Question No. 1

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.)

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

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

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

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

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

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Correct Answer: B, D

Question No. 2

VW is a Non-Governmental Organisation (NGO) based in Country A, a mature economy. VWs mission is to provide food, agricultural tools and seeds, and low cost housing to the villagers in Country G: a deprived country that is suffenng from the effects of civil war.

VW cannot change its mission nor adopt any strategies that would be incompatible with that mission.

WV depends on funding from the Government of Country A, donations from private organisations, and donations from the general public However, these donations have fallen considerably in recent years due to the environmental factors listed below.

Which THREE of the environmental factors should VW develop strategies to address?

AThe appointment of a leader in Country G who is known to be hostile to Country A.

BA global banking crisis that has caused a recession and unemployment in WVs home country

CResentment in Country A of the tactics used by the professional fund raisers employed by NGOs.

DMedia reports that donations to NGOs are being spent on the wrong things.

EA new government in WVs home country that has limited knowledge of its work

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Correct Answer: B, D, E

Question No. 3

Communication is a critical element of the Organizational change process. Communicating the change vision is a component of Kotter's eight steps to transforming Organizations.

Which of the following statements support Kotter's component 'Communicate the change vision'?

Select ALL that apply.

AEnsure the change message and vision are memorable and repeatable.

BOne-way communication is more powerful than two-way communication.

CStorytelling and symbolic actions are unnecessary.

DUnaddressed inconsistencies undermine the credibility of strategic communications.

EFace-to-face communications improve clarity of message.

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Correct Answer: A, D, E

Question No. 4

Which THREE statements about scenario planning are correct?

AIt tells management what will happen so they are able to plan for it.

BIt tells management what needs to be done to make the Organization successful in the future.

CIt encourages creative thinking by the participants.

DIt alerts management to the possibility of fundamental change in the environment.

EIt encourages management to communicate their personal knowledge of trends.

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Correct Answer: C, D, E

Question No. 5

MMM is a large national bank. MMM has developed a vision statement which states that it aims to:

* Provide superior returns to our shareholders

* Offer customers the best financial products on the market

* Continuously train and develop our staff

* Continually improve our business processes by utilising the latest information technology

Which of the following would be an appropriate performance measure within a Balanced Scorecard for MMM?

AReduction in staff numbers to increase profit levels.

BUndertake customer satisfaction surveys.

CNumber of training days per member of staff.

DEnsure that all IT equipment used is not more than two years old.

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Correct Answer: C

Free CIMA CIMAPRA19-E03-1 Exam Actual Questions

The questions for CIMAPRA19-E03-1 were last updated On Jan 19, 2025