Strategic change is defined as " changes in the content of a firms strategy as defined by its scope, resource deployments, competitive advantages, and synergy" (Hofer and Schendel 1978). Strategic change may take place in respect to a number of different areas within a business unit including the following: Vision, mission, goals Restructuring Range of product / service lines New technology adoption Research and development Branding and marketing strategy Geographic coverage Human resource management Product / service quality Product / service pricing Business partnership Distribution channels Financing of operations Required: Choose three of these areas and discuss how strategic change is likely to occur in respect to these areas if a business unit is moving from a low cost strategy to a product differentiation strategy. (6 marks) (b) The problem with budgeting is that managers play games which damage the credibility and usefulness of budgets. Therefore, nobody should use budgets anymore. Do you agree with this statement? Discuss!