A change in strategy nearly always entails budget reallocations becauseMultiple Choicenew strategic initiatives can be costly or capital intensive.of corresponding changes in the company’s organizational structure and budgetary requirements.adopting best practices and pushing for continuous improvement tend to reduce costs and reduce overall resource requirements.units important in the prior strategy but having a lesser role in the new strategy may need downsizing, while units and activities that now have a bigger and more critical strategic role may need more people, new equipment, additional facilities, and above-average increases in their operating budgets.the accompanying policy revisions and compensation incentives tend to require different levels of funding than before.