The First Step in Implementing a Strategy Is

question 36

Multiple Choice

The first step in implementing a strategy is:

• A) drafting detailed action plans that specify how a strategy is to be implemented.
• B) allocating responsibility for implementation to the appropriate individuals or groups.
• C) allocating appropriate resources to the responsible individuals or groups.
• D) holding specific individuals or groups responsible for the attainment of corporate, divisional, and functional goals.
• E) establishing a timetable for implementation that includes precise, measurable goals linked to the attainment of the action plan.

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Definitions:

Economies of Scale

The financial benefits gained by businesses as a result of their operation size, wherein the expense for each unit produced typically drops as the scale expands.

Average Total Costs

The total cost of production divided by the quantity of output produced; it includes both fixed and variable costs.

Economies of Scale

Refers to the cost advantage that arises with increased output of a product, where the average cost per unit decreases as production scales up.

Diseconomies of Scale

The phenomenon where a company's production costs increase as it produces more, resulting in a decrease in efficiency.