CIMA E2 Syllabus Overview

CIMA E2 looks at how to manage organisations as a whole, taking into account both internal and external perspectives.

CIMA E2 builds on your understanding of organisational structure from CIMA E1 and its main theme is the concept of strategy.

Under the CIMA E2 Syllabus you’ll cover:

• How organisational strategy can be implemented through people, projects, processes and relationships.

CIMA E2 gives you a good insight into how to formulate and implement organisational strategy. You will then go on to develop your understanding of this in CIMA E3.

Summary of the CIMA E2 Syllabus:

The percentages show the relative weight range given to each section in the CIMA E2 exam.

Syllabus Area	Description	Weighting
A	Introduction to Strategic Management and Assessing the Global Environment	30%
B	The Human Aspects of the Organisation	20%
C	Managing Relationships	20%
D	Managing Change through Projects	30%

Learning Outcomes and Syllabus Content

ALL component learning outcomes will be tested in this exam and so it is important you cover each one below for each section of the exam.

I recommend you look to truly understand a learning outcome through reading, note taking, regular question practice and review, before moving onto the next.

If you can master all the learning outcomes, you will pass!

CIMA E2 Syllabus  – Section A: Introduction to Strategic Management and Assessing the Global Environment (30%)

Learning outcome A1 (a) Discuss the Concept of Strategy and the Rational/Formal Approach to Strategy Development

Key topics/theories:

• Defining strategy and strategic management.

• Core areas of strategic management.
• Levels of strategy within organisations.
• Stages in the rational approach to strategy developments

Learning outcome A1 (b) Compare and Contrast Alternative Approaches to Strategy Development

Key topics/theories:

• Intended, emergent, logical incrementalism, and political approaches.

• Resource-based view – resources and competencies, internal value and dynamic capabilities.
• Strategy development in different contexts, e.g. SMEs, public sector, not-for-profit.
• Strategy and structure

Learning outcome A1 (c) Explain the Approaches to Achieving Sustainable Competitive Advantage

Key topics/theories:

• The concept of competitive advantage.

• Generic competitive strategies.

• Value, rarity, inimitability, non-substitutability as bases of competitive advantage.
• Achieving sustainable competitive advantage

Learning outcome A2 (a) Distinguish between Different Aspects of the Global Business Environment, including the Competitive Environment

Key topics/theories:

• The macro and micro environments.

• LoNGPEST analysis and its derivatives.
• Globalisation
• Country and political risk factors.
• Emerging markets.

• Porter’s Diamond and its use for assessing the competitive advantage of nations.
• Porter’s Five Forces model and its use for analysing the external environment

Learning outcome A2 (b) Discuss the Approaches to Competitor Analysis including the Collection and Interpretation of Trend Data

Key topics/theories:

• Key concepts in competitor analysis.

• The role of competitor analysis.
• Approaches to collecting competitor information.
• Sources, types and quality of competitor data.
• Analysing and interpreting competitor data.
• The application of Big Data to competitor analysis.

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CIMA E2 Syllabus – Section B: THE HUMAN ASPECTS OF THE ORGANISATION (20%)

Learning outcome B1 (a) Discuss the Concepts of Leadership and Management

Key topics/theories:

• Fundamental and contemporary concepts in management.
• The concepts of power, authority, delegation and empowerment.
• Different approaches to leadership, including personality/traits, style, contingency/situation, transactional/transformational, distributive.
• Leadership in different contexts

Learning outcome B1 (b) Discuss HRM Approaches for Managing and Controlling Individuals’ Performance

Key topics/theories:

• HR policies and procedures.
• Different approaches to employee performance appraisals.
• The contribution of coaching and mentoring in enhancing individual and organisational performance.
• Equality and diversity practices.
• Disciplinary and grievance procedures in resolving poor performance.
• Dismissal and redundancy.
• Employer and employee responsibilities in managing the work environment (e.g. health and safety)

Learning outcome B2 (a) Discuss Behavioural Aspects of Management Control

Key topics/theories:

• Theories of behavioural aspects of control.

• Performance management and measurement frameworks, e.g.

– target setting

– management by objectives

– the Balanced Scorecard (BSC).

• Trust and control

Learning outcome B2 (b) Explain the Importance of Organisational Culture

Key topics/theories:

• Explaining the concept and importance of culture.

• Levels of culture.
• Influences on culture.
• Analysing organisational culture – the cultural web framework.
• Models for categorising culture.
• National cultures and managing in different cultures

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CIMA E2 Syllabus – Section C: MANAGING RELATIONSHIPS (20%)

Learning outcome C1 (a) Evaluate the Issues Associated with Building, Leading and Managing Effective Teams

Key topics/theories:

• Building effective and high-performing teams.

• Leading and managing teams.
• Factors associated with effective team work.
• Motivating team members.
• Resolving problems and conflict in teams

Learning outcome C1 (b) Discuss the Effectiveness of Handling Relationships between the Finance Function and other parts of the Organisation and the Supply Chain

Key topics/theories:

• Management of relationships between the finance function and other parts of the organisation (internal).

• The concept of the Chartered Management Accountant as a business partner in creating value.
• Transaction cost theory in the context of shared service centres and outsourcing, including contractual relationship, SLAs (service level agreements), bounded rationality and co-creation with customers

Learning outcome C1 (c) Discuss the Effectiveness of Handling Relationships between the Finance Function and External Experts and Stakeholders

Key topics/theories:

• Management of relationships with professional advisors (external) e.g. accounting, tax and legal, auditors and financial stakeholders such as shareholders and other investors to meet organisational objectives and governance responsibilities

Learning outcome C2 (a) Discuss the Roles of Communication, Negotiation, Influence and Persuasion in the Management Process

Key topics/theories:

• The communication process, types of communication tools and their use, ways of managing communication problems.

• The importance of effective communication skills for the Chartered Management Accountant.
• The importance of non-verbal communication and feedback.
• Developing effective strategies for influence/persuasion/negotiation.
• The process of negotiation.
• Negotiation skills

Learning outcome C2 (b) Discuss Approaches to Managing Conflict

Key topics/theories:

• The sources and causes of conflict in organisations.

• The different forms and types of conflict.
• Strategies for managing conflict to ensure working relationships are productive and effective

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CIMA E2 Syllabus – Section D: MANAGING CHANGE THROUGH PROJECTS (30%)

Learning outcome D1 (a) Discuss the Concept of Organisational Change

Key topics/theories:

• Types of change.

• External and internal triggers for change.
• Stage model of change management.
• Principles of change management

Learning outcome D1 (b) Recommend Techniques to Manage Resistance to Change

Key topics/theories:

• Problem identification as a precursor to change.

• Reasons for resistance to change.
• Approaches to managing resistance to change

Learning outcome D2 (a) Discuss the Characteristics of the Different Phases of a Project

Key topics/theories:

• Definition of project attributes.

• Time, cost and quality project objectives.
• The purpose and activities associated with the key stages in the project lifecycle.
• Examples of the role of project management methodologies in project control (e.g. PRINCE2, PMI).

Learning outcome D2 (b) Apply Tools and Techniques for Project Managers

Key topics/theories:

• Key tools for project management, including work breakdown schedule (WBS), Gantt Charts, and Network analysis.

• Managing project risk.
• PERT charts.
• Scenario planning and buffering.
• The contribution of project management software.

Learning outcome D2 (c) Discuss Management and Leadership Issues Associated with Projects, including the Roles of Key Players in Projects

• Project structures, including matrix structure and their impact on project achievement.

• The role and attributes of an effective project manager.
• The role of the Chartered Management Accountant in projects.
• The role of other key players in a project.
• Managing key project stakeholders.
• The lifecycle of project teams.
• Leading and motivating project teams.

Related Resources:

• CIMA E2 Online Course
• CIMA E2 Study Text
• CIMA E2 Revision Question Practice
• CIMA E2 Revision Masterclasses
• CIMA E2 Mock Exams
• Free CIMA E2 Resources