ACCA SP Strategic Business Leadership 2 — Questions and Answers
Question 1: Organisational 'culture' (Johnson & Scholes) is best represented by:
- The organisation's formal strategy document
- The cultural web — the paradigm, stories, symbols, routines, power structures, control systems and organisational structures (Correct answer)
- The financial reporting policies
- The product portfolio matrix
Correct answer: The cultural web — the paradigm, stories, symbols, routines, power structures, control systems and organisational structures
Johnson & Scholes' cultural web depicts organisational culture through six interrelated elements (stories, rituals, symbols, power structures, control systems, organisational structures) surrounding the paradigm.
Question 2: A 'scenario planning' approach to strategy involves:
- Producing a single most-likely forecast of the future
- Developing multiple plausible alternative futures to test strategic robustness (Correct answer)
- Setting fixed five-year targets for each division
- Analysing past performance to predict future results
Correct answer: Developing multiple plausible alternative futures to test strategic robustness
Scenario planning involves constructing several plausible but distinct future environments, allowing an organisation to test strategies against each and identify robust options.
Question 3: The 'resource-based view' (RBV) of strategy focuses on:
- External industry analysis to identify attractive markets
- Internal resources and capabilities as the source of sustainable competitive advantage (Correct answer)
- The organisation's financial gearing ratio
- Stakeholder mapping and engagement
Correct answer: Internal resources and capabilities as the source of sustainable competitive advantage
RBV (Barney, Penrose) argues that sustainable competitive advantage derives from unique, valuable, rare, inimitable and non-substitutable (VRIN) internal resources and capabilities.
Question 4: Which of the following describes 'emergent strategy' (Mintzberg)?
- A fully planned strategy communicated from the top down
- Strategy that develops incrementally in response to unplanned opportunities and environmental changes (Correct answer)
- A strategy developed by external consultants
- A strategy based solely on financial modelling
Correct answer: Strategy that develops incrementally in response to unplanned opportunities and environmental changes
Mintzberg distinguished intended strategy (planned) from emergent strategy, which arises from ad-hoc responses to events. Realised strategy is a combination of deliberate and emergent elements.
Question 5: Corporate social responsibility (CSR) at the strategic level is best described as:
- Compliance with minimum legal requirements
- Integrating social, environmental and ethical considerations into core business strategy and operations (Correct answer)
- An annual charitable donation by the company
- A marketing initiative to improve brand image only
Correct answer: Integrating social, environmental and ethical considerations into core business strategy and operations
Strategic CSR integrates ethical, social and environmental concerns into business strategy and operations, creating shared value for both the company and society beyond mere legal compliance.
Question 6: Which of the following is an example of a 'strategic alliance'?
- A company acquiring a competitor
- Two companies entering a joint agreement to share resources and capabilities without full merger (Correct answer)
- A company listing its shares on a stock exchange
- A management buyout of a subsidiary
Correct answer: Two companies entering a joint agreement to share resources and capabilities without full merger
A strategic alliance is a collaborative arrangement between two or more organisations to share resources, capabilities or risks to achieve strategic objectives, without full integration.
ACCA SP Strategic Business Leadership 2
Organisational 'culture' (Johnson & Scholes) is best represented by: