Question

In: Operations Management

Complimentary Investments in Management and Organization Part B: List 2 managerial complementary assets and explain the...

Complimentary Investments in Management and Organization

Part B: List 2 managerial complementary assets and explain the importance of each (Be specific). You may also use examples to support your answer.

Solutions

Expert Solution

Complementary assets can be defined as those assets which are required to create the value from a primary investment. For example:- investing in the information technology and providing the training to the manpower to use these resource effectively

The different types of complementary assets are as below:-

Organizational investments:- These are the assets which are mainly associated with the organization. The company can invest in creating the good business model or improving the existing processes to improve the efficiency and profitability. These kinds of assets are important as it will help the organization to overcome the defects, losses and redundant process and create the competitive advantage and have greater profitability and efficiency.

Example:-Suitable business model efficient business processes

Managerial investment:- These are the assets which are associated with the development of managerial competencies and are mainly related to the human resources. These kinds of investments are made to improve the skills and decision-making ability of the management.

Example:- Incentives for the management innovations, creating the environment of teamwork and collaboration


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