The Role Of Management In Improving Performance

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The Role Of Management In Improving Performance

Strategy is the path that an organisation chooses to pursue over the

long-term and to help congregate a successful business manoeuvre,

firms will use a composition of resources within a demanding situation

that will eventually cater for the needs and wants of the market and

to fulfil stakeholder expectations that that particular business

operates in. Johnson and Scholes defines that a successful strategy

employs efficient use of resources:

"Strategy is the direction and scope of an organisation over the

long-term which achieves advantage for the organisation through its

configuration of resources within a challenging environment, to meet

the needs of markets and to fulfil stakeholder expectations"[1]

Resources within a business can be arranged into four categories which

are as follows:

Ø Financial Resources;

Ø Human Resources;

Ø Physical Resources and;

Ø Technological Resources

Financial Resources

Financial resources concern the ability of the business to "finance"

its chosen strategy. For example, a strategy that requires significant

investment in new products, distribution channels, production capacity

and working capital will place great strain on the business finances.

Such a strategy needs to be very carefully managed from a finance

point-of-view. An audit of financial resources would include

assessment of the following factors:

Existing finance funds: - Cash Balances: for e.g. bank overdrafts,

banks loans, Liquid Assets such as cash in the bank, sales revenue,

investments, profits: Working Capital i.e. (stocks, debtors) that is

already invest...

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... Production facilities: - Location of existing production facilities;

capacity; investment and maintenance requirements i.e. plant sites,

equipment, raw materials, stock, components, buildings etc: Current

production processes - quality; method & organisation: Extent to which

production requirements of the strategy can be delivered by existing

facilities

Technological Resources

Technological resources are those resources that may not require human

resources or manpower and that is associated with making the business

more efficient and effective in the way tasks are carried out via the

usage of automation in the form of telecoms, robotics and

computerisation.

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[1] Heinemann Business Book of Higher Awards, 2001, Rob Dransfield, Et

Al

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