Business resources - SS2 Commerce Lesson Note

Business resources are the assets or inputs that organizations utilize to conduct their operations and achieve their objectives. These resources can be broadly categorized into several types:

• Human Resources: Human resources refer to the people working within an organization. They include employees, managers, executives, and other staff members. Human resources bring knowledge, skills, expertise, and labor to the business. They contribute to the production, management, and growth of the organization.
• Example: Employees in a manufacturing company who operate machines, manage inventory, and handle customer service.

Financial Resources: Financial resources include money, capital, and other financial assets that a business possesses. These resources are essential for acquiring other resources, investing in operations, and managing day-to-day expenses. Financial resources help businesses sustain their operations, expand, and generate profits.

o   Example: Company funds, bank loans, investment capital, and revenue generated from sales.

• Physical Resources: Physical resources include tangible assets used in business operations. This can include machinery, equipment, facilities, vehicles, and infrastructure. These resources enable the production, delivery, and storage of goods and services.

o   Example: Manufacturing equipment, office buildings, vehicles, warehouses, and computer systems.

• Material Resources: Material resources consist of raw materials, components, and supplies that are used in the production or delivery of goods and services. These resources are transformed or combined to create the final product.

o   Example: Raw materials such as steel, wood, fabrics, electronic components, and packaging materials.

• Opportunity Resources: Opportunity resources are external factors that present favorable circumstances or prospects for a business. These can include market trends, emerging technologies, business partnerships, and new business ventures. Identifying and capitalizing on these opportunities can lead to business growth and success.

o   Example: Identifying a new market segment with high demand for a product or service and entering that market.

• Intangible Resources: Intangible resources are non-physical assets that add value to a business but cannot be touched. These include intellectual property, brand reputation, patents, trademarks, copyrights, and goodwill.

o   Example: Goodwill, which represents the positive reputation and customer loyalty a business has built over time.