CIMA CIMAPRA19-E03-1 Free Sample Exam Questions 2026

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Questions & Answers PDF

• Question 1

  

  Which of the following would be likely to encourage an organization to use Scenario Planning? (Choose all that apply.)

  • The organization often experiences 'group-think', leading to a narrow view of the future.
  • Competitor's are increasingly using Scenario Planning as part of their strategy formulation process.
  • The organization has achieved all of its objectives and operates within a stable external environment.
  • The organization has not previously experienced any major surprises or expensive strategic mistakes.
  • Uncertainty in the industry is high, relative to management's ability to predict or adjust to change.

  Reveal Answer Answer: C,E Next Question

• Question 2

  

  Plush is a medium-sized hotel which recently opened on the outskirts of a city which is popular with tourists. It has a sophisticated website which allows customers to pre-book rooms and additional items, such as meals in its restaurant and tickets for popular tourist attractions in the city.Plush has listed its website on a popular hotel price comparison website, which allows customers to compare prices and facilities of hotels in the same area and this has resulted in over 60% of Plush's customer bookings so far.Since listing on the price comparison website, the Sales Manager of Plush has noticed that the prices offered by its nearest competitors have reduced dramatically and their range of special offers have also increased.Which TWO of Porter's Five Forces have been most affected by the use of the price comparison website by the hotels in the same area as Plush? (Choose two.)

  • Competitive rivalry.
  • Threat of substitutes.
  • Bargaining power of suppliers.
  • Threat of new entrants.
  • Bargaining power of customers.

  Reveal Answer Answer: B,E Next Question

• Question 3

  

  Using Earl's 'Three levels of IT strategy' framework, which one of the following activities would occuras part of an Information Systems (IS) strategy?

  • Design of key performance measures for an information system.
  • Employing an IT Director to control the Organization's information system.
  • Selection of the hardware for a new Information system.
  • Evaluation of an SBU's information system to ensure that it continues to meet customer needs.

  Reveal Answer Answer: D Next Question

• Question 4

  

  Which of the following statements would encourage an Organization to use Scenario Planning? Select ALL that apply.

  • Uncertainty in the industry is high, relative to management's ability to predict or adjust to change.
  • Competitor's are increasingly using Scenario Planning as part of their strategy formulation process.
  • The Organization has not previously experienced any major surprises or expensive strategic mistakes.
  • The Organization has achieved all of its objectives and operates within a stable external environment.
  • The Organization often experiences 'group-think', leading to a narrow view of the future.

  Reveal Answer Answer: A, ,B, ,E Next Question

• Question 5

  

  Which of the following is NOT an external driver that leads management to adopt greater sustainability in the activities of its business?

  • Scientific research demonstrating the adverse impacts of global warming.
  • Increased taxation of the emissions and waste created in industry supply chains.
  • Customers' concerns, following widespread adverse publicity, over the very low pay of factory labour in manufacturing.
  • Investor pressure for higher dividends.

  Reveal Answer Answer: D Next Question

• Question 6

  

  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?

  • Evolution
  • Reconstruction
  • Revolution
  • Adaptation

  Reveal Answer Answer: B Next Question

• Question 7

  

  Kaplan and Norton developed a model called the Balanced Scorecard to assist in the formation and achievement of strategic policy. Within this model are four perspectives. Which of the following statements is NOT applicable to a Balanced Scorecard perspective?

  • To succeed financially, how should we appear to our shareholders?
  • To achieve our vision, how should we appear to our customers?
  • To achieve our vision, how will we sustain our ability to change and improve?
  • To achieve our vision, how should we appear to our stakeholders?

  Reveal Answer Answer: D Next Question

• Question 8

  

  Johnson, Scholes and Whittington suggest that Acceptability is an important consideration whenevaluating potential alternative investment strategies. Which of the following statements relate to Acceptability? Select ALL that apply.

  • It considers the current position of the Organization.
  • It considers expected performance outcomes.
  • It considers cultural changes required.
  • It considers the extent to which risk versus return meets expectations of shareholders.
  • Acceptability should be assessed first before feasibility or suitability.

  Reveal Answer Answer: B, ,D Next Question

• Question 9

  

  DD is a medium size company and has decided to appoint a data mining company to collate information from a wide variety of sources and analyse the data into more meaningful information. The Board of DD believes that by using a data mining company to undertake this work, it will add value to its business and help it to remain competitive.Which of the following statements does NOT apply to data mining?

  • Data mining involves looking for new patterns and relationships in the underlying data.
  • Data mining can guide decision-making and predict future behaviour.
  • Data mining uses statistical analysis tools and other intelligent techniques.
  • The goal of data mining is the extraction of data.

  Reveal Answer Answer: D Next Question

• Question 10

  

  MMM is a large national bank. MMM has developed a vision statement which states that it aims to:Provide superior returns to our shareholdersOffer customers the best financial products on the marketContinuously train and develop our staffContinually improve our business processes by utilising the latest information technologyWhich of the following would be an appropriate performance measure within a Balanced Scorecard for MMM?

  • Reduction in staff numbers to increase profit levels.
  • Undertake customer satisfaction surveys.
  • Number of training days per member of staff.
  • Ensure that all IT equipment used is not more than two years old.

  Reveal Answer Answer: C Next Question

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