Expert Answers to CIMA Exam E3 Questions

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CIMA Strategic E3 Strategic Management

E3 Strategic Management

Last Update Feb 1, 2026
Total Questions : 280

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Questions 2

You have been given responsibility, as a newly qualified management accountant, for delivering an ambitious project to centralize and computerize the accounts function within a medium-sized, geographically dispersed business. The timetable also requires the project to be delivered within a very short timescale with limited resources. You have built a team to deal with these proposed changes.

With regard to effective teams and change, which THREE of the following statements are correct? (Choose three.)

Options:

Teams that cross departmental boundaries can destroy shared values.

Teams play minor roles in institutional change.

Individuals must become more than they were when working alone and must develop new commitments and behaviors.

Teams should continue after their purpose has been served.

Teams that cross departmental boundaries can develop new performance criteria.

Teams enhance learning and address change directly through creating recommendations and new ideas.

Discussion 0

Questions 3

Company CCC is an automotive component manufacturer. It manufactures three main products within its portfolio:

Product 1: Relative market share of 0.1; Market growth rate of -2%

Product 2: Relative market share of 4.0; Market growth rate of +3%

Product 3: Relative market share of 0.3; Market growth rate of +15%

Which TWO of the following statements are CORRECT? (Choose two.)

Options:

Product 2 is likely to be at the mature stage of its life cycle, is likely to benefit from significant economies of scale.

Product 3 is likely to be at the growth stage of its life cycle, at high risk of failure and further investment should be considered.

Product 1 is likely to be at the mature stage of its life cycle, operating in a contracting market and is fairly cash neutral.

Product 2 is likely to be at the growth stage of its life cycle, have weak profitability, poor cash generation and high capital requirements.

Product 1 islikely to be at the mature stage of its life cycle, have strong profitability and further investment should be considered.

Discussion 0

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Questions 4

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

Options:

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.

Discussion 0

Questions 5

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?

Options:

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.

Discussion 0

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2026-01-28