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Hi Ken,
I hope you are well.
My question is in reference to this ACCA guidance sheet:
https://www.accaglobal.com/content/dam/acca/global/PDFstudents/acca/p5/approaching-apm.pdfThe problem is the language seems very vague. Could you help me understand what they mean by the following two points (maybe with some specific examples?):
1. “Understand the links between issues at the strategic, tactical and operational levels”
2. “Understand in particular how the choice of operational performance measures affects strategic performance”
Even just one or two sentences per point would be really helpful.
Thirdly, in the “new knowledge” triangle on the bottom left hand side, should I assume that it is only these models/concepts that I should know in depth, and the other ones in the OP notes/ other study materials I should merely have a familiarity with (e.g. ability to namedrop them where relevant), or would this be incorrect?
Thank you for your kind help.
1 These are the three levels of planning. So, for example, the company has decided, at the strategic level, to open internationally as that is how it perceives the best way to grow.
At the tactical level, it will have to decide which countries and how to expand into each eg a JV with an existing company there, a takeover or starting by setting up its own operatiins from scratch.
If the last option is chosen, then operationally, it will ahve to find premises, assign managers and recruit staff.
2 ‘What you measure you change’. The corollary is that what you don’t measure you don’t change. So if strategically a company has decided it must move up-market to make better quality goods, then it must adopt suitable operational measures to convey the importance of quality to staff, set quality targets and to measure whether those targets are being met. If quality were not measured it is unlikely that the strategy will be realised.
3 Which page of the notes are you referring to?
Hi Ken
thank you, that explanation is very clear and genuinely helpful.
for 3. I seem to vaguely remember there were a few management models in the OP notes and my Kaplan pocket notes that are not listed on that sheet, for example the strategy pyramid.
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