A change in strategy nearly always entails budget reallocationsbecause

Multiple Choice

• new strategic initiatives can be costly or capitalintensive.

• of corresponding changes in the company’s organizationalstructure and budgetary requirements.

• adopting best practices and pushing for continuous improvementtend to reduce costs and reduce overall resource requirements.

• units important in the prior strategy but having a lesser rolein the new strategy may need downsizing, while units and activitiesthat now have a bigger and more critical strategic role may needmore people, new equipment, additional facilities, andabove-average increases in their operating budgets.

• the accompanying policy revisions and compensation incentivestend to require different levels of funding than before.

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Units importantoperating budgets Change in strategy is most associated with resource shifting This m... View the full answer