ACCA Strategic Business Leader (SBL) Practice Exam

What is suitability in the context of the SAF framework?

1. It refers to the performance of a strategy in terms of return

2. It concerns whether a strategy addresses identified issues

3. It is about resource availability to deliver the strategy

4. It deals with stakeholder reactions to a strategy

The correct answer is: It concerns whether a strategy addresses identified issues

Suitability within the SAF (Suitability, Acceptability, Feasibility) framework relates to whether a strategy effectively addresses the identified issues or challenges faced by an organization. This aspect is crucial as it evaluates the alignment between the strategy and the organization's current situation, including its goals and market dynamics. By focusing on suitability, organizations ensure that the chosen strategies are relevant and pertinent to the specific context in which they operate. This evaluation involves analyzing external market conditions, internal capabilities, and the strategic fit with the overall objectives. A strategy that is suitable ensures that it effectively meets the organization's needs and responds to the problems it aims to solve. Other options address different aspects of the SAF framework. Performance related to return falls under acceptability, which evaluates how stakeholders perceive the anticipated outcomes. Resource availability pertains to feasibility, which assesses whether the organization has the necessary resources to implement the strategy. Stakeholder reactions also relate to acceptability, focusing on how the strategy will be received by those impacted by it. Thus, option B accurately captures the essence of suitability in the context of the SAF framework.