Gap IT Portfolio Asset Class And Business Value

Asset

Discuss about the Decision Criterion and Value of Information.

Software development skills have been involving in the global commodities of various companies in the market. The software management skill of the company has been an important part of the development of the organization in the market. This report deals with the IT related problems and business values of Gap. The problems related to the big data has been highlighted in the report with proper discussion.

The company has been integrated with an IT portfolio, which is able to maintain the risks and return of the company. The selection of the theory for the portfolio has been an important point in the context. The normative theory has been selected in the context (Barros, Van den Hof and Jansen 2016). The constructive portfolio has been a positive theory that helped in maintaining the inventory management. Investors are only subjected to accept the higher amount of risks in the investment. However, investors can borrow a higher amount of risks in case of high profit from the market. The selective securities in the risks and return policies have been implemented in the Gap.

Financial risk has been prevailing in the company for a long time. The historical evolution of the portfolio selection has been maintaining the essential aspect of risk. The total risk of a security has been divided into two components including systematic and unsystematic risk. In this case, Gap Inc. has valuable business value in the market with proper intangible assets. Investors are only subjected to accept higher amount of risks in the investment. However, investors can borrow higher amount of risks in case of high profit from the market. As commented by Campbell et al. (2015), systematic risk has been at macro-level of the company. It affects huge number of assets at a chance. However, generic economic conditions including inflation, unemployment and exchange rates of the products in the market. Unsystematic risk occurs at micro-level. Therefore, risk factors affect a single asset. However it involves risks that can be disconnected from the main stream of the company. However, unsystematic risk can reduce the diversification of securities within the portfolio.

As commented by Athey and Levin (2017), RBV is an approach for achieving competitive advantage in the market. However, it is feasible for exploiting external opportunities by using the external resources than using new skills for each opportunity. However, in RBV model, resources have been provided with various role in helping companies in achieving high performances. The two types of assets under RBV model are as follows:

Tangible assets: This assets are the physical things of the company. These assets include land, machinery, buildings and equipment. In this case, Gap has its physical assets that can be termed under the tangible assets. Physical resources can be purchased in the market that have helped in maintaining the revenue of the company. The use of the tangible assets have helped in following the physical importance of the assets.

Transactional asset

Intangible assets: As commented by Runge et al. (2017), intangible assets have no physical existence. In this case, the brand reputation, trademarks and intellectual property of the gap Inc are the intangible assets. These assets are important for the business value of the company.  The brand image of the company needs to be improved that helps in increasing the sales of the company in the market. The business value of the company is totally dependent on the intangible resources of the company. The use of intangible assets in the development of the company is maximum. The instinctual property of the company has been enhancing with the inventory management of the company (Basu and Meltzer 2018). These assets cannot be purchased from the market at any cost. These assets have to be earned by the company by providing their best performance in the market. In this case, Gap Inc has valuable business value in the market with proper intangible assets. Investors are only subjected to accept higher amount of risks in the investment. However, investors can borrow higher amount of risks in case of high profit from the market.

According to me, these values and resources are capable of adding value to the business of the Gap. The use of both tangible and intangible assets might help in maintaining the development of the company in the market (Cisneros-Montemayor 2017). The tangible assets of the company include land, buildings, warehouse, and machinery might help in providing a proper architecture of the company. This might help in providing a basic infrastructure of the company. These assets help in attracting customers physically to the company. The use of the tangible assets have been important in the market the building if the company needs to well maintained that helps in attracting the customers of the company,  the building and other tangible assets need to be properly furnished that helps in providing an edge to the value of the business.

The intangible assets help in maintaining the brand value of the business. Proper quality of products and services of the company in the market helps in maintaining the brand image if the company, The brand value of the company totally depends upon the satisfaction level of the customers in the market (Kim et al. 2017). The brand value of the company has been good in the market. This might help to increase the sales of the company in the market. The Google Analytics help in increasing the advertisement of the company over the internet. Internet marketing helps in increasing the speed of marketing process in the market. Internet market helps in attracting a huge number of customers to the market. 

Conclusion

It can be concluded that the Gap Inc has been able to maintain the brand value in the market.  The issues in the Big data has been identified in the market.  Different assets if the company have been discussed in the report. The use of the assets in improving business value in the market has been discussed. The use of different aspects of the risks and return policy has been explained. The selection of T portfolio in the analysis the risks have been provided in the report. The use of different technologies for analyzing several assets of the company have been done. The list if the resources based on the RBV model have been provided at the end of the report. A reflective analysis has been done in order to understand the impact of the assets on the business value of the company in the market. The use if the tangible and intangible assets of the company have been discussed.

References

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Athey, S. and Levin, J., 2017. The value of information in monotone decision problems. Research in Economics.

Barros, E.G.D., Van den Hof, P.M.J. and Jansen, J.D., 2016. Value of information in closed-loop reservoir management. Computational Geosciences, 20(3), pp.737-749.

Basu, A. and Meltzer, D., 2018. Decision Criterion and Value of Information Analysis: Optimal Aspirin Dosage for Secondary Prevention of Cardiovascular Events. Medical Decision Making, p.27

Campbell, J.D., McQueen, R.B., Libby, A.M., Spackman, D.E., Carlson, J.J. and Briggs, A., 2015. Cost-effectiveness uncertainty analysis methods: a comparison of one-way sensitivity, analysis of covariance, and an expected value of partial perfect information. Medical Decision Making, 35(5), pp.596-607.

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Cisneros-Montemayor, A., 2017. The Value of Information for Fisheries Policy (a half-baked idea).

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Kim, D., Brown, Z., Anderson, R., Mutero, C., Miranda, M.L., Wiener, J. and Kramer, R., 2017. The Value of Information in Decision?Analytic Modeling for Malaria Vector Control in East Africa. Risk Analysis, 37(2), pp.231-244.

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