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E3 - Strategic Management

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E3 Questions and Answers

Question # 1

Which of the following distinguishes a learning curve effect from a learning Organization?


Learning curve effects depend on repetition of the same behaviour. Learning Organizations seek to modify behaviour.


Learning curve effects apply to the factory. Learning Organizations are always service industries.


Learning curve effects increase with time. Learning Organizations cease to learn after a time.


Learning curve effects always reduce costs. Learning Organizations always increase costs.

Question # 2

QQQ has identified a new strategy which is both Suitable and Feasible However, it will not be Acceptable to some groups of QQQ's stakeholders who have publicly objected to it.

Which THREE of the following statements are correct ways of resolving competing stakeholder objectives, as suggested by Cyert and March?


Negotiate with the key stakeholders to achieve an acceptable compromise.


Conduct research into the causes of the stakeholders' objectives.


Offer to fully address one group of stakeholders' objections now with a promise to meet the other groups' objections in the future


Threaten to close down the business unless the objectors withdraw their opposition


Publish more information about the new strategy including its profit potential.


Exercise the Board of Directors' power and implement the strategy despite the objections.

Question # 3

A has a portfolio of business units. One of A's units has a total market share of 25% and its largest competitor has a market share of 20%. In the last year the overall market of this business unit has declined by 2%, although its revenues have increased by 12%. following a successful marketing campaign.

According to the BCG matrix. A's business unit would be classified as which of the following?




Cash Cow




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CIMA Related Exam in MyExamCollection

The followings list CIMA Related in MyExamCollection, If you have other CIMA certifications you want added please contact us.

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