Unit 7 Assignment

Resource Allocation

Joshua Brown

September 2022
During strategic planning, organizations can resort to resource allocation as a way to manage

assets that are aligned with the proposed objectives (Lutkevich, 2021). Resources may include

hard assets in order to make better use of soft assets such as human capital. Thus, the

mobilization of resources implies a study of needs and priorities that must be balanced based on

a set of needs in which the maximization of limited resources is expected, optimization of

operations, etc. The implementation of resource allocation implies a clear establishment of

objectives to cover certain needs within the organization. Subsequently, it must be recognized

which resources can be managed to achieve the planned objectives. Below is a summary of two

Resource Allocation proposals, which derive from different strategies in order to improve

services in a care center.

Managers must be prepared to make quick decisions when required, so it is essential to be aware

of the resources available in the organization that can deal with a contingency situation.

Managers must also coordinate their efforts with workers and managers in other areas before

applying the allocation of resources and managing everything related to budgets. Questions such

as: What are the team's priorities? What is the budget and who approves it? who has time to work

on the initiative? can help coordinate better work and achieve better results.

Summary Pitch 1.

Exponent: Alexis Pfaff. Topic: Purchase of a new MRI machine.

Diagnostic machines are a technological component in the health sector that requires efficient

cost management due to continuous innovation. One of the diagnostic equipment is the magnetic

resonance whose ROI is high, however the risk is usually high due to the cost of the equipment.
The advantages of the diagnoses provided by MRI are the speed, precision and efficiency of the

results, which provides a better service to the patient. This new option will attract more patients

and allow timely recovery of the investment, while maintaining a value-added service that can be

updated when required.

Summary Pitch 2.

Exponent: Brooke Sell. Topic: Daycare facility.

For workers, the well-being of their children is of great importance and a cause for concern in

cases where they may be pressured to fulfill working hours while they have a sick child or

require special care. The level of stress and anxiety in these workers can affect job performance

and cause deficiencies at the operational level that tend to affect medical services.

An investment of $50,000 is the basis for adding a nursery to the facility and forming an

appropriate staff that can take care of the children and allow a return on investment in less than a

year from the start of operations. The staff will feel more comfortable and safe knowing that

your children are being well cared for as well as having relative closeness. These benefits can be

repaid in greater cohesion of the work groups, labor fidelity and optimal results in patient care.

Comparison

Both strategies provide measurable benefits for the organization, however, the purchase

of an MRI machine implies a lower cost for the organization in the short term, unlike offering a

Daycare facility. The adaptation and start-up of a facility implies expenses greater than $50K,

since legal regulations must be complied with to ensure the good care of children. Expenses are
consistent from month to month, however the expected results in terms of employee productivity

and cost reduction by hiring substitute nurses cannot be measured in the medium term. The same

goes for the purchase of an MRI machine with the difference that this alternative is intended to

generate active income by providing a service. Both strategies offer benefits in terms of

improving services with different levels of risk. The lowest risk corresponds to the Daycare

facility since the costs are charged monthly and are more controllable in the face of unforeseen

events (Weaver, 2021). On the other hand, the purchase of equipment whose return on

investment is positive in a period of more than two years is subject to greater risk in the face of

unexpected changes in the environment, such as occurred with the pandemic, where income may

decrease in certain areas. and affect the achievement of payments in case of having requested a

credit for the acquisition of the equipment. Another type of risk is associated with technological

innovation, where the organization can become stuck with a team that can soon become obsolete

and reduce competitive capacity.

Due to this type of strategy, patient outcomes are higher with an MRI, since a more

efficient diagnosis is the basis for better medical treatment and has no effect on the turnover. On

the other hand, the turnover may be lower with the Daycare facility as a strategy since the

employees will feel more comfortable and happier knowing that their children are in good hands,

reflecting in a better job performance.

Summary

In today's globalized world, all companies are forced to innovate and improve their products and

services to stay in the market. A greater number of threats, competitors, laws, and regulations,

etc. which imply a challenge that increases managerial dynamics, so they must define strategies

to stay afloat in an increasingly competitive market (Chun, 2021). Resource allocation refers to
the process that manages the resources available in an organization that can be the basis of a

strategic project in order to maximize results. Resources can be money or physical assets that are

useful in some way to accomplish deliverables. Each one must be analyzed in depth and

executed according to a balance between the benefits obtained and the resources used. These two

pitches have different functionalities; however, the same objective is pursued. It’s the job of the

manager to analyze the feasibility of each option as well as the economic viability in relation to

the benefits perceived in the medium and long term.

 References

Chun, S. (2021). “Are daycare centers profitable?” Daycare Business Boss. Retrieved from:

https://daycarebusinessboss.com/are-daycare-centers-profitable/

Lutkevich, B. (2021). Resource Allocation. Retrieved from

https://www.techtarget.com/searchcio/definition/resource-allocation

Weaver, Lauren. (2021). Latest MRI Technology Enables Faster, More Accurate Results.

Englewood Health. Retrieved from: https://www.englewoodhealth.org/latest-mri-

technology-enables-faster-more-accurate-results.