CIMA CIMAPRA19-E02-1 practice materials Questions Answers

Exam Code:
CIMAPRA19-E02-1
Exam Name:
E2 Managing Performance Exam
Last Update:
Jun 01,2026

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Questions & Answers PDF

• Question 1

  

  FR Company is undertaking analysis of its competitors. One part of its analysis will investigate its supplier whose products satisfy the same customer needs, but are technically quite different. Which of the following levels of competitors does this relate to?

  • Generic competitors
  • Industry competitors
  • Form competitors
  • Brand competitors

  Reveal Answer Answer: C Next Question

• Question 2

  

  Which of the following is the concept whereby a manager has a right to exercise power on behalf the organisation?

  • Accountability
  • Empowerment
  • Authority
  • Delegation

  Reveal Answer Answer: C Next Question

• Question 3

  

  A pharmaceutical organisation, whilst developing a drug for the remedy of a cold, discovered by carrying out research tests that the drug made people feel drowsy.It decided to market this product as a night time cold remedy.Which of the following best describes this organisation's approach to strategy?

  • Logical Incrementalism
  • Rational
  • Muddling through
  • Emergent

  Reveal Answer Answer: D Next Question

• Question 4

  

  A Company achieves its competitive advantage by adopting a positioning view to strategy setting. Which TWO of the technical models below are most suited to this approach?

  • Michael Porter's Value Chain.
  • PESTEL analysis.
  • Michael Porter's Five Forces model.
  • Resource Audit.

  Reveal Answer Answer: B,C Next Question

• Question 5

  

  A manager of a finance department has been asked to take on additional work and has been advised to delegate some of his current jobs to his subordinates. He has a good relationship with his team and understands both their abiilty to contribute good ideas and that their level of cooperation will effect his success.Which of the methods of delegation below is likely to be the most successful for him?

  • Consultation
  • Explanation
  • Custom and Practice
  • Abdication

  Reveal Answer Answer: A Next Question

• Question 6

  

  In the UK there is a principles based approach to corporate governance. Which THREE of the following statements are part of this approach?

  • It consists of principles to be followed unless there is a justifiable reason not to do so.
  • It includes legislation involving punishment for non-compliance.
  • The UK code of corporate governance adopts a 'comply or explain' approach.
  • Some of the provisions of the UK corporate code may not be followed exactly providing departurecan be justified.
  • It provides a set of rules which must be followed in all circumstances.

  Reveal Answer Answer: A,C,D Next Question

• Question 7

  

  Which of the models below identifies triggers for change from the macro environment?

  • Michael Porter's Five Forces
  • Michael Porter's Diamond
  • LoNGPEST
  • Ansoff's Growth Matrix

  Reveal Answer Answer: C Next Question

• Question 8

  

  X is a manufacturing company that has achieved long term success by understanding the structure of its industry, and where necessary changing its strategy in order to achieve improved performance by outperforming its competitors.Success has depended on the company exploiting the underlying economic factors (such as economies of scale) better than its competitors and maintaining this over time, so achieving sustainable competitive advantage.Researchers would call this an "outside-in" approach to strategy, with the company choosing a strategy that responds to the challenges and changes posed by the external environment.Which type of strategy is X adopting?

  • Positioning approach
  • Resource-based view
  • Emergent strategy development
  • Logical incrementalism

  Reveal Answer Answer: A Next Question

• Question 9

  

  The organisational iceberg describes which TWO levels at which culture operates?

  • Values
  • Formal aspects
  • Basic assumptions
  • Behavioral aspects
  • Control systems

  Reveal Answer Answer: B,D Next Question

• Question 10

  

  U is a retail chain of fashion outlets. It has invested in a new logistics system to control the movement of stock between its warehouses and high street retail outlets.The project to develop and install the new system was significantly over budget and very late. Now, only three months after the new system has been installed, it is apparent that the project has not delivered its objectives. Many retail managers are complaining that they are not receiving the correct stock to sell. A meeting between the project team and project sponsor ended with everyone blaming each other.Which of the following statements show how the use of PRINCE2 might have reduced the problems encountered?Select ALL that apply.

  • A focus on the business case of the project.
  • An organisation structure setting out clear roles.
  • An emphasis on quality assurance and testing.
  • Little need for PRINCE2 training by participants.
  • An emphasis on finishing as soon as possible.

  Reveal Answer Answer: A,B,C Next Question

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