ACCA Performance Management (F5) Certification Practice Exam

Which statement best describes the nature of tactical decisions?

1. The most complex decisions taken at the organizational level

2. Decisions focused solely on operational day-to-day needs

3. Medium-term decisions that are less complex than strategic decisions

4. Immediate decisions that do not require planning

The correct answer is: Medium-term decisions that are less complex than strategic decisions

Tactical decisions are primarily concerned with translating broader strategic goals into specific, actionable plans within a medium-term time frame. These decisions typically fall between strategic decisions, which focus on long-term objectives and overall direction, and operational decisions, which handle day-to-day functions. The correctness of the selected answer lies in its emphasis on the medium-term aspect of tactical decisions, indicating that they require a level of planning and complexity that is greater than purely operational decisions but less than the high-level strategic decisions made by top management. Tactical decisions help to ensure that everyday operations align with the organization's strategic objectives and require resources, coordination, and detailed planning to execute. Understanding this helps to clarify the structured process involved in tactical decision-making, which requires attention to detail and a clear focus on how the decisions will facilitate reaching long-term goals, while still being grounded in a more immediate operational context. In summary, tactical decisions bridge the gap between strategy and operations, aiding in the effective implementation of a company’s overall strategy.