Management's ranking of business units and establishing a priority for resource allocation should ________.
A) utilize activity-based costing and benchmarking to determine the funding needs of each business unit.
B) first consider the strength of funding proposals presented by managers of each division or business unit.
C) give priority for funding to cash-hog businesses.
D) put business units with the brightest profit and growth prospects and solid strategic and resource fits at the top of the investment priority list.
E) always make the company's business units with strong resource strengths and competitive capabilities the central focus of funding initiatives.
D) put business units with the brightest profit and growth prospects and solid strategic and resource fits at the top of the investment priority list.
Business subsidiaries with the brightest profit and growth prospects, attractive positions in the nine-cell matrix, and solid strategic and resource fit should receive top priority for allocation of corporate resources.
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A Business Plan (Scenario)Imagine that you are the owner of a small company that sells corporate gifts through an online store. You employ about 20 people. However, business has slowed down in recent months and you realize that the organization must move in a different direction if it is to survive. You have reset some of the company's overall goals and want to develop a plan to achieve those goals. You are anticipating the business environment to be volatile for the next few years.Considering the above information, it can be determined that your plan must be ________, ________, and ________.
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