ACCA SP Strategic Business Leader (SBL)

Question 1

A company's board is considering a strategic alliance with a competitor to enter a new market. Which of the following is the MOST significant risk that the board should evaluate before proceeding?

Accepted Answer

The partner may gain access to proprietary knowledge and become a stronger competitor

Answer

While all options present valid concerns, the most significant strategic risk is knowledge leakage to a competitor. In a strategic alliance with a competitor (co-opetition), the partner gaining access to proprietary knowledge, processes, or customer relationships could strengthen them as a future competitor, fundamentally undermining the company's competitive advantage.

Question 2

According to Mendelow's stakeholder mapping matrix, which strategy is most appropriate for stakeholders with HIGH power and LOW interest?

Accepted Answer

Keep satisfied — monitor for changes in interest level

Answer

Mendelow's matrix classifies stakeholders by power and interest. High power/low interest stakeholders should be kept satisfied because while they are not currently engaged, they have the power to significantly impact the organisation if they become dissatisfied. Provoking their interest through neglect could be damaging.

Question 3

The board of a listed company discovers that the CEO has been awarding contracts to a company owned by a close family member without disclosure. Which corporate governance principle has been PRIMARILY breached?

Accepted Answer

Integrity

Answer

While transparency is also breached (lack of disclosure), the primary principle violated is integrity. Integrity requires board members to act honestly and in the best interests of the company, avoiding conflicts of interest. Awarding contracts to a family member's company without disclosure is a fundamental breach of integrity as it places personal interests above those of the company and its shareholders.

Question 4

A multinational company uses a balanced scorecard. Which of the following measures would BEST fit the 'internal business processes' perspective when assessing digital transformation progress?

Accepted Answer

Percentage of business processes automated end-to-end

Answer

The internal business processes perspective focuses on the efficiency and effectiveness of internal operations. The percentage of processes automated end-to-end directly measures how internal processes are being transformed. Customer satisfaction is the customer perspective, ROI is financial perspective, and employee training is the learning and growth perspective.

Question 5

When applying the TARA framework to risk management, which response involves accepting the risk but implementing controls to reduce its impact or likelihood?

Accepted Answer

Reduce

Answer

The TARA framework offers four risk responses: Transfer (shift risk to a third party, e.g., insurance), Avoid (eliminate the activity causing risk), Reduce (implement controls to mitigate likelihood or impact while continuing the activity), and Accept (tolerate the risk without action). Reducing risk means keeping the activity but putting controls in place.

ACCA Strategic Professional Practice Test

ACCA Strategic Professional Practice Test

ACCA SP Strategic Business Leader (SBL)