New strategies often entail 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) 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 and shifting to a total quality management type of culture to build skills in competent strategy execution typically require substantial new funding and budget revisions.
E) adopting best practices and pushing for continuous improvement tends to reduce costs and reduce overall resource requirements.

Question

Quizplus · Accepted Answer

New strategies often require the reallocation of budgets because certain units or activities that were important in the prior strategy may no longer be as critical in the new strategy, while other units or activities may become more critical and require additional resources. This may involve downsizing some units and increasing budgets for others. This is reflected in choice C. The other answer choices do not fully address why budget reallocations may be necessary for new strategies.

New Strategies Often Entail Budget Reallocations Because