ACCA Strategic Business Leader (SBL) Practice Exam

What does acceptability in the SAF framework primarily evaluate?

1. Resources and competencies of the organization

2. Addressing identified strategic issues

3. Expected performance in terms of stakeholders' reactions

4. Agreements among different stakeholder groups

The correct answer is: Expected performance in terms of stakeholders' reactions

Acceptability in the SAF framework primarily evaluates the expected performance in terms of stakeholders' reactions. This aspect focuses on how the proposed strategies will be perceived by various stakeholders, including shareholders, employees, customers, and the community. Understanding stakeholder reactions is crucial because their support or opposition can significantly influence the success of a strategy. Evaluating acceptability helps determine whether stakeholders will find the strategy appealing or acceptable based on expected outcomes, risk levels, and how well the strategy aligns with their interests or needs. This dimension emphasizes the importance of stakeholder engagement and assessment in strategic decision-making, ensuring that strategies not only aim for operational and financial success but also resonate with those impacted by organizational decisions. In contrast, the other options pertain to different elements of the SAF framework. While resources and competencies, addressing strategic issues, and stakeholder agreements are important for strategic analysis, they do not specifically encapsulate the focus of acceptability, which is concentrated on stakeholder reactions and the broader implications of strategic choices on those stakeholders.