ACCA Strategic Business Leader (SBL) Practice Exam

What framework is used to help a company evaluate its internal strengths and weaknesses?

1. The Baldrige model

2. The Value Chain analysis

3. Tuckers model

4. The SWOT analysis

The correct answer is: The Value Chain analysis

The correct answer is the SWOT analysis, which is specifically designed to help organizations assess their internal strengths and weaknesses, as well as external opportunities and threats. By identifying these components, a company can better understand its current position and develop strategies that leverage its strengths while addressing its weaknesses. The SWOT analysis is particularly effective because it provides a simple yet comprehensive framework for strategic planning. It encourages collaboration and discussion among team members, leading to a more thorough evaluation of the organization's capabilities and challenges. While the other frameworks may have their own merits, they do not focus directly on evaluating internal strengths and weaknesses in the same manner. The Baldrige model, for example, is a framework for performance excellence and focuses on overall organizational improvement rather than specifically on strengths and weaknesses. Value Chain analysis emphasizes the processes and activities that create value within the organization, but it doesn't directly assess internal capabilities in the way that SWOT does. Tuckers model, although valuable in its context, is less commonly referenced and may not align as closely with the objective of evaluating internal organizational factors.