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QUESTION NO: 1
HHH is a mobile telecommunications provider in Country D.
HHH presently offers telephone and text services at a price per unit (a unit is defined as 1 minute or
160 text characters). It provides Internet connection from handsets at a fixed fee per month. Select the appropriate strategic response to each of the industry developments listed below.
Answer:
QUESTION NO: 2
Porter suggests that competitive advantage arises from the implementation of a 'generic strategy'. Which THREE of the following are NOT generic strategies?
A. Focus
B. Market penetration
C. Market development
D. Cost leadership
E. Differentiation
F. Diversification
Answer: B,C,F
QUESTION NO: 3
As a CIMA qualified Management Accountant working within a manufacturing company, you are subject to both CIMA's Code of Ethics and your company's Code of Business Conduct.
Which of the following statements are TRUE?
Select ALL that apply.
A. As a CIMA qualified Management Accountant you must follow CIMA's Code of Ethics.
B. A company's Code of Business Conduct can be rules based.
C. Where there is a difference between CIMA's Code of Ethics and the company's Code of Business
Conduct, the company's Code of Business Conduct takes priority.
D. Where there is a difference between CIMA's Code of Ethics and the company's Code of Business
Conduct, CIMA's Code of Ethics takes priority.
E. Both CIMA's Code of Ethics and the company's Code of Business Conduct include references to
Confidentiality. Disclosure on public interest grounds is therefore prohibited.
F. Both CIMA's Code of Ethics and the company's Code of Business Conduct must be based on a set of basic principles.
Answer: A,B
QUESTION NO: 4
BBB operates a national mobile phone (cell phone) network in one country. It is considering investing in upgrading its network to 4th Generation (4G) by providing an improved bandwidth that will enable its customers faster access to the Internet.
The investment will cost $29 million which BBB's institutional investors have agreed to provide by subscribing to a rights issue. This is because management has informed institutional investors that a rival is already offering 4G and that this is taking customers away from BBB because BBB's network is now regarded as too slow. BBB's remaining customers have shown a willingness to pay extra for 4G and overall the investment will have a positive net present value.
Which of the following statements are correct?
Select ALL that apply.
A. There are sufficient investment funds available.
B. BBB will gain a first mover advantage.
C. There is stakeholder approval for the investment.
D. It is essential given the strategic threats to BBB.
E. It provides a market development opportunity for BB
Answer: A,C,D
QUESTION NO: 5
STU is a hospital that is wholly funded by its national government. In the last five years it has seen its funding cut by over 30% due to budgetary pressure on the government, caused by a global recession. As a result, the senior management team of STU has had to make some very difficult decisions about prioritizing how it spends the funds it receives from the government. Its main strategies have been to reduce the number of administration staff and nursing staff by 20%, in order to reduce its costs. It has also stopped providing a number of services to patients, including its counselling services and its physiotherapy unit.
Which of the following strategies has STU adopted to manage its reduced funding? (Choose all that apply.)
A. Turnaround
B. Liquidation
C. Retrenchment
D. Facilitation
E. Divestment
Answer: E
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Updated: May 28, 2022