What are the example of business resources?

This category includes physical assets such as manufacturing facilities, buildings, vehicles, machines, systems, point-of-sales systems, and distribution networks. Retailers like Wal-Mart and Amazon.com rely heavily on physical resources, which are often capital-intensive. The former has an enormous global network of stores and related logistics infrastructure. The latter has an extensive IT, warehouse, and logistics infrastructure.

Intellectual Property

Intellectual property resources such as brands, proprietary knowledge, patents and copyrights, partnerships, and customer databases are increasingly important components of a strong business model. Intellectual property resources are difficult to develop but when successfully created may offer substantial value. Consumer goods companies such as Nike and Sony rely heavily on brand as a Key Resource. Microsoft and SAP depend on software and related intellectual property developed over many years. Qualcomm, a designer and supplier of chipsets for broadband mobile devices, built its business model around patented microchip designs that earn the company substantial licensing fees.

Human

Every enterprise requires human resources, but people are particularly prominent in certain business models. For example, human resources are crucial in knowledge-intensive and creative industries. A pharmaceutical company such as Novartis, for example, relies heavily on human resources: its business model is predicated on an army of experienced scientists and a large and skilled sales force.

Financial

Some business models call for financial resources and/or financial guarantees, such as cash, lines of credit, or a stock option pool for hiring key employees. Ericsson, the telecom manufacturer, provides an example of financial resource leverage within a business model. Ericsson may opt to borrow funds from banks and capital markets, then use a portion of the proceeds to provide vendor financing to equipment customers, thus ensuring that orders are placed with Ericsson rather than competitors.

Today, we are going to discuss the  Company Resources and evaluate them. Let’s start with some basics for Company Resources.

Table of Contents

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. An 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?

1. Is the resource or skill critical to fulfilling a customer’s need better than that of the firm’s competitors.
2. Is the resource scarce? Is it in short supply or not easily substituted for or imitated?
3. Appropriability: Whether the resource supportive enough to generate gains?
4. Durability: How rapidly will the resource depreciate?

Company Resources

Company Resources refer to the required resources to operate a Business. 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 the business are the following:

• Financial Resources
• Human Resources
• Material Resources
• Intellectual Resources

Financial Resources

Financial resources are the assets of the company which are used for company activities like paying salaries, buying raw materials, etc. The 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 a company needs Financial resources, the company used the following types of sources of funds.

• Share Capital or Equity Shares
• Preference Capital or Preference Shares
• Retained Earnings
• Debenture
• Trade Credit
• Factoring Services
• Working Capital Loans
• Bill Discounting
• Venture Funding
• Lease Finance

Suggested: Business Environment

Human Resources

Human resources are the building block of any company. Without Human resources, there are no performance and achievement.

If you work at an organization, you already know a little bit about Human Resources. The organization has a department for recruitment of employees and dealing with staff, like paying salaries, onboarding, training, and development.

In this article, We are talking about people who work for organizations and their skills, Knowledge, Culture, and expertise. They play important roles in an organization because human resources impact company performance and achievement.

Suggested: Diary Writing Format

Material Resources

Material Resources are the tangible assets of the company that can use to achieve its objectives and targets. Material resources can be touched or seen.

Material resources are dynamic in nature. They are changed with the change in time and technology. When new technology is implemented, it may replace old machines with a new ones for better performance.

Some examples of Material Resources:

• Machinery and Technological tools
• Real state and for furniture
• Raw material
• Manufactured Product

Suggested: Components of Business Environment

Intellectual Resources

Intellectual Resources are the intangible assets of the company that can be used to achieve its objectives. Intellectual Resources cannot be touched or seen.

It can include recipes for those who deal with food. Or it can include a particular way of doing things. It is impossible to measure the actual value of intellectual resources A Review of Peachy Essay Writing Site.

Some examples of Material Resources:

• Brand
• Patents
• Copyrights
• Partnerships
• Customer databases
• Software

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

Suman(Kul Prasad) Pandit is a graduate from Tribhuvan University with four-year experience in corporate and start-up sectors in UK and USA. Being a responsible & sustainable business enthusiast he is dedicated to business education to solve problems in entrepreneurship and business growth.

What are 3 business resources?

What are the 4 types of resources in business?

What are the 6 resources of business?

What are most important business resources?