ACCA Strategic Business Leader (SBL) Practice Exam

What model is utilized to assess a company's culture?

1. SWOT Analysis

2. Cultural web

3. PEST Analysis

4. Mendelow's matrix

The correct answer is: Cultural web

The cultural web is a valuable model used to assess a company's culture because it provides a framework that captures the various elements that shape and define the organizational culture. The cultural web identifies six interrelated components: stories, rituals and routines, symbols, organizational structure, control systems, and power structures. By analyzing these components, a business can gain insights into the prevailing culture, understand how it influences employee behavior, decision-making processes, and the overall effectiveness of the organization. This model is particularly useful for organizations looking to implement change or improve their culture because it highlights the existing cultural elements and how they interact. By assessing these aspects, leaders can identify aspects of the culture that may either facilitate or hinder strategic initiatives. In contrast, other models mentioned serve different purposes. SWOT analysis focuses on identifying strengths, weaknesses, opportunities, and threats related to the organization's strategic position; PEST analysis evaluates political, economic, social, and technological external factors affecting an organization; and Mendelow's matrix is used to prioritize stakeholders based on their influence and interest in a project or organization. These models do not specifically address the nuances of organizational culture the way the cultural web does.