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CIMA E3 Dumps

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E3 Strategic Management
Last Update: Apr 9, 2024
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E3 Strategic Management Practice Questions

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For the CIMA E3 Exam, essential strategic management concepts include strategic analysis, choice, and implementation, understanding business ecosystems, innovation and change management, global strategy development, and the application of strategic models and frameworks in various business contexts.

Understanding global business environments is crucial in the E3 Exam, as it tests the ability to adapt strategic management concepts to diverse, international contexts. It involves analyzing global market trends, cross-cultural management, and the impact of globalization on strategic decision-making.

The CIMA E3 Exam requires a proficient level of expertise in risk management, encompassing the identification, assessment, and mitigation of business risks. It also tests the ability to integrate risk management into strategic planning and decision-making processes.

The E3 Exam integrates ethical considerations into strategic management principles by assessing how ethical decision-making and corporate social responsibility are incorporated into strategy formulation and execution. It evaluates the understanding of ethical implications in various business scenarios and strategic choices.

After passing the CIMA E3 Exam, recommended steps for professional development include pursuing higher-level CIMA qualifications, specializing in areas like financial strategy or global business, engaging in continuous professional education, and gaining practical experience in strategic roles within diverse business environments.

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E3 Strategic Management Questions and Answers

Questions 1

AAA is a car manufacturer which has undertaken a strategy to lobby a regional authority to include Its flagship hybrid model in a regional initiative to grant low-emission cars access to faster moving vehicle lanes. These faster vehicle lanes were historically only available to cars carrying passengers. Given the benefits of AAA's low emission vehicles, AAA's cars were authorised to make use of the faster lanes, even when no passengers were on board providing AAA with a decisive competitive edge.

Which of the following strategies is AAA pursuing?



An environmental strategy.


A sustainability strategy.


A non-market strategy.


A market strategy

Questions 2

STU is a hospital that is wholly funded by its national government. In the last five years it has seen its funding cut by over 30% due to budgetary pressure on the government, caused by a global recession. As a result, the senior management team of STU has had to make some very difficult decisions about prioritizing how it spends the funds it receives from the government. Its main strategies have been to reduce the number of administration staff and nursing staff by 20%, in order to reduce its costs. It has also stopped providing a number of services to patients, including its counselling services and its physiotherapy unit.

Which of the following strategies has STU adopted to manage its reduced funding? (Choose all that apply.)












Questions 3

P owns an internet-based business, called GWiz. based in Country G. GWiz sells gifts, cards and flowers for a variety of occasions including birthdays, weddings and many other special events. P sources her products from a variety of partner suppliers located throughout country G. Customers' orders are delivered by third party couriers across the whole country. The GWiz website is hosted and managed by an IT specialist

P is a member of a local small business trade federation and has been asked to make a presentation to its members on her experience of running GWiz as a 'virtual organisation'.

Which of the following statements could P correctly make on the benefits of virtual organisations?

Select ALL that apply.



The quality of the products and services offered by the partner suppliers is always guaranteed and easy to control.


Using partner suppliers who also supply products and services to competitors will help to increase the competitive advantage of the virtual organisation.


The costs of operating a virtual organisation are relatively low as there is no need to operate from large premises or employ its own staff.


A virtual organisation can look much larger than it actually is through the use of a range of partner suppliers and third party couriers.


Using the internet facilitates the assembly of the components that are needed to operate a virtual organisation.

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