Expanding the business Essay
Finding Hidden Assets to Renew the Core and Fuel Profitable Growth book advises managers to be all-rounded in financial auditing. Managers should also be experts in determining the assets which have been undervalued, underutilized, or even unrecognized so that they can ensure sustainable growth for their companies (Zook, 2007). This book also enlightens readers to recognize the opportune time of reinventing the core as well as deploying hidden assets that can be used as the basis for future growth of the firm.
Moreover, it informs readers to be careful while handling the assets of the organization since businesses face global competition. In addition, the future of the organization remains uncertain unless fundamental changes are promptly made. Good strategies should also be devised for the prosperity of the organization. Zook’s book tells executives about the need of focusing on organic growth of businesses by looking deep within the niches of their companies to identify undervalued assets.
Moreover, executives are advised on the importance of reinventing the core of their businesses as evolving technology is making strategies to become obsolete faster than before. The book also shows the disadvantage of undervaluing an asset because analysts will recommend a high buying rate for an underestimated
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Identifying undervalued assets can help me to determine the right value of the assets so that I can procure the right insurance cover of those assets as well as determine or understand business strengths. After I have known the underutilized and undervalued assets and correctly valued them, I can use this information for financial analysis. After I have clearly identified underutilized and unrecognized assets, I can use those as a source of revenue by selling them and buying new assets which comply with the current technology.
This can make the company to start producing at low cost, thus increasing its profitability. I can also use the underutilized assets as well as the unrecognized assets to expand the size of production. This will lead to more production, thus increasing the total sales. The profits of the organization will thus increase. Knowing all the assets of the organization and valuing them correctly can help me to properly shield them via insurance cover. Moreover, in case any insured risk happens, the business will be on the safe side since the insurance company will have to compensate the firm for the loss of the assets.
Understanding the importance of the corporate life of a company will ensure that all company assets are well insured so that the organization can have a free business atmosphere to trade in. I can rate this book as scooping position nine out of ten. This is because it has proper explanations on the importance of understanding all the assets in an organization as well as how to cover them with insurance so as to be assured of business life in the future. References Zook, Chris. (2007). Unstoppable: Finding hidden assets to renew the core and fuel profitable growth. Boston, MA: Harvard Business School Press.