Question

Why is it important for strategic allocation of financial resources to be significant for advancing in Gods purpose for business on earth

Answer 1

STRATEGIC ALLOCATION OF FINANCIAL RESOURCES

From the concept of business, financial resources include sources of funds available for running business. They are used to carry out the main operations of the business, like buying goods and services and to carry out long term investments. It should be allocated strategically. Good financial resources management is the key to achieve the goals of the organization. Situations in which the shortage of funds can compromise the short term operations must be avoided. For example, if the organization doesn’t have enough funds to pay salaries or buy raw materials. On the other side, an excess of financial resources can lead to a high opportunity cost. Budget control and analysis play an important role in Financial Resources Management. Efficient management should react quickly to changes in the environment and pursue a healthy stock of financial resources, according to the needs. Resource allocation is a process and strategy involving a company deciding where scarce resources should be used in the production of goods or services. Resource allocation begins at strategic planning when a company formulates its vision and goals for the future. The vision and strategic goals are accomplished through achievement of objectives. For example, a consumer electronics company's goal may be to become the market leader in computer tablets. An objective towards this goal is the design and promotion of an innovative tablet.

      Now let us consider from world perspective. Industrial and technological development has provided us with financial prosperity but has also created unique environmental threats to us and to future generations. In the present scenario, several well-established environmental trends are shaping the future of civilization. The extent of the environmental damage produced by present and projected industrial technology makes one wonder how long this kind of development would be sustainable. Mankind is extraction all resources available in nature which includes natural resources, human resources etc. Humans transform these resources for financial needs and they are not allotted strategically. Strategic allocation of financial resources has to consider sustainability of human as well as other creations on earth. According to Brundtland Report, economic growth has to be environmentally sustainable. There is no economic growth without ecological costs. One must realize that increased development and higher GNP are related to environmental damage and resource depletion. Therefore, an element of resource regeneration and positive approach has to be incorporated in developmental programmes. High economic growth means high rate of extraction, transformation and utilization of resources. Few decades ago, the corporate world, the industry or others engaged in the use of resources were mainly concerned with good business in economic sense. Concern for environment and resource depletion was not on their agenda, if conservation of resources was required it was with a motive of mere economic gains or profits.

A strategic allocation of financial resource will be complete only when it meets the society needs and not luxury. Incorrect allocation creates adverse effects such as poverty. Many countries face such problem because advancement is happening only on one side. Finance should be allocated in researches for advancement in science, space and technology. A nation or society should satisfy its requirements – social, economic and others – without jeopardizing the interest of future generations.