Strategic Management: A Competitive Advantage Approach, Concepts and Cases, 16/e

Allocate Resources and Manage Conflict

Allocate Resources

All organizations have at least four types of resources (or assets) that can be used to achieve desired objectives: (1) financial resources, (2) physical resources, (3) human resources, and (4) technological resources. Resource allocation can be defined as distributing an organization’s “assets” across products, regions, and segments according to priorities established by annual objectives. Allocating resources is a vital strategy-implementation activity. Strategic management itself is sometimes referred to as a “resource allocation process.”

In organizations that do no strategic planning, resource allocation is often based on political or personal factors and bias, rather than being based ...