ACCA Strategic Business Leadership Models 2 — Questions and Answers
Question 1: In the McKinsey 7-S Framework, which two elements are considered the 'hard' elements?
- Strategy and Structure (Correct answer)
- Strategy and Skills
- Shared Values and Style
- Systems and Staff
Correct answer: Strategy and Structure
Strategy and Structure are hard elements along with Systems; the remaining four (Skills, Staff, Style, Shared Values) are soft elements.
Question 2: Which Ansoff Matrix quadrant carries the highest risk for an organization?
- Market Penetration
- Market Development
- Product Development
- Diversification (Correct answer)
Correct answer: Diversification
Diversification involves entering new markets with new products, making it the highest-risk strategy since the organization lacks experience in both dimensions.
Question 3: According to Lewin's Force Field Analysis, what must happen for successful change to occur?
- Driving forces must exceed restraining forces (Correct answer)
- Restraining forces must be eliminated entirely
- Driving and restraining forces must be equal
- Restraining forces must exceed driving forces
Correct answer: Driving forces must exceed restraining forces
Lewin's model holds that change occurs when driving forces collectively outweigh the restraining forces opposing the change.
Question 4: The Balanced Scorecard's 'internal business processes' perspective primarily focuses on which question?
- How do customers see us?
- What must we excel at? (Correct answer)
- Can we continue to improve and create value?
- How do we look to shareholders?
Correct answer: What must we excel at?
The internal business processes perspective asks what the organization must excel at internally to satisfy customers and shareholders.
Question 5: In Tuckman's model of team development, during which stage does conflict typically emerge as team members assert their positions?
- Forming
- Storming (Correct answer)
- Norming
- Performing
Correct answer: Storming
Storming is characterized by interpersonal conflict, power struggles, and challenge of the leader as members compete for roles.
Question 6: Porter's Generic Strategies framework suggests that a firm 'stuck in the middle' will likely achieve which outcome?
- Above-average profitability
- Below-average profitability (Correct answer)
- Market leadership
- Cost leadership
Correct answer: Below-average profitability
Porter argued that firms failing to commit fully to either cost leadership or differentiation are 'stuck in the middle' and typically earn below-average returns.
Question 7: The concept of 'strategic drift' as described by Johnson refers to which phenomenon?
- Rapid strategic change outpacing the environment
- Incremental strategy that gradually diverges from environmental change (Correct answer)
- Deliberately shifting strategy to new markets
- Aligning organizational culture with strategy
Correct answer: Incremental strategy that gradually diverges from environmental change
Strategic drift occurs when an organization's strategy gradually falls behind environmental changes due to incremental, culturally constrained adaptations.
ACCA Strategic Business Leadership Models 2
In the McKinsey 7-S Framework, which two elements are considered the 'hard' elements?