New Strategies Often Entail Budget Reallocations Because

question 54

Multiple Choice

New strategies often entail budget reallocations because

• A)revamping the performance of value chain activities can be costly.
• B)the accompanying policy revisions and compensation incentives tend to require different levels of funding than before.
• C)business units important in the prior strategy but having a lesser role in the new strategy may need downsizing, while units and activities that now have a bigger and more critical strategic role may need more people, new equipment, additional facilities, and above-average increases in their operating budgets.
• D)empowering employees to carry out the new strategy elements and shifting to a total quality management type of culture to build skills in competent strategy execution typically require substantial new funding and budget revisions.
• E)adopting best practices and pushing for continuous improvement tends to reduce costs and reduce overall resource requirements.

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Definitions:

Patrimonialism

A form of governance or organization where all power is held by a single ruler or authority, often based on traditional or familial ties.

Gerontocracy

A form of social structure where the power is heavily concentrated in the hands of older members of society, often marginalizing younger generations.

Contractual Relationships

Contractual Relationships refer to a legally binding agreement between two or more parties, typically involving the exchange of goods, services, money, or promises.

Protestant Ethic

A concept in sociology that associates the rise of capitalism with Protestant values of hard work, frugality, and diligence.