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From a strategy-implementing/strategy-executing perspective budget allocations should

 Options:

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.

 

The Correct Answer Is:

• 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.

 

Conclusion

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