Intellectual Assets

In today's economy it is important to not only analyze how a company uses their tangible resources, but to look at how they manage their intellectual resources.  These intangible assets refer to human capital, social capital and networks, technology, and a variety of other loyalties and skills.  Often a company's market value can be much higher than their book value by a measure of these types of assets.  Since ABSOLUT is a member of the larger French organization Pernod Ricard, I will be examining how they manage different areas from employees to technology.

Attracting, Developing, and Retaining Human Capital
     With a wide variety of spirit brands and consumers, Pernod Ricard looks for a diverse range of employees.  Their underlying important qualities are laid out on the website as entrepreneurial spirit, mutual trust, and a sense of ethics.  They feel as advertising for this type of worker, they can find the perfect fit to their team.  There is a strong emphasis on creativity. 

     Pernod Ricard has a specialized focus on improving managerial leadership.  They have developed their own model that includes programs such as Pernod Ricard University, and iMove (an international collaboration).  It is through these processes that they train their employees to be the best they can be.  Their third initiative is iLead, which hopes to discover future leaders and helps them along the proper career path to attain their goals. 

     The final step comes in retaining good employees.  Pernod Ricard has a combination of stats available about rewarding individual behavior, and offering stock options.  With a high investment in training, 84.7% of employees receive a performance review annually.  This strategy helps Pernod Ricard keep a running tab on where their intellectual capital is, and how well they're working.

Intangible Intellect- Technology

     I have previously mentioned ABSOLUT's intangible assets including their brand and reputation, but there are even more.  With the world changing to one of mobile apps, ABSOLUT has jumped on the bandwagon with their app "Drinkspiration".  This program allows users to browse different drink recipes that use ABSOLUT products, all in the palm of their hand... for free.  By offering this service, consumers, the product is actually self-advertising itself.  Say someone is looking for a fruity mixer; they will be told which flavor of ABSOLUT would go well with their favorite juice.  This is a new innovative way to connect with customers and keep them coming back for more ideas. 

Overall ABSOLUT's strengths lay in their loyalty of buyers, the people who recognize the brand and know its true quality.  By staying true to this reputation and offering pure vodka, the newest tastes, and the consistency of 100 years, ABSOLUT has a steady competitive advantage.  It is important to watch their company for any discrepancies that may bring a negative opinion to their name, and at the same time continue to innovate their brand's product.