ch12 - ch12 Student: _ Marshalling Resources Behind the...

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ch12 Student: ___________________________________________________________________________ Marshalling Resources Behind the Drive for Good Strategy Execution 1. A company's ability to marshal adequate resources in support of new strategic initiatives and steer them to the appropriate organizational units is important to the strategy execution process because A. Changes in strategy often require resource reallocation and because organizational units need the proper funding to carry out their part of the strategic plan effectively and efficiently—too much funding wastes resources and reduces financial resources while too little funding slows progress and impedes the efforts of organizational units to carry execute their pieces of the strategic plan proficiently B. Accurate budgets are the key to exercising tight financial controls over what organization units can and cannot do in carrying out management's directives to execute the chosen strategy proficiently C. Tight budget control is management's most powerful tool for first-rate strategy execution D. Lean, carefully managed budgets protect the company's financial condition and eliminate wasteful use of cash E. Lean, strictly enforced budgets are management's best and most used means of getting organizational units to exercise the fiscal discipline needed to execute the chosen strategy in a cost-efficient manner 2. Managers charged with implementing and executing strategy need to be deeply involved in the budgeting and resource allocation process because A. Too little funding deprives organizational units of the resources to carry out their piece of the strategic plan and too much funding wastes organizational resources and reduces financial performance B. A change in strategy nearly always calls for budget reallocations and resource shifting C. Without major budget reallocations there is no chance for the desired core competencies and organizational capabilities to emerge D. Lean, carefully managed budgets protect the company's financial condition and eliminate wasteful use of cash E. Both A and B 3. 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 1
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4. 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
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This note was uploaded on 08/19/2010 for the course FINANCE 600 taught by Professor Norkle during the Fall '09 term at Methodist.

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ch12 - ch12 Student: _ Marshalling Resources Behind the...

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