A change in strategy nearly always entails budget reallocations becauseMultiple Choice- new 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.