Resources
- 1. Business • Unit 2 © Owned by or under licence to Harcourt Education Limited. Unit 2 An introduction to business resources
- 2. Business • Unit 2 2 © Owned by or under licence to Harcourt Education Limited. Business resources How well an organisation performs is closely linked to how effectively it manages its resources. Resources allow businesses to generate their outputs (services and goods to be provided to customers). Business resources are categorized into the following four types: ○ human resources ○ physical resources ○ technological resources ○ financial resources.
- 3. Business • Unit 2 3 © Owned by or under licence to Harcourt Education Limited. Human resources Managing human resources needs to be done by: Recruiting the right people. Monitoring and continuously improving their performance. Ensuring staff are being utilized in the best way so that targets are achieved. Human resource needs will change all the time. Effective organizations are ones in which human resources (staff) can be quickly altered (increased or decreased) to meet changing business demands, e.g. Christmas tree farm or Easter egg factory.
- 4. Business • Unit 2 4 © Owned by or under licence to Harcourt Education Limited. Physical resources Physical resources are the resources businesses need to carry out their activities. They include: ○ buildings ○ facilities ○ plant and machinery. Management of physical resources is about planning maintenance and refurbishment of those resources and includes organising security and insurance to keep them safe.
- 5. Business • Unit 2 5 © Owned by or under licence to Harcourt Education Limited. Technological resources Many people consider technological resources to be the computer and high-tech equipment used in businesses. This is incorrect. These things are physical resources. Technological resources can include: ○ software ○ music ○ text etc. In the management of technological resources we need to consider how to employ, safeguard and protect intellectual property and accumulated experience and skills within the company. We may use software licenses, patents and copyrights.
- 6. Business • Unit 2 6 © Owned by or under licence to Harcourt Education Limited. Financial resources Financial resources are the funds that are in continuous use within a business to generate surpluses (in the case of profit making businesses). Occasionally, businesses require additional resources, may be to fund the purchase of additional stocks or new plant and machinery. They will obtain the finance for these things from two main sources:
- 7. Business • Unit 2 7 © Owned by or under licence to Harcourt Education Limited. Internal sources savings profits interest from savings and investments etc. share issues etc.
- 8. Business • Unit 2 8 © Owned by or under licence to Harcourt Education Limited. External sources loans, mortgages and overdrafts from banks and building societies hire purchase or lease of vehicles and equipment grants venture capitalists Specialists can advise businesses on the best sources of finance for a given purpose.