A Company's Ability to Marshal Adequate Resources in Support of New

question 10

Multiple Choice

A company's ability to marshal adequate resources in support of new strategic initiatives and steer them to the appropriate organizational units is important to the strategy execution process because

• A)changes in strategy often require resource reallocation, and organizational units need the proper funding to carry out their part of the strategic plan effectively and efficiently.
• B)accurate budgets are the key to exercising tight financial controls over what organization units can and cannot do in carrying out management's directives to execute the chosen strategy proficiently.
• C)tight budget control is management's most powerful tool for first-rate strategy execution.
• D)lean, carefully managed budgets protect the company's financial condition and eliminate the wasteful use of cash.
• E)lean, strictly enforced budgets are management's best and most used means of getting organizational units to exercise the fiscal discipline needed to execute the chosen strategy in a cost-efficient manner.

---

Definitions:

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, used in inventory valuation and other financial measurements.