ACCA Strategic Business Leadership Models 3 — Questions and Answers
Question 1: In the VRIO framework, which condition must be met for a resource to be a source of sustained competitive advantage?
- Valuable, Rare, Inimitable, and Organized (Correct answer)
- Viable, Relevant, Integrated, and Observable
- Valuable, Reliable, Innovative, and Ordered
- Versatile, Rare, Inimitable, and Organized
Correct answer: Valuable, Rare, Inimitable, and Organized
VRIO stands for Valuable, Rare, Inimitable (costly to imitate), and Organized—all four criteria must be met for sustained competitive advantage.
Question 2: Which element sits at the center of the Cultural Web model, representing the taken-for-granted assumptions of an organization?
- Stories
- Rituals and routines
- The paradigm (Correct answer)
- Power structures
Correct answer: The paradigm
The paradigm sits at the center of the Cultural Web and represents the core set of assumptions and beliefs that are taken for granted within the organization.
Question 3: According to Mintzberg's organizational configurations, which structure suits highly skilled professionals working relatively independently, such as a university?
- Machine bureaucracy
- Divisional form
- Professional bureaucracy (Correct answer)
- Adhocracy
Correct answer: Professional bureaucracy
Professional bureaucracy coordinates through the standardization of skills, making it suitable for organizations like hospitals or universities employing highly trained specialists.
Question 4: Kotter's 8-step change model places 'creating a sense of urgency' as which step?
- Step 1 (Correct answer)
- Step 2
- Step 3
- Step 4
Correct answer: Step 1
Establishing urgency is deliberately the very first step in Kotter's model because without it, employees are unlikely to engage with or support the change effort.
Question 5: In the Mendelow Stakeholder Matrix, how should an organization manage stakeholders with HIGH power but LOW interest?
- Keep informed
- Keep satisfied (Correct answer)
- Manage closely
- Minimal effort
Correct answer: Keep satisfied
High-power, low-interest stakeholders should be kept satisfied to prevent them from becoming actively opposed to the organization's strategy.
Question 6: Which component of the BCG Growth-Share Matrix describes a business unit with high market share in a low-growth market?
- Star
- Question Mark
- Cash Cow (Correct answer)
- Dog
Correct answer: Cash Cow
Cash Cows generate substantial cash flows with minimal investment needs due to their dominant position in mature, slow-growing markets.
Question 7: In the context of the Resource-Based View (RBV), what does the term 'causal ambiguity' refer to?
- Uncertainty about which resources drive competitive advantage (Correct answer)
- Ambiguity in defining the target market
- Unclear ownership of organizational assets
- Difficulty valuing intangible resources on a balance sheet
Correct answer: Uncertainty about which resources drive competitive advantage
Causal ambiguity means competitors cannot easily determine which specific resources or capabilities underpin a firm's superior performance, making imitation difficult.
ACCA Strategic Business Leadership Models 3
In the VRIO framework, which condition must be met for a resource to be a source of sustained competitive advantage?