ACCA Strategic Business Leader (SBL) Practice Exam

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Study for the ACCA SBL Exam. Utilize quizzes with multiple choice questions, hints, and explanations to enhance your learning. Prepare confidently for your exam!

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What do "stars" generally require to maintain their market position?

Minimal investment and resources
Heavy investment to sustain growth
Increased pricing strategies
Focus on cost-cutting measures

The correct answer is: Heavy investment to sustain growth

"Stars" are products or business units that exhibit high growth and have a significant market share in their respective industries. Maintaining their market position is crucial to capitalize on this growth potential. Typically, stars require heavy investment to sustain their expansion, as the demand is high, and they need to continue investing in marketing, production capabilities, and innovation to fend off competition and maintain or increase their market share. Investing in these areas helps ensure that the product or unit can keep meeting consumer demand while also supporting further growth initiatives that can eventually lead to dominance in the market. By continually investing, stars can also fend off emerging rivals and adapt to market changes effectively, which is essential for long-term success. The other options do not align with the typical characteristics of stars. Minimal investment would leave a star vulnerable to competitors; increased pricing strategies, while useful in some contexts, are not the primary focus for sustaining market position; and cost-cutting measures could be detrimental to a star's growth potential, as they would hinder investment in innovation and marketing.