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ACCA Strategic Professional · Strategic Business Leader · Enabling success: performance excellence

Harbourline Logistics has set a strategic objective of becoming the most trusted cold-chain carrier in the region. The board asks management to identify the few areas in which the company must perform particularly well for this objective to be achieved. Which concept is the board asking management to identify?

The board is asking for critical success factors. These are the few areas where an organisation must perform well to achieve its strategic objectives. Key performance indicators are the later measures used to monitor those areas, so they are not what is being requested here.

  1. ACritical success factorsCorrect
  2. BKey performance indicators
  3. CBudget variances
  4. DCore competences of competitors

Explanation

Critical success factors (CSFs) are the limited number of areas in which an organisation must excel to achieve its strategic objectives. KPIs are the measures used to monitor performance in those areas, so they come after the CSFs are identified. Budget variances and competitor competences do not describe what the board is asking for.

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