Enterprise Resourcing Skills

Objectives
■ To learn what resources are important
and how to manage them
■ To know how strategic resources are
very important for sustainability

© 2014 Dr. Rafi/Dr. Anis

 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.