Providing Top-Down Guidance Can Aid the Task of Implementing Strategy

question 13

Multiple Choice

Providing top-down guidance can aid the task of implementing strategy

• A) provided they promote greater use of and commitment to best practices and total quality management.
• B) because really effective internal policies and procedures are not easily duplicated by other firms.
• C) because astutely conceived policies or procedures can result in competitive advantage.
• D) by helping align the actions and behavior of company personnel with the requirements for good strategy execution, placing limits on independent action, and helping overcome resistance to change.
• E) by making it easier to impose tight budget controls and avoid wasting scarce resources.

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Definitions:

Make or Buy Decision

The process of deciding whether to produce a good or service in-house or to purchase it from an external supplier.

Fixed Manufacturing Overhead

Fixed manufacturing overhead consists of expenses that do not change with the level of production, such as rent, depreciation, and salaries of permanent staff.

Special Order

A one-time order that is not part of the company's usual ongoing operations, often requiring a deviation from standard pricing and production procedures.

Future Costs

Future costs are expected or estimated costs that will be incurred in the performance of future activities or business operations, guiding budgeting and planning processes.