CIMA E2 Exam (page: 7)
CIMA Managing Performance
Updated on: 09-Feb-2026

Viewing Page 7 of 43

Michael Porter identified four determinants of national competitive advantage, one of which is Factor conditions.

A company has the following 4 factor conditions. According to Porter, which will give the company a sustainable competetive advantage?

  1. Unskilled labour
  2. Raw materials
  3. R & D experience
  4. Initial capital availability

Answer(s): C



Projects carried out using the PRINCE2 methodology are always set out in a series of distinct and sequential stages.
Which of the following is NOT a valid reason for a planned break between stages?

  1. The project team is required to break and regroup ready for the next package of work.
  2. The project board can make a decision as to whether the project business case is still viable.
  3. The progress of the project can be reviewed to ensure this justifies the continuation of the project.
  4. Risks to the project can be reassessed before further commitments of money or resources.

Answer(s): A



FF Ltd was established three years ago. Since then the company, which provides online financial advice, has experienced rapid growth and the management team has not really had the time to put management systems and procedures into place.

The organisation has asked you to look at the way in which the company deals with its disciplinary problems and procedures.

Choose from the following ALL that apply as recommended guidelines for drawing up a disciplinary procedure:

  1. Procedures should be written down to avoid misunderstandings.
  2. Staff should be provided with a copy of the procedures and relevant sections of the policy made clear.
  3. Discipline is all about punishment and it should state this in the policy document.
  4. Disciplinary procedures should consist of having informal chats outside of the organisation.
  5. Steps should be detailed to investigate complaints that might lead to legal action.
  6. Appeals procedures should be given as and when required as a last resort.

Answer(s): A,B,E



X Company's Board of Directors uses its expertise to develop future strategies. The Board defines objectives that need to be achieved and then, through formal proactive planning and careful analysis, it selects the most appropriate means to achieve them.

Which method of strategy formulation is the Board using?

  1. Emergent
  2. Rational
  3. Opportunism
  4. Resource-based

Answer(s): B



In the model of the organisational iceberg, which of the following is NOT one of the hidden elements?

  1. Communication pattern
  2. Feelings
  3. Style
  4. Structure

Answer(s): D



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