Business Studies Grade 10 | Organisational Resources

Organisational Resources

Organisational resources are all the assets, people, and systems a business uses to produce goods and deliver services. They help the business run smoothly every day, achieve its goals, and stay competitive. These resources include physical, human, natural, financial, technological, and entrepreneurial resources. Each one plays a unique and important role in the success of the business.

Physical Resources (Operating Resources)

Physical resources are the tangible assets businesses rely on daily to keep operations running effectively. These include:
• Raw materials such as wood, metals, and textiles used to produce products.
• Machinery and equipment that help with production, like sewing machines, robots, or manufacturing tools.
• Office furniture and computers that support administrative and managerial tasks.
• Vehicles such as delivery trucks, company cars, and service vans that transport goods and reach customers.
• Buildings like factories, warehouses, shops, and office spaces where business activities happen.
• Infrastructure including electricity, water, internet, and other utilities that keep processes smooth.
Managing and maintaining these resources properly ensures high-quality production, improves efficiency, and supports business growth.

Human Resources (People)

Human resources are the people whose knowledge, skills, and efforts keep the organisation functioning and help it achieve its goals. This includes:
• Employees – permanent staff responsible for daily work such as production, sales, customer service, and management.
• Consultants and contractors – external experts hired to provide specialised skills or complete short-term projects.
• Managers – who lead teams, make decisions, and guide the organisation toward its objectives.
Effective human resource management involves:
• Recruiting and selecting the right people for each role.
• Training and developing staff to improve their skills and adapt to changes.
• Building a positive work culture that motivates employees and encourages loyalty.
When people are well-trained and motivated, they contribute directly to productivity, customer satisfaction, and long-term business success.

Natural Resources

Natural resources are assets taken from nature that businesses use to offer products and services. Examples include:
• Minerals like iron and gold used in manufacturing.
• Wood for furniture, paper, and building materials.
• Water used in production, cooling systems, and cleaning processes.
Using these resources responsibly is important to avoid waste, protect the environment, and ensure that the business can continue producing in the future.

Financial / Capital Resources

Financial resources provide the money businesses need to operate and grow. They can include:
• Own capital – funds invested by owners or shareholders to start or expand the business.
• Cash – money used to cover daily expenses like purchasing stock, paying staff, and utility bills.
• Bank overdrafts – short-term borrowing that helps businesses handle temporary cash flow gaps.
• Short and medium-term loans – borrowed funds to finance new projects, buy equipment, or invest in expansion, repaid over time.
• Capital – money invested in production goods like land, machinery, and buildings that support long-term growth.
Careful financial planning helps businesses stay stable, fund improvements, and respond to new opportunities.

Technological Resources

Technological resources help businesses operate efficiently, innovate, and stay ahead of competitors. These include:
• Computers and software used to manage information, communicate, and support decision-making.
• Production technology like automated machines and robotics that speed up manufacturing and ensure quality.
• Emails, voicemail, and digital tools that improve communication inside and outside the business.
• Research and development (R&D) that helps create new products or improve existing ones to meet changing market demands.
Investing in technology helps businesses work smarter, produce better products, and adapt quickly to market changes.

Entrepreneurial Resources

Entrepreneurial resources refer to the people—often business owners or managers—who combine all other resources (physical, human, natural, financial, and technological) in a way that helps the business make a profit. They:
• Identify opportunities and turn ideas into products or services.
• Take calculated risks to grow the business.
• Make strategic decisions to guide the business toward its goals.
Entrepreneurs and business leaders play a key role in shaping vision, setting strategies, and ensuring that all resources work together effectively.