ILO:
 Premises decision to rent or buy.
 Equipment required.
 Vehicles.
 IT hardware and software.
​ Suppliers and cost of equipment. 

Physical Resources

The physical resources the organisation chooses to use will play a significant role in determining the competitive advantage of the business. Bteer quality resources will enhance the quality of the good/service supporting differentiation. However better quality resources will come at a cost and therefore this needs to be balanced within the marketing mix that is going to be used to reflect the target market. 

Consider the role of physical resources for the following business:
Dubai Atlantis: A tour of the luxury hotel suite that will cost you £23,000 per night
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Location

What are the key questions to consider when taking on business premises?
  1. What are your core business needs?
  2. What can you afford currently? Does this allow for increases if renting or change in market conditions?
  3. Should you work from home? What about serviced offices?
  4. What are you looking for in your premises?  What are the essential features versus desirable ones?
  5. Location -what are the issues?  Impact on customers and staff, image, transport networks, parking?
  6. Size and layout?  Conditions that make businesses work well together?
  7. Enough space for growth? storage needs?
  8. Facilities, special requirements? 
  9. Start with ideal size of building, get advice on sq.ft space per person
​http://www.pagehardyharris.co.uk/taking-business-premises/
Activity:

Using the case study, consider the opportunity and threats that either location presents with the physical resources it includes and what will be needed.

The issue of the costs of the physical resources will be dealt with through the use of financial tools such as payback, cash-flow, break-even, ROCE etc.