Physical Resources
SECTION 1: DEFINITION OF PHYSICAL RESOURCES
- Physical resources refer to the tangible assets that a business requires for its day-to-day operations and long-term goals.
- These can include premises and land, machinery and equipment, stock and materials, or technology such as computers and software.
SECTION 2: THE ROLE OF PHYSICAL RESOURCES IN BUSINESS
- Requring these resources towards productive use is a key component of business decisions.
- Quality of physical resources can impact the efficiency and productivity of a business.
- Decisions on how to allocate and distribute these resources can significantly affect the achievement of organisational objectives.
SECTION 3: PHYSICAL RESOURCE PLANNING
- The planning of physical resources involves determining what resources are necessary, sourcing them, allocating and scheduling their use.
- Some businesses may choose to lease or rent resources, rather than own, to reduce initial costs.
- Strategic planning and risk management is key to ensure resources are used effectively and that any problems are mitigated.
SECTION 4: MAINTENANCE AND REPLACEMENT OF PHYSICAL RESOURCES
- Regular maintenance of physical resources is fundamental to avoid disruption in business operations.
- Decisions also need to be made when to replace resources, weighing up the costs of maintenance, productivity levels, and the benefits of newer models.
SECTION 5: ENVIRONMENTAL AND SUSTAINABILITY CONSIDERATIONS OF PHYSICAL RESOURCES
- Environmental considerations such as waste disposal and energy efficiency have become increasingly important in relation to physical resources.
- Many businesses are implementing sustainability practices, such as using renewable energy or recyclable materials, which can also lead to long-term cost savings and enhance corporate image.
SECTION 6: IMPACT ON BUSINESS DECISION MAKING
- The management of physical resources can affect competitiveness and profitability.
- Understanding the life cycle of resources and planned obsolescence may influence investment decisions.
- Decisions about physical resources can influence the business’ strategy and objectives, affecting aspects such as operational efficiency, environmental impact, and long-term growth.