Free Access CIMA.E3.v2022-02-23.q138 Practice Test (Page 20)

Question 91

DF Company is undertaking a strategic review of its activities and has asked you to explain how a Force Field analysis would assist in the review process.
Which of the following statements would be most appropriate?

A.Identify influential senior managers who will drive through changes in DF's strategic direction.

B.Identify forces facing DF's activities that may create barriers and resistance to change.

C.Provide a framework for identifying forces for and against the proposed changes within DF.

D.As part of DF's strategic review, identify forces facilitating the need for proposed change.

Question 92

EF manufactures and sells cars in Country X.
Which of the following would improve its profitability?

A.Adoption of free trade principles by the government of Country X, resulting in the removal of tariffs on imported cars.

B.An increase in the sales tax levied by the government of Country X on the sale of new cars.

C.Introduction of legislation in Country X requiring improvements to the pay and conditions of the workers in car factories.

D.Withdrawal of one of EF's major competitors from selling cars to motorists in Country X.

Question 93

Porter suggests that competitive advantage can be attained by organising value-adding activities in support of the generic strategies which he identified.
Place the appropriate generic strategy against each of the value-adding activities.

Question 94

Directors have a duly lo 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?

A.To avoid conflicts of interest and of duties

B.To focus only on maximising company profits.

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

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

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

Question 95

Which TWO of the following are advantages to an organisation of using non-financial performance measures rather than financial performance measures?

A.They are not distorted by inflation.

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

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

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

E.They are less subjective than financial performance measures.

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Question 93

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Question 95

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