Needs for Budgets in Strategy Implementation
Organizational units need sufficient budgets and resources to carry out their parts of the strategic plan effectively and efficiently. A strategy manager should keep in mind that too little funding slows progress and hamper the ability of organizational units. On the other hand, too much funding wastes organizational resources and reduces financial performance. Besides, a change in strategy almost always calls for budget reallocations. This is why it is very important for an organization to maintain a link and equilibrium between budget and strategy.
Strategy implementation is concerned with the managerial exercise of putting a freshly chosen strategy into place. It is a procedure that puts plans and strategies into action to reach desired goals.
Needs for budgets in strategy implementation: Budget is needed for the effective and efficient implementation of strategy: Hoverer, the budget is needed for the following reasons:
- A budget for collecting modem technology;
- A budget for the skilled human resource;
- A budget for facing the competitors;
- A budget for changing strategy;