cima CIMAPRA19 E03 1 Exam Questions

Questions for the CIMAPRA19 E03 1 were updated on : Nov 21 ,2025

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Question 1

DRAG DROP
Select the quality associated with effective coaching and mentoring for each of the descriptions
below:

Answer:

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Question 2

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?

  • A. An environmental strategy.
  • B. A sustainability strategy.
  • C. A non-market strategy.
  • D. A market strategy
Answer:

C

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Question 3

Company Y is a global business selling a selection of technological items including phones, laptops
and other computer related items. In addition Y sells accessory items, music downloads, apps: digital
books and video downloads including films and television series through a cooperative partnership
with other companies, designed to create value for the customer.
Which of the following terms best describes what Y has created?

  • A. Artificial intelligence
  • B. A blockchain arrangement
  • C. An entirely cloud based offering
  • D. A digital ecosystem
Answer:

D

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Question 4

S is a hybrid car manufacturer. S relies on strong social media presence and online marketing
campaigns to drive customers to its website. S prioritises measuring and improving active usage
metrics.
Which of the following metrics does S prioritise?
Select ALL that apply.

  • A. Abandon rates
  • B. The customer feedback score
  • C. The number of customer photographs uploaded
  • D. Number of repeat webpage users
  • E. Number of registered users
Answer:

A, D

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Question 5

A has a portfolio of business units. One of A's units has a total market share of 25% and its largest
competitor has a market share of 20%. In the last year the overall market of this business unit has
declined by 2%, although its revenues have increased by 12%. following a successful marketing
campaign.
According to the BCG matrix. A's business unit would be classified as which of the following?

  • A. Dog
  • B. Cash Cow
  • C. Star
  • D. Question Mark
Answer:

C

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Question 6

DRAG DROP
BCD is a small private hospital providing elective surgery to patients. Elective surgery is not essential
to the patient's health and can be regarded as a luxury.
Match the performance measure to the strategic goal and match the direction of improvement to
each measure.

Answer:

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Question 7

Irvine and Martin presented the advantages of Foresight as the 5Cs. Which of the following are
correct aspects of the 5Cs as defined by Irvine and Mart in? Select ALL that apply.

  • A. Co-ordination
  • B. Comparability
  • C. Criticality
  • D. Communication
  • E. Congruence
  • F. Concentration
Answer:

A, D, F

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Question 8

WXY has been criticised by an activist shareholder for a lack of clarity in its formulation and
implementation of strategy.
The activist shareholder states that WXY is confused as to the different levels of strategy and it has
pointed to examples of inappropriate levels of management being held responsible for strategies
that they do not control
WXY has decided to use the categories, Corporate, Business and Functional to clarify its strategic
processes.
Which of the following are Corporate strategies?
Select ALL that apply.

  • A. WXY has improved the duration of its products' working lives to match its major competitor.
  • B. WXY is closing its data management business.
  • C. WXY is to move its Head Office and manufacturing facilities from Europe to Asia.
  • D. WXY intends to introduce improvements to its occupational pension scheme.
  • E. WXY will invest in robotics to become the lowest cost producer in its industry.
  • F. WXY intends to replace its transport fleet every five years.
Answer:

B, C, E

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Question 9

McKinsey's 7-S' model illustrates the complexity of factors that can influence organisational change
Which TWO of the following statements are incorrect?
To make progress in one'S' you need to achieve success in the other 'Ss'

  • A. 'Shared Values' are sometimes also described as 'Superordinate Goals'
  • B. All 7-S' factors vary in importance.
  • C. The model intentionally has no starting point.
  • D. The model features 3 'soft' factors, all of which are quantifiable
Answer:

A, C

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Question 10

An organisation which exists in a fast-changing industry with managers who dislike formal planning
would be best suited to using which of the following strategy models?

  • A. Rational model
  • B. Logical incrementalism
  • C. Freewheeling opportunism
  • D. Emergent approach
Answer:

C

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Question 11

YC is a government funded hospital specialising in degenerative hearing conditions YC is renowned
for it's pioneering work resolving chronic ear problems and has, in the last year, conducted a record
number of operations and achieved high levels of success. The excellent reputation of YC has led to
high demand and a considerable strain on resources
Although last year the average cost per patient fell, and success rates far exceeded targets, overall
spend increased significantly. YC hospital is expected to provide value for money (VFM).
Which aspect of VFM has YC NOT managed to achieve in the last year?

  • A. Excellence
  • B. Effectiveness
  • C. Economy
  • D. Efficiency
Answer:

C

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Question 12

Z is an organisation that designs and manufactures fibre optic connectors. It works closely with its
suppliers and has built an online area that it uses to share documents, designs, and photographs with
its suppliers. The area also facilitates real time communication with suppliers either via a computer
or a mobile phone.
Which of the following best describes Z's online area?

  • A. An internet
  • B. A multinet
  • C. An intranet
  • D. An extranet
Answer:

D

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Question 13

Which THREE of the following statements are valid when considering setting and developing
objectives for Not For Profit Organisations (NFPOs)?

  • A. NFP organisations use an approach based upon the three E's of efficiency, effectiveness and environment to set objectives
  • B. ln NFP organisations efficiency and effectiveness are very important, but there is a risk efficiency becomes more important than service effectiveness
  • C. The objective setting exercise must balance the interests and concerns of all stakeholders, which may result in the NFP organisations setting a range of differing objectives.
  • D. Objectives will not be based on profit achievement but rather on achieving a particular response from various stakeholders.
  • E. In setting these objectives NFP organisations will never consult or seek wider participation from other interested groups
Answer:

B, C, D

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Question 14

Company V has obtained planning permission to build 20 wind turbines in town W. This will be a
highly profitable project and help the Government in Country H meet targets for renewable energy.
However, local residents and wildlife groups are extremely unhappy and have objected to the plans
and threatened to cause disruption at the site of the proposed wind turbines once building work
commences
Which THREE of the following activities should Company V use, according to Cyert and March, to
resolve these conflicting stakeholder objectives?

  • A. Continue to build the wind turbines despite attempts to overcome the objections of the locals and the wildlife groups
  • B. Negotiate with the wildlife groups to ensure their key concerns are understood, and implement an action plan to address concerns where appropriate
  • C. Make a donation of $10,000 to town W as a contribution towards the construction of a new town hall.
  • D. Negotiate a 5% reduction in the price of the blade manufacture.
Answer:

A, B, C

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Question 15

G sells technology-based wristbands that detect the duration and quality of an individual's sleep G's
wristbands are available for sale through G's website only. Also on the website, G offers for sale
sleepwear supplied by partner company. H. H pays G 10% of the sales revenue, when sales of its
products are made through the G website Additionally, G allows a pillow company, D, to advertise on
the G website for a small fee each month It does not facilitate sales of D's pillows through the G
website.
Which of the following correctly identifies the three revenue models that G achieves through its
website'?

  • A. Licensing, trading, advertising
  • B. Transaction, commission, advertising
  • C. Transaction, subscription, advertising
  • D. Transaction, commission, trading
Answer:

B

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