Chapter 7 - It safeguards corporate assets by

STRATEGIC MANAGEMENT ASSET providing a legal mechanism for brand

protection, protection of trade secrets by
INTELLECTUAL PROPERTY ASSETS non- disclosure agreements, and
● refer to assets that result from the activities of provision for patents and copyrights;
the mind. and
● These generally come in the form of: - It allows organizations to enjoy low cost
leadership and increase its competitive
Trademarks strengths.
➔ include all service marks, trade names,
designs, logos, seals, and symbols that HUMAN RESOURCES ASSETS
are uniquely developed by an individual, ● Human resource assets are the strengths of
a group of individuals, or an organizations that consist of collective
organization. “expertise”, personal traits, creative and
Software problem-solving capabilities, managerial,
➔ are organized information in the form of entrepreneurial, and competency asset skills, and
operating systems, utilities, programs, organizational human-centered assets.
and applications that enable computers ● Expertise in an organization can result from any
to work. of the following:
➔ 2 main classifications: - impressive educational attainment,
1. Systems Software: control the - unique and cutting-edge professional
basic functions of a computer competence
and usually come preinstalled - relevant and “intelligent” environmental
with the computer knowledge,
2. Application Software: handle - adept but creative and highly
common and specific tasks like differentiated work-related knowledge,
word processing and others. - an inclusive complete, but objective
Copyright/Patents historical knowledge.
➔ Originally compositions that are unique ● Personal traits considered as human resource
and distinct assets include qualities like:
Trade Secrets - transformational leadership;
➔ Refers to all types of information, - ingenuity to differentiate existing ideas,
technical, or otherwise, like - products, or service
organizational philosophy, programs, - first rate problem-solving capabilities;
strategies, processes, financial data, - a personality that is self-motivated and
transaction data, and lists of customers vibrant;
and suppliers. - sustained energy; and other essential
attributes like adaptability, proactivity,
ORGANIZATIONAL MONOPOLY initiative, industry, and integrity.
● When an organization possesses intellectual ● Managerial, entrepreneurial, and competency
property assets, they have created a competitive asset skills include:
edge called organizational monopoly. - planning, organizing, delegating,
● By virtue of this so called monopoly of staffing, and monitoring skills;
ownership — - cutting-edge business expertise,
- The org solely enjoys the opportunities - critical and reliable business
to use this intellectual property, to intelligence,
optimize its worth, and enjoy the - “futuring” business outlook of the
benefits akin to it; environment; and competency skills
likes skills in communication, expertise
 in information technology, practical and - A company name that is well-known,
vocational qualifications, and other recognized, established, and reputable
allied abilities. significantly increases the financial
worth of an organization.
● Human-centered assets do not merely refer to - Repeat business is a by-product of
the presence of behaviorally mature employees customer loyalty.
or just having an atmosphere that is - Increased product and service sales
characterized by employee involvement and result from efficient and well-organized
collaborative teamwork. modes of bringing goods and services to
- Employees have high emotional the public.
quotient
- Synergistic interrelationships INFRASTRUCTURE ASSETS
- Commitment or a “sense of owning” is ● Infrastructure assets include positive
instilled in employees, organizational features like structure,
management philosophy, organizational culture,
HUMAN RESOURCE LEVERAGE high involvement practices, quality standards,
● Possession of human resource assets creates and technology that enable an organization to
both leverage and a competitive edge. establish its competitive advantage.
● An organization creates benefits from ownership - A lean organizational structure is
of these assets: considered an infrastructure asset when
- Organization with employees owning a flat framework is able to beneficially
remarkable expertise assets lessen bureaucracy, streamline job tasks,
- Good personal qualities and simplify mode of administration.
- Managerial, entrepreneurial, and - Organizational cultures vary in every
competency assets skill organization. Dynamic organizational
- Organizational human-centered assets cultures are characterized by the
following:
MARKETING ASSETS - Personal and organizational
● are results of market-related intangibles such as values that translate into
brands, company names, customer loyalty, unswerving beliefs and positive
repeat business, distribution channels, contracts, attitudes.
and agreements. - Interests and expectations of
- Brands are considered as effective members that are linked to
means to attain market supremacy. organizational goals while
- Apart from brand names, organizations pursuing personal objectives.
have their own company names. - Emotionally balanced
- Customer satisfaction is not considered intra-relationship of individuals
an intangible market asset. that are characterized by
- Having many distribution channels does self-confidence.
not automatically assure market control. - Organizational philosophies that
- Organizational alliances and linkages are zealously embodied;
need to be strategic and collaborative. management styles that are
genuinely participative and
MARKET DOMINANCE highly transformational; and
● The competitive edge or dominance brought ethical practices that are
about by market assets includes: observed to the highest
- An effective but less expensive medium standards without
for product and service identification. discrimination.
 - Managerial and functional work
practices typified by high involvement
reinforce competitiveness and are
further enhanced when the organization
faithfully adopts quality standards.
- Demonstration of high
involvement practices brings
into the organization both ASSETS MANAGEMENT STRATEGIES
internal and external fit. ● These assets are intellectual property assets,
- For managerial processes to be human resource assets, market assets and
considered infrastructure assets, infrastructure assets.
they need to be focused on ● 3 Distinct interrelated approaches:
effectiveness while functional
administration needs to be
purposefully geared toward
efficiency.
- Quality standards are today
being adopted by organizations.
- Technology, being the application of
knowledge, is broad in scope and
perspective.

COMPARATIVE ADVANTAGE Competency Learning; ‘ Laying the Groundwork”

● Possession of infrastructure assets brings about a ● Competency refers to the knowledge, attitudes,
comparative advantage to organizations. and skills expected of an individual in carrying
- A streamlined organizational structure out his job tasks.
makes communication between ● Aligned to organization vision and mission
management and employees easier ● Necessary tool for actualization of
- Organizational cultures aptly creates organizational plans and the implementation of
infrastructure advantage in many ways strategies
- High involvement work practices ● Inputs emphasis on evaluation, accountability
- Principal catalyst of change and performance
● Essential in attainment of optimum productivity
● Examples:of competencies are business
orientation, commitment to excellence,
analytical thinking, presentation, and
decision-making skills

.Classifying Competencies
 e. Empower employees to reach
sustainable self-development by
promoting valuable knowledge,
rewarding
Core competencies f. those who unselfishly share their
➔ are basic. They include all fundamental knowledge to others and to the
competencies expected of every organization.
employee. They are minimum g. Interact with experts who have proven
requirements set by the organization. their worth and expertise in their
For example, integrity is a core specialized fields.
competency. As a whole, rank-and-file h. Prepare programs for employees leading
employees are expected to possess core to attitudinal change.
competencies. i. Provide access to needed resources.
j. Broaden networking through strategic
Functional competencies alliances, which can come from within
➔ are expected of employees performing and from the outside.
job functions in marketing, production, k. Analyze cultures.
human resource, technology, and
finance. Possession of functional Competitive Innovations: “Creating Bargaining
competencies assumes having the core Power”
competencies. ● The term, “innovation”, is the best assurance in
achieving business sustainability, competitive
Managerial competencies advantage, and consequently, creating
➔ `are administrative and attitudinal in bargaining power. Innovation may refer to any
nature. of the following:
➔ They include competencies in planning, a. Creating, conceptualizing, or inventing
organizing, delegating, staffing, and new ideas.
monitoring, as well as people skills, b. Bringing a paradigm shift from the usual
leadership, and behavioral maturity. conservative mindset to that of
➔ Both functional and core competencies openness, willingness, aggressiveness,
are assumed to be minimum initiative, focus, and adaptability to
requirements for employees occupying needed changes in the context of
managerial positions. changing environmental and
organizational variables.
Strategic Enhancement: “Widening the Horizon” c. “Revolutionizing” a synergistic outlook
● Another facet of successful intellectual capital and willingness to invent a spectrum of
management “new perspectives,” unique insights and
● Ways of strategically enhancing and knowledge between and among
organizational memory-based system: organizational units and departments.
a. Maximize the reach of the
organization’s infrastructure technology. Innovation Scenarios
b. Corporate entities need to appreciate the 1. Differentiating existing products and services
business value of knowledge, 2. Reinventing products and services
information, and communication 3. Continuously experimenting.
technology. 4. Applying recent and new technologies in
c. Continuously conduct formal and information or communication that will
informal types of training. significantly change organizational structures
d. Systematize a process of enriching job and systems for optimality.
pathing of employees 5. Changing business models.
6. Creating new products and services to “futurize”
the organization.
7. Widening the breadth and depth of intellectual
capital found in individuals, teams, and
departments particularly, intellectual property
assets and ownership.