Understanding the Resource Allocation Process (RAP) will have large effects on shaping a firm's realized strategy. Which of the following is an example of such an allocation of resources?
A) Starbucks' launch of iced drinks
B) Teach For America's mission statement
C) Merck's voluntary withdrawal of Vioxx from the market
D) Intel's rule to "maximize margin-per-wafer-start"

Question

Quizplus · Accepted Answer

By changing the tasks the resources in the firm were working on at the middle and lower levels, Intel's decision to set up guidelines for production priorities yielded an emergent strategic shift into microprocessors and out of DRAM (dynamic random-access memory) chips. Intel was able to pursue a strategic transformation due to the way it set up its resource allocation process. In a sense, Intel was using functional-level managers to drive business and corporate strategies in a bottom-up fashion.

Understanding the Resource Allocation Process (RAP) Will Have Large Effects