“The resources available for an organization to use to implement certain strategies will dictate the strategy to be adopted. ” For each point, do you agree or not and why? 1. How much money they have earmarked for R&D. I agree that a certain level of money earmarked for research and development can drive implementation of certain strategies. With R&D funded, organizations ensure that they maintain the capability of innovation, by designing or crafting new products or making changes to existing products. Organizations need to be innovative to remain competitive and to earn and retain customers.
With money im...
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...mediately available, strategy adoption and innovation can occur more rapidly. 2. Human resource availability for marketing, sales, engineering, etc. I disagree that human resources for strategic initiatives dictates which strategies organizations can or will adopt. Resources are internal or external to an organization. There are many outsourcing companies, contingent labor, specialists and consultants that supplement a company’s resource pool. Thus, availability of people to work on initiatives is not a factor for strategy adoption. 3.
Physical resource availability such as production facilities, storage space, etc. Similar to human resource availability, physical resources are available outside of an organization. Thus, I disagree that availability of physical resources drives implementation of certain strategies. As long as funding is in place for the initiative, purchasing resources, whether human or physical, internal or external, should merely be part of the strategic plan, rather than driving it. 4. How much discretionary cash or risk the company is willing to take. Yes, I agree this drives strategy adoption.
Organization’s need to evaluate the risk and return on investment (ROI) for the strategies they choose to implement. Being able to access cash or capital quickly to implement strategy speeds up the adoption process, and not having adequate funding can halt strategies altogether. Risk is always a major factor in organizational decision-making. Risk versus return is the prime component in evaluating strategies. Too high of a risk and the strategy may not be worth the return the company receives. Risk and return have to be evaluated in depth before proceeding with any strategic initiative.