Question

Which of the following statements about steering needed resources to execution-critical value chain activities is false?

A) Good execution of a new or revised strategy often requires devoting more resources to some value chain activities and perhaps downsizing the operating budgets and resources devoted to activities/organizational units with a lesser role in the new strategy.
B) Both strategy changes and efforts to improve execution of an existing strategy typically entail budget reallocation and resource shifting.
C) A company's operating budget must be both strategy-driven (in order to amply fund competent performance of strategy-critical value chain activities) and lean (in order to operate as cost-efficiently as possible).
D) Strategy changes and new execution initiatives should normally be made without adding to total expenses.
E) Underfunding organizational units and execution-critical value chain activities slows down the whole process of implementing and executing strategy and impedes the efforts of organizational units to execute their pieces of the strategic plan proficiently.

Answer 1

A) Good execution of a new or revised strategy often requires devoting more resources to some value chain activities and perhaps downsizing the operating budgets and resources devoted to activities/organizational units with a lesser role in the new strategy.

Step-by-step explanation:

Businesses have limited resources that needs to be allocated to critical activities that will make it meet its objectives. So it is important for proper prioritisation to be done to maximise use of these resources.

There is need to focus activities on the company's objectives and to use a lean budgeting approach to ensure cost efficiency.

It is important to note that underfunding execution critical activities may result in slowdown of the whole process.

Reallocating resources to critical activities is also necessary.

So the statement - Good execution of a new or revised strategy often requires devoting more resources to some value chain activities. Is false

All effort must be on activities that fit into the company's strategy.