ACCA SP Strategic Business Leadership

Question 1

Which of the following best describes 'strategic leadership'?

Accepted Answer

Providing direction, vision and purpose for an entire organisation while balancing stakeholder interests

Answer

Strategic leadership involves setting the long-term vision and direction of the entire organisation, aligning resources, managing change and balancing the interests of diverse stakeholders.

Question 2

Porter's Five Forces model assesses:

Accepted Answer

The competitive forces that determine the attractiveness and profitability of an industry

Answer

Porter's Five Forces (competitive rivalry, threat of new entrants, threat of substitutes, buyer power, supplier power) analyses the structural factors determining industry profitability.

Question 3

A 'balanced scorecard' at the strategic level links performance measures to:

Accepted Answer

The organisation's vision and strategy through four interconnected perspectives

Answer

The strategic balanced scorecard (Kaplan & Norton) translates vision and strategy into objectives and measures across four perspectives: Financial, Customer, Internal Processes, and Learning & Growth.

Question 4

Which of the following is an example of a 'disruptive innovation' (Christensen)?

Accepted Answer

A new entrant offering a simpler, cheaper product that initially serves ignored market segments but eventually displaces incumbents

Answer

Disruptive innovation starts at the low end or new market, ignored by incumbents focused on premium customers, and gradually moves upmarket, eventually displacing established players.

Question 5

The TOWS matrix extends SWOT by:

Accepted Answer

Generating strategic options by matching internal factors (S/W) with external factors (O/T)

Answer

TOWS generates strategic options: SO (use strengths to exploit opportunities), ST (use strengths to counter threats), WO (address weaknesses to exploit opportunities), WT (minimise weaknesses, avoid threats).

ACCA Strategic Professional Practice Test

ACCA Strategic Professional Practice Test

ACCA SP Strategic Business Leadership