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 goodwill while making the business strategies. The major strategy of the business to compete in the global market is to adopt the low cost strategy that causes an increase in its cost leadership in the industry. It also increases goodwill of the business as it provides high quality products with lower amount of cost. In order to enhance the effectiveness of goodwill it also uses different type of strategies in different types of market segments.
The green supply chain management strategy of the business is one of the important examples of the involvement of goodwill in making business strategy. The facilitation of the green logistic technologies in supply chain network is one of the unsustainable initiatives of Wal-Mart (Heying & Sanzero, 2009). It also includes the strategy of establishing discount stores at various locations across the globe that also increases the goodwill of the company. The goodwill is also an important factor in making the global strategies of the business.
Process – The process in a business is helpful to determine the business effectiveness. A business includes various types of processes. The supply chain process, change processes, manufacturing process are the some important processes that are...