Association of Chartered Certified Accountants (ACCA) Certification Practice Test

What are the parts of the Anthony Triangle?

1. Strategic, Tactical, Operational

2. Strategic, Control, Operational

3. Strategic, Administrative, Tactical

4. Operational, Tactical, Management

The correct answer is: Strategic, Tactical, Operational

The Anthony Triangle is a framework that categorizes different levels of decision-making in an organization, specifically focusing on the areas of management control. The correct answer highlights three distinct levels: Strategic, Tactical, and Operational. Strategic decisions involve the long-term direction and overall goals of the organization. They are typically made by senior management and focus on the broader aspects of the organization, including market positioning and resource allocation. Tactical decisions are more short-term and relate to how to implement the strategies set by upper management. This level is generally associated with middle management, which focuses on planning and resource management to meet strategic goals. Operational decisions are concerned with the daily operations of the organization. These decisions are usually made by lower-level managers and staff, dealing with implementing the tactics designed to achieve the strategic goals. By categorizing decisions this way, the Anthony Triangle illustrates how different levels of management interact and contribute to the organization’s success, ensuring that strategic goals are translated into actionable plans and day-to-day operations. This understanding is essential for effective management and control within any organization.