ACCA- SBL – models with Complete Solutions
2 ways to achieve success with Cost Leadership Strategy - ANSWER-1. Increasing
profits by reducing costs, while charging industry-average prices.
2. Access to the capital needed to invest in technology that will bring costs down.
3 Components when assessing a strategy - ANSWER-1. *Suitability*
Suitability deals with the overall rationale of the strategy. The key point to consider is
whether the strategy would address the key strategic issues underlined by the
organisation's strategic position.
2. *Acceptability*
Acceptability is concerned with the expectations of the identified stakeholders (mainly
shareholders, employees and customers) with the expected performance outcomes,
which can be return, risk and stakeholder reactions.
3. *Feasibility*
Feasibility is concerned with the resources required to implement the strategy are
available, can be developed or obtained. Resources include funding, people, time and
information. Factors that should be considered can be summarised under the M-word
model.
3 key issues when CEO and Chairmen are the same person - ANSWER-1. *Power* -
single person holds too much control over company;
2. *Accountability* - considering that chairmen shall supervise CEO it's difficult to decide
who's accountable for Management;
3. *Workload* - both roles requires a lot of time and effort therefore can it can be difficult
for a single person to keep both
3 main considerations when dealing with staff - ANSWER-1. Developing staff and their
capabilities;
2. Effective and open communication with staff
3. Planning for succession
3 main issues for NEDs joining the board - ANSWER-1. Different management style
and culture;
2. Need to establish communication with personnel;
3. Lack of knowledge of company's operations and other specifics
3 main IT Risks - ANSWER-1.Business continuity;
2.Cyber Security/Data Privacy;
3. New technologies
, 3. Advantages of a Principles-based governance - ANSWER-1. Cover areas undefined
by rules (e.g. can require professional development which won't be covered by a
ruleset)
2. Less costly for both - company and a regulator;
3. Flexibility. Requires to focus on key areas which may differ across industries.
3Es - ANSWER-Method used to assess the performance of a non-profit or government
company.
1. *Economy.* Obtain good quality inputs at the lowest possible price.
2. *Efficiency.* Deliver service of the appropriate standard at minimum cost, time and
effort.
3. *Effectiveness.* achieving primary objective (N.B. in case of a public company this
can be a non-profit objective)
4 Functions of a Risk Committee - ANSWER-1. Recommend risk management strategy;
2. Review reports on key risks;
3. Advise on risk appetite;
4. Informing shareholders
4 Main risks to business model - ANSWER-1. Operational (risks to daily operations e.g.
supply of raw materials)
2. Strategic (strategy or business model may not be suitable to the changing market)
3. FX (only if company trades internationally
5. Competition (any actions from competitors)
4. Drawbacks of a Rules-based compliance - ANSWER-1. Can be expensive to
implement and some companies may lack the required resources
2. People setting the rules must be extremely competent
3. Does not encourage innovation and adaptability
4. Application of same requirements to corporations of various size may not be cost
efficient.
5 Tucker's ethical questions - ANSWER-5 questions when deciding whether action is
ethical
1. Is it profitable (shareholder's perspective needs to be considered)?
2. Is it legal?
2 ways to achieve success with Cost Leadership Strategy - ANSWER-1. Increasing
profits by reducing costs, while charging industry-average prices.
2. Access to the capital needed to invest in technology that will bring costs down.
3 Components when assessing a strategy - ANSWER-1. *Suitability*
Suitability deals with the overall rationale of the strategy. The key point to consider is
whether the strategy would address the key strategic issues underlined by the
organisation's strategic position.
2. *Acceptability*
Acceptability is concerned with the expectations of the identified stakeholders (mainly
shareholders, employees and customers) with the expected performance outcomes,
which can be return, risk and stakeholder reactions.
3. *Feasibility*
Feasibility is concerned with the resources required to implement the strategy are
available, can be developed or obtained. Resources include funding, people, time and
information. Factors that should be considered can be summarised under the M-word
model.
3 key issues when CEO and Chairmen are the same person - ANSWER-1. *Power* -
single person holds too much control over company;
2. *Accountability* - considering that chairmen shall supervise CEO it's difficult to decide
who's accountable for Management;
3. *Workload* - both roles requires a lot of time and effort therefore can it can be difficult
for a single person to keep both
3 main considerations when dealing with staff - ANSWER-1. Developing staff and their
capabilities;
2. Effective and open communication with staff
3. Planning for succession
3 main issues for NEDs joining the board - ANSWER-1. Different management style
and culture;
2. Need to establish communication with personnel;
3. Lack of knowledge of company's operations and other specifics
3 main IT Risks - ANSWER-1.Business continuity;
2.Cyber Security/Data Privacy;
3. New technologies
, 3. Advantages of a Principles-based governance - ANSWER-1. Cover areas undefined
by rules (e.g. can require professional development which won't be covered by a
ruleset)
2. Less costly for both - company and a regulator;
3. Flexibility. Requires to focus on key areas which may differ across industries.
3Es - ANSWER-Method used to assess the performance of a non-profit or government
company.
1. *Economy.* Obtain good quality inputs at the lowest possible price.
2. *Efficiency.* Deliver service of the appropriate standard at minimum cost, time and
effort.
3. *Effectiveness.* achieving primary objective (N.B. in case of a public company this
can be a non-profit objective)
4 Functions of a Risk Committee - ANSWER-1. Recommend risk management strategy;
2. Review reports on key risks;
3. Advise on risk appetite;
4. Informing shareholders
4 Main risks to business model - ANSWER-1. Operational (risks to daily operations e.g.
supply of raw materials)
2. Strategic (strategy or business model may not be suitable to the changing market)
3. FX (only if company trades internationally
5. Competition (any actions from competitors)
4. Drawbacks of a Rules-based compliance - ANSWER-1. Can be expensive to
implement and some companies may lack the required resources
2. People setting the rules must be extremely competent
3. Does not encourage innovation and adaptability
4. Application of same requirements to corporations of various size may not be cost
efficient.
5 Tucker's ethical questions - ANSWER-5 questions when deciding whether action is
ethical
1. Is it profitable (shareholder's perspective needs to be considered)?
2. Is it legal?
