Question
Strategic change is defined as changes in the content of a firms strategy as defined by its scope, resource deployments, competitive advantages, and synergy (Hofer
Strategic change is defined as "changes in the content of a firms strategy as defined by its scope, resource deployments, competitive advantages, and synergy" (Hofer and Schendel 1978). Strategic change may take place in respect to a number of different areas within a business unit including the following:
Vision, mission, goals
Restructuring
Range of product / service lines
New technology adoption
Research and development
Branding and marketing strategy
Geographic coverage
Human resource management
Product / service quality
Product / service pricing
Business partnership
Distribution channels
Financing of operations
(a) Choose three of these areas and discuss how strategic change is likely to occur in respect to these areas if a business unit is moving from a product differentiation to a low cost strategy. (6 marks)
(b) The problem with budgeting is that managers play games which damage the credibility and usefulness of budgets. Therefore, nobody should use budgets anymore.
Do you agree with this statement and why?
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