Reply 2 For Week 4

Running head: FIRMS INTELLECTUAL ASSETS 2

FIRMS INTELLECTUAL ASSETS 2

Varda Bil

Recognizing Firms Intellectual Assets

According to Dess et al. (2020), a firm is valuable based not only on the amount of money it has in its physical assets such as property but also on what is understood as intellectual property which is the value that a businesses has in other items such as the knowledge that is possessed my its employees or the valuable businesses knowledge that is available to the firm that is unique from its competitors. Some items that are commonly recognized as intellectual property are the firm’s reputation in the market, the valuable relationships that are created with customers, a firm’s brand name as well as others. It is very important to recognize the different forms that exist as they can prove to be very beneficial for the firm for various reasons. Firstly, there is only so much a firm can do to create a difference in its products from those of other businesses. At times the items are homogenous and thus variety is not of great importance. In such cases valuable intellectual property plays a great role as it helps set the business apart. Not only is that helpful but it also attracts customers towards the business and these people often stay with the business for long periods of time. It also helps improve and enhance business efficiency as for instance if a business has very knowledgeable employees that knowledge can be protected and passed on to other employees (Dess et al. ,2020). Therefore, retention of human capital is very important as a business needs to have facilities in place that recognizes talent and thus works to retain it. If an employee is not valued the business could easily lose that individual to a competitor and suffer long term effects. Social capital is another important concept that businesses are incorporating to build and retain value in a business. This occurs when a business relies on socialism to create good ties with its customers. I believe that telecommunication businesses are highly relevant on this as in call centers employees are engaging with often upset customers and in such a situation are the fact of the employee. So, interaction and sharing of experiences really helps resolve problems and strengthen the one with these customers. The employees thus must be very careful in keeping track of all information provided and create good notes that can help other associates as well. Thus, having these knowledgeable workers helps strengthen ties and make sure customers remember the company for the good work it does.

References

Dess, G., McNamara, G., Eisner, A., & Lee, S. H. (2020). Strategic Management: Creating Competitive Advantages (10th edition). McGraw-Hill Higher Education