Operating plans and capital expenditure budgets are the key mechanisms through which strategy drives resource allocation.

Question

Quizplus · Accepted Answer

Operating plans and capital expenditure budgets are developed based on the strategic goals and objectives of an organization. These plans and budgets lay out the specific actions and investments required to achieve the strategic vision, and therefore serve as the primary means through which strategy drives resource allocation. Without a clear strategy, resources would be allocated haphazardly, leading to inefficient use and potentially sub-optimal outcomes.

Operating Plans and Capital Expenditure Budgets Are the Key Mechanisms