13
to
plan
strategic
operations,
to
anticipate changes
in
the
size
of
markets,
and
to
reallocate resources so as to support forecast shifts in demand patterns.
Suppliers
Dependable
relationships
between
a
firm
and
its
supplier
are
essential
to
the
firm’s long term survival and growth.
Creditors
Because
the
quantity,
quality,
price,
and
accessibility of financial, human, and
material resources are rarely ideal, assessment of suppliers and creditors is critical
to accurate evaluation of a firm’s operating environment.
Human Resources
A firm’s ability to attract and hold capable employees is essential to its success.
However, a firm’s personnel requirement and selection alternative often are
influenced by the nature of its operating environment.
2.2.2.
Internal Resources
Internal
resources
consist
of
tangible assets,
intangible
assets,
and
functional
process.
Tangible
assets
consist
of
financial
resources
and
physical
resources.
The
key indicators of financial resources are debt/equity ratio, operating cash flow or free
cash flow, and credit rating, which are often found on a firm’s balance sheet. Physical
resources
constrain
the
firm’s
set
of
production possibilities and impact its cost
production.
Key
characteristics
include:
the
size,
location,
technical
sophistication,
and
flexibility
of
plant
and
equipment;
location
and
alternative
uses
for
land
and
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