ACCA Strategic Business Leader (SBL) Practice Exam

Which matrix outlines the strategic options available based on Markets and Products?

1. Porter's Five Forces

2. Ansoff's matrix

3. Harmon’s process-strategy matrix

4. Kaleidoscope model

The correct answer is: Ansoff's matrix

Ansoff's matrix is the correct choice as it specifically outlines strategic options available based on two critical dimensions: products and markets. This tool provides a framework for understanding the different paths an organization can take when considering growth strategies. The matrix is divided into four quadrants: 1. **Market Penetration** - focusing on increasing sales of existing products in existing markets. 2. **Product Development** - introducing new products to existing markets. 3. **Market Development** - entering new markets with existing products. 4. **Diversification** - developing new products for new markets. This structure allows companies to assess risks and identify appropriate strategies depending on their current market and product status, enabling strategic planning and decision-making. In contrast, other options like Porter's Five Forces analyze industry competitiveness, Harmon’s process-strategy matrix addresses alignment between process and strategy, and the Kaleidoscope model looks at strategy through various contextual elements, none of which directly link markets and products in the same straightforward way as Ansoff's matrix.