A Change in Strategy Nearly Always Entails Budget Reallocations Because

question 43

Multiple Choice

A change in strategy nearly always entails 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)organizational 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 typically requires substantial new funding and budget revisions.
• E)adopting best practices and pushing for continuous improvement tends to reduce costs and reduce overall resource requirements.