The role of tangible and intangible resources for competing in fast-paced technology markets - Essay Example

Strategic Management: Critically evaluate the role of tangible and intangible resources for competing in fast-paced technology markets Introduction There are different types of markets for different products. Some goods and services need to be updated with the latest technologies. These are goods and services in the fast-paced technology markets. It should be understood that this does not mean that these are markets for technological goods and services. For instance, coal may need more technology in extraction, processing, and analysis while a computer will not need any technology since it has become a common figure in the market. The success of a business in the fast-paced technology markets will be determined by the resources the business or company has. Resources can be either tangible or intangible. The latter are necessary as they play different roles in the fast-paced technology markets. Before looking at the roles of the tangible and intangible resources, there is the need to analyze in order to understand them (Whetten & Cameron, 2007). Tangible Resources Tangible resources are the physical or material goods that can be perceived by senses. They are easy to evaluate as they can be converted to other forms through some financial transactions. Some of these resources are raw materials, stocks, machines, money, land, and furniture. Balance sheets are usually used to strategically provide relevant information, under or overvalue resources. Some roles are played by the resources that a business venturing in the fast-paced technology markets cannot do without. This will be discussed in the course of this paper (Shane, 2002; Stewart, 2001; Armstrong, 2011). Intangible Resources Intangible resources are resources that cannot be seen physically but are links to the physical resources. In any business, intangible resources are more valuable than the tangible resources. They are invisible. Intangible resources are made up of the differences which are usually indicated in balance sheets of different companies. They will account for the under and overvaluations (Vallabhaneni, 2009). Examples of intangible resources are operative processes, capacities, abilities, innovations, technology, databases, science or technical expertise, and relations with the clients. Intangible resources are usually controlled though four perspectives. These include learning and growth, internal process, customer, and financial. When the latter four perspectives are keenly monitored, then the business will be able to survive in the competitive markets (Robbie & Wright, 1997; Shane, 2002). Role of Tangible Resources In the fast-paced technology markets, tangible resources have some roles they play. Their role is however less compared to the role that is played by the intangible resources. The idea is that the two different types of resources are dependent on each other thus success of one may result to success of the other (Beard & Wilson, 2001; Berry, 2004; Boone & Kurtz, 2011). Profits The first role that tangible resources play is making of profits. The stock and other materials that are converted to cash form are essential in making of profits. These are essential in making the business to stand. In the fast-paced technology markets, profits are not easily made. It is usually hard due to the changes and competition. When a company is left behind with a single step, it becomes hard to make profits. Profits will be made with the help of some internal activities like branding and pricing. There is a need to do marketing research occasionally in order to analyze the objectives and situations of competitors. This will help in pricing so that they can make maximum profits (Wagner, 2001; Caproni, 2005; Cress, 2010). The aim of any business is usually to make profits. The output is supposed to be high than the input so that profits are made. In these markets, this will be enhanced by some tangible resources like raw materials and stocks. When there is sufficiency in raw materials, it will be easy to ensure that there is enough stock in place. This is the only way that profits will be made to the maximum. When there are huge profits, a company will be in a position to grow as it can begin investing in other tangible resources like land and machinery (Shane, 2002; Djellal & Galloui, 2008). Security In any business, there is usually the need for security so that the business is not risky to some challenges that arise. Tangible resources are very crucial in the fast-paced technology markets for security purposes (Welch, 2001). In these markets, it is usually risky to invest thus a business will have to have its securities. In a case where a business has made investments in some tangible assets like land and machinery, it will be secure at times when there are crisis in the markets. The success of a business enterprise is highly dependent on its level of security. In addition, a business with security will be in a position to venture into the fast-paced technology markets with a lot of curiosity. This is the only way that they will ensure that they make maximum profits (Enz, 2009; Fisher, Ury & Patton, 2003). It has been proved that a business with security is likely to be strong. It will perform exemplary good in the stiff competition. This case is in the fast-paced technology markets. The competition will be stiff but a company that has a proper measure of security in relation to a variety of tangible resources will be strong in the struggle. They will have the power to do any changes that are required in the shortest time possible since they have enough security for that (Stewart, 2001). Diversification Berry (2004) reveals that another role of tangible resources is diversification. Diversification is very crucial in any business. The main reason is that when one asset does not perform, the others will support the business thus ensuring that there is no single point where the business will make total losses. In a fast-paced technology markets, there is usually a need to invest in a summary of assets. This is usually enabled by the tangible resources that a company has (Fisher, Ury & Patton, 2003). When a company invests in a variety of tangible resources, then it will have diversified its goods and services so that the products can back up each. This is the only way that a business will be in a position to remain strong in the fast-paced technology markets. With more research, the business will also be in a position to incorporate all the new technologies meaning that they will have diverse products in the market (Gehani, 1998; Gillespie et.al., 2010). Effective Marketing Marketing is a crucial concept in the fast-paced technology markets. Tangible resources will help in effective marketing. When there are enough tangible resources in place, it will be easy for the company to do marketing. Since there is security, the business will be ready to do massive marketing for their goods and services (Hoskisson, Hitt & Ireland, 2008). The company will acquire more knowledge and techniques of marketing in the event that it ventures into intensive and extensive marketing. The knowledge got can be used together with other intangible resources to make the performance of the business exemplary good. A business that has less tangible resources is likely to do ineffective marketing as compared to one with a good variety of tangible resources (Shane, 2002). Customer Satisfaction The main goal of any business is customer satisfaction. This is usually a hard task more so in the fast-paced technology markets where competition is high. In these markets, different companies will come up with their own styles of products from which the customers will get the best. There is no possible guarantee that the finished products of any particular company will be accepted positively by the customers. At times, a company may do its best thinking that their products will be the best in the market but they find out that this is not the case (International Labor Office, 2008; Ingram, Lafarge & Avila, 2008). Tangible resources play a key role in customer satisfaction. When there are wide ranges of these resources, then customers will exercise their freedom of choice. Through this, a company will be able to compete with others effectively as they will be sure that one of their tangible resources will have to impress their respective customers. For a business that has only one product as a tangible resource, it becomes tricky since it is not apparent that customers will accept it. If it is not accepted, then the company may be in a total mess without knowing what to strategize on next since they will be even lacking the funds to strategize (Klopper, 2006). Production In production, the tangible resources play a critical role. A good example is machinery. Without effective machinery in place, a company or any business establishment cannot stand firm in the fast-paced technology markets. A company that has modern machinery is likely to be easily accepted in the market as compared to one that is equipped with traditional machinery. The machinery will also determine the workload of the workers. If the machines are automated, then it is most likely that the workload will be less. This may even less number of workers that will result to huge profits to the business, as they will have only the right number of workers. This will help greatly in the growth of a company. According Stewart (2001) a company will face fewer challenges in the market as long as it efficiently uses its tangible resources for production. Production will also be effective when there is an adequate supply of raw materials. Sufficient raw materials at the disposal of a particular company mean that it can easily meet the demand from its target consumers in the markets. This is usually the input and it will count for the profits that will be obtained. Therefore, raw materials will be used in drawing financial sheets that will be necessary for accountability and transparency. The quality and quantity of raw materials are, therefore, required in businesses. The raw materials will also account for other tangible resources like stock. When the raw materials are adequate, then it is apparent that the store will have enough stock at any given time. This will ensure that the business meets all the needs of customers in the fast-paced technology markets where the demand of a commodity can go beyond the imagination. When a commodity is accepted and appreciated in these markets, the demand can be very high thus; a business will take advantage of this before others come into the market. It is a type of seasonal demand that tangible resources will determine a lot about the achievements of the business (Robbie & Wright, 1997; Shane, 2002). Role of Intangible Resources Innovations and Radical Changes Innovations and changes are very crucial in the fast-paced technology markets. Technology in the world is changing at the speed of lighting (Boone & Kurtz, 2011). A business must, therefore, be innovative and ready to make immediate changes where necessary. This is usually achieved by the help of the intangible resources. Innovations and changes are achieved through research and development (R & D). The company has to be involved in intensive and extensive research to help in its development. Innovations in the company will help in making the working conditions of the workers better (Lamb, Hair & McDaniel, 2011). Through research, the company will always find new and better ways of handling issues that affect the business establishment. This may mean automation of machines or some changes that will help to reduce the workload. This will benefit both customers and the business (White & Patton, 2002). The abilities of the workers will be exploited to the fullest when they are involved in some innovations. It ensures that they are more skilled and comfortable in the work environment. In the fast-paced technology markets, the workers efforts will determine a lot about the success of the business. With research, developments will be established to make sure that the business stands firm in the competitive markets. This is the only way through which a business will make profits and improving the working conditions of the workers as well (Lee-Davie, 2007; Mohr, Sengupta & Slatter, 2009). Customer Satisfaction Intangible resources play a key role in monitoring the needs of customers. This will be crucial for the company to make the necessary changes so that it may cater for all needs of the customers. In the fast-paced technology markets, the needs of the customers will change randomly due to technological changes. It will, therefore, require the business to compare notes with its competitors in addition to doing market analysis so that customer needs can be identified (Mondschein, 2009). Customer satisfaction will be achieved through market analysis. This will require some tangible resources to collect the data and interpret it. A market analysis carried out and interpreted with prowess will be an advantage to the business. It will make sure that most of the customers’ needs are met and in good time (Robbie & Wright, 1997; Shane, 2002). Financial Analysis and Monitoring Although tangible resources are the ones that are analyzed financially, intangible resources that have no financial value are used to value the tangible resources. Woodall (2000) asserts that it requires a lot of skill and techniques to do financial calculations in a business. In the fast-paced technology markets, there is the need for accuracy in accounting. This is because a business may incur huge losses when it lacks a good basis for financial analysis. Databases are used to undertake the recordings of all transactions in the business. This is crucial to set future strategies of the business. Planning becomes easy when a business has a good criterion of doing financial calculations (Enz, 2009; Armstrong, 2011). A business needs to monitor its progress financially. This is usually achieved through the tangible resources. In the fast-paced technology markets, a business must be keen to monitor its progress by analyzing the input and output. This is crucial to ensure that the business owners do not end up in regrets as many businesses that have ventured into these markets have did. Many people will think that it is quick to make huge profits in these markets but there is usually need to consider that it is very easy to make huge losses at the same time. Therefore, there is a need of monitoring of all the transactions so that the necessary changes are implemented (Pedlar, Burgo & Boydell, 2000). Investments In any business, there is a need of investing in various products or services. To determine the investments that a business will do it is usually necessary to make use of intangible resources. In the fast-paced technology markets, a small mistake in investments may account a lot. There is, therefore, a need to do research in order to find the right ways of investing (International Labor Office, 2008; Pride, Hughes & Kapoor, 2009). Experience may be used to find the best ways of investing. In addition, the business may analyze the objectives of their competitors in order to find the best ways of investing. It requires time and skill to do the latter (Birn, 2004). When quick decisions of investing are made, it may be costly to the business when they later discover that they had invested in the wrong things. In these markets, turning back may not be easy thus; the best ways to handle investments is to handle and accord them the seriousness deserved (Lee-Davies, 2007). For instance, a company in Japan invested a lot in 2G phones and then within a short period, the market was flocked with 3G phones. It became challenging to benefit from the 2G phones since the 3G phones depleted their markets. Therefore, there is the need to analyze the objectives of the competitors and changes in the technological markets so that one can make wise and timely investments. This will be achieved through intangible resources (Cress, 2010; Beard & Wilson, 2001). Internal Organization The internal organization of any business counts a lot if the business is to succeed in the fast-paced technology markets. Intangible resources are crucial in making the organizational structure and monitoring it. Unless an organizational structure is monitored, the behaviour and relations of the workers may affect the success of the business (Klopper, 2006; Gehani, 1998). There is a need to use experience and knowledge to draw an effective organization structure. This should ensure that the workers in the organization are focused towards the success of the business (Robbins and Judge, 2010). This should be achieved by ensuring that the position that is held by every worker is respected and all the workers depend on one another. This organizational behaviour is required for businesses that want to prosper in the fast-paced technology markets. A small failure in the organizational structure may count a lot. There is a need to monitor how the relations of the workers are. This can be done through the use of some tools for instance data-collection techniques (Caproni, 2005). Apart from the internal organization, the intangible resources account for the relations with clients. When the internal organization of a business is superb, then it is ultimately that relations with the clients will be strong thus accounting for the success of the business (Lee-Davie, 2007; Enz, 2009). Conclusion and Summary The success of any business in the fast-paced technology markets is determined by the tangible and intangible resources it has. A fast-paced technology markets is characterized by stiff competition and radical changes in the market structure. This is to mean that the markets are not guaranteed to be profitable thus; there is the need to maintain the structure of the markets. This is usually achieved through the tangible and intangible resources. The latter resources are depend on one another for the business’ success. Vidle (2001) advises that tangible resources are crucial in making of profits. They have real value as they can be converted into cash form. When a business has adequate products to satisfy the demand in the markets then it will make huge profits. Tangible resources are also crucial in the production. In these, we account for the raw materials and machinery used in production. Tangible resources are also fundamental in securing a business. A business with a variety of securities will be in a position to expand its markets and at the end; they will satisfy the needs of the customers. They will also be in a position to diversify their products that is also a way of securing a business. Intangible resources play key roles than the tangible resources. To achieve the roles that are played by the tangible resources, the intangible ones should also be considered (Seglin, 2003). The two aspects play a fundamental role in relation to the skills, art, and science required to meet the needs of the customers. They are required in the areas of investments, innovations, and implementation of changes. There is the need for intangible resources to maintain the organization of a business and monitor the organization. This will extend to the clients so that there are good relations with customers. In financial analysis, intangible resources will be needed. References Armstrong, M, 2011, How to Manage People: Handle People Problems; Motivate Staff; Boost Your Performance, London: Kogan Page Publishers. 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