Resource Allocation

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The resources may be existing with a company or many be acquired through capital allocation. Resources include physical ,financial and human resources essential for implementing plans. Resources are broadly of four categories.

 

i) Money

ii) Facilities and equipments

iii) Materials, supplies and services

iv) Personnel

 

Decisions involved in allocation of resources have vital significance in strategy implementation. In single product firms it may involve assessment of the resource needs of different functional departments. In the multi divisional organization it implies assessing the resource needs of different SBUs or product divisions Redeployment or reallocation of resources becomes necessary when changes take place. The redeployment of resources is quite critical when there are major changes and shifts in strategic posture of company. Redeployment of resources may arise due to strategies of a company to grow in certain areas and withdraw from the other.

 

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