Free CIMA CIMAPRA19-E03-1-ENG Exam Questions

Question 1

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.

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

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

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

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

E : ing the internet facilitates the assembly of the components that are needed to operate a virtual organisation.

Answer: A,C,D

Question 2

PPP uses the Boston Consulting Group Matrix (BCG Matrix) to prioritise products for investment and divestment. PPP invests or divests according to the quadrant of the BCG Matrix that the product occupies.
Which TWO of the following quadrants might receive only as much investment as required to maintain PPP's relative market share?

A : ars

B : estion marks

C : gs

D : h cows

Answer: A,D

Question 3

NNN is a logistics firm that contracts with online retailers (clients) to deliver parcels containingcustomers'purchases, to customers'home addresses. NNNholds inventory of the most frequently ordered products at its warehouses.
According to industry research, most clients require the contractors to deliver the customers their purchases soon after they place their order. They are not concerned with the environmental impact of the logistics process. They require very competitive delivery prices from their contractors.
Customer research reveals that households dislike being asked to stay at home for an entire day because logistics firms are unwilling to commit themselves to a precise delivery time. This problem has led to a small number of cases of customers arriving at the warehouses of logistics firms demanding to take their purchases away with them. Most households do not consider the environmental policies or performance of the firms they buy from.
The logistics industry is very competitive and NNN wants to protect its existing contracts and to win more. It needs to focus its resources on the 'things that must go right' in order for it to succeed.
Which THREE of the following are Critical Success Factors (CSFs) for NNN?

A : iness processes that deliver to households at the promised time + or - 15 minutes.

B : horter average time between receipt of an instruction from its client and delivery to the customer.

C : rehouses in areas of lowest feasible operating cost.

D : car park and waiting room for customers at each warehouse.

E : comprehensive policy on emissions and Corporate Social Responsibility (CSR).

Answer: B,C,D

Question 4

JJJ is a publically quoted advertising agency. JJJ's competitive advantage is based on the expertise of its staff and its reputation in digital media advertising. JJJ has robust systems to protect its intellectual property. These include patents and copyrights. JJJ has also restricted access for most of its staff to its most sensitive data, such as studies of its customers' profitability.
JJJ's new Managing Director, Z, is concerned that when staff leave JJJ, the company loses whatever tacit knowledge they possess. These losses also impact on JJJ's reported profits. In order to remedy the losses of knowledge and the reduced profits Z wants to introduce a knowledge management strategy.
Which of the following steps support the introduction of a knowledge management strategy? (Choose all that apply.)

A : hould set a target for reported profit.

B : J needs to acquire and install appropriate hardware and software.

C : J should unfreeze current habits and standard operating procedures.

D : J should convince staff of the benefits of sharing their tacit knowledge.

E : hould gain the support of the Board of Directors.

F : J should integrate knowledge management and management accounting.

Answer: A,D

Question 5

Company LL is a well established, reputable company whichspecialises in providing insurance call centre services to the insurance industry. It has recently won a large contract to provide its services to a multi-national insurer. LL's staff are highly trained in insurance matters and manyhave worked for LL for many years.
LL undertakes long-term resource planning activities and has identified that during the winter months, when there will be more customers ringing up to makeinsurance claims,it will potentially need to employ more staff. The Board has decided that rather than recruititsown staff, itwillusean employment agency to supply manpower resourcesas required. Thepeoplesuppliedwill be employed on a temporary basis by LL and they will work alongside the other call centre staff. However, they will workat alowerpay rate and will onlybe paid forthe actual hours they work.
This change will lead to a shift in the working environment, the routine and the composition of the group.
Which THREE statements apply in respect of this proposed change?

A : proposed change will affect the group dynamics, which can be seen as being similar to a 'force field' situation.

B : times of change, LL can give sensitivity training to this group of workers who can then be used as a source of support during the change process.

C : Facilitator, as the leader of change, will allow the group to talk about their issues and concerns with this change in a formal and structured manner.

D : the change process LL is proposing is an internal matter involving a group of its staff, there is no need to undertake a stakeholder analysis.

E : will need to identify the Adversaries in the group, because if they are influential they may persuade other group members to resist the change.

Answer: A,B