The Role of Resources in Company Growth

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Running head: REFLECTION 2
Reflection 2
Name
Institution Affiliation

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REFLECTION 2
Describe the role of resources for the growth of a company
The course materials have clearly indicated the crucial role played by resources for the
growth of a company. According to Autio & Acs 2010, there are four basic resources of a
company. There are physical resources, intellectual resources, human resources, and financial
resources. Companies such as Google, Apple, and Microsoft have achieved great growth and
development due to their effective utilization of all resources. Google, for instance, has one of
the best financial resources in the world (Achtenhagen, Naldi & Melin, 2010). Resources ensure
that an organization has the potential to identify a given opportunity and respond to it
accordingly. Human resources are paramount in enhancing creativity and innovation in an
organization. Financial resources ensure that the organization has the vital capital needed to
undertake a given project. Intellectual properties ensure that the quality of the goods and services
provided by an organization is enhanced. Without physical resources, a company cannot meet
the consumer demands due to inefficiency in production. For instance, Apple cannot produce the
current I phone model without a good base of physical resources (Delmar, Davidsson & Gartner,
2003).
How can you protect them and remain competitive?
A company can employ various strategies to protect its resources (Autio & Acs, 2010).
First, a company should not disclose its trade secrets and strategies to the competitors. Secondly,
the company should register its name, trademarks and attain the legal copyrights. The patents of
the business should also be protected as per the existing laws. Physical and web security are also
paramount in protecting the resources of a company (Nason & Wiklund, 2015).

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REFLECTION 2
Discuss the management of human and intellectual resources in growing firms
Human resources are in fact a basic factor of production. Google has become very
successful due to a good human resource base (Mollick, 2012). Companies operating in the
service industries need a great deal of innovation and broad knowledge pool. Currently, the
modern word world is revolutionizing at a very high rate. Without a good human resource base,
an organization is likely to curtail its operations due to poor production. Growing firms should
utilize human resources to enhance creativity and innovation, which aids in growth and
development. The current world requires efficiency in human resources, especially for small
businesses.
Intellectual resources are of crucial role in the growth and development of a company.
Intellectual resources are intangible in nature and they include copyrights, brands, patents,
partnerships, and IP (Kitching & Marlow, 2013). Companies such as Sony and Nike rely on their
brands to make exceptional sales and profits. Intellectual resources determine the quality of the
goods and services provided by the company. Companies with quality goods and services attract
and retain more customers. The final impact of this is increased sales hence more profits. A
company with more profits is likely to expand due to its financial capability. Intellectual
resources determine the growth and continuity of a business as they are the source of creativity
and innovation (Maresch, Fink, & Harms, 2016).
How can formal and informal practices can be balanced?
Formal and informal practices can be balanced in an organization through a number of
ways (Delmar, Davidsson & Gartner, 2003). First, the relationships coherent in the organization
should be informal and formal at the same time. This can be achieved through a flexible