ACCA Strategic Business Leader (SBL) Practice Exam

When is the strategic clock utilized?

1. To measure employee performance

2. To analyze strategies based on customer service quality

3. To evaluate price and perceived value

4. To assess supply chain efficiency

The correct answer is: To evaluate price and perceived value

The strategic clock is a valuable tool utilized to evaluate the relationship between price and perceived value of products or services offered by a business. This model helps organizations understand their competitive positioning within the market based on how their pricing strategy corresponds to customers' perceptions of value. By analyzing this relationship, businesses can make informed decisions on pricing strategies that enhance their market reach, attract various customer segments, and ultimately drive profitability. In this context, the strategic clock presents a visual representation of different positioning strategies, allowing organizations to see how they can align their offerings relative to their competitors. It emphasizes the importance of balancing pricing with the value perceived by customers, which is essential for effective market positioning. The other options, while important in their own contexts, do not align with the primary function of the strategic clock. Measuring employee performance focuses on human resources metrics, analyzing strategies based on customer service quality pertains to service management, and assessing supply chain efficiency is centered on operational processes—all of which are distinct from the price-value analysis that the strategic clock provides.