Resource
Availability: Land, Labor, Capital, and Technology
What does your business need to implement your strategy?
What is the resource availability and cost? Where can you get them? The nature
of how we do business is shifting
continually. Managers are continuously identifying less expensive and more
productive resources. The shift is from domestic tightly controlled resource
pools to global, virtual, and option-oriented environments. Manufacturers locate
themselves in cheaper markets to minimize production costs and environmental
restraints. For example, companies are opening software development facilities
in Ireland and India due to the availability of skilled labor at a lower
cost.
The flow of capital continues to become more global. Investment in
foreign markets is growing, and global investors are increasing their holdings
in the U.S. As capital flows are facilitated, firms are pressured to deliver
results because investors can easily move into other investments.
As the demand for technology increases, the investment required to
obtain state-of-the-art technology is becoming prohibitive. Many businesses have
reduced technology costs through outsourcing (contracting with a third-party
service provider). Businesses have restrained the growth of production costs
through reengineering and increased use of technology. This is a critical
element of success. Intensified competition in mature markets has left little
room for price increases to improve profits.
Resource availability changes with market demand. Demand for
resources increases as markets grow, which puts more pressure on managers to
acquire and retain resources. Many managers
view resource management as a cost containment issue. This view is shortsighted
because it does not focus on increasing value, but on reducing cost. The reality
is that continued cost reduction without top line (revenue improvement) is a
strategy that will put a firm out of business.
Sections
Comments (0 posted) 
Privacy Policy
Syndication
