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Total 84 questions
Exam Code: E3                Update: Oct 15, 2025
Exam Name: E3 Strategic Management

CIMA E3 Strategic Management E3 Exam Dumps: Updated Questions & Answers (October 2025)

Question # 1

Your manager is undertaking a strategic review of XYZ's 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.

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

B.

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

C.

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

D.

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

Question # 2

The Board of a supermarket chain has decided that to compete more effectively against its competitors, it needs to change its strategy and pursue a differentiation-focus strategy. The Board's aim is to pursue differentiation to attract customers who have a higher disposable income and want to buy luxury food and other goods.

 

Which statements are valid for this differentiation-focus strategy? 

 

Select ALL that apply.

A.

Using this strategy, the company will have the opportunity to promote goods that have previously underperformed.

B.

Brand loyalty underpinning this strategy may fail if the cost differential between the price the company charges and that charged by its other competitors is too great.

C.

The company will have to ensure that the food and other goods it supplies are of the best quality.

D.

In a differentiation-focus strategy, there is no need to exploit other activities in the value chain if they are not visible to the customer.

E.

If this strategy is adopted, the company should aim to offer better value than its competitors.

Question # 3

Company MM is wanting to build an out of town shopping complex. This will be located near a busy road which is surrounded by housing estates. MM has yet to obtain planning permission. It recognizes that unless it takes action, the local residents will object to MM's plans. As the Publicity Manager you have been asked to take over responsibility for Stakeholder Management.

Which of the following Stakeholder Management statements is NOT correct?

A.

Organizations will have a variety of stakeholders each with differing attitudes to risk which can cause conflict.

B.

Pressure groups have an interest in matters of public policy, but do not want to control the workings of government.

C.

Stakeholder management is made more complicated for an Organization when individuals belong to more than one stakeholder group.

D.

In measuring the satisfaction of stakeholder interests, Organizations should only focus on quantitative matters.

Question # 4

Which of the following categorizations would be correct, according to McFarlan's Strategic Grid, for a system which is critical to sustaining existing business but its future strategic importance is considered to be low?

A.

Turnaround

B.

Support

C.

Strategic

D.

Factory

Question # 5

A leading supermarket chain is undertaking environmental scanning as it is concerned that it is becoming uncompetitive and profits have started to fall. The Board is concerned that when the next Annual General Meeting is held, it will need to have a viable strategy to present to its shareholders, in order to prevent shareholders' protests.

  

In the past the company has been reluctant  to offer an Internet shopping service. However, it now believes that by offering this service and also introducing customer relationship marketing (CRM) this will produce a strategy that will help it to improve its competitiveness.

 

Which of the following statements apply to CRM?

 

Select ALL that apply.

A.

CRM utilises marketing resources to retain, rather than simply attract new customers.

B.

The company must be prepared to take customers' needs into account and be able to meet these needs.

C.

In mature markets, existing customers provide the most likely source of future earnings. 

D.

CRM is about marketing to customers to obtain their loyalty, so customer research is not needed. 

E.

The CRM process needs to include increasing the range of products that will be offered to customers. 

Question # 6

You work as a Management Accountant for GHJ, a company that includes commitments to 'sustainability' in its mission statement.

Which THREE of the following are contributions that you, as Management Accountant, could make towards the achievement of this part of the company's mission statement? (Choose three.)

A.

Project evaluations that include the externalities as well as the cash costs.

B.

Providing financial information with all non-recurring expenditures and incomes removed.

C.

Ensuring the organization adopts the lowest cost technologies and suppliers.

D.

Integrated reporting of the triple bottom line of Profits, People and Planet.

E.

Measures of organization's use of non-renewable resources and environmental emissions.

Question # 7

XYZ is a manufacturer of garden tools.  It has defined 'Excellence of Manufacture' as a Critical Success Factor. Which THREE of the following would be appropriate to use as Key Performance Indicators in respect of this Critical Success Factor?.

A.

% of raw materials input which is scrapped.

B.

Tonnage of raw materials usage.

C.

Raw materials identified as essential.

D.

Number of finished products rejected at final inspection.

E.

Average age of products.

F.

Amount of money budgeted for production process improvements.

Question # 8

The future can be viewed as consisting of a large number of alternatives. Forecasting techniques have been designed to assist decision-making and planning.

 

Which TWO of the following statements are correct regarding the use of trend analysis as a forecasting tool?

A.

Suitable for mature and stable products / services / companies. 

B.

Suitable for young and dynamic products / services / companies.

C.

Useful where the external environment is always stable.

D.

Useful where the external environment is always changing.

E.

Useful where comparatives are not available.

Question # 9

Collaborative leadership is particularly useful in situations where "no one is in charge", where the issues or problems are so complex that no one person or entity has either the information or the power to change.

Which of the following would facilitate the role of a collaborative leader effectively?

Place 'Yes' or 'No' next to each Role.

Question # 10

An organisation which exists in a fast-changing industry with managers who dislike formal planning would be best suited to using which of the following strategy models?

A.

Rational model

B.

Logical incrementalism

C.

Freewheeling opportunism

D.

Emergent approach

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Total 84 questions

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