Today, we are going to discuss about the Company Resources and evaluating it. We already write some articles about Mission Statement: Meaning, examples, Benefits, and Components. It is a series of comprehensive guides for the establishment of entrepreneurship ventures. If You don’t know about the strategic management, Please read once on our Blog. Let’s start with some basics for Company Resources.
Concepts of resources
Resources are an organization’s assets and are thus the basic building blocks of the organization.
They include tangible assets, such as its plant, equipment, finances, and location, human assets, in terms of the number of employees, their skills, and motivation, and intangible assets, such as its technology (patents and copyrights), culture, and reputation.
Threshold resources are the minimum resources required to withstand competition. Organization’s strategic capabilities are determined by three important internal factors:
- Available resources
- Competencies to undertake activities.
- Balance of activities, resources and business units.
What makes resource valuables?
- Is the resource or skill critical to fulfilling a customer’s need better than that of the firm’s competitors.
- Is the resource-scarce? Is it in short supply or not easily substituted for or imitated?
- Appropriability: Whether the resource is supportive enough to generate gains?
- Durability: How rapidly will the resource depreciate?
Company Resources are basic building blocks of company authority and can use to achieve its objective and target.
Company resources include tangible assets, (such as its plant, equipment, finances, and location, human assets, in terms of the number of employees, their skills, and motivation) and intangible assets (such as its technology (patents and copyrights), culture, and reputation).
Types of Company Resources
The Best types of Company Resources which are crucial to Company are following:
- Financial Resources
- Human Resources
- Material Resources
- Intellectual Resources
Financial resources are the assets of company which are used for company activities likes paying salaries, buying raw materials etc. Best financial resources management approach is important to achieve the objectives and target of the company.
The condition where the shortage of financial resources can compromise the short-period operation must be avoided. For example, if the organization does not have the fund to buy raw materials and pay salaries.
When company need Financial resources, the company used following types of sources of fund.
- Share Capital or Equity Shares
- Preference Capital or Preference Shares
- Retained Earnings
- Trade Credit
- Factoring Services
- Working Capital Loans
- Bill Discounting
- Venture Funding
- Lease Finance
Human resources are the building block of any company. Without Human resources, there are no performance and achievement.
If you work at an organizaton , you already know the litle bit of the Human Resources. Organization have a department for recruitment of employees and deal with staff, like paying salaries, onboarding, training and development.
In this articles, We are talking about people who work for organization and to their skills, Knowledge, Culture and expertise. They play important roles in organization because human resources impact on company performance and achievement.
Material Resources are the tangible assets of company that can use to achieve its objectives and targets. Material resources can be touched or seen .
Material resources are dynamic nature . They are changed with the change in time and technology. When new technology are Implemented, it may be replace old machines by new one for better performance.
Some examples of Material Resources:
- Machinery and Technological tools
- Real state and for furniture
- Raw material
- Manufactured Product
Intellectual Resources are the intangiable assets of company that can be use to achieve its objectives. Intellectual Resources cannot be touched or seen.
It can include recipes for those who deals with food. Or it can include a particular way of doing things. It is impossible to measure the actual value of intellectual resources.
Some examples of Material Resources:
- Customer databases
Are you up for some?
Importance of Company Resources
- The company resources are basic building blocks of company authority and can use to achieve its objective and target.
- It provides you with an overview of everyone and everything involved in your company.
- It enables utilization planning and gives you control.
- It makes the planning and management process more transparent and helps you see problems before they start.
Suman(Kul Prasad) Pandit is a graduate from Tribhuvan University, Nepal with four-year experience in corporate and start-up sectors in Nepal. Being a responsible & sustainable business enthusiast he is dedicated to business education to solve problems in entrepreneurship and business growth.