This assignment is manufactured within the course work of the main topic of Management of Financial Resources, since any tactical plan for any organization involves different facets of the business enterprise that runs from planning, implementation and control. Therefore management of internal and exterior performance of any organization is a crucial part of any proper plan.
Since management of internal and exterior performance of business is dependent upon the reference decisions made by top management, the tool strategies are of vital nature. This task will explore the various aspects of learning resource decision by studying the performance management strategy of the selected corporation. In below lines its has been talked about that what exactly are the resource needs of the organization, different methods that are being used to allocate, manage and control the resources within the formulation of the proper plan. Furthermore this paper also discusses the various strategies applied to identify and rectify the reference gaps.
For the understanding of the subject and then for analyzing the useful implications of the ideas, I have selected Pakistan's leading drink company Coca Cola Pakistan (Coke), which is a subsidiary of Coca Cola Export Firm. While operating in highly competitive and predominant market by Pepsi, Coke have had the opportunity to give troublesome competition to Pepsi and gain a good market share in drink and soda marketplaces of Pakistan. Their business design is named COBO, which can be an abbreviation of Company Operated Bottler Organizations.
Since they may be competing with a huge player in Pakistan which acquired a first mover's advantage plus they also have a different business model of their main rival, their strategic planning is highly based mostly after the right reference management throughout the organization. With the increase in their market show and penetration, their source of information planning is being more essential and critical for the achievement of these objective. Below we shall see how Coke has been able to manage their resource in relation to the theoretical history from the literature (Dark brown & Gilbert, 2006).
A general tactical arrange for different organizations manages different sorts of resources, these resources amounts from financial resources, physical resources, human resources and scientific resources. These resources are bought and allocated regarding to different business level and organizational level strategies. These reference allocation and id also has a primary link with overall business strategy of the firm (Offer, 2005).
Here we see that overall business strategy of Coke for their Pakistan businesses is cost command, therefore the complete tool management will revolve around this business idea, since every department will be working into the same goal therefore their reference allocation will be achieved accordingly (Offer, 2005).
Financial Resources - money will be the backbone for just about any organization and really should be managed carefully, as they are necessary for each kind of business procedure, their timely and effective management is vital. Coke, because of its Pakistan operations are handling their financial resource with the assessment of these Asian region offices (David, 2004). These money are purchased from head offices after the conclusion of their business plans for the entire year. These money are bought for marketing, research, creation planning and infrastructure. Every division must submit their business forecast by the end of the entire year and then these forecasts are changed into financial forecast for the following time (David, 2004).
Physical Resources - physical resources include building, production plant life, physical infrastructure for offices, and logistics. These resources are also essential for just about any business and their management has tactical importance. Since Coke is involved in FMCG business, their logistics management has a very important role to experiment with in the overall success of the business. As competition is increasing, they have to control their logistics to provide timely delivery to the maximum areas of the marketplace to get market share that is why their logistics management facilities are of the maximum importance in their complete physical resource management plan (Saloner et al. , 2000).
Human Resources - In modern business conditions, human resources are the most crucial resources that an organization can have, in most of the case they are the resource that can make or break the continuing future of any organization. Therefore business companies and Coke as well put the utmost emphasis on allocating the right resources at the right time with the job (Saloner et al. , 2000).
In case of Coke they may have realized the importance of training and development of their sales force and other recruiting, from the hiring techniques, training and development and settlement and benefits, the business does not compromise on quality and manage the resources up to the industry expectations, they think that their competitive benefit is derived from their recruiting and they are the deciding factor because of this (Barney, 1991).
Technological Resources - Whether it is high end technical industry or development create or service industry, the importance of request of technology in unquestionable, technology program throughout the organizational operations can stand alone be a source of competitive benefits, therefore organization control their technical resources in their strategic plan while keeping the near future requirements in mind (Saloner et al. , 2000).
Coke, getting the same eye-sight has applied state of the art technology their business operations through an ERP system in Pakistan, where they can take care of their supply string and value chain efficiently and get an edge on the competitors. In their strategic plan, technical needs forecasting and management is of proper importance and every short term and permanent plan this element in also kept in mind (Saloner et al. , 2000).
Resource allocation is an important part of any tactical plan; this task is intended to the positioning of the organizational plan and the functional plan, because without the productive and effective resource allocation, company can't be able to perform any strategic plan. So that it has been suggested by the management professionals that business should align the reference allocation strategy with business product strategy and learning resource allocation should echo and get inspirations from business strategy (Brown & Gilbert, 2006).
In below series we have mentioned how our picked company allocates the resources and what are the steps that are considered for this portion of strategic planning.
The first rung on the ladder in tool management for selection business is to plan the resources, this step includes the analysis of current resources, Coke during tactical planning, evaluates the current resources open to the organization. In this step it is checked out that whether these resources are in fit with future plan.
After the making of the resources evaluation report Coke checks the strategic plan and see if the current resources will be able to achieve the goals and needs for future years requirements produced from the tactical plan of the business (Dark brown & Gilbert, 2006).
Once it's been identified that business will be requiring more resources for their upcoming tactical plan then your next step is to forecast the resources required to different departments with differing times for the effective implementation of the plan. In this process all the departments are required to forecast their required resources for the period of time specified in the strategic plan so that budgeting of the resources can be carried out.
Resource Allocation- The next last step for the resources management is always to budget the sources of Coke, this task requires the careful evaluation of the forecasted resources for each section and then allocating required costs for each of them (Dark brown & Gilbert, 2006).
For example, if tactical plan requires extension of the marketplace by the business then may be logistics division would required more logistics to cope with the market extension strategy of Coke. For this purpose they might be looking to have significantly more fleets or human resources for management of logistics in the new or extended markets. Following the allocation of the finances the resource allocation process goes to the next step that is contingency planning.
Contingency Planning - As Coke is operating in highly competitive environment and such competitive surroundings are always speedily changing, therefore Coke has made this a practice to allocate some money as part of their contingency planning so that if business has to make some surprising decisions then they have the ability to have the required financial source of information.
As it very important to Coke and other organization to truly have a close look on monitoring of their tool management strategy, we have reviewed below that how Coke make sure that everything is relating to plan.
Budget & Cost Method - For the better management of the resources and also to eliminate the waste business has a device that handles the budgets of each of the section. As each of the team have their own budget, organization through their team heads makes sure that every activity and utilization of budget is good strategic direction set in the tactical plan (Give, 2005).
For this goal they may have management committee that reviews and approves every expenditure and usage of the reference, this committee makes certain that every office is using their budget in a manner that their activities are good strategic plan of the organization.
Shortage of any resources in any business units of the business regarding their business needs is named resources spaces. Coke because of their business procedures in Pakistan continue researching their business needs, business plans and then indentifying the resources gaps for current and future business needs (Offer, 2005).
For this goal they review their learning resource management plan double annually and then they identify any resources which can be short for their current business need. Resource spaces are also found at the time of the making of tactical plan for arriving years. In addition they fill the discovered resource spaces for future and current need.
Strategic plans are in the heart of each organization, and tool management is at heart of each proper plan, therefore for organizations to thrive in business and gain the sustainable competitive advantage it is vital to strategically control their source. For strategic management of the resources, organizations have to make a hyperlink between their tactical plan and their resource management plan. In this manner they can gain the required results from their planning and gain the competitive advantage.