SBL ACCA Exam ACCA SBL Actual

SBL ACCA Exam ACCA SBL Actual Exam Questions and Correct Answers Rated A+

Strategic drift -ANSWER-When an org does not change in the same scale as external environment.

Steps of strategic drift -ANSWER-1. Incremental change- organisation changes to get ahead of the market + to be competitive

• Strategic drift- environment changes rapidly and business change is

not enough

• Flux- company is managed as it has always been and so gets left

behind

• Transformation or demise- company transforms or ends

How to avoid strategic drift -ANSWER-· Regularly assess environment for changes · Have flexile systems for reacting to changes in environment · Break down barriers to change- organisational culture that copes with change · Clear understanding of mission and objectives in order to understand where the co. wants to be in the future to guide strategic choices · Have strong leaders willing and able to make changes to organizational direction and strategy

PESTEL Analysis -ANSWER-Macro-economic factors Political Economic Social Technological

Environmental Legal

Porter's Five Forces -ANSWER-Determining viability of a new business · Competitive rivalry · Threat of new entrants · Power of suppliers · Threat of substitutes · Power of buyers

Porter's diamond -ANSWER-Competitive advantage in a country · Demand conditions · Related and supporting industries · Strategy, structure and rivalry · Factor conditions

Strategic capabilities -ANSWER-Threshold vs core competencies

Value chain analysis -ANSWER-Activities that add value to the product · Inbound · Operations · Outbound · Marketing and sales · Service

SWOT analysis -ANSWER-strengths, weaknesses, opportunities, threats · Why relevant · Long term implications · Incorporate financial data

Baldridge excellence framework -ANSWER-Analysing Performance

• Leadership- clear objectives and strategy
• Strategic planning
• Customer and market focus - support complaints
• Workforce focus
• Measurement, analysis and knowledge management
• Process management- review for improvements
• Results

Strategic clock -ANSWER-Analysing strategic position of product compared to competitors Price vs perceived benefits No Frills Hybrid Differential Focused differential Fail

Advantages of sustaining cost -ANSWER-· Constant focus on cost reduction · Aggressive in price wars Technology

Advantages of sustaining differentiation -ANSWER-· Constantly innovate · Create barriers to entry · Improve customer experience

Ansoff Growth Strategies -ANSWER-New/existing product vs market

Success Criteria -ANSWER-Suitability

Feasibility Acceptability

Suitability -ANSWER-Considers the environment and expected changes- does it address the key issues

Feasibility -ANSWER-Considers resources and competence- skills of staff, how much land they have

Acceptability -ANSWER-Considers the risks and returns of the stakeholders- customers, suppliers, shareholders, community

Organic growth -ANSWER-Start from a zero base alone, which is slow but risky

Acquisition -ANSWER-Buy an existing business, which is quick but expensive

Joint venture -ANSWER-Do it with a partner, sharing skills and costs, but is difficult to agree when making decisions

Franchise -ANSWER-Allows others to use the brand, which is cheaper but loses control

Corporate parenting -ANSWER-Relationship between head office and individual business units

How to add value as a corporate parent -ANSWER-· Provide resources · Provide central services (existing HR) · Provide access to markets · Monitor performance and solve problems