[Mar 22, 2022] Get New E3 Certification – Valid Exam Dumps Questions
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NEW QUESTION 87
GV is a manufacturer and retailer of high quality suede gloves. GV makes all of its sales in country F, and is extremely profitable. After many successful years trading, GV has accumulated significant cash reserves and would like to grow the business organically.
After some investigation work, GV has discovered an opportunity to sell leather shoes in country P.
Which of the following strategic directions is GV taking if it pursues this opportunity, according to Ansoff's product / market matrix?
- A. Market development
- B. Related diversification
- C. Product development
- D. Market penetration
Answer: B
NEW QUESTION 88
Using Earl's 'Three levels of IT strategy' framework, which one of the following activities would occur as part of an Information Systems (IS) strategy?
- A. Design of key performance measures for an information system.
- B. Evaluation of an SBU's information system to ensure that it continues to meet customer needs.
- C. Selection of the hardware for a new Information system.
- D. Employing an IT Director to control the Organization's information system.
Answer: B
NEW QUESTION 89
A company runs a distribution warehouse. Its information systems constantly monitors inventory levels, with automatic re-order processing occuring with suppliers when inventory items reach a specified level. It operates a robotics system which automatically picks inventory from its location in the warehouse and delivers it to the pick-up area. The company also has a large database of customer information which it uses to analyse buying behavior and sales trends so that it can provide customers with relevant and targeted marketing information.
Which THREE of the following activities of the Value Chain have been affected by the use of IT/ IS?
- A. Sales and Marketing
- B. Outbound logistics
- C. Operations
- D. Inbound Logistics
- E. Services
Answer: A,C,D
NEW QUESTION 90
YZ is a family-run business which manufactures and sells confectionery, employing almost 100 staff. It operates 10 shops in small towns in the north of country P. Sales of YZ's products have decreased over the last
4 years due to competition from large supermarkets, internet shopping and a general economic downturn, which has hit the north of country P especially hard.
YZ's managing director has recently retired and the board decided to fill the vacancy with an external appointment. The new managing director plans to invest in new manufacturing technology, which would cut staffing levels by 15% and reduce wastage, allowing YZ to lower its prices. YZ's staff are very unhappy about these proposals, feeling that they will destroy YZ's family tradition and reputation that has developed over many years.
Select the correct descriptor for each of the forces for change below:
Answer:
Explanation:
NEW QUESTION 91
Select the label which best defines the periods of decline outlined in the situations presented below.
Answer:
Explanation:
NEW QUESTION 92
AB uses Johnson, Scholes and Whitiingion's criteria of 'Feasibility and Acceptability' to evaluate potential strategies AB has begun a project to re-engineer its best selling product.
Apply the appropriate criterion to each of the questions below
Answer:
Explanation:
NEW QUESTION 93
HH is an outdoor theatre which is based in the capital city of country N.
Tickets for shows can be booked at the ticket office or online. HH has identified the following critical success factors (CSFs):
* An excellent, online ticket booking system
* Customer satisfaction
Which of the following would be suitable key performance indicators (KPIs) for HH? Select ALL that apply
- A. Profit from sales of snacks and drinks
- B. Percentage of ticket bookings aborted before completion
- C. Number of returning customers each year.
- D. Customer show ratings, scored out of ten
- E. Number of customer complaints
- F. Employee turnover
Answer: C,E
NEW QUESTION 94
Which THREE of the following issues relate to the Corporate Strategy of an organisation?
- A. Entering new industries.
- B. Achieving advantage over competitors
- C. Leaving existing industries
- D. Meeting the needs of key customers
- E. Avoiding competitive disadvantages.
- F. Acquisitions, disposals and diversification
Answer: B,D,F
NEW QUESTION 95
An IT project is currently being undertaken by VVV, a large university. The project is to design and install a secure information system network for all academic staff and administrative staff in the university. The Executive Board of VVV has insisted that the key objective of the project team is to track and monitor how the information system is being used by the academic staff and the administrative staff once it is implemented.
Which of the following would be an appropriate performance measure for the key objective set by VVV's Executive Board?
- A. Percentage of staff usage of the system split between academic staff usage and administrative staff usage.
- B. Number of staff trained in the use of the new system.
- C. User satisfaction levels.
- D. Overall usage time of the system compared to plan.
Answer: A
NEW QUESTION 96
As a qualified Management Accountant you have been asked by a non-financial manager to explain the CEO's recent comments, featured in the CEO's regular update to investors and analysts.
The CEO's update suggested the company, an established property development business, was about to pursue an exciting strategy. The strategy is to focus on conglomerate diversification, to be achieved through a number of pre-identified acquisitions, with the aim of significantly increasing shareholder value.
Which of the following statements is consistent with the concept of conglomerate diversification?
- A. A portfolio of businesses involved in unrelated activities such as financial services, food retailing and property development, sharing nothing but a parent company.
- B. A strategy involving business expansion within a company's present industry. For this company, an example would be the acquisition of another property development business.
- C. A portfolio of unrelated businesses such as financial services, food retailing and property development, all sharing identity and risk, including group logo, corporate uniforms and risk management systems.
- D. A structure involving a collection of unrelated businesses. For this company, acquisitions may include a variety of companies such as financial services and food retailing, all sharing operational relationships such as finance, sales and marketing.
Answer: A
NEW QUESTION 97
Which THREE of the following statements are correct in relation to the use of the Performance Pyramid?
- A. It derives from the idea that an Organization operates at different levels.
- B. The productivity aspect refers to the management of output at the business operating systems level of the Organization.
- C. One of the aspects of the pyramid is Stakeholders.
- D. The pyramid includes a specific cost aspect which considers the cost figures in the management accounts.
- E. It highlights the links running between the company's corporate vision and its functional objectives.
Answer: A,B,E
NEW QUESTION 98
'Big data' refers to datasets whose size is outside the ability of typical database software tools to capture, store, manage and analyze.
Which of the following statements is NOT a valid statement with regard to 'big data'?
- A. The definition of 'big data' can vary by sector, depending on the software tools and dataset sizes common to a particular industry.
- B. As technology advances overtime, the size of datasets that qualify as 'big data' will also increase.
- C. Sufficient analytical and managerial talent is available to exploit the opportunities associated with 'big data'.
- D. 'Big data' will require the right infrastructure, incentives and safeguards to address public concerns.
Answer: D
NEW QUESTION 99
TTT is a partnership that designs a specialist type of construction project for clients. It does not build the construction projects itself. TTT has eight partners who are skilled architects. Each partner works independently on their own projects. The partners rarely meet except to agree how to share out TTT's very significant profits.
The partners are disappointed that TTT is not growing as fast as it has in the past. Each partner is fully employed on their own projects and none has the time to recruit new architects to TTT. They are frustrated at the lack of leadership in TTT, although none of the partners are willing to take on a more senior role.
Which THREE of the following does TTT need to address?
- A. Management
- B. Make-up
- C. Manpower
- D. Materials
- E. Money
Answer: A,B,C
NEW QUESTION 100
BB Laundry Company is a community-led franchise initiative, enabling its customers to make use of state-of-the-art washing machines for its customers' domestic laundry needs. Services include self-serve or fully serviced washing and ironing services, provided by on-site volunteer staff.
Its laundry sites are powered with solar or wind power and its washing machines use water-conserving technology Non-toxic soaps and detergents are available, as well as bio-degradable clothes hangers, mend and repair services, combined with community cafes.
Which of the following would be beneficial to BB Laundry Company for external reporting of its key performance outcomes?
- A. Shareholder Value Analysis (SVA)
- B. Triple Bottom Line (TBL)
- C. Economic Value Added (EVA)
- D. Process Benchmarking Analysis (PBA)
Answer: B
NEW QUESTION 101
FFF is considering developing a new website that will allow it to advertise and sell its high quality jewellery products online. The Board of FFF has identified that the cost of developing and managing a website would be relatively low. It is predicted that FFF will sell only a small percentage of its products through the website, as most customers like the personal experience of shopping in store.
However, research undertaken by the Marketing Director indicates that the website could be used very successfully by FFF for online marketing and customer communication. Therefore, the Marketing Director has suggested that FFF should develop an IT/ IS strategy to ensure a strategic focus for its website development. However, most of FFF's Board members, who are the main shareholders of the business, believe that developing an IT/IS strategy is unnecessary in order to develop and manage its website.
Which of the following arguments could be made by the Marketing Director to the Board of FFF to persuade it that an IT/ IS strategy would be appropriate in relation to the current website development?
- A. IT/ IS is expected by FFF's key stakeholders and should therefore have a strategic focus.
- B. IT/ IS is very expensive and without a strategic focus there is a risk of costly mistakes.
- C. IT/ IS forms the basis of FFF's competitive advantage and therefore requires a strategic focus.
- D. IT/ IS is fast moving and FFF can take advantage of new technologies as they become available, if managed strategically.
Answer: D
NEW QUESTION 102
CCC has been given permission by the local government authority to build 500 houses and this will be a very profitable project for CCC. An animal charity is opposed to the building of the houses as fields where animals live will be built on. Some people living nearest to the area of the proposed building are in favour because it will stimulate the local economy. Other people living near the area of the proposed development are opposed to it because their view will be spoiled. Which of the following activities should CCC undertake to resolve the stakeholders' competing objectives?
- A. CCC should focus on its stakeholders' needs in turn.
- B. CCC should conduct a PESTLE analysis.
- C. CCC should conduct discussions with its stakeholders and reach an acceptable compromise.
- D. CCC should give the animal charity the money to establish a wildlife sanctuary.
Answer: C
NEW QUESTION 103
BBB discharges small quantities of non-harmful material into the atmosphere as a by-product of its manufacturing process. BBB has been criticised by an environmental journalist who called BBB a polluter.
BBB wishes to influence opinion in its favour and has identified a number of strategic responses to achieve this objective.
Which of the following strategic responses should BBB implement?
- A. Employ Public Relations consultants.
- B. Lobby its National Government
- C. Change its manufacturing process to eliminate the by-product
- D. Do nothing.
Answer: C
NEW QUESTION 104
ZZZ recently hired a new Chief Executive, Q, to lead it through a period of major change. Q immediately set up a change management team which consisted of several senior managers and directors from across the Organization. Together, they formulated an overall goal for change and then spent several weeks presenting the need for change to all of the staff through a series of staff meetings. At these meetings Q involved staff and built their ideas into the final change strategy.
Q also set a series of interim goals to encourage ongoing performance throughout the change process.
When the Organization reached these goals, she widely publicised these achievements to help motivate staff.
However, after six months, ZZZ had failed to reach most of the interim goals that had been set. Most of the members of the change management team had not maintained a significant interest in the change process and many of the staff felt that there had been a lack of communication and reward following the initial few weeks of the change process.
Kotter suggested that there were eight steps required to successfully lead change.
Which TWO of the following of these eight steps did Q fail to achieve?
- A. Empower broad based action
- B. Generate short term wins
- C. Develop a change vision
- D. Never letting up
- E. Incorporate change into the culture
Answer: D,E
NEW QUESTION 105
Porter suggests that competitive advantage can be attained by organising value-adding activities in support of the generic strategies which he identified.
Place the appropriate generic strategy against each of the value-adding activities.
Answer:
Explanation:
NEW QUESTION 106
Select the ethical principle which is most likely to be challenged in each of the following situations.
Answer:
Explanation:
NEW QUESTION 107
HHH intends to introduce a Balanced Scorecard to assist with its strategic policy formation and achievement of strategic plans. Which TWO of the following stakeholders are addressed by a Balanced Scorecard perspective?
- A. Shareholders
- B. Local residents
- C. National government
- D. Local government
- E. Managers
- F. Customers
Answer: A,F
NEW QUESTION 108
The Financial Director (FD) of your company has heard it said that 80% of profits come from 20% of customers. The FD has accused the sales team of wasting time on serving customers who are not valuable to the business.
The FD has instructed you to take a random sample of 100 customers and to calculate the total contribution the company earned from each customer in the past year. The FD intends to instruct the sales team to stop selling to the bottom 25% of these customers in order to improve profitability.
Which THREE of the following factors should the FD consider when he interprets your results?
- A. This doesn't take into account the value of the customer in referring new customers to us.
- B. This would not consider the future potential of the customer.
- C. It will ignore many customer attributable costs that differ widely from customer to customer.
- D. It is ethically wrong to stop supplying unprofitable customers.
- E. This would not consider the total contribution from the combination of products which the customer buys.
Answer: A,B,E
NEW QUESTION 109
LLL is a global passenger airline that needs to invest in a new fleet of aircraft to operate on its routes. There are several types of aircraft to choose between. The new aircraft will have an operating life of 25 years with LLL and therefore management is keen to make the correct decision.
There are several uncertainties that make it difficult for LLL to make this investment decision. Aircraft engine technologies are changing and some manufacturers are developing engines that propel aircraft at much higher speeds, whilst others are developing slower engines that minimise emissions. Concern over global warming is leading governments in some countries to impose heavy taxation on airlines that operate aircraft that have high emissions. The demand for air travel is also changing due to changing income levels between emerging and mature economies as well as the increased use of telecommunications to replace face to face meetings.
Which THREE of the following techniques would you recommend to help LLL make this investment decision?
- A. Brainstorming
- B. Porters 5 Forces
- C. Scenario planning
- D. Morphological analysis
- E. Cross impact analysis
Answer: C,D,E
NEW QUESTION 110
Company MM is wanting to build an out of town shopping complex. This will be located near a busy road which is surrounded by housing estates. MM has yet to obtain planning permission. It recognizes that unless it takes action, the local residents will object to MM's plans. As the Publicity Manager you have been asked to take over responsibility for Stakeholder Management.
Which of the following Stakeholder Management statements is NOT correct?
- A. Organizations will have a variety of stakeholders each with differing attitudes to risk which can cause conflict.
- B. Pressure groups have an interest in matters of public policy, but do not want to control the workings of government.
- C. Stakeholder management is made more complicated for an Organization when individuals belong to more than one stakeholder group.
- D. In measuring the satisfaction of stakeholder interests, Organizations should only focus on quantitative matters.
Answer: D
NEW QUESTION 111
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