This document discusses the importance of resource management for entrepreneurs. It defines resources as anything useful for a business, including property, knowledge, assets, money, technology, premises, and networks. Strategic resources provide a competitive advantage while common resources are necessary but not unique. The key is to identify resources critical for the business and ensure they are available cost-effectively. Creative resource management can help acquire resources cheaply and efficiently while reducing waste. Overall, managing resources well is essential for entrepreneurs to seize opportunities and succeed amid business risks.
This document discusses the importance of resource management for entrepreneurs. It defines resources as anything useful for a business, including property, knowledge, assets, money, technology, premises, and networks. Strategic resources provide a competitive advantage while common resources are necessary but not unique. The key is to identify resources critical for the business and ensure they are available cost-effectively. Creative resource management can help acquire resources cheaply and efficiently while reducing waste. Overall, managing resources well is essential for entrepreneurs to seize opportunities and succeed amid business risks.
This document discusses the importance of resource management for entrepreneurs. It defines resources as anything useful for a business, including property, knowledge, assets, money, technology, premises, and networks. Strategic resources provide a competitive advantage while common resources are necessary but not unique. The key is to identify resources critical for the business and ensure they are available cost-effectively. Creative resource management can help acquire resources cheaply and efficiently while reducing waste. Overall, managing resources well is essential for entrepreneurs to seize opportunities and succeed amid business risks.
Resources • A resource* is any thing or quality that is useful, tangible or intangible. • Resources can be property based or knowledge based. – Property-based resources give the entrepreneur “rights.” If one owns a machine, one has the right to use it. – Knowledge-based resources are more intangible, like talent or skill. These are protected by their tacit nature. Knowledge-based resources enable the firm to adapt to a changing environment. Assets • Assets, both tangible and intangible, that are mobilized by entrepreneurs in the process of building a business, organization, or other initiative. • Entrepreneurial resources include sources of financing such as lines of credit and investment capital, but may also include abstract resources such as knowledge of a particular field or technology, or networks of contacts who can be called upon to contribute financial support, publicity, or other benefits to a growing enterprise. Types of Resources ◼ Manpower ◼ Material ◼ Financial(Money) ◼ Technological(Machine) ◼ Business Premise/Physical ◼ Information ◼ Reputation ◼ Networks ◼ Organizational resources – structure, systems and business models Strategic vs. Common Resources
• Strategic resources refer to
resources which provide a sustained competitive advantage to a firm • Common resources are necessary for carrying out the firm’s usual activities but provide no specific advantage Attributes of Strategic Resources • Valuable - exploit some environmental opportunity • Rare - are not enough for all competitors • Non-substitutable - strategic resources that cannot be replaced by common resources • Hard to copy - competitors cannot merely duplicate them Key Factors to Consider
◼ Essentiality (critical or non-
critical) ◼ Availability of supply ◼ Cost ◼ Strategic/competitive advantage ◼ Statutory/Legal requirements ◼ Quality vs. quantity Resource Management • Objectives: – To ensure any resources needed by the business is available at the time, quantity and specification (optimality) eg. Just in Time (JIT), – To avoid unnecessary waste or purchase of resources eg. Material Requirement Planning – To ensure smooth operation of the business Creativity and Innovation in Resource Management • Creative and innovative in acquiring resources – Cheap, reusable, multi-purpose, recyclable • Creative and innovative in managing resources – Efficient, reduce waste, generate revenue Conclusion Risks and resources are two things that entrepreneurs must know how to deal with. Since business is risky, entrepreneurs need to weight their decision carefully. In order to grab opportunities and to perform, managing resources is essential.