Cima E3 Exam Question No 41

Question No 41:

What is role culture?

• Formal rules and procedures
• Formal structure with clear responsibilities for each individual
• People act in accordance with rules and requirements of their position This bureaucratic approach is often found in large public organisations or functionally structured organisations.

Cima E3 Exam Question No 40

Question No 40:

Michael Porter's competitive generic strategies Broad Target / Differentiation?
Differentiation
Offering a product or service with certain characteristics or features that are unique and distinct relative to the competition.

Cima E3 Exam Question No 39

Question No 39:

Michael Porter's competitive generic strategies Broad Target / Low cost

Cost Leadership
Offering a product or service at the lowest price due to having the lowest cost per unit in the industry.

Cima E3 Exam Question No 38

Question No 38:

Michael Porter's competitive generic strategies dmensions?

Competitive Scope / Competitive advantage

Cima E3 Exam Question No 37

Question No 37:

Corporate appraisal (SWOT analysis) the TOWS approach?

• SO Strategies e.g. match core competences or Strengths to Opportunities
• ST Strategies e.g. use Strengths to avoid Threats
• WO strategies e.g. take advantage of Opportunities by addressing Weaknesses
• WT strategies e.g. minimise Weaknesses and avoid Threats

Cima E3 Exam Question No 36

Question No 36:

Definition of the corporate appraisal (SWOT analysis)?

A corporate appraisal is a 'critical assessment of the strengths and weaknesses, opportunities and threats (SWOT analysis) in relation to the internal and environmental factors affecting an entity in order to establish its condition prior to the preparation of the long-term plan.' (CIMA)

Cima E3 Exam Question No 35

Question No 35:



Definition of the concept of foresight?

 Foresight has been described as the art and science of anticipating the future and planning prudently for it.

• Think tanks
• The Delphi model
• Scenario planning
• Brainstorming
• Visioning
• Morphological analysis   

Cima E3 Exam Question No 34

Question No 34:

What is the scenario planning process?

• Develop scenarios e.g. examine environment, key trends and uncertainties.
• Develop strategies to match each scenario.
• Identify core competences that are required for each scenario.
• Use of strategies developed if key trends and uncertainties turn out to be true.

Cima E3 Exam Question No 33

Question No 33:

Definition of scenario planning?
A strategic planning method for the preparation of flexible long-term plans. Scenario
planning involves testing business strategies against 'alternative futures' in an attempt to
build plausible views, when operating in conditions of high uncertainty.

Cima E3 Exam Question No 32

Question No 32:

What is Gap analysis process?

1. Set long-term strategic objectives
2. Forecast likely performance given its current state of affairs
3. Current forecasts are frequently updated
4. Periodically compare revised performance to target performance and identify measurable gaps.
5. Further strategic development required when a 'gap' exists

Cima E3 Exam Question No 31

Question No 31:

Definition of Gap analysis?

Gap analysis is a long range and quantifiable planning technique

• Where the organisation is now
• Where the organisation will be
• Where the organisation wants to be

Cima E3 Exam Question No 30

Question No 30:

Business process re-engineering (BPR) The stages in a BPR exercise?

1. Identify processes to be re-engineered
2. Understand, break down and analyse the process
3. Identify 'change levers'
4. Rationalise or eliminate process
5. Redesign process to operate in the most cost effective and efficient way
6. Reassemble, implement and manage change
7. Monitor and review

Cima E3 Exam Question No 29:

Question No 29:

Defination of Business process re-engineering (BPR)?

Hammer & Champy (1993) defined the process of reengineering as the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed.

Cima E3 Exam Question No 28

Question No 28:

Bench marking Process?

The process

• Selecting what you want to benchmark
• Consider benefits against the cost of doing it
• Assign responsibilities to a team
• Identify potential partners/known leaders
• Breakdown processes to complete
• Test and measure e.g. observation, experimentation or investigation/interview
• Gather information
• Gap analysis
• Implement changes/programmer/communicate
• Monitor and control
• Repeat regularly   

Cima E3 Exam Question No 27

Question No 27:

 How many Types of benchmarking?

• Internal
• Best practice or functional
• Competitive
• Strategic

Cima E3 Exam Question No 26

Question No 26:

What is Bench marking Definition?

A continuous, systematic process for evaluating the products, services and work processes of an organization that are recognized as representing best practice, for the purpose of organizational improvement.

Cima E3 Exam Question No 25

Question No 25:

What is Position audit?

A position audit is a systematic assessment of the current strengths and weaknesses
of an organization and is a prerequisite for strategic planning and implementation.

• Resources
• Products, brands and markets
• Operating systems
• Internal organization
• Current Results
• Returns to equity and debt holders

Cima E3 Exam Question No 24

Question No 24:

What is PEST - Political Risk Examples of political risk within Countries?

• Outbreak of national war, civil war, unrest or riot.
• Nationalization of industries
• Enforcement of international trade barriers
• New regulations or legislation introduced
• Restrictions on dividends or expropriation of assets out of a country.
• Political instability

Cima E3 Exam Question No 23

Question No 23:

What is Game theory?

A branch of applied mathematics that can be used in social sciences, in particular it can be applied to the theory of competition in terms of gains and losses amongst opposing rivals. A mathematical framework is used for analyzing different choices that rational players can make, when their pay-off depends on the combination of their choices, as well as all other players choices.

Cima E3 Exam Question No 22

Question No 22:

What is Key performance indicators KPIs (performance measures)?

Key performance indicators KPIs (performance measures) Objectives which have metastability and time scale.

Cima E3 Exam Question No 21

Question No 21:

What is Objectives?

A measurable goal with a clearly defined timescale to achieve it.
Objectives should 'SMART' (specific, measurable, agreed, realistic and time bound.

Cima E3 Exam Question No 20

Question No 20:

What is Critical success factors (CSFs)?

Key organizational goals that if achieved will make the organization more successful.

Cima E3 Exam Question No 19

Question No 19:

What is Mission statements Definition?

A mission statement describes in writing the basic purpose of an organization and what it is trying to accomplish. A mission statement is a brief description of an organizations fundamental purpose.

Cima E3 Exam Question No 18

Question No 18:

Mendelow's stakeholder mapping model Definition?

Mendelows matrix is a way of prioritizing stakeholders by 'subjective' mapping of them, in order to understand and resolve any issues or conflicts that may exist. This model priorities by mapping which stakeholders should more likely considered and therefore 'satisfied' by the organization.
· Power e.g. bargaining power, right or ability to exert influence over the organizations strategic aims and the general way it conducts itself.
· Interest e.g. interest in the activities or conduct of the organization for varied reasons.

Cima E3 Exam Question No 17

Question No 17:

What are the Comparing and contrasting RBV to the Positioning Approach Differences?

Resource Based View (RBV)
 · Resource based approach
· Inside out e.g. key internal resources for achieving success.
· Organization focuses on what it does best e.g. 'stick to knitting'.
· Emphasis on internal appraisal e.g. unique assets or core competences.
· Higher cost and time to exploit but long-term advantage.
Differences
 · Market based approach
· Outside in e.g. best external opportunities to exploit.
· Organization focuses on diversity and innovation.
· Emphasis on external environment e.g. competition and customers
· Less costly to exploit but short term advantage gained.

Cima E3 Exam Question No 16:

Question No 16:

What is Comparing and contrasting RBV to the Positioning Approach Similarities?

· Both ideas stem from the rational planning process.
· Both can use centralised (rational planning) or decentralised (emergent)
approaches.
· Both aim to achieve competitive advantage e.g. ways to compete with rivals.   

Cima E3 Exam Question No 15

Question No 15:

Comparing and contrasting RBV to the Positioning Approach Similarities?

. Both ideas stem from the rational planning process.
· Both can use centralised (rational planning) or decentralised (emergent)
approaches.
· Both aim to achieve competitive advantage e.g. ways to compete with rivals.

Cima E3 Exam Question No 14

Question No 14:

What are the Emergent strategies Disadvantages?

• Chaotic organisation that lacks
• control over planning
• Lack of long-term direction.
• Organisation too reactive,
• 'muddling through'
• Requires entrepreneurial skills
• from staff which may not exist

Cima E3 Exam Question No 13

Question No 13:

What is the Emergent strategies Advantages?

• · Quicker change or repositioning for the organisation e.g. lower strategic levels 'closer to the customer'
• · Tactical and operational levels an extensive source of innovative ideas
• · Greater motivation to other strategic levels
• · Supports culture of flexibility, learning and enterprise  

Cima E3 Exam Question No 12

Question No 12:

What is the Emergent strategies Definition?

Henry Minzberg, described emergent strategies as 'patterns or consistencies realised
despite or in the absence of conscious intention by senior management'.
Strategy emerges and is 'unanticipated'.
Informal and bottom-up (decentralised approach) allowing strategic courses of action to
be developed from both tactical and operational levels within the organisation.

Cima E3 Exam Question No 11

Question No 11:

What are The entrepreneurial model (or freewheeling opportunism) Disadvantages?

• Organisation too reactive, 'muddling through'
• Not suitable for transformational or radical change
• Lack of long-term direction.
• Relies heavily of the judgement and experience of the founder e.g. one single individual

Cima E3 Exam Question No 10

Question No 10:

What are the The entrepreneurial model (or freewheeling opportunism) Advantages?

Answer:

* Focus on exploiting product and market opportunities e.g. 'never miss a good opportunity'
* Less time consuming and complicated
* Greater frequency of planning to adjust plans to environmental change
* Better for uncertainty or rapidly changing environments

Cima E3 Exam Question No 9

Question No 9:

What is The entrepreneurial model (or freewheeling opportunism) Definition?

Henry Mintzberg referred to 'freewheeling opportunism' as an opportunistic strategy,
dominated by the search for new opportunities, with bold and often high risk decisions that
need to be made by the entrepreneur him or herself.
Freewheeling opportunism is a top-down (centralised), informal and short-term approach
to strategic planning.

Cima E3 Exam Question No 8

Question No 8:

What is Incremental planning approaches (logical incrementalism) Disadvantages?

Too reactive, 'muddling through'
Not suitable for transformational or radical change
Lack of long-term direction e.g. 'strategic drift' may occur

Cima E3 Exam Question No 7

Question No 7:

Incremental planning approaches (logical incrementalism) Advantages?

1. Less complex and long winded
2. Better for uncertainty or rapidly changing environments
3. More frequent gradual adjustment e.g. easier to control and manage
4. Greater frequency of planning to adjust plans to environmental change

Cima E3 Exam Question No 6

Question No 6:

What is The rational planning process Disadvantages?

Rational planning can be too rigid and bureaucratic e.g. no use for the small business
Rational planning can stifle innovation e.g. locked into plans
No use for dynamic or uncertain environments e.g. plans quickly become 'out of date'

Cima E3 Exam Question No 5

Question No 5:

What is The rational planning process Advantages?

For transformational or radical change
Copes with the uncertainfuture by providing longterm plans
Helps integrate and coordinate complex organisations

Cima E3 Exam Question No 4

Question No 4:

What is Arguments in favour of a strategic approach?

Answer:

* Strategy helps minimise risk
* Avoids short-term behaviour
* Improves stakeholder perceptions
* Encourages environmental analysis e.g. critical to react to change
* Evidence indicates performance can be improved using strategic approaches
* Integration and coordination of activities and processes

Cima E3 Exam Question No 3

Question No 3:

The rational planning process Advantages?

Answer:

For transformational or radical change
Copes with the uncertainfuture by providing longterm plans
Helps integrate and coordinate complex organisations

Cima E3 Exam Question No 2

Question No 2:

What are the Arguments in favour of a strategic approach?

1. Strategy helps minimise risk
2. Avoids short-term behaviour
3. Improves stakeholder perceptions
4. Encourages environmental analysis e.g. critical to react to change
5. Evidence indicates performance can be improved using strategic approaches
6. Integration and coordination of activities and processes

Cima E3 Exam Question No 1

Question No 1:

What is strategy?

Answer:

"A course of action, including the specification of resources required, to achieve a specific objective."