Strategic assets are holdings that give a company leverage or business advantage, such as financial resources, human capital, and network. They can be obtained through internally generated funds, equity investments, and skilled personnel.
Strategic assets refer to those holdings of a company that give it some form of leverage or business advantage. The benefit of strategic assets could be in the form of its value as a form of competitive advantage, or it could be in the form of other identified benefits that enhance the profile of the business and provide a stepping stone that can be used to achieve greater sales and strategic positioning in the field. These strategic assets are unique to the industry, market, and society under consideration due to the fact that labor factors in various industries present different challenges for businesses. Thus, strategic assets could include the financial resources available to the firm, the human capital that the firm possesses, the firm’s network in terms of physical presence and reach in different corners of the globe, and the existence of an effective supply and distribution structures.
A company’s financial strength is an important strategic asset as access to such funds opens the door for the company to engage in growth related activities which include the purchase of new plant and machinery, construction projects aimed at the company’s view in terms of capital growth and other related factors. This particular strategic resource can be obtained through internally generated funds from the sale of shares, through the issuance of bonds or through equity investments. Companies that lack adequate funding often face financial obstacles in their quest for expansion due to a lack of resources with which to carry out any expansion plans.
Another inclusion in the company’s strategic resources is the position of stellar human capital in the form of highly skilled and educated personnel. The reason this is such an important strategic asset is because such gifted employees can serve as the engine that will propel the company to greater growth. This is in contrast to those companies that lack educated and motivated employees who will bring their skills and wealth of experience to the company. Corporate strategic resources also refer to the reach of the company or business in terms of influence in the specific industry or global business world. This influence can be converted into a form of strategic asset that benefits the company.
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