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ACCA Strategic Business Leader Model summary

Dr. Shaan Jayasekera


Chairman/ senior Lecturer Alpha Business School
Colombo
Sri Lanka
2020

ACCA Strategic Business Leader Model Summary- Dr. Shaan Jayasekera. (PHD) All rights Reserved.
+94777756314
DR. Shaan Jayasekera (PhD), MBA, BA(Hons), Dipm, CIMA passed
finalist

Dr Shaan Jayasekera is a multidisciplinary professional with close to


two decades of lecturing experience across many different courses
both nationally and internationally. He is associated with many
professional courses such as CIMA and CIM and ACCA and is
currently on many lecture panels as a Senior Visiting Lecturer for
ACCA and many international Universities at both undergraduate
and postgraduate levels

Prior to taking on a fulltime commitment as an educator he worked in diversified corporates and achieved
the highest academic achievement of a PHD is business administration. During his tenure of lecturing he
has consistently produced over 40 multiple prize winners across different courses both nationally and
internationally.

Dr. Shaan in currently a director and Chief Executive Officer Of KC Overseas(Pvt) Ltd an organization
representing over 800 institutions in 30 countries for foreign education . He is also one of the founder
directors and the Chairman of the Alpha Business School a school specializing in quality ACCA education
and the owner of the Fitness Niche a gymnasium located in the Oval Grounds Colombo 8.

He is also a pianist and a music composer.

Dear students,

‘The following model summary has been created personally by me bring together 20+ years of cumulative
experience of lecturing the subject and all its predecessors combining it with practical experience of
running my own organizations and consulting. SBL is not a knowledge testing paper but one that requires
practical solutions to actual problems using models and theory to guide and frame an answer rather than
dictate it. This model summary is created with that intention.

Hope this will be of use in getting your desired grade and success at exams. I wish you all the absolute best
in exams. Remember passing examinations is important but the actual prize is becoming a competent and
ethical business leader driving successful organizations that have the potential to transform the lives of
many stakeholders connected to it or relying on it .’

Please feel free to share your comments and views on my facebook page Dr. Shaan Jayasekera

Thank you

Dr. Shaan Jayasekera (PHD)

Chairman Alpha Business School and CEO KC Overseas (Pvt) LTD

Shaan@kcoverseas.lk

ACCA Strategic Business Leader Model Summary- Dr. Shaan Jayasekera. (PHD) All rights Reserved.
+94777756314
SBL model Summary and professional Skills

Model Description Where it can be Examination Referenc


used tip e
Strategy process tools
1. Rational planning model How to formally When trying to One aspect of 1
(RPM) create/plan a strategy plan strategy in a this may be
a. Analysis including strategic linear manner given such as
b. Choice analysis, Strategic analysis or
c. Execution choice and Strategic choice
implementation
2. Emergent strategy- Mintzberg Rather than formally To provide an When you are 1
planning a strategy, a alternative and asked to
course of action that more realistic provide an
can emerge via approach to insight to the
experiences ‘patterns strategic strategy
or consistencies planning process or
realized in the absence discuss the
of intention’ actual strategy
process
3. Strategic Lens- Johnson and Provides a 360 view To understand When you are 1
Scholes of the strategy process the strategy asked to
1. Design lens from multiple process in a provide and
2. Experience lens perspectives to avoid company from 3 insight to the
3. Ideas lens bias perspectives strategy
process
Internal environmental analysis tools
4. The Ms Model Summarizes the main Can be used to When 3
 Money internal variables take stock of analyzing
 Men starting with M internal variables strengths or
 Machinery that can be weaknesses /or
 Methods strengths or when looking
 Materials variables/ what at feasibility in
 Markets has to be in SAF criteria
place to
 Makeup
successfully
 Management information
execute strategy
5. The value chain-Michal Looks at the broad Multiple when examiner 3
Porter classification of applications specifically
 Inbound logistics activities that need to including mentions using
 Operations be in place to drive a  Decisions the value chain
 Outbound logistics business model and if on to examine
 Marketing and sales done right (lower cost outsourcing strengths and
 Service or differentiated) helps  Understandi weaknesses or
 Firms infrastructure achieve a competitive ng strengths as a general
advantage and and tool of analysis
 Procurement
superior ROI weaknesses
 Technology development
 Human Resource  IT
management applications
6. The Value system/ supply A collection of value ‘any chain is as Multiple
chain chains or all the strong as its applications
activities and weakest link’ so including
ACCA Strategic Business Leader Model Summary- Dr. Shaan Jayasekera. (PHD) All rights Reserved.
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information flows best is a. Supply
needed to transform a understand chain
raw materials from optimizing the restructuri
point of origin to supply chain to ng
when goods are finally improve b. Reducing
consumed competitive carbon
advantage footprints
7. The BCG matrix- Boston analyzes strategic To analyze When asked to 3
consulting group business units by business units analyze/evaluat
a. Question considering the market and determine e the relative
marks/problem growth rate and strategy such as position of
children/wildcats relative market share  Build each business
b. Starts to determine future  Hold unit within the
c. Cash cows strategic options such  Harvest company’s
d. Dogs/cash dogs as investment or  divest portfolio
divestment
8. Balridge Performance Looks at the key Principles that When the 3
excellence- Malcolm values that need to be can be examiner
Baldrige embedded with an embedded into specifically
 Visionary leadership organizations culture the organizations asks you to
 Customer- driven and systems to systems and apply the
excellence successfully drive processes to model to
quality and superior deliver assess
 Organizational and
performance excellence and performance or
personal learning quality discuss some
 Valuing workforce of the
members and partners principles to
 Agility improve
 Focus on the future quality in the
 Managing for company
innovation scenario
 Management by fact
 Societal responsibility
 Focus on results and
creating value
 Systems perspective
9. Benchmarking Comparing an Used as a When the 3
 Internal organization with strategic tool for examiner
 Competitive another who is creating learning suggests
 Process considered best in organizations undertaking a
 Generic their class that improve benchmark
their operations exercise or a
generic
approach to
improve
performance
10. The balance Score Card A strategic planning As a multi- When a 3
(Kaplan and Norton) and management dimensional question asks
 Financial perspective system that can be performance to evaluate the
 Customer used to communicate evaluation tool company
what they are trying to analyze performance
perspective
to accomplish, align performance can be used as
 Internal process day-to-day work and from both a model to
perspective Measure and monitor financial and structure

ACCA Strategic Business Leader Model Summary- Dr. Shaan Jayasekera. (PHD) All rights Reserved.
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 Learning and growth progress towards non- financial answers
perspective strategic targets. long-term looking at
perspectives performance
measures that
are both
financial and
non-financial
11. Critical Success Factors Important areas in a To home in on When the 3
(CSF) business that need to the most examiner
go right for that important areas specifically
business to flourish in a strategy that asks to identify
and deliver its need to go right CSFs for that
competitive looked from business or to
advantage attributes of a generally talk
product or about them in
service is valued an answer
by customers
12. Parenting rationales The different To analyze the When you are 3
(Johnson and Scholes) rationales a corporate parenting asked to
a. Portfolio manager parent can adopt to rationale in a outline
b. Synergy manager add value to its given scenario alternative
c. Parental developer business units with regard to rationales for
its business adding value
units and how
successful it has
been
External environment analysis tools
13. PESTEL Analysis The variables in the The analyze a When you are 4
 Political Macro environment firm’s macro asked to
 Economic which are a given environment analyze/
 Social and cultural which have an effect rather than its evaluate macro
on all firms creating industry or environments
 Technological
opportunities and market place.
 Ecological threats which firms
 Legal need to adapt to

14. The 5 Forces – Michael The forces that To analyze a When you are 4
porter affect industry firm’s (task asked to
 Threat of new entry attractiveness and environment) analyse/evaluat
 Bargaining power of buyers ROI. industry/ market e an industry
ROI is not a place to and
 Bargaining powers of
function of product determine if marketplace
sellers/suppliers
sophistication but entry is
 Threat of substation worthwhile and Note- if a
 Existing rivalry the combines
determine question asks
effects of the forces
strategic for an analysis
Successful firms
positioning of external
develop strategy to
(generic strategy environment
position against the
i.e. Cost best is to do
forces
leadership, both a
Differentiation, PESTEL and 5
Focus) forces
15. The Diamond- Michael The variables More political When you 4
Porter (domestically but can be used asked to
 Factor conditions (basic and available) that shape to analyze an analyze

ACCA Strategic Business Leader Model Summary- Dr. Shaan Jayasekera. (PHD) All rights Reserved.
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advanced) a nations industry industry to domestic
 Demand conditions towards national assess the conditions that
 Related and support industry competitive variable needed have led to
 Firms strategy structure and advantage. and /or already industry
in place for success in a
rivalry
industry success country
 Role of chance and
government
Corporate appraisal tools
16. SWOT analysis Looks at the A useful stock When asked to 5
 Strengths (internal) readiness of the take of the do a SWOT
 Weaknesses (internal ) internal environment salient strengths, analysis
 Opportunities (external) (strengths and weakness
weaknesses) to opportunities
 Threats (external )
interact with its and threats prior
external environment to developing
(opportunities and long term plans
threats )
17. The TOWS matrix Broad strategic To determine When a SWOT 5
 SO strategies options that can arise strategic options analysis is
 WO Strategies from a SWOT for an given, and you
 ST strategies analysis organization by are asked to
identifying SO, use ‘a model’
 WT strategies
WO, ST and WT to develop
strategies strategic
options
Strategy development tools
18. Generic Strategy – Michael Generic routes of To develop When you are 6
porter cost leadership, strategic options asked to
e. Cost leadership differentiation and for competitive consider
f. Differentiation Focus to help an advantage options to
g. Focus organization competitively
secure a position or
competitive gain a
advantage and competitive
advantage
position against the
five forces
Creating 4 possible
strategic option
 Cost focus
 Differentiat
ion focus
 Cost leadership
 Differentiation
19. Bowman’s Strategic Outlines 5 potential To develop Used as an 6
Clock (Cliff market facing strategic options alternative to
Bowman and David strategies for for competitive Porters
Faulkner) competitive advantage Generic
a. No frills advantage based on strategy
b. Low price perceived value
c. Hybrid added to the target
market and price
d. Differentiation
e. Focus differentiation

ACCA Strategic Business Leader Model Summary- Dr. Shaan Jayasekera. (PHD) All rights Reserved.
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20. Ansoff growth- Growth options that To determine When asked to 6
vector Matrix (Igor can be considered growth options consider
Ansoff) alongside products for the options
 Market penetration and markets organization available for
perusing
 Market development
organizational
 Product development growth
 Diversification
Stakeholder management models
21. Mendelow’s Matrix Classifying To analyze When asked to
(Aubrey Mendelow) stakeholders in terms stakeholders in a analyse how
 Minimal effort of their power and given situation the position of
 Keep informed interest) and determine stakeholders
the stakeholder have changed
 Keep satisfied engagement and how the
 Key players plans stakeholder
engagement
strategy should
now change
22. Carrols pyramid (Archie The different levels of To understand To discuss 13
Carrol) Corporate Social and examine an CSR towards
 Economic(lowest) Responsibility (CSR) organizations stakeholders
 Legal extent towards
CSR
 Ethical
 Philanthropic(highest)
Strategy evaluation Models
23. Acceptability, Suitability Variables that need To evaluate When asked to 6
and Feasibility (SAF) to be analyzed to strategic options evaluate any
criteria (Johnson and successfully rationally (what strategic
Scholes) execute strategy is best for the options
 Suitability (mission and organization (Tip- look at
SWOT) and its suitability first)
situation)
 Acceptability (stakeholders
and risks and returns)
 Feasibility (resources)
24. RACES- Habeberg and Variables that need To evaluate As an
Riple to be analyzed to strategic options alternative to 6
a. Resources successfully rationally (what SAF
b. Acceptability execute strategy is best for the
c. Coherence organization
d. Effectiveness and its
e. Sustainability situation)
Change management tools
25. Dealing with resistance to Approaches that can The approaches When an 9
change (Kotter and be considered in management exhibit
Schlisinger) terms of leadership can consider indicates
 Education and when facing whose success resistance to
communication resistance towards a will be change the
planned change contingent of strategies
 Participation and
programme. variables such management
involvement
as power, time can use to
 Facilitation and support education, overcome it
 Negotiation resources

ACCA Strategic Business Leader Model Summary- Dr. Shaan Jayasekera. (PHD) All rights Reserved.
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 Manipulation and available to deal Tip- look at
cooptation with resistance manipulation
 Implicit and explicit towards a and coercion
coercion planned change last as a last
programme resort to
demonstrate
professionalis
m
26. 3 Step Change model( The stages that must The stages that A quick 9
Kurt Lewin)-Ice cube be successfully must be overall
model addressed to carry addressed by a approach to
 Unfreeze- create out a planned change firm to plan a drive a
motivation programme change successful
 Change/move-Introduce programme and change
ensure it has strategy
the new POPIT
sustainability Tip -most
 Re freeze- stabilize change change fails as
unfreeze has
not been done
27. The change Kaleidoscope The contextual To analyze the When you are 9
(Balogun and Hope- features present in broad contextual asked to
Hailey) any change situation features of the analyse the
 Time which can be change situation contextual
positive, neutral or in order to features of
 Scope
negative on the develop a change
 Power proposed change suitable change
 Preservation situation approach
 Diversity
 Readiness
 Capacity
 Capability
28. The change life cycle Stages of a planned To develop and In a general 9
 Alignment-understand change programme execute a change
environment suitable change management
 Definition-set objectives programme by question
addressing its
 Design -develop POPIT
main stages
 Implementation
 Realization
29. POPIT model People, To analyze a To determine 9
 People Organization, situation and the variables
 Organization Processes, and determine what that need to be
Information needs to be in in the design
 Processes
Technology that place to drive stage of the
 Information Technology success and or change life
need to be in place
and integrate with identifies cycle to drive
deficiencies or the change
each other to drive
strengths
organization success
30. Classifying types of change Classifying change To understand When asked to 9
– Balogun and Hope- into different types that companies classify the
Hailey based on the speed change situation change
 Revolution of change situation
 Evolution (incremental or big
 Adaptation bang) and nature
ACCA Strategic Business Leader Model Summary- Dr. Shaan Jayasekera. (PHD) All rights Reserved.
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 Reconstruction (Transformation or
realignment )
Models to analyze organizational culture
31. Cultural Web (Jerry The interrelated To analyze an When you are 8
Johnson) elements that organization’s asked to
a. Stories and myths make up an culture to analyse the
b. Routines and rituals organizations determine what organizational
c. Symbols culture and is working and culture and
reinforce its what isn’t or determine
d. Organization structure
paradigm how planned what aspects
e. Power structure change is going need to change
f. Control systems to affect it or understand
g. Paradigm why resistance
is created
Models on project management
32. The project management The main project The areas which As a general 10
process areas (Project management need to be approach to
management institute) process areas addressed and project
1. Initiation-risk from start to end managed to management
management, feasibilities that needs to be deliver
2. Planning- PID, project managed to successful
plans deliver a projects by
successful project monitoring
3. Execution-manage quality
deliverables
and expectations
created by each
4. Controlling
process area.
5. Closing -post completion
and implementation
review.

Corporate Governance models


32. Higgs Report Examined the The value and When asked to 15
value of NEDs and role of Non- discuss the role
their contribution executive of NEDs in a
in the areas of directors and company
 Strategy the areas they Note – in a
can question on
 Risk
independently NEDs best is to
 People add value in talk about their
 Performa value adding
nce role
33. Independent Committees To ensure good The Assess if they 15
 Audit-financial integrity of governance the sub independent are in place
company committees committees for and their
 Nominations- supporting the good composition
appointments to board main board governance when
 Remunerations- discussing
determining director governance
salaries weaknesses or
 Risk -oversee risk recommend
management them to
improve
governance
34. Heat Maps Maps risks based To map When asked to 19
on its probability different analyse risks

ACCA Strategic Business Leader Model Summary- Dr. Shaan Jayasekera. (PHD) All rights Reserved.
+94777756314
of occurrence and risks to
its severity or determine
impact how
significant
they are in
terms of
priority and
the
risk
management
strategy
35. TARA/SARA Broad approaches To determine When asked to 19/20
 Transfer/Share towards managing the determine the
 Avoid organizational organizations risk
 Reduce/Mitigate/diversify risks risk management
 Accept management approach
strategy
36. ISO 14000 Environmental As a tool to be When 16
standards. Shows environmentally discussing
that an compliant and approaches to
organizations also enter reducing
systems and markets carbon
process are footprints
environmentally (displays good
compliant commercial
acumen)
37. EMAS A voluntary To show an When 16
management organization discussing
instrument to commitment approaches to
evaluate, report, towards the reducing
and improve an environment carbon
environmental footprints
performance. (displays good
commercial
acumen)
38. The triple bottom (John The main areas that Areas that a firm When 16
Elkington) need to be need to focus on discussing
 Profits addressed for long for long term sustainability
 Planet term sustainability sustainable
 People performance
39. Integrated Reporting To show how an To show When asked to 16
(International Integrated organization stakeholders the evaluate
Reporting Committee) creates value over organizations performance
1. Financial capital time making its performance in for an IR
2. Manufactured performance the 6 capitals perspective or
capital visible in the 6 and discuss IR
3. Human capital capitals sustainability benefits
and also monitor
4. Intellectual
them for long
capital term value
5. Social capital creation
6. Natural capital

40. The fraud triangle The elements that To understand When alaysing 17
all need to line up the elements fraud to
ACCA Strategic Business Leader Model Summary- Dr. Shaan Jayasekera. (PHD) All rights Reserved.
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 Opportunity for fraud to take that need to be understand it
 Motive/pressure place addressed to root causes
ensure fraud is
 Dishonesty/Rationaliz
prevented in
ation
organizations
when designing
control systems
41. Fraud strategy The elements that To design When asked to 17
 Fraud Prevention need to be present control systems suggest and
 Fraud Detection to address fraud to address fraud evaluate
approaches to
 Fraud response
manage the
 Fraud deterrence fraud

42. The COSO framework of The broad To design When asked to 17


controls elements of a suitable control evaluate the
 Control environment- control system as systems and effectiveness
set tone at top defined by the also in reporting of controls
Committee of to shareholders
 Risk assessment
Sponsoring on what
 Control activity/internal measures are in
controls-SPAMSOAP Organizations
place to achieve
 Information and control
communication
 Monitoring
43. SPAMSOAP Control activities To suggest When asked to 17
such as elements of suggest control
 Segregation control improvements
of duties or identify
 Physical weaknesses
controls
 Authorization
 Managerial
 Supervision
 Organization
 Arithmetic
and
accounting
 Personnel
44. Risk appetite A company view Useful to Before 20
 Capacity on how much risk understand and discussing the
 attitude it is willing to take quantify the risk TARA
appetite as it framework or
affects the risk when a new
strategy shareholder
joins the board
to align risk
appetites
Professional ethics tools
45. ACCA code of Ethics Lays out principles To determine if When asked to 21
 Integrity which need to be accountants and analyze and
 Objectivity upheld for acting ethically criticize ethical
accountants to in any given behaviour
 Professional competence
context and also
ACCA Strategic Business Leader Model Summary- Dr. Shaan Jayasekera. (PHD) All rights Reserved.
+94777756314
and due care behave ethically design ethics
 Confidentiality and professionally education
 Professional behavior and act in public training and
interest education by
creating ethical
sensitivity
46. Ethical dilemmas/ The main variables To design When asked to 21
threats that threaten safeguards in the analyze
 Self- interest threat ethical behavior profession and dilemmas or
 Self-review threat and professional the occupation design
behavior causing and analyze safeguards
 Advocacy threat within a scenario
dilemmas to
 Familiarity threat where ethics are
accountants where
Intimidation threat being
ethics get
compromised
compromised
Information Technology tools
47. 3 or 4 Vs model- Laney the 3 or 4 Vs of Big Understanding Discuss the 23
 Volume data big data benefits of big
 Variety data
 Velocity management
 Veracity(accuracy) and
opportunities
48. Cloud computing Saving data on Manage Discuss the 23
remote servers businesses more opportunities
with security effectively in and benefits of
the modern age cloud
computing
49. Disruptive technologies – New technologies New firms can To discuss the 23
Clayton Christiansen that displace adopt these threats of
existing large firms technologies at disruptive
lower costs to technologies.
compete with How to
established manage it and
firms also in porters
five forces
under threat of
substitutes and
new entry
Process management tools
50. Harmon’s Grid (Paul Classifying To analyze When asked to 22
Harmon) organizational organizational determine
processes (which processes in process options
must be done) in order to such as
terms of its strategic determine inhouse or
significance and strategic options outsource and
complexity for them resource
dynamics) implications
and technology
applications
51. Swim lane Diagrams Diagrammatic To analyze a Given by the 22
representation of process and examiner in an
process flow to determine exhibit to
determine hand problems and understand the
off points redesign options process flow
for
ACCA Strategic Business Leader Model Summary- Dr. Shaan Jayasekera. (PHD) All rights Reserved.
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and general
problems
Organization structure tools
52. Organizational A framework to To design a Examine 22
configurations (Henri understand and suitable weaknesses in
Mintzberg) design configuration the current
 Simple structure organizational and /or identify structure and
structures why a current recommend an
 Machine bureaucracy
configuration is alternative
 Professional not suitable
bureaucracy
 Divisional form
 Adhocracy
Marketing tools
53. The 6 I model Shows the To highlight the Discuss the 25
(McDonald and Wilson) difference between differences benefits of
 Interactivity conventional between digital media
 Individualization media and digital conventional
media in marketing media and
 Intelligence digital media
 Integration and show the
 Independence of benefits of the
location new digital
 Industry structure media
54. The marketing mix (the A set of variables The design and To design a 25
4 PS/7Ps) (Jerome that can be position a suitable
McCarthy) controlled and marketing marketing mix
 Product acts as a stimulus offering in or identify
to obtain the target markets weaknesses
 Price
attention of target or identify
 Promotion weaknesses in
markets to pursue
 Place the current
marketing
 Processes marketing effort
objectives
 People and what needs
 Physical evidence to be addressed
Talent management tools
55. Talent management The stages of To focus on Examiner can 22
framework talent talent focus on a
1. Plan- skills and numbers management to management particular stage
needed to drive business drive the activities to and ask what
future organizations help the
2. Attract- recruitment corporate organization in organization or
3. Develop- training strategies a competitive CEO can do to
environment drive it
4. Retain- creating culture
and rewards to keep staff
5. Transition – succession
planning, promotions,
redundancies

ACCA Strategic Business Leader Model Summary- Dr. Shaan Jayasekera. (PHD) All rights Reserved.
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Professional Skill What it means What to do in an exam to gain
marks
1. Analysis Investigate relevant
information from a wide range  Use a suitable model to ‘break
of sources using analytical up’ the situation (dissect )
techniques to establish reasons  Draw information from
for problems and identify multiple exhibits and ‘piece’
opportunities the information together
 Talk about what is happening
and what is causing it
 Perform calculations and
compare against benchmarks
to understand significance
2. Evaluation Assess and use professional  Be objective as much as
judgement appraising facts possible
balancing costs risks and  Look at the pros and cons
benefits and providing  Look at short-term and long-
unbiased recommendations term impacts
 Look at risks and returns
 Look at financial and non-
financial
 Try to perform forecasts to
support
3. Scepticism Not merely accepting anything  Look at the evidence
on pure face value and probing  Is the evidence contradicting
and questioning and any claims made?
challenging in a professional  Challenge claims
manner requiring reasonable professionally presenting
evidence to support any claim further evidence
made  If the claim is to be accepted
ask for further evidence
4. Communication Inform concisely using  Chose the proper format
compelling and logical  understand the audience needs
arguments whist clarify and and technical sophistication
simplify complex issues whilst  have a logical flow
meeting the needs of the  prioritize the argument
listeners

5. Commercial acumen Display strong understanding  Look at fit with that business
of the business world i.e. environment by understanding
markets and environment and the environmental difference-
having a grasp of what the legal, social, cultural political,
company must do to succeed technology
 Ask yourself ‘will this work
here given these’?
 Look at more long-term
aspects rather than short-term
to built reputational assets
network assets etc
 Look at people and the planet
rather than profits (long term
sustainability)
Note – In general also display general ethical behaviour of integrity, objectivity, professional competence ande
care, confidentiality and professional behaviour.
ACCA Strategic Business Leader Model Summary- Dr. Shaan Jayasekera. (PHD) All rights Reserved.
+94777756314
ACCA Strategic Business Leader Model Summary- Dr. Shaan Jayasekera. (PHD) All rights Reserved.
+94777756314

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