From a strategy-implementing/strategy-executing perspective,budget allocations should
A) primarily be based on the number of new strategic initiatives being implemented in each department.
B) be based on the number of people employed in each of the divisions.
C) be strategy-driven and based primarily on how much each organizational unit needs to carry out its piece of the strategic plan efficiently and effectively.
D) be linked to the costs of performing value chain activities as determined by benchmarking against best-in-industry competitors.
E) depend on how much stretch there is in each department's objectives and what additional resources are needed to help reach these performance targets.

Question

Quizplus · Accepted Answer

Budget allocations should be strategy-driven and based on each organizational unit's needs to carry out its part of the strategic plan effectively and efficiently. This allows for a more targeted and efficient use of resources. Factors such as the number of new strategic initiatives, number of employees, costs of value chain activities, and stretch objectives may be considered, but they should not be the primary basis for budget allocations.

From a Strategy-Implementing/strategy-Executing Perspective,budget Allocations Should