CIMA E3 Exam (page: 5)
CIMA E3 Strategic Management
Updated on: 24-Mar-2026

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Company PP is a large UK retail company.

In the past it has focused primarily on using financial performance measures. However, PP then realised that this was leading to short-term decision-making on investment in easily valued assets and under investment in assets such as employee skills and customer satisfaction, where short-term returns are more difficult to measure.

It has therefore adopted the Balanced Scorecard approach. PP is now considering enhancing it's approach by using Kaplan and Norton's Strategic Mapping model, as this will enable it to establish its priorities and manage stakeholder expectations.

Which of the following statements would be regarded as improvements by using Strategic Mapping.

Select ALL that apply.

  1. It will help to identify and prioritise how external processes would support PP's strategies.
  2. It will help PP establish the overriding objective of theOrganization.
  3. It will help PP to identify and clarify customer-orientated strategies that support the overall business strategy.
  4. It will help inform which strategies, in each of the Balanced Scorecard perspectives, support improved performance.
  5. It will help PP to evaluate the operational and financial performance of the business.

Answer(s): B,C,D



'Change-adept'Organizations are those that manage change successfully. Moss-Kanter identified skills required byOrganizational leaders which are necessary to lead 'change- adept'Organizations.

YourOrganizationis undergoing significant change and the appointment of a new CEO is imminent. You have been asked to recommend the key skills for assessing the shortlist of CEO candidates against.

Which of the following statements are suitable for use as the selection criteria for the new CEO, consistent with the ideas expressed by Moss-Kanter?

Select ALL that apply.

  1. Able to communicate a compelling aspiration.
  2. Able to take heroic action.
  3. Able to challenge the prevailingOrganizational wisdom.
  4. Able to break up coalitions.
  5. Able to tune into the environment.

Answer(s): A,C,E



Which THREE statements about scenario planning are correct?

  1. It tells management what will happen so they are able to plan for it.
  2. It tells management what needs to be done to make theOrganizationsuccessful in the future.
  3. It encourages creative thinking by the participants.
  4. It alerts management to the possibility of fundamental change in the environment.
  5. It encourages management to communicate their personal knowledge of trends.

Answer(s): C,D,E



DRAG DROP (Drag and Drop is not supported)

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?

  1. See Explanation section for answer.

Answer(s): A

Explanation:



In order to implement a knowledge management strategy, anOrganizationmust acquire suitable hardware and software so that knowledge can be stored and communicated.

Which of the following would be appropriate systems to use in a knowledge management strategy?

Select ALL that apply.

  1. Local area network
  2. Groupware
  3. Intranet
  4. Internet
  5. Ledgers and journals
  6. Social media

Answer(s): A,B,C



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