Factors affecting Resource Allocation

1. Objectives of the organisation

2. Powerful units
3. Dominant strategists
4. Internal politics
5. External influences
Difficulties in Resource Allocation
1. Scarcity of Resources

2. Bloated Demands:

3. Budgetary Process

4. New SBUs

Criteria for Resource Allocation Process

Criteria for Resource Allocation Process

1.Contribution towards fulfillment of organisational objectives

2. Support of key strategies

(a) Support of core competencies
(b) Enhancement of value chain activities:
(c) Risk-acceptance level of the organization

3. Special circumstances
a) When major strategic changes are unlikely
b) When major strategic changes are predicted
c) When resources are shared between divisions
Effecting Resource Allocation
1. Objectives of the organisation
2. Powerful units
3. Dominant strategists
4. Internal politics
5. External influences
Difficulties in Resource Allocation
1. Scarcity of Resources

2. Bloated Demands:

3. Budgetary Process

4. New SBUs

Criteria for Resource Allocation Process