ACCA Strategic Business Leader (SBL) Practice Exam

Which of the following is a component of the organizational design factors?

1. Only internal factors

2. Only external factors

3. Both internal and external influences

4. Budgetary constraints

The correct answer is: Both internal and external influences

Organizational design factors encompass a variety of elements that influence how an organization is structured and operates. The correct answer highlights the importance of considering both internal and external influences in the organizational design process. Internal factors might include the organization's culture, size, structure, and resources. These elements shape how the organization functions and how its various parts coordinate with one another. On the other hand, external factors encompass market conditions, regulations, competition, and technological advancements, all of which can significantly impact an organization's design and strategy. Recognizing that both sets of influences play a vital role allows organizations to create a more effective and responsive design. This holistic approach aids in aligning the internal capabilities and culture with external market demands, thereby enhancing overall performance and adaptability. Focusing solely on internal or external factors would overlook critical interactions and dependencies that define organizational effectiveness in a complex environment. Therefore, understanding and integrating both dimensions is essential for sound organizational design.