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ACCA Strategic Professional · Strategic Business Leader · Strategic choices

Halvorsen Marine, a boat builder, is considering acquiring a rival to enter the leisure yacht market. The board is checking whether the option fits the company's strategic position, including its capabilities, the market opportunities it faces and its stated objectives. Which of the Johnson, Whittington and Scholes (JWS) criteria is the board applying?

The board is applying the suitability criterion. Suitability tests whether an option fits the organisation's strategic position, meaning its capabilities, the opportunities in its environment and its objectives. Acceptability looks at stakeholder reactions and returns, and feasibility looks at whether resources and competences exist to implement the strategy.

  1. ASuitabilityCorrect
  2. BAcceptability
  3. CFeasibility
  4. DVulnerability

Explanation

Suitability asks whether a strategy fits the organisation's strategic position: its capabilities, the environment and its objectives. Acceptability concerns stakeholder expectations, risk and return, while feasibility concerns whether resources and competences are available. Vulnerability is not one of the three JWS criteria.

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