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CIMA CIMAPRO19-CS3-1 Exam Syllabus Topics:

Topic	Details
Topic 1	Strategic Analysis: The Strategic Analysis section provides a basic understanding of how to evaluate both internal and external factors affecting an organization. You will start by examining strategic positioning using tools and frameworks such as PESTEL, SWOT, and Porter’s Five Forces to assess the business environment and the organization’s place within it.
Topic 2	Strategic Implementation: In the Strategic Implementation section, the emphasis is on converting strategic plans into actionable steps and ensuring their successful execution. You will learn how to define strategic objectives and develop detailed plans to accomplish them. This section includes change management strategies to address organizational changes and overcome resistance, ensuring that strategic initiatives are effectively carried out.
Topic 3	Strategic Choices: The Strategic Choices section explores the process of making well-informed strategic decisions based on thorough analysis. This includes identifying and assessing various strategic options using methods like cost-benefit analysis and risk assessment to determine the most effective alternatives.
Topic 4	Strategic Control and Evaluation: The Strategic Control and Evaluation section underscores the significance of monitoring and evaluating the success of strategic plans.
Topic 5	Governance and Ethics: The Governance and Ethics section deals with the role of governance and ethical considerations in strategic management. It includes an exploration of corporate governance principles and their application to strategic decision-making.

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CIMA Strategic Case Study Exam Sample Questions (Q41-Q46):

NEW QUESTION # 41
Daily Gazette
Celebrities flock to release tax returns
Comedian Madd Wilkins is the latest celebrity to post his tax returns online. The comedian earned M$1,600,000 from his sell-out tour and from the sale of DVDs. He paid tax of M$608,000 on that income. The comedian quipped, "there's nothing funny about paying tax, but then there's nothing very funny about my act either so it's only fair that I should pay the full whack".
Public concern about the tax benefits enjoyed by wealthy celebrities using artificial schemes such as investing in forestry to minimise their tax bills has led to closing tax loopholes topping the political agend a. Many wealthy individuals have volunteered their tax files in order to reassure the public that they are not benefitting from such schemes.

Answer:

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NEW QUESTION # 42
It is now three days since the start of the oil spillage crisis.
You have received the following email from William Seaton, Director of Finance:
From: William Seaton, Director of Finance
To: Finance Manager
Subject: Crisis management issues
Hi,
A quick update on the latest developments.
We have brought Block Associates in to lead the operations on dealing with the oil spill. It has assigned one of its leading consultants to take charge of this for us. We have paid Block Associates an annual retainer for many years, but we have never actually had to call on its services because we have been able to contain any environmental problems using our own resources.
Using Block Associates is going to be expensive. It insists on being free to bring in whatever equipment and personnel are required to resolve matters and to charge that on the basis of cost plus 25%. Our annual retainer is simply the cost of ensuring that it will respond on this basis if required.
We have had some murmurings of discontent already because our own engineers and geologists have made significant progress in identifying the cause of the spillage and they believe that they are capable of bringing it to a successful conclusion. They have suggested that it would be both quicker and cheaper to leave them in charge, while retaining the option to bring in Block Associates at a later date if they fail.
* Firstly, what factors should we take into account in deciding whether to leave our own experts in charge of this operation rather than using Block Associates?
* Secondly, how should we manage our relationship with Block Associates if we decide that it should be used?
* Thirdly, two things: The Board is concerned that Slide's engineers and geologists have already become disillusioned by the decision to consider calling in Block Associates. We cannot afford to lose their commitment or to see them decide to leave Slide in the longer term. I need you to provide me with some ideas as to how we can motivate them to give their best performance for the duration of this crisis AND to inspire them to remain in Slide's employment after the crisis has been resolved.
William

Answer:

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NEW QUESTION # 43
You received a telephone call at home early in the morning, asking you to check your emails. The following email was waiting for you:
From: William Seaton, Director of Finance
To: Finance Manager
Subject: Public relations crisis
Hi,
This email arrived from the Head of our Middle East office just now. They are a few hours ahead of us, so he rang me at home to make sure that I had seen his message.
We have a few hours before the news article will be published, so I need to make the best use of that time in order to limit the damage to Slide. Your priority is to protect our reputation because I have already woken up the engineers and geologists and they are going to deal with the actual oil spillage.
I am not thinking too clearly, so I need you to provide some initial thoughts on the following:
* Should we use our business relationship with Business News to have them withdraw the story? We are a major advertiser and we spend millions with them every month. What are the advantages and disadvantages?
* Should we respond with the facts as we know them? All we know for certain is that there have been reports of oil contamination in an area that has countless oil facilities nearby, and so we could deny all responsibility, at least until our experts have had the chance to get there and to investigate.
* If we do decide to make a public announcement then we will need to have a plan in place. We need to assemble a team to deal with the press. How should we structure our media response team?
* What are the key factors that the Board should consider when communicating with the press? Explain why the factors that you have identified are important.
I realise that it is still very early, but I need your thoughts very quickly.
Thanks
William
The email referred to above can be found by clicking on the Reference Materials button.

Answer:

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NEW QUESTION # 44
From: Martin Wills, Head Geologist
To: William Seaton, Director of Finance
Subject: Reserves
Hi William,
I have reviewed the situation with respect to our "probable" or "2P" reserves, as disclosed in our latest annual report. I am sorry to say that we have to downgrade our figures with respect to reserves. I am recommending that all extraction activities cease for the foreseeable future on the North Atlantic and South Atlantic fields and that the proved reserves be downgraded from proved to probable.
I have to stress that this is not attributable to any past error on the part of the geologists. The world oil price has been depressed and the discovery of large deposits of shale oil in the USA suggests that the oil price will not recover for some time. That means that some oil wells that were commercially viable this time last year are no longer worth processing.
The oil remains under the rock and I have no doubt that we will restore operations in the long term.
We are by no means the only oil company to have been forced to take this action.
The one piece of good news is that the financial statements for the year ended 31 December 2014 have already been published. My understanding is that we do not have to withdraw them, so unless you put an advertisement in the press, we can carry on quietly trying to sort this mess out.
I have my best people working on ways to extract oil from our wells more efficiently, so we may be able to increase production over the next year or so.
Martin

Answer:

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NEW QUESTION # 45
Three weeks have passed since you were informed that the relocation would definitely proceed.
You have received the following email from William Seaton, Director of Finance:
From: William Seaton, Director of Finance
To: Finance Manager
Subject: Detailed issues associated with the relocation
Hi,
Congratulations, you are now officially in charge of the transition team! I am confident that you will do an excellent job and that it will be an opportunity to enhance your career.
I realise that the transition team is expected to reduce the pressure on the Board, but I have been asked to keep an eye on things and to ensure that your team has everything that it needs. I won't interfere, but I will stay in touch.
There are a few matters that I think you should address as a matter of urgency.
* Firstly, we need to have plans in place to ensure that our information systems are ready. What changes will we have to make in order to best align the information system with the company's needs? I am not asking about hardware issues or the physical relocation, but the changes to the information system itself.
* Secondly, how might we make use of the data in our own records and external sources to ensure that the new Head Office is managed as efficiently as possible? Remember that the present Head Office is a large and complex operation in its own right and it costs a significant amount to run.
* Thirdly, our relocation will create a number of challenges for our corporate treasury team. I need you to identify the key challenges and suggest how they might be dealt with.
* Finally, I would like you to identify the criteria against which the success or failure of your team will be judged once the transition is complete. I need your recommendations to be relevant and measurable.
William

Answer:

Explanation:
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NEW QUESTION # 46
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