Provide a detailed analysis of the resources that will be required for this business venture.
Detailed analysis of resources required for the business venture to improve the availability of affordable housing in Auckland:
Physical primary resources:
- Manpower resources, which include construction workers and technicians, need to be planned for their skills, quantities and requirement time based on work breakdown structure, time schedule project details and estimates.
- Construction materials are another primary resource for the specific business venture and information needs to be accumulated about the detection of different types of material requirements, source of availability, requirement time according to project schedule and supplier procurement process and site delivery (Baden-Fuller & Haefliger, 2013).
- Construction equipment like equipment for operations of earthwork, transportation, concrete production, compaction and placement are the other physical primary resources required for this business venture. However, these need to be deployed effectively for increasing speed and quality construction at minimum costs (Löfsten, 2016).
Figure 1: Organisational structure
(Source: As created by author)
The above organisational structure has been designed to improve the scope of this new business venture. The project manager would be on the top on the hierarchy and the person would have the authority to make changes in the initial plan, if deemed necessary. In addition, the person would be responsible for guiding the entire team along with ensuring that the activities performed are within budget. Below the project manager would be the team leader and the person would present the outcomes to the project manager along with resolving any issues between the team members (Bagautdinova et al., 2014).
The human resource manager would work under the project manager as well and the person would prepare reports and submit the same to the project manager. The finance manager has the authority to look after the cost of each activity and the person would record all balances compared to costs. The quality manager would work under the team leader, the person would check the material quality, and if any changes happen, it would be reported to the team leader. The workers would work under the human resource manager and they would be selected based on the project requirements. Finally, three accountants would work under the finance manager to assist the latter in recording costs.
This particular business venture has the availability of two types of capital resources. These resources include internal resources as well as external resources (Cañeque & Hart, 2015).
The organisation that would carry out this housing project in Auckland could make use of its retained earnings as internal capital resources. This could be used by plugging back of profits from the past financial year in order to fund the requirements of the project.
The external capital resources could be segregated into debt capital and equity capital. For instance, the organisation could issue debentures, company deposits that would come under the category of debt capital. On the other hand, the organisation could issue equity shares to gather money from the possible investors and the general public (Holm, Günzel & Ulhøi, 2013). However, it is to be borne in mind that debt capital is cheaper than equity capital. This is because the expected rate of return for the investors is higher than the interest rates in most occasions.
The financial resources that are available to the organisation for this business venture include the following:
- Individual housing subsidies
- Accreditation of municipalities
- Operational capital budget
- Extended discount benefit scheme
- Social and economic facilities
The above-mentioned programmes offer subsidies to the cooperatives for buying completed or present properties along with granting funding to the municipalities or provinces (Ostendorf, Mouzas & Chakrabarti, 2014). The main objective is to provide facilities or services for professional services in order to help in planning or delivery. Hence, these financial resources could be accessed for improving the availability of affordable housing in Auckland.
Knowledge resources and capabilities:
The knowledge resources and capabilities are considered as a significant aspect in this specific business venture for improving the quality of affordable housing in Auckland. These resources include access to critical complementary assets, which the cooperative could achieve by partnering with a popular firm in Auckland. In addition, these would help in strengthening its competitive position as well. Another knowledge capability is to enter the other areas of New Zealand except Auckland by collaborating with a local partner for nationwide growth in housing facilities. Finally, real option approach is another knowledge capability that could be used on the part of the cooperative for hedging with uncertainty.
Baden-Fuller, C., & Haefliger, S. (2013). Business models and technological innovation. Long range planning, 46(6), 419-426.
Bagautdinova, N. G., Galieva, G. T., Pakhmutov, Y. O., & Pratchenko, O. V. (2014). Methods of regulation of processes of innovation business development. Mediterranean Journal of Social Sciences, 5(12), 75.
Cañeque, F. C., & Hart, S. L. (Eds.). (2015). Base of the Pyramid 3.0: Sustainable development through innovation and entrepreneurship. Greenleaf Publishing.
Holm, A. B., Günzel, F., & Ulhøi, J. P. (2013). Openness in innovation and business models: lessons from the newspaper industry. International Journal of Technology Management, 61(3/4), 324-348.
Löfsten, H. (2016). Business and innovation resources: Determinants for the survival of new technology-based firms. Management Decision, 54(1), 88-106.
Ostendorf, J., Mouzas, S., & Chakrabarti, R. (2014). Innovation in business networks: The role of leveraging resources. Industrial Marketing Management, 43(3), 504-511.