CIMAPRO15-E03-X1-ENG Online Practice Questions and Answers

DRAG DROP

In order to organize the value-adding activities to support a chosen strategy, Porter's Generic Strategies are often applied within an organization's value chain.

Against each of the activities listed below, select the Generic Strategy which best defines the strategic approach being taken.

Select and Place:

Z is a medium-sized UK based accounting practice. Z operates a graduate training scheme. The trainees are given an induction and then placed on a three-year training programme designed to help develop professional skills and experience.

The training programme has been in existence for many years. However, there is no clear consensus amongst the partners of Z about what the trainees should be able to do on completion of the programme and therefore what the training

programme should emphasize. This lack of clarity is affecting the morale and commitment of the trainees and significant numbers are failing the programme or leaving to join a rival firm.

Z's HR Department recognizes the need for committed and well motivated accountants to meet the increased expectations of clients and the competition from rival firms. The HR Department has identified changes to the training programme that can be implemented gradually through a series of initiatives.

Which TWO of the following statements regarding the change required in Z are correct? (Choose two.)

A. Understanding which day-to-day behaviors to reinforce within the training programme, is about 'routines and rituals' according to the Cultural Web.

B. The change would be classified as a 'revolutionary change' according to Balogum and Hope Hailey.

C. The need to manage the competitive position is an example of an 'external direct trigger' for change.

D. The plans to combat competition would be considered as a 'structure' factor according to the McKinsey 7 S model.

E. The skills, abilities and competences of the organization's employee's are a 'hard' factor according to the McKinsey 7 S model.

A is a private healthcare organization aiming to provide affordable and accessible high quality patient services. A is introducing Big Data, which has not yet been adopted by the competition. A's database will store a huge amount of information about its patients. Clear access to wide sources of accurate information will enable patients to make more informed choices. Patients will be able to compare not only the prices of drugs, treatments and physicians but also their relative effectiveness.

Which of the following concerns should A have about its use of Big Data?

A. Lack of competitive advantage

B. Veracity of information

C. Variety of information

D. Privacy issues

TUV had an employee turnover rate of 25% among new recruits and was becoming short of skilled workers. The Board of TUV realized there was something dramatically wrong and called in consultants to assess the problem. The consultants recommended transformational change in that TUV should redesign the entire production system, change the placement of all equipment and the flow of work, redefine every job and give all workers new assignments.

Which type of change did the consultants recommend for TUV?

A. Evolution

B. Reconstruction

C. Revolution

D. Adaptation

Ansoff has provided a product/market growth matrix which denotes possible strategic directions that an organization can follow.

Which of the following statements correctly describe the strategic options generated by the matrix? (Choose all that apply.)

A. Diversification using new products in new markets.

B. Product development using new products in new markets.

C. Market development using existing products in new markets.

D. Market penetration using existing products within existing markets.

E. Market penetration using existing products in new markets.

F. Market penetration using new products within existing markets.

A direct external change trigger is:

A. A general increase in the use of the Internet by society.

B. An economic recession in an organization's home country.

C. A powerful competitor forcing an organization to cut its prices.

D. The introduction of new environmental protection policies by the government.

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.)

A. To be responsible for keeping all external stakeholders satisfied.

B. To have regard for the interests of the company's employees.

C. To focus only on maximizing company profits.

D. To consider the likely consequences of any decision in the long term.

E. To avoid conflicts of interest and of duties.

Which TWO of the following are advantages to an organization of using non-financial performance measures, rather than financial performance measures? (Choose two.)

A. They are less expensive to measure than financial performance measures.

B. They present a wider view of organizational performance than financial performance measures.

C. They are less subjective than financial performance measures.

D. They are not distorted by inflation.

E. They are easier to measure than financial performance measures.

An organization must acquire suitable hardware and software in order to implement a knowledge management strategy so that knowledge can be stored and communicated.

Which of the following would be appropriate systems to use in a knowledge management strategy? (Choose all that apply.)

A. Intranet

B. Local area network

C. Social media

D. Ledgers and journals

E. Internet

F. Groupware

RST is a company specializing in the production of wood-based products. RST has decided to introduce a fully integrated Information System across all divisions in order to improve knowledge sharing throughout the business and enhance customer relationship management.

RST is expecting resistance to the integrated Information System from it's staff who are key to the business and would be difficult to replace. Staff have a good understanding of why the new system and knowledge sharing is needed and how the system will work but many staff are not happy about the potential changes to their working conditions.

Which of the following change leadership styles, as outlined by Kotter and Schlesinger, would be most appropriate for RST to adopt?

A. Education

B. Coercion

C. Manipulation

D. Negotiation