Business organizations operate with the aim of making profits. This is achieved if the organization provides goods/services of superior quality to its customers. This is because quality goods/services help to widen the client base of organizations.
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Quality can only be achieved if the needs of customers are effectively studied and incorporated into the products/services offered by the business organization. However, business organizations are usually torn between the satisfaction of customer needs and the expenditure of resources; especially when such resources are not available.
As highlighted in the discussion above, it is not usually an easy task to reconcile customer needs with availability of resources. Resources are normally the foundation on which organizations are built since they open up investment opportunities and help organizations to utilize other opportunities efficiently.
The satisfaction of customer needs is equally important to business organizations since it gives the business an assurance of sustainability. It is thus of essence to carefully harmonize the two for the benefit of the organization.
In a case where an organization over-economizes its limited resources and fails to meet the needs of the customer, the organization risks losing a substantial portion of its revenue because it will definitely lose customers.
On the other hand, where an organization overspends in a bid to meet customer needs, the organization will most likely meet problems that will jeopardize the efforts the organization has made to meet customer needs. For instance, if too much money is spent on researching what customers want to be improved on a given product, the organization may miss the money actually to incorporate what the customer wants.
Even if the organization gets resources to meet customer needs in terms of product quality, it may fail to get money for advertisements that are very important in creating awareness (Goral, 2010, p. 1-3). This could result in losses since the resources spent on quality improvement may fail to achieve the intended results.
Despite the fact that a balance needs to be achieved between satisfying the needs of customers and the use of limited resources, proper utilization of resources should be given more priority. This is because some customer needs may be short-lived and thus, a blind effort to meet the needs of customers may be met with failure in the long-run.
In this case, the resources will have been depleted and thus, the organization will have closed avenues for alternative investment. This may lead to bankruptcy which may necessitate liquidation (Crow, 2002, p. 1). It is, therefore, of essence to realize the importance of prioritizing proper use of limited business resources in order to ensure that a business organization is able to sustain itself.
In as much as the carrying out of certain business operations may be beneficial to a business organization, scarcity of resources may necessitate overlooking of such operations. Just like operations that are beneficial to business organizations, the meeting of customer needs may be partially ignored due to scarcity of resources in order to sustain the organization.
However, ensuring that limited resources are properly utilized in a bid to meet customer needs will be the best option for any organization. That is, proper reconciliation should be performed to ensure that customers have most of their needs met and at the same time, ensure that limited resources are properly utilized.
Crow, K. (2002). Voice of the Customer. Available from, http://www.npd-solutions.com/voc.html
Goral, T. (2010). Managing the Enterprise on Limited Resources. Available from, https://universitybusiness.com/