Resource Allocation among business units

Running head: RESOURCE ALLOCATION AMONG BUSINESS UNITS
Resource Allocation among business units
Name of the Student:
Name of the University:
Author Note:

1
RESOURCE ALLOCATION AMONG BUSINESS UNITS
Part 1: Cost effectiveness:
The business organizations should allocate its resources using an appropriate allocation
model to boost its profits and reduce losses. They can use tools use tools like operational
planning and plan their operations according to the business needs to ensure efficient utilization
of resources. They can compare between the benefits the company can derive from particular
strategies against the costs which these strategies would attract to nominate the appropriate
strategies. They should also use cost-benefit analysis and assign monetary value to the expenses
to ascertain the profits. The cost benefit analysis should consider future requirements like human
resource management and marketing expenditure to counteract new competitors (Ong’ayo
Francis David and Adams 2018).
Part 2: The resource allocation process:
The business organisations must the following steps in order to allocate their resources
against the different business units so to maximise the profit and reduce expenditure and losses
of resources:
Step1: Analysing the business needs:
The business organisations should first recognise their business objectives like target
profits, market position and future brand value benchmark. These business targets to be achieved
would pave ways for formation of strategies (Dudin et al. 2015).
Step 2: Present resources available:
The apex management and the departmental heads should then obtain information about
the resources available and the actual amount of resources required. The resources over here