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The resources may be existing with a company or many be acquired through capital allocation.
Resources include physical, financial and human resources essential for implementing plans.
Resources are broadly of four categories.
i) Money
ii) Facilities and equipments
iii) Materials, supplies and services
iv) Personnel
Other methods include -Portfolio models, product life-cycle charts, balance sheets, profit and
loss statements income statements. When retrenchment or turnaround strategies are implemented
zero-based budgeting is used. During mergers, acquisitions and expansion, capital budgeting
techniques are suggested. Resource allocation is not purely a rational technique but is based on
several behavioral and political considerations. The other analytical conceptual models used for
strategic choice are growth share matrix, stop light, and Directional Policy Matrix used in
multi divisional firms. A more comprehensive approach to management decisions on resource
allocation is provided by the budgeting system carefully geared to the chosen strategy.
The budgeting and corporate planning departments may have to face the ire of those executives
who do not get resources according to their expectations. Such negative reactions may hamper
the process of strategic planning itself.