Limited Resources in BusinessThe precious limited resources in business such as manpower, money, machines, and methods, are considered input resources. Because their supply is limited, these precious resources have economic value. They “bid” against each other. Their value should be based on the market place. The manager's challenge is: - Using these resources efficiently to their highest and best use. - Deciding whether the resources can be better employed somewhere else. - Organizing the resources and the use with maximum output for a given input. - Be sensitive to the constraints and competition (internal and external). - Be aware that use of company resources affects the business and all the input factors have a cost associated with them. (Costs of using one over other, and opportunity costs.) The concept of scarce resources must be considered in all planning decisions and the commitment of resources. Management has to do cost/benefit analysis, get the best use – highest priority and commit minimum resources to the desired end. The benefit has to be greater than the cost.
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