Managing and Running a Small Business

This document discusses the main considerations that small businesses and social enterprises need to address when planning and allocating resources to achieve their business objectives. It emphasizes the importance of proper planning and allocation of resources, factors to be considered, and tools and techniques that can be used for efficient resource management. The document also highlights the significance of scope, evaluation of human resources, availability of resources, and dependencies of the project in resource planning and allocation.

MANAGING AND RUNNING A SMALL BUSINESS
The allocation of resources is
associated with managing and assessing the
assets to different activities in such a manner
that the goals and objectives of the
organisation are accomplished. For the
organisation to be successful it is crucial that
they take into consideration the allocation of
the resources efficiently as it involves cost that
has to be borne by the businesses. Also the
resources are limited so for the efficient
utilisation of the resources proper planning of
the resources must be facilitated. The
management of the Airdri need to develop an
understanding of the importance of planning
and allocating the resources which is given
below:
Importance of planning and allocating resources
With the help of efficient planning and management of the
resources the small business can ensure achievement of the
objectives of the business because:
 It boss the productivity of the organisation as with
proper planning the availability of the resources can be
ensured and with this the project can completed within
the time limit without compromising the quality of the
offerings. This enhances the trust of the customers of
the business which facilitates them to achieve their
business objectives of profit maximisation.
 Proper allocation of the resources ensures that the team
performs better as they are provided with sufficient
resources. The resources are allocated as per the ability
of the human resources with the help of better planning
and this ensures efficient utilisation of the resources in
such a manner that the overall cost of the company is
reduced.
Tools and techniques to plan and allocate resources
For facilitating the planning of the resources of the
organisation various tools and techniques can be used by them
which include expert judgements which are based upon the
valuable insights of the seniors or experts. Another technique
that can be used by them is alternative identification which is
based upon lateral thinking i.e., critical thinking and pattern
thinking i.e., pattern based on past actions. Apart from this Airdri
can use cost effective resources management software with
which they can plan as well as allocate their resources.
P1) Main considerations a small business or social enterprise needs to address when planning and allocating resources to achieve business objectives
Factors to be considered when planning and allocating resources
The business such as Airdri has limited resources due to which they
have to manage them in such a manner that they can achieve their business
objectives efficiently. While planning and allocating the resources it is
important for the businesses to ensure various considerations that must be
addressed by the organisation. These are:
Scope of the project: The planning of the resource and their allocation is
dependent upon the scope as with this the quantity of the resources can be
determined as per the kind of tasks that they have to undertake. With this the
overall objective of managing cost of the organisation can be ensured.
Evaluation of the human resource: Human resources are one of the important
resources of the organisation and their planning is crucial in context of their
abilities and competence for accomplishing the goals and objectives of the
organisation. As per the requirement either new employee can be recruited or
trainings are organised by Airdri for existing employees with which they can
ensure better workforce that can provide competitive advantage to the
company.
Availability of the resources: Resources planning must be done as per the
requirement of the number of units which is forecasted in context of sales. With
the help of required resources in context of material, labour, machines can be
arranged. It ensures the accomplishment of the organisational objectives of
better profitability as they can made timely deliveries to the customers. Also
with this the better and prompt customers services can be facilitated by Airdri
that will increase their customer base.
Dependencies of the project: The planning of the resources must be done on
the basis of the capacities of the projects as Airdri manufacture different types
of hand dryers and for them resources must be allocated as per the number of
sales of different products so that availability of the required quantity can be
ensured.