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ACCA Applied Knowledge · Business and Technology · Leadership, management and supervision

The regional manager of a retail chain decides how the annual company budget should be split between the stores in her region and sets quarterly sales targets for each store manager. At which level of management is she mainly working, and what type of decision is this?

She is working at the tactical level. Splitting the budget between stores and setting quarterly targets involves deploying resources over the medium term to achieve the strategic goals already set, rather than choosing long-term direction or controlling daily routine tasks.

  1. AStrategic level making unstructured decisions about long-term direction
  2. BTactical level making decisions on the deployment of resources to meet medium-term goalsCorrect
  3. COperational level making routine decisions on day-to-day tasks

Explanation

Allocating a budget between stores and setting quarterly targets is medium-term resource deployment to achieve strategic objectives, which is tactical management. It is not long-term direction setting (strategic) and not routine task control (operational).

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