The term intellectual capital could be described as the capital or all the resources that determine the competitiveness and the value of an organization. In other words, intellectual capital could be described as the knowledge or property of an enterprise that can be used for some useful purposes of the businesses such as money making, increase in market base etc. Intellectual capital includes knowledge and skills developed by the organization for making particular goods or services or the skills of employees whose knowledge is critical for the continuous success of the company (Brooking, 1996). Some examples of intellectual capital are branding, goodwill, employee experience, trademarks, patents etc.
To prepare the paper on intellectual the organization selected is Wal-Mart. The stores of Wal-Mart have a goodwill position in all over the world for its lower prices of the products and services. The goodwill is the measure intellectual capital of Wal-Mart that helps to increase in the customer base and market base of the organization. Most of the customers like the products and services of the business because of its low cost services.
Use of Goodwill in Different Business Area
The management of Wal-Mart uses goodwill as the intellectual capital in its different business areas such as service, products, processes, strategies etc. The company has a reputation because of the lower cost, social responsibilities, customer satisfaction, involvement of quality and health aspects in producing goods and services etc. Following are the examples of different areas using goodwill intellectual capital –
Strategy – In order to enhance the reputation of the business in the eyes of consumers the management of Wal-Mart considers its goodwil...
... middle of paper ...
...2010, from http://www.apicsterragrande.org/Wal-Mart%20Sustainability.pdf
Marr, B. (2005). Perspectives on Intellectual Capital. Butterworth-Heinemann
Nikolai, L.A, Bazley, J.D. & Jones, J.P. (2009). Intermediate Accounting (11th ed.). Cengage Learning.
Pavri, Z. (n.d.). Valuation of Intellectual Property Assets. Retrieved March 16, 2010, from http://www.sristi.org/material/11.1valuation%20%20of%20intellectual%20property%20assets.pdf
Stalk, G, Evans, P. & Shulman, L.E. (1992). Competing on Capabilities: The New Rules of Corporate Strategy. Harvard Business Review.
The Curious Case of Wal-Mart. (2009). Retrieved March 16, 2010, from http://web.ebscohost.com/ehost/pdf?vid=1&hid=108&sid=0de9fbb3-780a-486b-99e2-89b482db46cd%40sessionmgr113
Wolf, A. (2010). Sam's Club to Demo CE; Wal-Mart Reorganizes. Twice; This Week in Consumer Electronics 25 (4). 18.
Roberts, Bryan. Berg, Natalie. Walmart: Key Insights and Practical Lessons from the World's Largest Retailer. Kogan Page Limited, 2012. Print.
According to Smithson, Walmart can expand its markets to new and emerging markets especially in the third world countries, which can significantly increase its revenues. Secondly, the company can reform is employment practices and improve the quality standard and in doing so, attract more customers and improve its brand image. On the other hand, the company faces threats such as the rising healthy lifestyle trend I that the company in most cases does not provide customers with healthy goods. At the same time, the company can capitalize on this aspect and increase its revenues. Aggressive competition from other discount retailers such as Target creates a great threat to the company (Smithson, 2015).
Sears has seen many different changes in business and has had to adjust to t...
Albertson’s is planning many new strategies to try, and grab some of the market share that Wal-Mart has taken from them. The main way they plan to do this is though innovative technology. The reason for this is do to the fact that Albertson’s has vigorously tried to offer many perks to its customers, such as substantially better customer service, as well as convenience. Yet even though this may be true. Wal-Mart’s low prices have seemed to be far superior in generating revenue that has translated into enormous amounts of profits. So this is why now Albertson’s figures that if they cannot beat them on price then they will do it through information technology.
Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard business review, 86(1), 25-40.
Wal-Mart Stores Inc. is in the discount, variety stores industry. It was founded in 1945, Bentonville in Arkansas which is also the headquarters of Wal-Mart. Wal-Mart operates locally as well as worldwide. It operated 1209 discount stores, 1980 super centers, and 567 Sam’s Club by January 31, 2006. It has also extended its operations to many international countries. It runs its retail stores in two forms: Sam’s Club and Wal-Mart Stores. The Sam’s Club sells assorted product lines such as hardwares, electronics, jewelry, and to mention a few. The Wal-Mart stores also offer similar products in addition to the following: health and beauty products, apparel for women, men and children, household appliances etc (www.yahoo.finance.com). The Vision Statement, Mission Statement, Values and Code of Conduct, Corporate Governance: Directors, Executive Management, Committees and Stakeholder will be the key elements that will discussed in this report as it relates to Wal-Mart. In addition to that, the major trends in the general/macro environment and industry will be analyzed.
While keeping in mind they are a business which rely on profits. Walmart is a popular company that is known for their low prices. This corporation is also known for giving back to communities by making charitable contributions of 100,000 grants annually, as well providing disaster relief to various countries burdened by disasters and donated $100 million dollars to neighborhoods and law enforcement agencies. They also provide employees with college grants to obtain a two or four year college degree, Walmart is investing in their employees by giving them an advantage in their future. Walmart has also found ways to reduce waste by creating materials that are nontoxic and are recyclable friendly. With the use of sustainability, strategic philanthropy, causing marketing, shared values and stakeholder that is why this company was ranked number one by Forbes list in
How can Wal-Mart re-build its image? To help Wal-Mart be named as best retailer, instead of the worst, the A Team has come up with solutions to address the issue at hand. We have researched the causes of poor customer satisfaction that all Wal-Mart customers face and come up with solutions to end this issue. For our research, three different criteria for good customer service were evaluated: knowledgeability, friendliness, and availability.
First, in relation to the organization’s most important asset, people, Sears has failed to recognize the distinctive competences that lie in the skills and abilities of their own employees. Sears once was a very successful organization in relation to how they treat their employees. Sears was one of the pioneers of measuring employee engagement in the retail industry by creating a set of measures known as Total Performance Indicators. People who enjoy going to work every day, as a result of a high-performing company culture, increases their productivity, giving them a higher return on salary. This model of employee engagement worked very well for Sears in the past, however, in recent years, Sears has strayed away from this core competency.
Some core competencies that must be exploited are: Brand Kmart is an existing well-known and trusted national brand in USA Kmart has private label and designer clothing that is well endorsed Infrastructure Kmart has a large number of well-located, low-cost, leased stores in urban far away from competitors through out the country ( Appendix B ). Staffing Confidence by the market in Kmart is created by the achievements of its staff and management. With the turn-around strategy in place, new blood has been put into the top management structures. In any renewal there will be retrenchment as unprofitable stores are closed. This can be used as an opportunity to retain and move high performing staff to where they are needed and to get rid of non-performing staff. Anderson the chairperson of Kmart is well supported by Wall Street and the board of Directors. These new staff members enter the company with needed skills to address problems in certain areas that previously were poorly managed such as inventory control and merchandising. Store locations, layout and Performance Stores conveniently located away from competitors like Wal-mart and Target therefore less to compete for customers face-to-face. There are 250 non-performing stores who have already been identified as being more cost effective to close than continue with running costs. Expertise exists in-house for the planning of store layout and appearance to meet different customer segments. This concentration of effort will enable focus on key areas Technology Kmart has already invested in good retailing systems. The system can be use to control inventory, supplier payments, track customer buying and monitor income versus profit margins across all stores. Research and Development The planning department is well established and in cross-functional to provide various perspective. The planning department to ensure that strategies at all levels are executed can further use the access to past data and knowledge of changes in buying patterns. Financial Backing JP Morgan Chase has agreed to support Kmart to avert the current threat of closure due to bankruptcy.
Castro Wright as the vice chairman of Walmart took charge of these initiatives after surprising statistic from his research. Therefore, he built the Project Impact with three strategic initiatives which are “Save Money, Life Better”; “Win, Play, Show” and “Fast, Friendly and Clean”.
Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard business review, 25-40.
Hendersern and Stern 2000, ‘Untangling the origins of competitive advantage’,Strategic Management Journal, Vol. 21, pp. 1123-1145.
Porter, M. E., 1999. The Five Forces that Shape Competitive Strategy. Harvard business review, p. 80.
During the twentieth century the concept of goodwill has changed significantly. In the earlier days goodwill was thought of as the good and valuable relationships of a proprietor of a business with his customers. The present concept is broader in that it encompasses many more intangible economic factors of a business enterprise and accountants now consider that goodwill results from the evaluation of the earning power of a business by investors (Johnson, 43).