Intellectual Capital Comparison Paper
Intellectual capital is the combined knowledge of employees within an organization (Intellectual, 2013). This knowledge is to add value to the organization in ways such as increase profits, provide products or services to customers, gain competitive advantage, improve processes, or other types of capital. This paper will show five different types of intellectual capital that adds value to an organization. It will provide examples of each intellectual capital, whether that capital is identifiable or unidentifiable as an asset, and how each provides value to the organization. The first intellectual capital to discuss is customer capital. Customer capital is the relationship the organization builds and maintains with its customers (Customer, 2013). The customer capital relationships reflects the customer’s loyalty to the organizations products or services it provides. For example, like most CPG (Consumer Packaged Goods) companies, toilette paper has weak brand loyalty that reflects in lower customer capital (Stealings, 2010). This is because the main market leaders in toilette paper promise and provide customer the same amount of softness, discounts, and coupons, which leads to brand switching. Customer capital is not an identifiable asset in an organizations balance sheet or other financial statements. The potential value of customer capital to an organization is that with increase brand loyalty, there is increase in volume sales and revenue. The second intellectual capital to discuss is human capital. Human capital is the combined knowledge, experiences, and skills of the organizations employees (Human, 2013). Organizations rely on its human capital not only to get the work done but also to contribute to the organizations growth through creativity and innovation within a competitive market. For example, Apple is known for hiring talented and creative people, such as Steve Jobs, for with his vision and intellect catapults...
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