Resources of a Business

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Resources of a Business

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Resources of a Business
Author: Jim Riley Last updated: Sunday 23 September, 2012 In our introduction to the topic of business strategy, we used Johnson & Scholes' denition stating that "Strategy is the direction and scope of an organisation over the long-term: which achieves advantage for the organisation through its conguration of resources within a challenging environment, to meet the needs of markets and to full stakeholder expectations". So, what are these "resources" that a business needs to put in place to pursue its chosen strategy? Business resources can usefully be grouped under several categories: Financial Resources Financial resources concern the ability of the business to "nance" its chosen strategy. For example, a strategy that requires signicant investment in new products, distribution channels, production capacity and working capital will place great strain on the business nances. Such a strategy needs to be very carefully managed from a nance point-of-view. An audit of nancial resources would include assessment of the following factors: Existing nance funds

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Related study notes Strategic Models & Analysis Boston Matrix Benchmarking Competitor Analysis Core Competencies Five Forces Model GE Industry Matrix McKinsey Growth Pyramid PEST Analysis Strategic Audit SWOT Analysis Value Chain Analysis Strategic Planning What is Strategy? Competitive Advantage Mission Objectives Strategy and Marketing Strategic Resources Vision Balanced Scorecard Introduction Balanced Scorecard Perspectives Managing Change Introduction Force Field Analysis (Lewin) Resistance & Barriers Implementation Corporate Social Responsibility Corporate Social Responsibilty - Introduction Corporate Social Responsibilty - Issues Risk Management Introduction Risk Management Planning & Action Global Business Introduction Competitiveness Global Strategy Globalisation Stakeholders Introduction Interests and Power Economic Environment Economic Growth Business Cycle

- Cash balances - Bank overdraft - Bank and other loan s- Shareholders' capital - Working capital (e.g. stocks, debtors) already invested in the business - Creditors (suppliers, government)

Ability to raise new funds

- Strength and reputation of the management team and the overall business - Strength of relationships with existing investors and lenders - Attractiveness of the market in which the business operates (i.e. is it a market that is attracting investment generally?) - Listing on a quoted Stock Exchange? If not, is this a realistic possibility?

Human Resources The heart of the issue with Human Resources is the skills-base of the business. What skills does the business already possess? Are they sucient to meet the needs of the chosen strategy? Could the skills-base be exed / stretched to meet the new requirements? An audit of human resources would include assessment of the following factors: Existing stang resources

- Numbers of sta by function, location, grade, experience, qualication, remuneration - Existing rate of sta loss ("natural wastage") - Overall standard of training and specic training standards in key roles - Assessment of key "intangibles" - e.g. morale, business culture

Changes required to resources

- What changes to the organisation of the business are included in the strategy (e.g. change of location, new locations, new products)? - What incremental human resources are required? - How should they be sourced? (alternatives include employment, outsourcing, joint ventures etc.)

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12/09/2013 10:56 AM

Resources of a Business

http://www.tutor2u.net/business/strategy/resources.htm

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12/09/2013 10:56 AM