(CIMAPRO19-CS3-X2-ENG) Strategic Level Case Study Question Tutorial Sample
Assessment (2019 syllabus) Practice Exam
1. What is the primary purpose of an external environmental analysis in strategic
management?
A) Identifying internal weaknesses
B) Analyzing competitive forces and market trends
C) Setting internal performance targets
D) Developing a marketing mix
Answer: B
Explanation: External environmental analysis is used to evaluate competitive forces, industry
trends, and market dynamics that can affect the organization’s strategy.
2. Which framework is most appropriate for analyzing political, economic, social,
technological, legal, and environmental factors?
A) SWOT Analysis
B) Porter’s Five Forces
C) PESTLE Analysis
D) Balanced Scorecard
Answer: C
Explanation: PESTLE Analysis examines macro-environmental factors in politics, economics,
society, technology, law, and environment.
3. In a SWOT analysis, which element refers to the external opportunities available to a
business?
A) Strengths
B) Weaknesses
C) Opportunities
D) Threats
Answer: C
Explanation: Opportunities in a SWOT analysis are external factors that the organization can
capitalize on for growth and competitive advantage.
4. Which of the following best describes Porter’s Five Forces model?
A) A tool to assess internal financial metrics
B) A framework to evaluate industry structure and competitive intensity
C) A method for forecasting market growth
D) A strategy for improving operational efficiency
Answer: B
Explanation: Porter’s Five Forces model evaluates the competitive forces within an industry to
determine its attractiveness and profitability.
,5. What is the main purpose of conducting a value chain analysis?
A) To evaluate the external competitive environment
B) To understand internal activities that add value to products or services
C) To analyze consumer behavior trends
D) To determine optimal pricing strategies
Answer: B
Explanation: A value chain analysis helps identify internal activities that create value and
competitive advantage in a company’s products or services.
6. When developing strategic options, what is the significance of scenario planning?
A) It identifies the company’s mission statement
B) It forecasts potential future environments and prepares appropriate responses
C) It sets short-term operational goals
D) It exclusively focuses on cost reduction
Answer: B
Explanation: Scenario planning enables organizations to prepare for multiple future
environments by exploring different strategic responses.
7. Which financial analysis tool is commonly used to assess a company’s liquidity and
operational efficiency?
A) SWOT Matrix
B) Ratio Analysis
C) PESTLE Analysis
D) Value Chain Analysis
Answer: B
Explanation: Ratio analysis evaluates financial statements to assess liquidity, efficiency,
profitability, and solvency of a business.
8. How does a cost-benefit analysis assist in strategic decision-making?
A) By listing all competitors in the industry
B) By comparing the anticipated benefits with the projected costs of strategic options
C) By developing a detailed organizational chart
D) By establishing employee incentive programs
Answer: B
Explanation: Cost-benefit analysis weighs the potential benefits against the costs to determine
the financial viability of strategic alternatives.
9. Which of the following is a key step when aligning an organization’s strategy with its
vision and mission?
A) Conducting a detailed competitor benchmarking study
B) Ensuring that strategic objectives support the long-term vision and mission
C) Increasing operational budgets indiscriminately
D) Eliminating all external risks
Answer: B
Explanation: Strategic objectives should be aligned with the organization’s vision and mission to
ensure long-term coherence and success.
,10. What is the primary focus of Section 1 in the sample assessment structure?
A) Developing financial models
B) Evaluating the business environment and identifying key issues
C) Creating marketing campaigns
D) Designing employee training programs
Answer: B
Explanation: Section 1 focuses on evaluating the business environment and pinpointing the
critical issues that impact strategic decisions.
11. In strategic management, what does the term ‘strategic fit’ refer to?
A) The compatibility between the organization’s resources and its external opportunities
B) The process of aligning IT systems with business needs
C) The match between employee skills and job requirements
D) The integration of marketing and sales strategies
Answer: A
Explanation: ‘Strategic fit’ describes how well a company’s internal resources and capabilities
align with external opportunities and threats.
12. Which technique is most suitable for identifying an organization’s internal strengths
and weaknesses?
A) PESTLE Analysis
B) Porter's Five Forces
C) SWOT Analysis
D) Scenario Planning
Answer: C
Explanation: SWOT Analysis is specifically designed to assess internal strengths and
weaknesses along with external opportunities and threats.
13. What role do strategic recommendations play in a case study assessment?
A) They provide a summary of financial statements
B) They outline actionable steps to address identified issues
C) They focus solely on marketing strategies
D) They list competitor names and market shares
Answer: B
Explanation: Strategic recommendations offer concrete, actionable steps that address the
identified issues and guide future strategic direction.
14. In assessing financial implications, which method is useful for estimating the long-term
impact of a strategic decision?
A) Break-even Analysis
B) Discounted Cash Flow Analysis
C) SWOT Analysis
D) Benchmarking
Answer: B
Explanation: Discounted Cash Flow Analysis projects future cash flows and discounts them to
present value to assess long-term impacts.
, 15. What is the primary purpose of control measures in strategic management?
A) To reduce employee workload
B) To monitor progress and ensure strategic objectives are met
C) To eliminate market competition
D) To increase production capacity only
Answer: B
Explanation: Control measures help track performance, monitor progress, and ensure that
strategic objectives are achieved as planned.
16. Which financial metric is best used to assess a company’s profitability over time?
A) Current Ratio
B) Net Profit Margin
C) Inventory Turnover
D) Debt-to-Equity Ratio
Answer: B
Explanation: Net Profit Margin measures how much profit a company generates from its
revenue, indicating its overall profitability.
17. In the context of a case study, why is pre-seen material important for exam candidates?
A) It provides detailed information on employee salaries
B) It offers background context about the company, industry, and market
C) It lists all the exam questions
D) It focuses solely on financial data
Answer: B
Explanation: Pre-seen material gives candidates essential background context that is critical for
understanding and answering case study questions effectively.
18. Which of the following is a common risk associated with implementing new strategic
options?
A) Increased market share
B) Organizational resistance to change
C) Improved operational efficiency
D) Enhanced brand image
Answer: B
Explanation: One of the main risks in implementing new strategies is resistance from within the
organization, which can impede change.
19. What is the benefit of using benchmarking in strategic management?
A) It determines employee satisfaction levels
B) It provides a standard for comparing performance against industry peers
C) It creates detailed product designs
D) It focuses on regulatory compliance only
Answer: B
Explanation: Benchmarking allows companies to compare their performance with that of
industry leaders to identify improvement areas.
Assessment (2019 syllabus) Practice Exam
1. What is the primary purpose of an external environmental analysis in strategic
management?
A) Identifying internal weaknesses
B) Analyzing competitive forces and market trends
C) Setting internal performance targets
D) Developing a marketing mix
Answer: B
Explanation: External environmental analysis is used to evaluate competitive forces, industry
trends, and market dynamics that can affect the organization’s strategy.
2. Which framework is most appropriate for analyzing political, economic, social,
technological, legal, and environmental factors?
A) SWOT Analysis
B) Porter’s Five Forces
C) PESTLE Analysis
D) Balanced Scorecard
Answer: C
Explanation: PESTLE Analysis examines macro-environmental factors in politics, economics,
society, technology, law, and environment.
3. In a SWOT analysis, which element refers to the external opportunities available to a
business?
A) Strengths
B) Weaknesses
C) Opportunities
D) Threats
Answer: C
Explanation: Opportunities in a SWOT analysis are external factors that the organization can
capitalize on for growth and competitive advantage.
4. Which of the following best describes Porter’s Five Forces model?
A) A tool to assess internal financial metrics
B) A framework to evaluate industry structure and competitive intensity
C) A method for forecasting market growth
D) A strategy for improving operational efficiency
Answer: B
Explanation: Porter’s Five Forces model evaluates the competitive forces within an industry to
determine its attractiveness and profitability.
,5. What is the main purpose of conducting a value chain analysis?
A) To evaluate the external competitive environment
B) To understand internal activities that add value to products or services
C) To analyze consumer behavior trends
D) To determine optimal pricing strategies
Answer: B
Explanation: A value chain analysis helps identify internal activities that create value and
competitive advantage in a company’s products or services.
6. When developing strategic options, what is the significance of scenario planning?
A) It identifies the company’s mission statement
B) It forecasts potential future environments and prepares appropriate responses
C) It sets short-term operational goals
D) It exclusively focuses on cost reduction
Answer: B
Explanation: Scenario planning enables organizations to prepare for multiple future
environments by exploring different strategic responses.
7. Which financial analysis tool is commonly used to assess a company’s liquidity and
operational efficiency?
A) SWOT Matrix
B) Ratio Analysis
C) PESTLE Analysis
D) Value Chain Analysis
Answer: B
Explanation: Ratio analysis evaluates financial statements to assess liquidity, efficiency,
profitability, and solvency of a business.
8. How does a cost-benefit analysis assist in strategic decision-making?
A) By listing all competitors in the industry
B) By comparing the anticipated benefits with the projected costs of strategic options
C) By developing a detailed organizational chart
D) By establishing employee incentive programs
Answer: B
Explanation: Cost-benefit analysis weighs the potential benefits against the costs to determine
the financial viability of strategic alternatives.
9. Which of the following is a key step when aligning an organization’s strategy with its
vision and mission?
A) Conducting a detailed competitor benchmarking study
B) Ensuring that strategic objectives support the long-term vision and mission
C) Increasing operational budgets indiscriminately
D) Eliminating all external risks
Answer: B
Explanation: Strategic objectives should be aligned with the organization’s vision and mission to
ensure long-term coherence and success.
,10. What is the primary focus of Section 1 in the sample assessment structure?
A) Developing financial models
B) Evaluating the business environment and identifying key issues
C) Creating marketing campaigns
D) Designing employee training programs
Answer: B
Explanation: Section 1 focuses on evaluating the business environment and pinpointing the
critical issues that impact strategic decisions.
11. In strategic management, what does the term ‘strategic fit’ refer to?
A) The compatibility between the organization’s resources and its external opportunities
B) The process of aligning IT systems with business needs
C) The match between employee skills and job requirements
D) The integration of marketing and sales strategies
Answer: A
Explanation: ‘Strategic fit’ describes how well a company’s internal resources and capabilities
align with external opportunities and threats.
12. Which technique is most suitable for identifying an organization’s internal strengths
and weaknesses?
A) PESTLE Analysis
B) Porter's Five Forces
C) SWOT Analysis
D) Scenario Planning
Answer: C
Explanation: SWOT Analysis is specifically designed to assess internal strengths and
weaknesses along with external opportunities and threats.
13. What role do strategic recommendations play in a case study assessment?
A) They provide a summary of financial statements
B) They outline actionable steps to address identified issues
C) They focus solely on marketing strategies
D) They list competitor names and market shares
Answer: B
Explanation: Strategic recommendations offer concrete, actionable steps that address the
identified issues and guide future strategic direction.
14. In assessing financial implications, which method is useful for estimating the long-term
impact of a strategic decision?
A) Break-even Analysis
B) Discounted Cash Flow Analysis
C) SWOT Analysis
D) Benchmarking
Answer: B
Explanation: Discounted Cash Flow Analysis projects future cash flows and discounts them to
present value to assess long-term impacts.
, 15. What is the primary purpose of control measures in strategic management?
A) To reduce employee workload
B) To monitor progress and ensure strategic objectives are met
C) To eliminate market competition
D) To increase production capacity only
Answer: B
Explanation: Control measures help track performance, monitor progress, and ensure that
strategic objectives are achieved as planned.
16. Which financial metric is best used to assess a company’s profitability over time?
A) Current Ratio
B) Net Profit Margin
C) Inventory Turnover
D) Debt-to-Equity Ratio
Answer: B
Explanation: Net Profit Margin measures how much profit a company generates from its
revenue, indicating its overall profitability.
17. In the context of a case study, why is pre-seen material important for exam candidates?
A) It provides detailed information on employee salaries
B) It offers background context about the company, industry, and market
C) It lists all the exam questions
D) It focuses solely on financial data
Answer: B
Explanation: Pre-seen material gives candidates essential background context that is critical for
understanding and answering case study questions effectively.
18. Which of the following is a common risk associated with implementing new strategic
options?
A) Increased market share
B) Organizational resistance to change
C) Improved operational efficiency
D) Enhanced brand image
Answer: B
Explanation: One of the main risks in implementing new strategies is resistance from within the
organization, which can impede change.
19. What is the benefit of using benchmarking in strategic management?
A) It determines employee satisfaction levels
B) It provides a standard for comparing performance against industry peers
C) It creates detailed product designs
D) It focuses on regulatory compliance only
Answer: B
Explanation: Benchmarking allows companies to compare their performance with that of
industry leaders to identify improvement areas.
