Capital Management Tool Research Articles

Intellectual capital management in a South African retail company

The status of the measurement and interpretation of intangible assets within a retail company in South Africa, and more specifically the JD Group as a furniture retailer, was determined. Different aspects of intellectual capital, that is, human capital, structural capital and customer capital and the value that could be derived to aid companies in the retail industry, were investigated. The spectrum of intellectual capital management tools was investigated and four methods of measuring intellectual capital were identified. Scorecard models were identified as the most appropriate method to use in a retail company in South Africa based on the following characteristics: Monitoring of performance, reporting to stakeholders and uncovering of hidden value. The extent to which intangible assets contribute value, how this contribution can be measured through the use of intellectual capital management tools and what the status of such measurement is in retail companies were explored. Strategy-focused interventions within the intangible assets arena were investigated. These interventions focused on those areas that would contribute to the strategic alignment of leadership, culture and technology within a retail group's strategy.