Physical Resources

These are considered as tangible assets which the organization uses to create value offering and value proposition to its customers. Physical resources may include the equipment, buildings, inventory, the manufacturing plant and distribution network which are extremely crucial for the business to function properly.

Physical resources are important for the functioning of the organization since without things like equipment and inventory and manufacturing plant it is difficult for the business to function. While these are required for the business which has a tangible product offering, for the business which has intangible services as an offering, there would not be the requirement of a manufacturing plant, distribution network, etc.

But in fact, there will be a business process that needs to be followed for the delivery of the service to the end customer. It is also is ensured that the organization updates itself with the latest resources available in order for proper and efficient functioning. Physical assets are usually considered stable in nature but they do come with a life post which they need to be replaced by the organization. For example, any company would not build a new manufacturing plant but it would add the modern facilities which would make the existing plant more modern does update itself without practically moving the existing resources.