. Which of the following statements is NOT applicable to a Balanced Scorecard perspective?

Which THREE of the following statements apply to Lynch's performance pyramid? (Choose three.)

Irvine and Martin presented the advantages of Foresight as the 5Cs. Which of the following are correct aspects of the 5Cs as defined by Irvine and Mart in? Select ALL that apply.

MMM is a multi-national company that manufactures and sells consumer durables.  MMM has recently experienced severe trading losses and its Marketing Director has decided to revise the Marketing Strategy paying due regard to MMM's key external drivers. Which THREE of the following are key external drivers for MMM?

A grocery store has analysed its recent sales and identified that customers who purchased fresh strawberries also purchased ice cream at the same time in 65% of transactions.

Which of the following best describes the results identified in the analysis carried out by the grocery store?

Z is an organisation that designs and manufactures fibre optic connectors. It works closely with its suppliers and has built an online area that it uses to share documents, designs, and photographs with its suppliers. The area also facilitates real time communication with suppliers either via a computer or a mobile phone.

Which of the following best describes Z's online area?

QQQ has identified a new strategy which is both Suitable and Feasible However, it will not be Acceptable to some groups of QQQ's stakeholders who have publicly objected to it.

Which THREE of the following statements are correct ways of resolving competing stakeholder objectives, as suggested by Cyert and March?

MMM is a large national bank. MMM has developed a vision statement which states that it aims to:  

   • Provide superior returns to our shareholders

   • Offer customers the best financial products on the market

   • Continuously train and develop our staff

   • Continually improve our business processes by utilising the latest information technology

Which of the following would be an appropriate performance measure within a Balanced Scorecard for MMM?

BCD is a small private hospital providing elective surgery to patients. Elective surgery is not essential to the patient's health and can be regarded as a luxury.

Match the performance measure to the strategic goal and match the direction of improvement to each measure.

H is a small 18-hole golf club owned by sisters F and R It offers a bar. a small shop that sells basic equipment and a professional golfer providing golf lessons to members for an additional fee.

Membership numbers have fallen, putting significant pressure on cash flow Last year the sisters had to each invest $20,000 to prevent the golf club from going out of business. The key priority for them in the short term is to increase H's membership numbers.

Which TWO of the following strategies would be feasible for H?

Porter suggests that competitive advantage arises from the implementation of a 'generic strategy'. Which THREE of the following are NOT generic strategies?