Strategy & Budget Allocation

In: Business and Management

Submitted By carie2600
Words 477
Pages 2
Budgeting and Resource Allocation

Strategy execution is a process that helps guide the company as they grow and change. The first step is to define the strategy. The second step is to make a plan for the business and where it is going according to the strategy. The third step is to get the company onboard with the strategy. It is important that everyone in the organization understand where the company is going. The next step is to plan how the company will execute operations. At this point it is important for the company to start to watch how the strategy is working. (Thompson, A. et al 2012). Finally, the company must test whether it is working or not. In order to execute the budget and consider whether resources have been allocated correctly the company must follow these steps and test. It is much like a scientific experiment, you must follow the formula, follow the hypothesis, and determine the outcome.
The first thing a company must consider is how much capital they have to implement a new strategy. If they don’t have enough set aside to move the new strategy along it will lag and may not become productive. If they funnel to much capital into the new strategy and away from existing ventures existing sales may suffer..
Depending how much a company decides to change their strategy can have an effect on the budget. The larger the change, the more the budget must change. This may mean the budget gets shifted from one department to another rather than the budget growing (Creen, A. 2011). It is important with a bigger budget change, that the company go over the budget carefully, even line by line.
If the company does not pay close attention to the budget, the strategic plan can overrun the budget. The company leaders may have a great vision of what they want their company to be and may begin it by implementing many new ideas. The strategy must be well…...

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